Market Analysis Of Kellogg S

Topics: Marketing, Strategic management, John Harvey Kellogg Pages: 10 (2179 words) Published: February 7, 2015


Table of Contents
Introduction2
Marketing Mix and Market Trends2
Market Segments and Opportunities3
Customer Purchase Decision Making4
Competitor Analysis5
SWOT Analysis5
Reflections & Conclusions7
References8

Introduction
Kellogg’s is a food manufacturing company that was incorporated in 1906 as Battle Creek Toasted Corn Flake Company. Over the 100 years growth and development, it is now a public company listed on the New York Stock Exchange, and well known by millions of customers. Its line of product includes the breakfast cereal, frozen specialty food, and commercial bakeries such as cookies and crackers. It also owns a variety of brands to target different groups of consumers. (“Kellogg Company - Company Profile, Information, Business Description, History, Background Information on Kellogg Company”, n.d.). By using Kellogg’s 2013 annual report and its 2014 third quarter financial results and various other articles, the purpose of this report is to analyse Kellogg’s market mix, identify its market segments based on SWOT analysis. It also seeks to illustrate the customer purchase decision-making process, and to compare with Kellogg’s major competitor, Nestlé, in the market. Marketing Mix and Market Trends

Following two years of slow or negative growth, breakfast cereal had 5% value growth in 2013 whilst volume grew by 4% (“Breakfast in Australia”, 2014). A report made by the national-wide project, CensusAtSchool, which collects real data relevant to students has shown that in Australia, 1 in 7 children starts the day without breakfast. (Australia Bureau of statistics, 2013). The value growth above could be explained by the fact that whilst some customers are not having breakfast, some others are willing to spend more on it. Another report shows that the cereal, pasta and baking mix manufacturing industry has grown slightly during the past five years, and industry revenue is forecasted to increase by 1.1% annually through 2013-2014. This includes a forecast increase of 1.5% to $2.6 billion in 2013-2014 (“Cereal, Pasta and Baking Mix Manufacturing in Australia: Market Research Report”, 2014). Base on the above data, Kellogg (Australia) Pty Ltd remains the largest player in breakfast cereals in Australia with a dominating 38% market share in 2013 (“Breakfast in Australia”, 2014). Kellogg Australia Holdings Pty Ltd is the proprietary company that was ranked 724 of the top 2000 companies in Australia. In 2013 the company received total revenue of $481,765,000 including sales and other incomes (“Kellogg Australia Holdings Pty Ltd – Premium Company Report Australia”, 2014). For the cereal products geographical distribution, they tend to be focus on and along the eastern coastline of the Australia mainland. New South Wales, Queensland and Victoria are estimated to account for approximately 80% of all industry establishments (“Cereal, Pasta and Baking Mix Manufacturing in Australia: Market Research Report”, 2014). Market Segments and Opportunities

Due to the fact that the resource is limited, many organisations would engage in a market by way of dividing market segments and creating different products to suit for the differentiation by exploiting these segments. It is important for a company to set up a market segment and identify the appropriate targeting strategy. Segmentation could split potential customers or organisations into groups with the similar need, for which the company creates and maintains a marketing mix designed for their special needs (Pride, W., Ferrel, OC, Lukas, B., Shembri, S. and Outi, N., 2012). In Kellogg’s, it targets its market at different segments depending on the product. It differentiates its star product – cereal, into varieties of specific brands with formulas targeting specific groups of customers. For example, Kellogg’s Frosties are focused on children with the multicolour package; the Special K is targeted at female costumers, as the result of Kellogg’s...

References: Pride, W., Ferrel, OC, Lukas, B., Shembri, S. and Outi, N. (2012) Marketing Principles. Asia Pacific Edition, Cengage Australia, ISBN: 97880170190862
Kellogg Company 2014 Third Quarter Financial Results (2014, Oct)
Kellogg Company 2013 Annual Report Fiscal Year End: December 28, 2013, (2013, Dec). Retrieved from http://investor.kelloggs.com/files/doc_financials/ annual_reports/K_2013_10-K%20with%20supplement.pdf
Breakfast in Australia (2014, Feb)
Our History, retrieved from http://www.kelloggs.com.au/en_AU/our-history.html
Katherine Mulhall, Kellogg’s Market Research, 2011
Nestlé’s Annual Report 2013 (2014, Feb). Retrieved from http://www.Nestlé.com /asset- library/documents/library/documents/annual_reports/2013-annual-report-en.pdf
Jim Makos (2014, Oct)
Child Labour and Slavery in the Chocolate Industry (2014). In Food Empowerment Project. Retrieved from http://www.foodispower.org/slavery-chocolate/
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