Cereals

Each year Fortune Magazine gives the world a list of the 500 best and worst companies of the year. It’s an aim for many companies to make the Fortune 500 list, it is one of the most important recognitions that can be achieved which is not an easy task, even more difficult is staying then climbing up the ladder. A lot of criteria have to be met before a company qualifies for the list. This paper looks at the history and growth of the company that managed to secure spot no 184 on the Fortune 500 list, Kellogg’s.

History

Will Keith Kellogg founded Kellogg’s on February 19, 1906 and today 104 years down the line, it is the largest cereal maker in the world. The Company began with a mere 44 employees but now has production factories in over 18 countries and availability of its products in more than 180 countries. Kellogg’s did not restrain itself just to cereals but also moved into other sectors which include cereal bars, crackers, cookies, toaster pastries, frozen waffles, fruit-flavored snacks, and veggie foods (Our Company, 2010).

The secret behind Kellogg’s colossal success has been Kellogg’s steadfast determination to remain ahead, innovation to bring around more and better products and its commitment to provide quality products to its consumers. Kellogg’s competitors Kellogg’s has been around for so long, that we expect to see it on shelves on the supermarkets, on the breakfast table and expect everyone to have something or another from the house of Kellogg’s in their kitchen the same way we expect the sun to rise every morning.

This though doesn’t mean that it is able to do so because it has no competitors. On the contrary, it’s given fierce competition by General Mills, Nestle, and Quaker, not only in the business of breakfast cereals but also in the conventional foods sector (Kellogg Company, 2010). Kellogg’s consumers For any company to do well in any industry, it is an understood thing that it needs to retain its customers/ consumers base at all costs. This means that during the establishing phase the company has to go all out to make them loyal consumers of the future and not just one-time users.

Kellogg’s did this by focusing on children and very subtly their mothers (the ones with the decision power) to replace toast with cereal for breakfast. This target market has changed though over the years. The cause for focusing on a larger target audience was that in 1999 (Kellogg and Keebler, 2010), Kellogg’s permanent spot as the number one cereal maker was taken over by its arch rival, General Mills. Kellogg’s realized it was time to move on and focus on entirely different segment.

The baby boomers were a untapped market and held a lot of potential for Kellogg’s, through innovative and decisive marketing tactics, Kellogg’s managed not only to capture attention of this segment but also regain its position as America’s best cereal maker, it holds the largest market share in both the US and the UK. Work Environment William Keith Kellogg was a man who took risks and has left the same philosophy for his company to follow upon. Having accidently stumbled upon a recipe of corn flakes, Kellogg persevered to bring it to the world even after being ridiculed and laughed at by his family and peers.

His hard work paid off and has been an example for all in the world to what little determination and focus can bring on. Though he was a strict boss he was a good boss, who took care of workers, not only did he have shrewd business sense but also humanity. (Snap, Crackle, and Pop to Success: How Kellogg Built a Cereal Empire, 2010) Innovation Kellogg’s has remained true to the core to its dedication to innovation over the years, which it has had to keep coming back with to remain ahead of the competition If we were to carry out a SWOT analysis of the company and list just one item under each head then this is what we would get.

Strength

Kellogg’s brands are very strong with a loyal consumer base; Weakness- As its moving into diversification and more nutritious products, those consumers who don’t want to purchase those are unsure of their own brands of choices futures; Opportunity- The market for healthier and more nutritious markets is growing, hence the consumer base for Kellogg’s; Threat- Smaller, localized supermarket brands have now entered the industry and risen as competition. Not only does Kellogg’s provide to the different lifestyles of people but also to the different cultures and tastes of its consumers.

In 1994, Kellogg’s entered the Indian market with its premier brand, Kellogg’s Corn Flakes. Disappointingly though the company did not receive the response it had foreseen. Many consumers could not develop the taste to replace their breakfast menu with cornflakes, major reason for that being they found them to be bland and pricy, when the Indian foods are known world over for their spiciness. Over the years Kellogg’s brought more of its brands to India like Rice Flakes, Frosties, All Bran, Special K, Honey Crunch, and Chocos Chocolate Puffs, not one of them managed to make the same success story as it had been able to show in the West.

