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Company Analysis: Kellogg - Essay Example

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The firm that is analyzed in the paper is Kellogg as the world’s leading producer of cereal and convenience food items. The SWOT analysis of the firm has been performed to find the internal and the external environmental situation of the company. …
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Company Analysis: Kellogg
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"Company Analysis: Kellogg"

Download file to see previous pages The present research has identified that Kellogg is one of the three big companies who offer cereals as their main product offering. The other two are Kraft and General Mills (Kellogg). All the mentioned companies are under immense competitive pressure due to tough economic pressure. Moreover, all these companies have a very strong product portfolio which is making them each other’s stiff rivals. The undergoing economic pressure is leading to higher cost of production, shrinking of margins and withdrawal on consumers from the market. Since the cost of core ingredients is fluctuating more than frequently, it is becoming tremendously difficult to price a product and pass the cost of production to consumers. The entire range of core ingredients like wheat, grain, maze, pulses and especially oil are becoming expensive day by day leading to difficulty in planning operations. However, all these companies are work very hard to stay in the game during these tough economic times, and enjoy which this economic downturn ends. Since, one of the requirements of this report is to come up with a product that is consistent with the company’s culture of innovation and quality. Therefore, the proposed product is in the ready to drink category and the product would be named as “Canoffee” and would target generation X (24-37 years old) and generation Y teen & adults. This product would cater the need to take a stimulating drink in the morning and one in the evening. This product will act as a Star in the company’s maturing product portfolio. ...
Around 68% of the company’s sales come from North American (Kellogg, 2011). Market Overview: Today, Kellogg faces the most difficult operating environment, encompassing challenges that are unprecedented for the company. Among the challenges confronted by Kellogg are Rapidly rising prices for key ingredients like cereals, snack foods, corn and wheat. Rising energy prices have raised the production cost. This in effect is leading towards the squeezing of margins High input prices are also being experienced after the initial production of products. The cost of transportation and delivery to Kellogg's distribution centers is also rising dramatically. Intense competition from General Mills and Kraft in the company’s core U.S. market. A slowdown in consumer spending, as a result of continuing economic crisis in American and other parts of the world is leading towards drying up of sales of the company’s products. Kellogg's business is divided into two operating segments: Kellogg North America and Kellogg International. The company's North American division is subdivided according to “product type” for instance cereal (24% of 2010 total sales), snacks (33%), and frozen and specialty categories (11%). Kellogg International generates around 32% of sales and consists of three regional operating segments: Europe (18%), Latin America (7%) and Asia Pacific (7%). Due to rising food price, factors of production like energy and above all the world recession (U.S being the epicenter of the economic crisis), the U.S. market is experiencing a drop in consumer spending from where Kellogg generates the bulk of its sales. The company buys ...Download file to see next pagesRead More
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Great paper! Used it to finish an assignment for a marketing course. It was easy as ABC, for the first time in my life.
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