The Kellogg's Cornflake - Case Study Example

The Kellogg’s Cornflake The Kellogg’s Cornflake Introduction The global market is expanding as globalisation is taking centre stage in the world. The economy of many countries can be attributed to the many corporations that are bringing in revenue. This is through the operations the organizations are carrying out daily. It is imperative to realise what the targeted market wants and needs. Failure to do this may result in the organization’s failure to attain the desired results, in the long run (Witzel 2009). The right marketing mix can ensure this is possible for all the organizations that want to make an impact in the global market. This paper will examine such a company, and the steps it has taken to ensure it is among the top contenders in the expanding market. Question 1 Many corporations are enjoying the market they have globally. This is through the identification of the right marketing mix, which keeps them above their competitors. Kellogg’s Cornflake is a perfect example of such a business corporation. The right marketing mix can ensure that the organization presents its customers with the right products for consumption. There are some aspects to consider with the market being targeted, and this is what many corporations are out to achieve. Carrying out and conducting research based on what consumers need is the best way to go about having the appropriate consumer base (Mattern 2011). This ensures that business is always at the top of its game. There are ways in which Kellogg’s demonstrates good supply chain management. One way they do this is through the system they incorporate in their operations. This is the just-in-time system. This system provides the corporation with enough products to consumers while retaining the limited stock in their possession. An efficient distribution system is responsible for ensuring retailers and consumers get their products at the right time. Failure to have such a system in place may force retailers to go competitors, who might offer the same products that may come with some advantages. Exceptional supply chain management offers consumers the best option on the products they buy and sell (The Times 100 2012). Another example of exceptional supply chain management distribution is the ability to have a computerised stock holding system. This computerised system is capable of ensuring deliveries are always on time, and to the right retailers. This system also guarantees that Kellogg’s shelves are always full. The promise that such a system offers is that, stock the corporation has is kept to a minimum. The retailers and customers of the corporation can keep theirs at a minimum too, provided they have a system they understand, and works in their favour. Transportation in every business is vital in ensuring consumers get their products on time (The Times 100 2012). In conclusion, the corporation can make improvements to the management system to better the business and its immediate surroundings. Collaboration between other trading companies is one way to do this. Having a collaborative partnership where there are a number of distributors can increase the chances of getting to a wider market. Through storage, the corporation could be spending capital, which does not offer them any interest in return. The production system in place creates an avenue to conserve the environment by reducing the heating and fuel costs (The Times 100 2012). Question 2 It is highly crucial that a company like Kellogg’s should have exceptional relationships with other businesses. This is because such relationships build rapport and understanding between consumers from all companies. There are some advantages that accompany exceptional affairs with other industries in the tertiary sector in this expanding market (Haig 2006). In one instance, Kellogg’s can have their products supplied to retail supermarkets. This may force a decline in the costs it would incur if it were operating alone. These business relationships can offer Kellogg’s a strategic planning effort that may have a positive impact on its consumers, the environment, and the business. Overall costs may reduce; therefore, providing Kellogg’s with an avenue to implement other operations in its name. Each link that is present in making the business operations a success can benefit largely from the good relationship that exists between the companies. If there is the right production, supply, and delivery of manufactured products, there might be a positive result in the overall profit the companies attain. This often comes from strategic planning and collaboration between all the parties involved. Understanding needs to be a part of these negotiations that lead to compromise which leads to cooperation for the greater good. The cost-effective nature of such an exceptional relationship may forge an understanding that promotes healthy competition from other companies (The Times 100 2012). Fair prices can stem from such agreements, which are beneficial to the consumer, manufacturer, and supplier. Collaboration between Kellogg’s and Tesco is a worthwhile investment. The promotion technique that Tesco offers can prepare the stock offered by Kellogg’s to have an easier access to the market. The systems they have in place for display of Kellogg’s products offer consumers for Kellogg’s products an easy time. They are cost friendly, and are more focused on the environment and the customer base both companies have. Such collaboration brings two large customer bases in the marketing mix, which will ensure both companies benefit entirely (The Times 100 2012). In conclusion, exceptional relationships are fundamental in any business setting. They promote understanding in the business field. Innovation and healthy competition is created by all companies present. This often forges a brilliant market that is appreciative of all products manufactured and supplied. Competitive prices that are affordable ensure that customers are loyal and reliable to the products. Their satisfaction, after all, should be the foundation on which many business enterprises are formed. It is imperative that companies forge such relationships for the aim of benefitting the progress and advancement of their operations. This may be in the local or international market (The Times 100 2012). Question 3 Outsourcing can be