This was a drastic fallback for Kellogg’s but being ones to face challenges head on and not run away from the problem they produced and introduced a new line of ‘Indianized’ corn flakes. They branded it as the Mazza series with fusion cereals having flavors such as coconut, mango, and rose, but this effort again failed (Kellogg’s in India, 2010), but hats off to Kellogg’s for always going that extra mile to give its customers what they want. They decided that they’ll explore an already established market of biscuits, where it has done much better than it did in the cereal business.

A Campaign that Stands

Out Having already included healthier and more nutritious products to its brands, Kellogg’s gave the world its two week challenge to “Feel Great in a Fortnight” Challenge (Building a brand in order to sustain its life cycle, 2010). The campaign was used all over the world with the promise that if the consumer on completing the two week challenge hadn’t felt great (read lost weight) than they would be reimbursed by Kellogg’s.

How well it did to deliver its promise, would rather not say but the campaign has leftist mark as one of the best the world has seen especially in recent times when competition is cut throat. The campaign has to make the consumer stop and think, if it manages to do that, that’s half the job done but the promise also needs to be delivered to complete and reinforce consumers trust in the brand and company. Kellogg’s has been recognized over the years for its innovative campaigns but even more notable are the mascots it has designed for its different cereal brands.

The rooster, Tiger, Coco the monkey, the three Rice Krispies brothers and so many more have become permanent fixtures and representatives of Kellogg’s world over. A consumer no longer needs to be able to read to recognize their favorite brands, the mascots say it all Conclusion Kellogg’s is a brand that has come a long way in this extremely competitive world and even more competitive sector that it provides too. It is no longer very difficult to come up with new products with the resources available to all the companies; hence it needs to constantly stay on top of its game.

The Fortune 500 list has picked it up and placed it on the 168th spot but to climb up the ladder Kellogg’s needs to continue striving and diversifying its product range to provide to various demographics world over.

References

1. Evan Carmichael/www. evancarmichael. com/ (2010). Snap, Crackle, and Pop to Success: How Kellogg Built a Cereal Empire. Retrieved August 07, 2010 http://www. evancarmichael. com/Famous-Entrepreneurs/3033/Snap-Crackle-and-Pop-to-Success-How-Kellogg-Built-a-Cereal-Empire. html Hoovers/www. hoovers. com/ (2010)
2. Kellogg Company Retrieved August 07, 2010 http://www.hoovers. com/company/Kellogg_Company/rfxcri-1. html Kellog History/www. kellog ghistory. com/(2010). Kellogg History. Retrieved August 07, 2010 http://www. kellogghistory. com/history. html Kellogg’s/www. kellogcompany. com/ (2010). Our Company. Retrieved August 07, 2010 http://www. kelloggcompany. com/company. aspx? id=32 Mastering the Merger/www. masteringthemerger. com/(2010) Case Example: Kellogg’s and Keebler. Retrieved August 07, 2010 http://www. masteringthemerger. com/masteringthemerger/case_example_kellogg.asp Scrib/www. scribd. com/(2010).
3. Kellogg’s in India. Retrieved August 07, 2010 http://www. scribd. com/doc/7121491/Kellogs The Times 100/www. thetimes100. co. uk / (2010). Building Brands to sustain a life cycle. Retrieved August 07, 2010 http://www. thetimes100. co. uk/studies/view-brief-study–building-brand-order-to-sustain-its-life-cycle–6-189. php The Times 100/www. thetimes100. co. uk / (2010). Kellogg’s. Retrieved August 07, 2010 http://www. thetimes100. co. uk/case-study–using-aims-objectives-to-create-business-strategy–6-267-2. php

Although most of the people prefer to eat at home, but due to rising number of nuclear families, families with working women as well as double income families, the breakfast habits of people are changing. Though people still prefer Indian authentic breakfast, they have turned health conscious and taste and preparation time tops their list. Couplets the change in lifestyle and food habits, en out of five people in urban India misses breakfast completely every day, while 15 per cent have an inadequate one.

