Excellent Operating Strategies
Kellogg’s outstanding operating strategies create an excellent reputation in the market for its well-known brands and aids in expanding its customer base. For example, in the fiscal year 2012, Kellogg spent 8% of its net sales on strengthening its brands through advertising and consumer promotions. As a result, customer loyalty to Kellogg is extraordinarily high. In addition, the core of their business strategy for growth is innovation, which helps to retain customers and improve product mix. For instance, in 2012, the company spent 1.5% of total revenues for research and development activities. As a result, new product launches help Kellogg expand its market and strengthen their (a company is singular) its product portfolio. Finally, Another strategy that adds value for the customer is their theproactive approach towards consumer demand of the consumers. Specifically, in the year 2011, the consumers demanded high fructose corn syrup (HFCS) to be removed from their cereals. Kellogg Thus, actively responded to this demand and by the end of the year, all the recipes were adjusted to remove HFCS from its products. To sum up, the operating strategies of Kellogg ensure that the company is well positioned and will continue to flourish in the future.
Promising Future
Financial standing, acquisitions, global expansion and public image all point to good years ahead of the company. Same as in paragraph one First, Kellogg’s revenue in fiscal year 2012 was booasted $14,197 million, an increase of 7.6% from the previous year. In addition, the net profit was amounted to $961 million, an increase of 11% over fiscal year 2011. Next, the most notable recent acquisition of Pringles placed Kellogg at the number two