The Kellogg Company is the world's leading producer of cereal and one of the leaders in the production of convenience foods. The company reported sales of nearly $11 billion for 2006; sales revenue has steadily risen over the last decade. Kellogg's products are made in seventeen countries and are sold in more than 180 countries. According to the company website, “Kellogg Company has a rich history of corporate social responsibility, a history that has grown and evolved to meet the complexities of today's business world and the challenges of a global society” (Yankelovich, 2001, 96). Kellogg has made it clear that the company was founded with a strong commitment to social responsibility and is proud of the progress that has been made since its creation in 1906.
How much cereal do you eat? Who makes most of it? The British are almost the biggest consumers of cereal in the world, second only to Ireland. Kellogg is the prominent player in the world of breakfast and produces more than three out of every ten packets eaten in the UK. The company manufactures and markets ready-to-eat cereals (i.e. not hot cereals like porridge) and nutritious snacks such as cereal bars. Kellogg has 42% value share of the market for ready-to-eat cereals in the UK - a market that is worth \u00a31 billion at retail sales value.
This makes Kellogg the market leader in this sector. Markets are divided into market segments and there are six key segments to the Kellogg market, as shown on the diagram:
Tasty Start - the cereals that most people will eat to begin their day. Kellogg's brands include Kellogg's Corn Flakes and variations, such as Kellogg's Crunchy Nut.
Simply Wholesome. These are 'good for you' brands, such as Kellogg's Fruit 'n' Fibre, Alpen and Kellogg's Just Right.
Shape Management. Brands that can enable customers to manage their weight or shape, such as Kellogg's Special K andFitn esse.
Mum Approved. Those that mothers see as being good for their children, such as Kellogg's Rice Krispies andS hred d ies.
Kid Preferred. The brands that children themselves prefer, such as Kellogg'sFro s ties , Kellogg's Coco Pops andWe et os.
Inner Health. These are the brands that help people with digestion, such as Kellogg's All-Bran and own-label Bran Flakes
Answer 2)
There are two reasons for promotion. It:
lets consumers know about products and services
tries to encourage consumers to purchase the product or service, often by telling them about the benefits they will gain.
Promotion is just one element of the marketing mix, known as the 'four Ps'.
These stand for:
Price
Product
Promotion
Place
A marketing mix means that the business must have a high-quality product, for sale at a price that is reasonable and at places where people can easily buy it. Promotion informs customers about the product and tries to encourage them to buy. Methods of promotion include advertising, public relations, value-added offers (e.g. three-for-two promotions or buy-one-get-one-free), price reductions, free gifts, coupons, loyalty rewards and point-of sale ...