This presents a huge opportunity to fulfill the “need” of providing people with breakfast solutions. Let starts with the knowledge of common breakfast consumption in different regions of India. Overview: Breakfast consumption in India The above consumption practices show that rice, wheat, potato and pulses are the common ingredients while bread, pooh, milk and eggs are the common breakfast dishes consumed in the four regions of India. For a successful need fulfillment by restart solutions, the SOOT analysis of the Indian breakfast market is done. 1. SOOT analysis: Indian breakfast market Changing breakfast habits have led the Indian consumer to the following breakfast preferences: * Fast to make * Can be eaten on the go * Economical * Healthy and palatable * Various tastes and choices * Ready to cook v/s ready to eat * Catering to all the age groups * Right quantity * Catering to both vegetarians and non-vegetarians Breakfast in India is still treated as the traditional “Nashua” and marketers are trying breakfast industry is offering ready to cook traditional Indian breakfast like mama, ridges, pooh, idle, doss etc. Tit focus on positioning their brands as a healthy and tasty breakfast which is simple to cook. Heinz, MAT, Britannic belong to this cadre. On the other hand, the industry is offering cereals like Corn flakes, Oats, Muesli and Wheat Porridge and positions itself as low fat, high fiber healthy breakfast provider. Kellogg, Frito-Lay, Moan Meaning and Marino come in this category. Both the industries are trying to make the Indian consumer conscious about eating the first meal of the day.

The Indian breakfast market is ripe with opportunities, with the eight strengths of huge domestic market and abundance of raw materials, for out of the box breakfast solutions. 1. 3 Analysis of Cereal Industry In cereal Industry there are many players in the Indian Market: * Kellogg India * Pepsi Co * Moan Meanings * Baggers * Britannic * Marco’s Safely * Future Group :Tasty Treat cornflakes (private label) * Ditty Barilla More : Feaster corn flakes (private label) Today the branded breakfast cereal market in India is pegged at RSI. 00 scores. 80% of the market is cornflakes and the rest is shared by Oats, Muesli and Wheat Porridge. Kellogg holds 70% of the total market (a RSI. 50 core brand). Over the years market share of Kellogg has increased. Market Share of the Kellogg Brand: * The industry was pegged at RSI. 150 scores way back in 1995 and the growth over past 15 years is only 8. 4% per annum. * The industry has doubled between 2003 and 2009 which means a growth rate of 12. 3%. It has taken a long time for Indians to change but change is now happening.

The category is believed to be growing at 20% to 25% now. * Chose has 20% share of the Breakfast Cereal Market * India is also fastest growing cereals markets in South Asia with annual growth of 4% and * Forecasting of reaching RSI. 14 billion in 2014 1. 4 Hurdles in Indian Market a. Cultural factors and eating habits – population not used to processed foods Indians like to have a heavy breakfast. Breakfast is synonymous to eating heavy and having a feeling of fullness, something oily Parents, Purrs and Dodos provide easily.

Kellogg Corn flake breakfast on the other hand does not give that feeling of fullness and that goes against the grain of having a full breakfast. In short after having a corn flake based breakfast the Indian consumers were still hungry. Also Indians have spicy ND hot food for breakfast. So expecting them to eat corn flakes for breakfast is also challenging. B. Easy availability of low-priced traditional breakfast- Traditional breakfast options are very cheap and have a lot of variety. Dodos and Piranhas are known for their variety. Indians make sure that the same breakfast is not repeated for at least a week.

Asking Indians to repeat the same type of corn flake awareness about processed foods- Traditionally Indians have not been very conscious of their calorie intake. Neither have they been very particular about the diet plan to be followed for their health. This trend has seen a change in recent years with coming up of many fitness centers, gyms etc. Kellogg and other brands have tried to cash on this changing trend. D. Price sensitive customers- Indian customers are known to very price sensitive. These products are relatively costly as compared to other available traditional breakfast options.