the term used to refer to handing over the logistical side of a business. Many firms and companies do this so as to have an upper hand over their competitors. Many of the corporations that do this often go for the financial aspect of the issues that arise in their organizations. Some of the operations that are handed over are of the least importance to the organization, or require little capital to spend. Many business organizations hand over operations so as to reduce the overall cost they might incur if they handle these operations. It is, therefore, vital to engage other parties in these operations so as to remain at the top (Grimm 2002). There are benefits that a company like Kellogg’s can benefit from by handing over some of its operations. TDG is a transportation company, which has a customer base that has grown over time. Its collaboration with a company like Kellogg’s is likely to expand such a base. However, Kellogg’s stands to gain more through such a partnership. Kellogg’s can forget about having transportation among its core operations. TDG can take care of these operations while Kellogg’s focuses on their main operations of producing cereal products. Kellogg’s focus on their central operations may increase the chances of creating products that are consumed more, thus; expanding their market value (The Times 100 2012). Furthermore, the environment conservation policies the companies have protect the environment by having less Carbon (IV) Oxide emissions. This is through less energy TDG uses to dispose of its waste, and the fuel used in transportation. Being environmentally friendly is a likely chance of increasing the customer base, as there is a rush to save the environment from global warming from dangerous emissions. Another advantage that is brought on by such operations is the reduction in distribution costs. The company can incur fewer costs if they offer a company that is already well-known for its transport services. If Kellogg’s decides to use their capital in transporting their products, they might use up more than is expected (The Times 100 2012). In conclusion, collaborating with TDG can ensure they spend less, but get value for their money. Handing over operations is crucial in ensuring that business operations get done. This is while spending less capital, than they would have if they decided to take on the tasks. Competitiveness is increased among all the tertiary industries, and a reduction in the overall costs that a gigantic manufacturing company like Kellogg’s incurs in a financial year (The Times 100 2012). Question 4 The right marketing mix allows companies to grow and develop their customer base depending on what they desire. The 4P’s are the conditions on which businesses must meet to satisfy their clients’ needs. One is the features that the product has if they are right, and work adequately. The second is the price of the product. This means that it has to be affordable, and must be bought in large quantity to allow the company make a profit. Thirdly, there is the matter of right place and time. Ensuring that products arrive where they are going, and getting there at the right time is fundamental in business. Finally, through promotion, the target market must be reached. This ensures that the company responsible makes a profit through its operations (Engs 2003). Kellogg’s operations might determine if their products sell, and bring forth profit. The right product is produced by the company, which allows consumers to have a balanced diet. This is through the variety of products they offer. Understanding and realising what customers want ensures that they are always provided with these products. This keeps them satisfied and coming back for more. Loyalty is created through such methods, and the customer base expands (The Times 100 2012). Their affordable prices are encouraging to all. As a marketing strategy, it becomes common knowledge to comprehend the need to have products that are affordable. Folks become more affiliated with products that are pocket-friendly, especially in harsh economic times. To positively have an impact on the marketing strategy, the company needs to have branches in many parts of the country. This makes their products well-known and gives them an upper hand in their operations. Kellogg’s already has these in place, and they provide the needed exposure in the market for their products. Lastly, to get the perfect marketing strategy, Kellogg’s has exploited the use of other retailers in the regions it has set up shop. In shelves, in supermarkets, it is easy to come across products from the company. This is the collaboration discussed earlier, and the results are seen in many areas (The Times 100 2012). All these factors work in favour of the company, and all its dealings. Conclusion In conclusion, for business and corporate institutions to have an impact on the world; it is imperative they comprehend the dynamics of the marketing mix. In doing so, they are likely to satisfy the needs and desires of their consumers (Muller 2004). This will enable them to stay at the top of the expanding, global market. Kellogg’s has managed to achieve this by being in business for as long as it has. To attain higher success, it must be willing to go push harder to be among the top companies that understand the need to satisfy their consumers. References Engs, RC 2003, The progressive era’s health reform movement: A historical dictionary, Columbus Dispatch, Columbus. Grimm, RT 2002, Notable American philanthropists: Biographies of giving and volunteering, Sage Publishers, London. Haig, M 2006, Brand loyalty: How the world’s top 100 brands thrive & survive, Prentice Hall, NJ. Mattern, J 2011, The Kellogg family: Breakfast cereal pioneers, Free Press, New York. Muller, KA 2004, Determination of target market for Kellogg’s special K, Cambridge University Press, Cambridge. Schwarz, RW 2011, John Harvey Kellogg, M.D.: Pioneering health reformer, Oxford University Press, Oxford. Smith, AF 2007, The Oxford companion to American food and drink, PULP, New York. The Times 100 2012, Business case studies, viewed December 2012, http://businesscasestudies.co.uk/case-studies/by-topic/#axzz2FLKGEeDb Witzel, M 2009, Management history, Macmillan Publishers, London. Wyckoff, BE 2010, The cornflake king: W. K. Kellogg and his amazing cereal, Free Press, New York. Read More