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International Marketing - Essay Example

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International Marketing Introduction: Kellogg’s Kellogg’s also known as the Kellogg Company is a multinational food corporation which specializes in manufacturing cereal and other convenience food like crackers, pastries, toaster, cereal bars, waffles and other vegetarian foods (Kellogg’s, 2013b)…
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International Marketing
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Download file to see previous pages One of the main objectives of the company is to promote healthy food for the betterment of the society and community. Kellogg’s cereal is manufactured in more than 20 countries in the world and is marketed in more than 180 countries of the world (Kellogg’s, 2013j). The company is headquartered at Michigan and the largest factory is situated in Trafford Park. Kellogg’s was formed by W.K. Kellogg’s in the year 1906 (Kellogg’s, 2013c). Kellogg’s maintains a diverse workforce and believes in promoting a healthy work environment (Kellogg’s, 2013f) for successful completion and attainment of goals (Kellogg’s, 2013d). In the year 2012 Kellogg’s was considered as the world’s second largest snack company after Pepsi Co Ltd by acquiring Pringles Potato chips from Procter &Gamble for an amount of $2.7 million (Kellogg’s, 2013k). The company has been offered several awards for delivering excellent performance and high quality products like the “Top 50 Company for Diversity from Diversity Inc and “100 Best Places to Work” from Computer World (Kellogg’s, 2013e). Although, the brand has been successful in marketing cereals of varied flavours the company earns majority of its revenue from its core product which is the plain flavoured cereal. Marketing Mix of Kellogg’s The marketing Mix concept of Kellogg’s has become one of the most fundamental concepts of marketing management. It was essentially claimed by Borden who also named it as “Mixer of Ingredients.” The essence of marketing mix emerged as an asset of controllable variables also known as tool kit which was basically used to influence customer purchases and behaviour. However, it is observed that companies generally use the standardization or adapted version of marketing mix to adapt to the marketing environment (Birnik and Bowman, 2007).The decision to use a standardization or adopted marketing mix is situation specific and should be thoroughly evaluated and assessed for relevant contingency factors. It is observed that most of US multinational corporations utilize the standardization marketing mix rather than the adopted one. Small and medium enterprises utilize the adopted marketing mix because it serves the purpose of the guide for adapting to the marketing environment. a) Product: Uniqueness of the product signifies that the product is dependent on firm and time specific factors. It also signifies that the company alters the core value of the product sometimes with the changing marketing environment (Birnik and Bowman, 2007). Apart from offering cereal in plain and other flavours the company also offers food products like raisin bran, frosted toaster pastries, flatbreads etc (Kellogg’s, 2013a). The main objective of Kellogg’s is to offer customers a unique breakfast food range. The plain flavoured cereal is the USP of the product and is offered for the entire mass but the cereal manufactured in varied flavours is a source of additional revenue. Thus, it can be stated that the company follows the standardization product market mix in manufacturing the plain flavoured cereal and the adopted approach in manufacturing its other convenience food. a) Price: The price range of Kellogg’s varies from product to product but the cereals are moderately priced for the affordability of the customers. However, the prices range of the certain food products like cookies, oatmeal, pastries are high priced for the additional flavouring content put in it. ...Download file to see next pagesRead More
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