Kellogg specifically is the most expensive among these brands with its price being double of the other corn flake brands available. This may also hinder the prospect of market growth. Considering all these challenges, Kellogg India is required to come up with a value reposition and a framework to convince Indian consumer to leave the long followed breakfast eating pattern and move to an entirely new range of products offered by the company. 1. 5 Competition in Breakfast Cereal Industry Breakfast is the most important meal of the day.

Certainly for several packaged food companies, if not for everyone. Call it the breakfast war, the scramble to serve the first meal of the day is getting busier with companies such as Britannic, Marino, PepsiCo, Kellogg India and MAT Foods offering more and more options to meet Indian consumers’ rising demand for quick-fix food. Several companies looking to cash in on a surge in demand for quick-fix breakfast options in urban areas where the number of double-income families and working professionals are rising and consumer lifestyle and food habits are changing.

These products are targeted specifically at urban, working people and, hence, there is no price undercutting or margin pressure, helping the industry grow in double digits, in volume and value. Industry players estimate the branded breakfast foods market in India at around RSI 500 core, offering enough room for new entrants. There is a ready market for such products. Among the cereal industry what is surprising to see is that a lot of competition is present in Oats segment which is much smaller than cornflakes.

Pepsi has Quaker oats not cornflakes. Marino has Saffron Oats but no cornflakes. Britannic also has Oats and Muesli but no cornflakes. Cornflakes is a 400 core market compared to 80-100 core Oats. It seems companies consider fighting in a new and growing category safer than taking Kellogg head on in the cornflakes market. Company I Product line I Product width I PepsiCo I I I Oats I Quaker Oats I Kellogg India I I Corn flakes I Kellogg Corn flakes

I I Kellogg Special K I I I Kellogg Wheat Flakes I I I Kellogg Chose I I Oats I Kellogg Heart to Heart oats I I Kellogg Oat Bites I I Muesli I Just Right muesli I Britannic Industries I I Oats I Classic Oats I I Savory Oats I I Strawberry Oats I I I Multilingual Oats I MAT Foods I I I I Instant Mix I MAT rave doss I I I MAT I I I MAT Ethiopia mix I I I MAT Dakota rant I Company I Product line I Product width Marino I I Oats I Saffron Oats I I I Saffron Miasmal oats I Beggary’s I I I Oats I White Oats I I I Chewy Oats I I Jumbo Oats I I Muesli I Fruit N Fiber Muesli

I I Crunchy Muesli I Moan Meaning I I Corn flakes I Corn flakes I Dictions I I I I Instant mix I TIC Rave Idle Mix I TIC Rice Idle Mix I I TIC Rice Doss Mix I Future Group I I Corn flakes I Tasty Treat cornflakes (private label) I Ditty Barilla More I I Corn flakes I Feaster corn flakes (private label) Spence’s Retail I I I Cereal I Tasty Wonders cereal (private label) I McDonald’s I Breakfast Menu I Breakfast menu in metros I Apart from the cereals there is a good demand to ready-to-eat traditional breakfast as well. MAT and TIC with their instant breakfast mixes such as rave idle, doss, tapped are targeting this segment.

Incidentally, quick-service restaurant chain McDonald’s, which enjoys strong equity in the breakfast meal space globally, has also identified the gap in the breakfast market. Its chicken Mexican wrap, muffins and hash browns offering is being rolled out across Pun and Bangor, beyond Iambi disease in the world and the incidence is increasing. Caring for the heart is set to become an important concern among consumers. Breakfast cereal producers, especially oats manufacturers, will benefit from this trend with more consumers will become aware of the benefits of oats.

Cereals with other health or nutritional benefits, such as reduced sugar, high fiber or vitamin enriched cereals will also grow faster than traditional corn flakes or rice flakes, because one of the key decision factors for consumers to purchase cereals is their health benefits. Such demand will drive innovation in breakfast cereals with more new launches and the introduction of international brands over the forecast period. 1. 6 Breakfast Market Segmentation The Indian breakfast market can be segmented in the following ways: a.

