Kellogg's Market analysis - Essay Example

This has provided a good opportunity to companies like Kellogg’s. Similar emphasis is being placed on products which can provide good nutritional values and energy and are easily portable. Jaffer (2008) points out that with such considerations gaining ground Kellogg’s has repositioned its K-bar as an energy bar. This bar was traditionally positioned as an alternative to its breakfast cereal line, but now it focuses on the consumer’s demand for more natural energy. The company recorded revenues worth $11,776 million during the FY2007, an increase of 8% over FY2006.

The key areas in which Kellogg’s operates has been primarily divided into four major segments like North America, Europe, Latin America, and Asia Pacific. This helps the company in devising segment specific strategies for these geographical regions. For example, in India Kellogg’s launched an SMS advertising campaign to tie in with its offline advertising for corn flake brands (Media Asia, 2004). With use of mobile phones increasing and the growing number of mobile users in the billion strong markets, mobile branding is one of the innovative techniques that are being used by this American MNC.

Being a leader in the business, the company has been able to take advantage of its strategic placement and alliance in different markets to successfully experiment with new initiatives. One of the key focus areas for Kellogg’s is the ‘Children segment’. This prompted the company to enter into a multi-year global relationship with Disney in 2002. Some of the strengths and weaknesses of Kellogg’s can be summarised as follows; Strong Brand Identity: Having a glorious past of more than 100 years Kellogg’s is a well known brand in many parts of the world.

The portfolio of product brands offering corn flakes, Keebler, Chocos, Pop-Tarts, Eggo, Cheez-It, Nutri-Grain, Rice Krispies, Special K, Murray, Austin, Morningstar