1. Evaluation of Strategy
Kellogg’s
Presented By: Group 2

2. About Kellogg’s
 Established in 1906
 W.K. Kellogg
 Creator of the first-ever breakfast cereal
 Multinational food manufacturing company headquartered
in Battle Creek, Michigan, United States
 Manufactured in 18 countries and marketed in more than
180 countries
 42% market share

3. Vision & Mission
Vision: To enrich and delight through foods
and brands that matter
Mission: Nourishing families so they can
flourish and thrive

4. Vision & Mission
 Goals
 To reinforce the importance of a balanced lifestyle so
its consumers understand how a balanced diet and
exercise can improve their lives.
 To demonstrate Corporate Responsibility & develop
the business responsibly and in a way that was
sensitive to all of Kellogg's consumers' needs

5. Business Level Strategy
High
Focused
Differentiation
Differentiation
Differentiation
Increased
Utility or Value
Hybrid Price/
Standard
Bowman’s Product
Strategy Increased
Low Price Clock Price/
Low
Value
Low Value/
Low Price /
Standard
Low Value
Price
Low
Low Price High

6. Business Level Strategy
 Blue Ocean Strategy
Create and capture new demand through product
innovations
Distinct market space: health conscious consumers
Constantly increasing market share

7. Business Level Strategy
Product
Existing New
Market
Existing Product
Market Penetration
Development
Segment
Market Product
New
Development Proliferation

8. Corporate Level Strategy
Related Diversification Horizontal Integration
Cereal Fruit Beverages Waffles,
Flavored Pancakes &
Bars Snacks Crackers Toaster Syrups
Pastries

9. Corporate Level Strategy
Global Strategy
Pressure for local Responsiveness
Low High
International Localization
Low
Pressure for cost Strategy Strategy
reduction Global Transnational
High
Standardization Strategy

10. Corporate Level Strategy
BCG Matrix
 Invest in new
product
development
 Invest in
promotions

11. Strategy Execution
 Strategy
To widen the consumer base by encouraging
consumers to adopt a healthy lifestyle by creating
a balance between nutritious food and physical
activity thus, capturing a greater market share
3 Years

12. Strategy Execution
• To encourage and support physical activity among all
Tactic I sectors of the population
• Kellogg has supplied a free pedometer through an offer
on All-Bran so that individuals can measure their daily
Action 1 steps
• Promotion for a free cyclometer
Action 2
During 2006 more than 675,000 pedometers were
claimed by consumers

13. Strategy Execution
• To use resources to sponsor activities and run physical
activity focused community programmes for its
Tactic II consumers and the public in general
• Became the main sponsor of swimming in Britain
Action 1
• Sponsors the ASA Awards Scheme with more than 1.8
Action 2 million awards presented to swimmers each year

14. Strategy Execution
• To increase the association between Kellogg and
Tactic III physical activity
• Kellogg's Corn Flakes Great Walk raised more than
Action 1 £1 million pounds for charity
• In 2004, 630,000 people took part in the Special K
Action 2 10,000 Step Challenge

15. Strategy Execution
• To use the cereal packs to communicate the
Tactic IV 'balance' message to consumers
• Uses cartoon characters of Jack & Aimee to
Action 1 emphasise the need to 'Get the Balance Right‘
• Characters used on the back of cereal packs
Action 2

16. Strategy Execution
• To introduce food labelling that would enable
consumers to make decisions about the right
Tactic V balance of food
• Introduced the Kellogg's GDAs to its packaging,
showing the recommended Guideline Daily
Action 1 Amounts

17. Strategy Execution
• To run community programs
Tactic VI
• Kellogg's Active Living Fund encourages voluntary
groups to run physical activity projects for their
Action 1 members
• Invested more than £500,000 to help national
learning charity ContinYou to develop nationwide
Action 2 breakfast clubs
• Breakfast Club Plus website, the Kellogg's National Breakfast
Action 3 Club Awards and the Breakfast Movers essential guide

18. Extending Product Life Cycle
Nutri Grain
•Launched Enjoyed
in 1997 Competitors
steady Sales were
•Gained launched
growth till Mid 2004, falling, the
50% of similar
2002 – from sales product was
cereal bar product –
‘breakfast declined by in decline
market slowed
cereal’ to 15% and losing
share in 2 sales (2003
‘all day its position.
years – 04)
snack

19. The Verdict
 Increased awareness amongst consumers
 Consumers switched from other breakfast options
to cereals
 Consumers switched brands to Kellogg’s
 Kellogg’s perceived as a healthy and balanced food
product
 Brand image building: Associated with a balanced
lifestyle choice

20. Recommendations
Modify strategy to suit local
consumers
UK: Cereal consuming population Promote Kellogg’s
Emphasize
USA: Prefer food on the go or skip importance of
meals breakfast
Promote
India: Other breakfast substitutes
consumption of
cereal as
breakfast

21. Recommendations
 Invest more in suppliers and its employees to
support and promote international expansion
 Employ better internal communication mechanism
to enhance strategy execution
 Involve employees in strategic decision making