Demographic: The choice for breakfast varies when it comes to demography. The young demographic profile, increasing income, time constraint due to increasing number of working couples and increasing awareness about healthy diet has made the breakfast market grow. B. Behavioral: Breakfast habits tend to change from individual to individual. Kids prefer tasty snacks for breakfast while adult men need a heavy traditional breakfast to start their workday. Health conscious women and men go for low fat breakfast. However in most parts of India, it is still the traditional breakfasts that rule the table. C.

Cryptographic: Cryptographic segmentation has become a very important incept for the marketers with an ever changing lifestyles, values and thinking. Companies are using scientific methods to understand the needs of the consumers and are segmenting them according to their personality and psychological traits, lifestyle or values. D. Geographic: When it comes to breakfast products in India we can segment the market among the North, South, East and West regions with each region preferring different breakfast items. Also there can be segmentation based on tier 1 and tier 2 cities, urban and suburban areas. . Marketing Strategies of the Major Breakfast Cereal Players 2. Products and Strategies of Kellogg India The brand name Kellogg is synonymous with the Cornflakes category in India. Kellogg, a multinational giant, came to India in 1994 and is responsible for building the cornflakes category. The Journey has been far from easy. It has actually been so tough that Kellogg found a place in the book ‘Brand Failures’. Kellogg tried to change the breakfast habit of the Indian people and has not had as much success as it hoped for. 2. Kellogg Product Portfolio Kellogg offering consists of the following products: Kellogg cornflakes, Heart-to- and Kellogg Extra Muesli. Each of these is available in multiple variants. Kellogg is the umbrella brand under which all its variants are sold. Kellogg is targeting everyone in the family with a special offering. All these are breakfast options but meant for different target segments. They have ensured no one is missed out. Kellogg is targeting everyone in the family with a special offering. All these are breakfast options but meant for different target segments.

They have ensured no one is missed out. Product line I Product width I Product depth I Target group I Year I CORN FLAKES I I Kellogg Corn Flakes I Original, Strawberry, Honey, Almond and Honey, Banana, Mango I Entire family | 1994 | I Kellogg Special K I I Women 12008 1 I Kellogg Wheat Flakes I I Women | 2001 | I Kellogg Chose I Smacks, Planet Stars, Duet I Kids 12009 1 1 Kellogg Honey Loops I I Kids 12009 1 OATS I I Kellogg Heart to Heart Oats I I Men 30+ | 2010 | I Kellogg oat Bites I I Men 30+ | 2010 | MUESLI I I Kellogg Extra Muesli I Nuts Delight, Crunchy Fruit & Nut, Fruit Magic I Adults 12006 1 2. Kellogg Cereal Products and Strategies Adopted 2. 3. 1 What has been the Strategy so far Kellogg entered the market as a premium product offering the best quality. They did not have much success to begin with. Their price was too high for middle class India and they were trying to change the breakfast eating habit of Indians. In marketing, asking a consumer to change their habit is perhaps the toughest task. Hence, growth was slower than expected. 2. 3. 2 There were many problems for Kellogg * The price off 500 GM pack of Kellogg corn flakes cost more than a third than its nearest competitor.

They targeted the middle-class consumers, but the high pricing resulted in the consumers buying it as a status product rather than a nutrition rich breakfast product. * Consumers were unwilling to shake off their traditional roots ND adopt to the western food Habits. * Indians preferred hot milk with breakfast, and Kellogg crispy corn flakes turn soggy when mixed with the same which was not liked by Indian consumers. * Kellogg in its advertising campaigns hinted that the Indian breakfast was not nutritious and that Indian breakfast was not very good for health.

