This paper describes the strategic management at Kellogg. Kellogg is considered to be one of the leading multinationals when it comes to ready-to-eat cereals and convenience food. The company has developed by leaps and bounds and has now held a significant portion of the total market share…
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Kellogg has its presence in 17 countries and its product is being marketed across the globe. Since the company has established esteemed international operations, it can enjoy the cost and tax incentives of the other countries. In addition, the company also displays distinguished financial credibility and its shares are listed on one of the biggest stock exchanges of the world. A sound financial outlook always attracts investors to invest in the operations of an organization. Kellogg can easily raise capital by issuing new shares in the stock market and it can certainly be expected that the issue would be completely subscribed. Another source through which the company can raise finance for the expansion of its operation is through debt. Banks and financial institutions are likely to sanctions credit facilities to companies having a credible financial outlook.
The only weakness that is apparent from the ongoing operations of the company is that Kellogg has not updated its product line with the passage of time. Its production line still contains items that were originally developed over 50 years ago. Regarding the threats, the company faces fierce competition from several firms in the food industry who possess the volume and potential to outcast the company by introducing more sophisticated products and ingenious production strategies. Apart from that, the company also faces threats from store brand products which are cheaper to sell for the retailers. In addition to the discussed, it appears that the company has placed too much reliance on the discount merchandisers. These giant stores have the potential of exerting pressure on the company’s margin and forcing them to sell their products at lower prices.
In the recent past, the company has started incurring expenditure in making its food items more nutritious and healthy. Kellogg is one of the first ones to use the oil to lower levels of trans fat and unsaturated fats in its products. This venture can prove to be full of opportunities for the company. The company earns 66% of its revenue from North America, and since the recent demographic studies suggest that people are becoming more diet-conscious due to the prevailing obesity-related disease, Kellogg’s investment in modified and nutrition enriched food products is likely to reap positive results.
Porter’s five forces model is an effective tool in exploring the competitive forces of the environment in which the organization operates. It allows the business to critically analyze its current business strategy and formulate one which can allow it to achieve a competitive position in the market.
The first competitive force according to the model is the entry of new competitors into the market. New entrants might be able to capture some of the market shares of Kellogg and will adversely affect profitability. With the implementation of sophisticated data-gathering software, Kellogg can repel this threat to its business. The sales department can maintain a database of the orders which can significantly assist in identifying which product is most popular among the customers. This information can be utilized in building different promotional activities for capturing market share and building brand loyalty.
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...needs. Aims and Objectives: The aim of the research would be to find out whether productdevelopment is the best way to gain competitive advantage and in doing so achieve the following objectives: Impact of productdevelopment in the current fast-moving environment. Identify how productdevelopment can result in higher market share. Background and Methodology Presently, competition has increased so much that it has become essential for every company to gain a competitive edge over its competitors by adopting various strategies and methods. The purpose of this study is to find out the role of...
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...Marketing of the Table of Contents Table of Contents 2 Introduction 3 The Nine-Step Model 4 Identify the problem 5 Issues 5
Stakeholders Perspective 6
Framing the correct problem 7
The vision of the company 7
Identification of the alternatives 8
Evaluation of the alternatives 9
Identification and assessment of risk 10
Internal and External Factors 10
Decision making 11
Framing and implementing the solution 12
Internal Marketing 12
Evaluation of results 13
Increasing competition in today’s globalised economy has put the organization under the pressure of designing effective marketingstrategy....
...up with clarifications. Through P R it should also initiate write ups and articles in other countries stating strengths of brand china, its new initiatives, new products, etc.
E. Communication strategy: A communication strategy should be adopted each year with specified agenda which gives guidelines to all the involved personnel on what to communicate. It also acts as a brief to the marketing agency which should design appropriate marketing measures with right communication mix.
F. Brand identity: China should develop a brand identity where it details its heritage, its personality (may be sincere and ambitious), its strengths, etc and...
...Overview of the Company Pepsi Cola is one of the largest soft drinks industries which operate in Australia. The main products of the company comprises of different soft drinks brand including Pepsi, Pepsi Light, Pepsi Max, 7UP, Diet 7UP, Caffeine Free Pepsi Light, Mountain Dew, lipton iced tea, Tropicana twisters and Gatorade. In order to promote their Pepsi brand, the marketing division of the company has been able to utilise different marketingstrategy in order to be competitive in the market place. In addition, different approaches of promotional campaigns have been imposed so as to make the product more appealing to the target...
...viable alternatives. These were carefully screened to see
if they aligned closely to the goals and strategy of Sony
they were compatible to the existing production and packaging lines
could be marketed through the current distribution channels and
promotional expenditure that would be required
Concept Development and Testing
Careful analysis of the concept design, product/packaging prototype, justification, feasibility, delivery model was undertaken. The need for an integrated speaker replacing several speakers capable of throwing sound to various areas in the room was an interesting product idea to pursue for the Research and...
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Same Product New Market (Marketdevelopment) In this strategy, an organization takes the same product that it is currently dealing in to new markets, to turn...
...Answer 2: The Internal Causes of Stagnation: Euroland has failed to adapt to market changes and respond to existing consumer demand by introducing new and innovated existing products to existing customers. In fact, its major brand is “Rolly” does not carry an artificially sweetened line, whereas its competitors have been conducting research to introduce new artificially sweetened products and dried fruits. Secondly, the business has not tapped the Southward region through introducing existing products and building consumer demand through effective advertising and marketing campaigns. Failure to develop and implement effective...
...Productdevelopment Contents Contents 2 Part A 3 Introduction 3 Discussion 3 New Productstrategy 4 Idea generation 5 Screening 5 Business Analysis5
Part B 10
Part C 16
Since the last two decades, companies have taken up the strategy to develop new [products and launch in the market to get the competitive advantage over other companies. In this global competitive market it is very necessary to keep coming up with new creative and innovative...
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