Market Analysis Of Kellogg S
Table of Contents
Introduction 2
Marketing Mix and Market Trends 2
Market Segments and Opportunities 3
Customer Purchase Decision Making 4
Competitor Analysis 5
SWOT Analysis 5
Reflections & Conclusions 7
References 8
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
Introduction 2
Marketing Mix and Market Trends 2
Market Segments and Opportunities 3
Customer Purchase Decision Making 4
Competitor Analysis 5
SWOT Analysis 5
Reflections & Conclusions 7
References 8
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
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/