This deeply hurt the sentiments of the home maker and was one of the reasons for their failure. * Promotion of corn flakes always showed a family eating on dining tables while many what works in the US need not work here. They launched Cheek-Let and it failed. They launched biscuits and it bombed. . 3. 3 What have they done over the years to reach here To get more consumers to try their product, they launched RSI. 10 packs in 2010 (called Kappa). This also helped them gain distribution. Expecting a small shop to keep a big box of Kellogg was tough, but it’s easier to place a RSI. 0 pack. For a consumer, investing RSI. 10 on a premium product is much easier than investing RSI. 80 and buying a gem pack. 2. 3. 3. 1 Cornflakes: The Company positioned this product as their main offering with the tagging “The Original & Best”. Kellogg also came up with variants to suit local tastes; Mango, Honey, strawberry etc. The low fat Kellogg Corn Flakes is called as “Iron Shasta”. The product positioning has been changed as well: From a breakfast cereal, it is now also a “Sham aka Nashua” (evening snack).

The new positioning will help promote out-of-home consumption. 2. 3. 3. 2 Chose: and honey loops cater to kids. They have also launched a lot of related products aimed at different segments and hence have expanded their presence and made themselves relevant to more people without diluting their brand. To gain an easy entry into the market, Kellogg first targeted kids. Convincing kids was much easier for them than convincing adults. All of these moves have indeed helped Kellogg reach to this position today. 2. 3. 3. Special-K: This product is specifically targeted towards women in the age group 18-35 who are particularly conscious about their figure and health. Kellogg positioned this product primarily as a low-fat cereal that can be eaten to help one lose weight. It frequently has give-away offers for various health and fitness products or contains dieting information on the back of the box. The company launched a separate website dedicated for Special K. Using this website, Kellogg launched a competition named as “Special K Challenge”. . 3. 3. Heart-to-Heart Oats: In the year 2010, Kellogg launched Heart to Heart Oats, made with 100% wholegrain oats, marking the company’s foray into the hot cereal category in India. It is positioned as a risk reducing product to heart diseases. The product helps the reduce cholesterol. It is also low in salt to help keep blood pressure healthy. 2. 3. 3. 5 Muesli: Kellogg has launched muesli with three different flavors containing dry fruits and nuts. This has not been positioned separately for any segment. But here also they have maintained the health factor they always promote. 3. 4 Where is the competition Cornflakes are 80% of the breakfast cereals market and Kellogg rules the roost here. The other major player in the market is Moan Meaning. Big super markets have their private labels as well. The competition is priced half of Kellogg and still is unable to dent the consumers of Kellogg. This is purely because of the superior quality of Kellogg. A lot of competition is present in Oats segment (80-100 core market). Marino rolled out Saffron Oats and is pitting itself against established Macs such as PepsiCo (with Quaker Oats) and Kellogg.

Britannic also has Oats and Muesli but no cornflakes. Heinz India too has decided to enter the breakfast cereal market by with a host of health and nutrition products. Other than this Kellogg is facing competitions from other breakfast substitutes such as ready-to-cook breakfast solutions such as idle, doss, Veda, mama from MAT and Gist. Other breakfast solutions include Juices, butter and cheese spreads, honey, dairy products such as milk, curd etc. These can be substitutes or complements to cornflakes. 2. 3. Kellogg Today Factors for success of Kellogg – in short: * Innovative marketing and brand-building An efficient supply chain network, with a association with a large number of distributors * Customizing their products to suit the Indian market * Catering to each section of market by providing products of varied flavors, nutritional aspects and packages * Maintaining a ” Just in Time” strategy which helps Kellogg to reduce inventory * Benefiting the retailers by providing shelf ready packaging units and distribution network to help them reduce their inventory 2. . 6 Issues It’s Price Point. Just an example, the price of Kellogg cornflakes is 100% more than Moan Meaning (another old and strong brand). If they want to grow fast, they need to give more value (value is what we get for the price we pay) to consumers. 3. Product and strategies of PepsiCo for Quaker Oats The 130+ years old brand Quaker Oats has been a world leader in the oatmeal segment. PepsiCo, the American multinational corporation entered the cereal market by a merger with Quaker Oats in 2001.

