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Kellogg's to Shanghai

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Kellogg's to Shanghai
International Business Plan
KELLOGG Co.
Breakfast Cereal
Shanghai, China

Mark Ibarra- 100780001
Ruoshen Liang- 100797198
Teja Ricalis- 100750022
NgocSuong Tran- 100686541
GuoJun Yang- 100670261

George Brown College
International Business- MGMT1018
Anu Harder

TABLE OF CONTENTS

Section Page Number

Executive Summary 3
Research Plan 5
Relevance, Reliability and Currency of Data Collected 6
Market Intelligence 7
Competitive Intelligence 14
Strategic Marketing Plan 15
Conclusion and Action Plan 18
Appendix 1.1- Domestic Political Risk in Asia Graph 21
Appendix 1.2- Variables and Grades Used to Compute Domestic Political Risks 22
Appendix 2.1- External Political Risks Graph 23
Appendix 2.2- Variables and Grades Used to Compute External Political Risks 24
Appendix 3.1- Systematic Risks Graph 25
Appendix 3.2- Variables and Grades Used to Compute Systematic Risks 26
Appendix 4- Ease of Doing Business in the BRIC Countries 26
Appendix 5- Kellogg’s Cereal Ad 27
Appendix 6- GDP Growth Rate in China’s Municipalities in 2012 Graph 27
Appendix 7- Average Disposable Income of Chinese Cities Graph 28
Appendix 8- Map of China’s Population 28

Executive Summary

The purpose of this report is to provide a marketing analysis of the exporting of Kellogg’s breakfast cereal to Shanghai, China. From our research, we have found that China is an appropriate country to export to as it is expected to become the largest food and beverage market within the next 5 years.1 The Chinese cereal market is expected to reach $225.4 million, which is more than double from 5 years ago.2 Research also draws attention to the fact that consumers in China are becoming increasingly health conscious and therefore Kellogg’s whole grain cereals would be an excellent product to



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