Quakers cereal and snack food division serves as healthier complement to the PepsiCo Frito-Lay snacks division. In India, Quaker Oats was launched in 2006. Over the past few years, the urban Indian consumer has become more aware of an ideal diet as well as an active lifestyle. Given this situation, healthy food products are finding their mark when launched in the markets. The launch of Quaker Oats in India addressed this rapidly growing health trend. 3. 1 What has been their strategy so far Since the launch of the brand, the company created a distinct image of Quakers in the consumer’s mind.

This helped the company to differentiate its brand from the other brands in the market. In India, the product was less promoted through television commercials and the print media. With a target group of middle class husbands and wives in the age group of 30 years ND above having hectic lifestyles, Quaker Oats positioned itself as a very nutritious breakfast option for a quick and easy morning meal for the family. In the initial stages, the company introduced trial packs at low rates such as RSI. 8 and RSI. 10.

The pack includes Oats-based traditional Indian breakfast recipe, such as Quaker Oats idle, doss, pooh, mama, utopia that can be easily cooked at home. In India, it focused on the people with diabetic and heart related issues. Oats is a portal http://www. Extraordinary. Com which helps to assess risks associated with he heart and provides a range of solutions and information on how to stay Heart Healthy. Also, Quaker Oats in association with The Times of India and Apollo Hospitals announced the launch of ‘Mission to Make India Heart Healthy.

Apollo Hospitals provide free heart check up for Quaker Oats consumers and COO was involved with the 360 awareness campaigns. 3. 2 Strategies Today Recently, with the launch of the new range of flavors, Quaker Oat’s promises to appeal to consumers across age groups in terms of taste. All the four new flavors have healthy inclusions of real fruits and vegetables, topped n local Indian flavors. While the Strawberry flavor with Apple has real apple pieces, the Cesar flavor with Kashmir has real raisins. 4.

Products and Strategies of Marino Marino is one of Indian’s leading Consumer Products ; Services companies in the global beauty and wellness space. Saffron had become well-entrenched in the minds of the consumers as a health and wellness brand in the cooking oil space. The company extended this brand name to its other offerings in the packaged foods category starting with Saffron low sodium salt and tat for diabetics, followed by Saffron Arise Rice. Saffron launched Saffron Oats in 2010 as a healthy, nutritious and active way to start your day.

Its tagging says “Now your meals can be Healthy and Tasty’. The product was first launched in Tamil Nadia and some other Southern India cities where the consumption of oats is high. To highlight the healthiness of the product the company has exhibited various features of the product. 4. 1 Promotion To be effective in its launch and future sales Saffron needed to come out with an effective promotional strategy. During their launch they promoted the product through advertisements as one which can be mixed with traditional India food angina from south Indian dishes like Idle and Mama to dishes like Dakota.

They promoted the product as one which allows you to have the taste of your own traditional breakfast but in a more healthy way. In their next stage of promotion the company started giving out recipe books guiding home makers on how to use Saffron Oats in your traditional breakfast along with a mix of healthy Saffron Oats. Going a step further Saffron came out with a plan where they asked people their recipe of Saffron Oats and started printing these recopies in their recipe books. Their site also invites consumers to share different recipes from

Phase 1 Company’s Market Planning Colorado Technical University MKT210-1301B-07 Fundamentals of Marketing Lou Piermatteo February 25, 2013 Frosted Mini-Wheat’s The product I have chosen is Frosted mini-wheat. Frosted mini-wheat is one of the number one products of breakfast food. Frosted mini-wheat was first launched on the east coast in 1961. In 1961 Frosted mini-wheat’s was nationally debuted making mornings shine from sea to shining sea. Frosted mini-wheat is made of whole-grain fiber to keep you at your best all morning long. We will be discussing the market strategy and mission goals of Kellogg’s frosted mini-wheat.

Kellogg’s and frosted mini wheat’s take pride in helping people stay healthy and in fit. Company’s Mission Statement Frosted mini-wheat’s mission statement or jingle is “ Keeps’em full and focused” (Kellogg’s 2012). Frosted mini-wheat’s is a big breakfast in a little biscuit. Kellogg’s believes that every morning should start with a healthy breakfast. Kellogg’s frosted mini-wheat’s has commercials all over the television today. They are ranked number 17 in television advertising. Frosted mini-wheat’s is one of the top cereal marketers; they market directly to the parent’s and not the children.

The television commercial’s target children to get them to eat a more healthy breakfast to get their day started. Kellogg’s frosted mini-wheat’s is packed with fiber and almost a full days’ worth of gains to keep you full all morning(Kellogg’s 2012). Kellogg is a Global Company Committed to Building Long-Term Growth In Volume and Profit and to Enhancing its Worldwide Leadership Position by Providing Nutritious Food Products of Superior Value Company’s Business and Marketing objective and goals

Kellogg’s is focused on enriching and delighting the world though foods and brands that matter. They are nourishing families so they can thrive and flourish. Kellogg’s is a company of possibilities and promises of people and their well-being. Today nutrition continues to be the core of our business. And cereal is an integral part of how we can help to meet the nutritional needs of people all over the world (Kellogg’s 2012). Kellogg’s believes in integrity, accountability, passion, humility, simplicity, and results.

The more the company can do for the community the more people will want to buy their products. (Kellogg2012). What is the Company’s position in the Marketplace and it’s Differentiation Strategies? Kellogg’s is ranked number three is marketing facts from 2009 reports. They use television and internet marketing for their advertising. In February 2012, Kellogg’s introduced 2 dozen new products. They expected 15% of 2012 global sales from products introduced in the previous three years. Kellogg’s is commitment to product innovation has brands that consumers know and love (surperformance 2013).

Kellogg’s financial highlights of 2011 show increases over the past five years. The net sales were up 4%, operation profit up by 2%, and the net earnings per share were up by 6%. Kellogg’s net sales for 2011 were $13. 2 billion dollars (Kellogg’s annual report 2011). The 2011 report shows the progress and future direction in four key areas; Marketplace, workplace, environment, and the community. Kellogg’s is dedicated to help the community. In February 2013, Kellogg’s pledged to provide one-half billion servings of breakfast to children and families who need it the most.

They are the number one cereal company in the U. S. Kellogg has pledged $1 million in grants in the U. S. to nonprofit partners Action for Healthy Kids®, Share Our Strength’s No Kid Hungry® campaign and Food Research and Action Center so that more schools can participate in federally-funded breakfast programs. The company will also work to expand breakfast programs around the globe, maximizing product donations and advocating for the important role breakfast plays in the diet. (Kellogg2012).

Control 42% of global market share for Pre-sweeter cereal, which is more than triple the market share of any of their competitors. They have the strongest brand recognition and advertising recollection of all the cereal manufacturers (Kellogg2012). Kellogg’s is a very passionate company. They look out for their customers just as much as their employee’s. The more a company does for the community the more people will buy their products. Frosted mini-wheat’s is a cereal that Kellogg’s has promoted and made a number one cereal.

There are many different kinds of frosted mini wheat’s to keep up with the changes and taste of people today. Frosted mini wheat’s are a nutrition and healthy breakfast for everyone. They’re packed with fiber! That’s what makes whole grains so terrific. Starting your day with one bowl of Frosted Mini-Wheat’s® cereal delivers 24% of the daily value of dietary fiber for adults. That’s 3 times the fiber compared to Honey Nut Cheerios. (Kelloggs2012). Kellogg maintained its previously provided outlook for 2013.

For 2013, Kellogg expects net sales growth to be approximately 7%, while reported earnings (excluding impact of mark-to-market adjustments but including Pringles integration costs) are expected to grow between 5% and 7%. Reported operating profit ((excluding impact of mark-to-market adjustments) is expected to increase at a higher rate than earnings growth (Zacks2013). References www. 4-traders. com/kellogg-company. com www. kelloggcompany. com www. kelloggcompany2011annualreport. com http://sg. finance. yahoo. com/news/kellogg-beats-overall-keeps-2013-181621345. html www. frostedminiwheats. com www. sbaweb. wayne. edu/~ssasser/pp29. ppt