SWOT Analysis of Kellogg's

This assignment requires students to conduct a SWOT analysis of the well-known breakfast cereal company, Kellogg's. The task involves identifying and evaluating Kellogg's internal strengths and weaknesses, as well as external opportunities and threats that could impact its future success in the market.

Introduction to Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Describe how marketing techniques are used to market products in two organisations.......1
P2 Describe the limitations and constraints of marketing...........................................................2
TASK 2............................................................................................................................................3
P3 How a selected organisation uses marketing research .........................................................3
P4 Use marketing research for marketing planning....................................................................4
TASK 3............................................................................................................................................5
P5 Explain how and why groups of customers are targeted for selected products.....................5
TASK 4............................................................................................................................................6
P6 Develop a coherent marketing mix for a new product or service..........................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
In the current time period, Marketing is one of the major element for business firm
because with the help of this company can effectively improve awareness of their products in
external market place. It includes various encouragement tools and techniques that's why all
companies wants to adopt new and innovative techniques so they can effectively and easily draw
in high number of customers towards enterprise as well as their services. This research project
will be discussing about different marketing techniques and major factors which may be impacts
on business process and working environment (Palmer, 2012). For effectively manage and
control all over marketing operations, government of the country regulate some basic rules and
regulations which all are have to be followed.
TASK 1
P1 Describe how marketing techniques are used to market products in two organisations
Marketing techniques such as branding, relationship marketing and growth matrix are
being used by Kellogg’s and diesel. There are so many different types of methods that are being
used in marketing to make your business becoming more successful. The first one is branding,
branding is a very important part of marketing because this tells the consumers who owns what
and helps them to identify which one they want and which one is better, most of the brands will
have certain things which makes them noticeable, it could be anything like Logo, design or the
slogan. For example if there is a giant K on the cereals then most of the people will know its
Kellogg’s special. Kellogg’s and diesel takes branding very seriously because branding
sometimes can be the importance between the successes of the business or not (Malhotra and
Malhotra, 2012).
Out of the two companies Kellogg’s take branding much more important than diesel
because consumers recognise Kellogg’s by their logo most of the times for example when you go
shopping in the supermarket for some cereals and the ones with the colour and the way it’s
written on the box you will know that it’s Kellogg’s, they designed their logo very simple and
eye catching. On the other hand diesel also focus on brand just as much as Kellogg’s consumers
will know it’s diesel when they see it because it very noticeable they use red back ground with
white letters is not very creativity because they just use their name diesel however it defiantly
noticeable.
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Unlike Kellogg’s diesel produces thousands of different clothes and accessories and they
can’t just have one slogan to describe all of their products so they don’t really use slogans. The
next marketing technique that’s been used is relationship marketing. Relationship marketing is
how businesses such as Kellogg’s and diesel keeping their existing customers either by building
long lasting relationships with them and merely trying to attract new customers to organization
or trying to make the customers satisfied by meeting their expectations to increases the
profitability of the organization (McKenzie-Mohr, 2011).
P2 Describe the limitations and constraints of marketing
Consumer laws are rules that must be adhered to. Companies must make sure that they
comply with consumer law this means that they are legally obliged to keep up to date with them.
These consumer laws include – Sale of goods act, consumer protection from unfair trading
regulations, consumer credit acts, consumer protection regulations, and data protection.
Sale of goods act 1979 – requires businesses to sell goods as described and of a
satisfactory quality, for example a business cannot sell an 11-inch laptop as a 15-inch laptop and
the laptop itself must be new and undamaged if advertised in this way. It is required to ensure
that business people to not ‘rip off’ consumers. The aim of it is to stop people from abusing their
position of power over the consumer. Businesses can comply with the terms by ensuring they
don’t lie about the products they are selling.
Consumer protection from unfair trading regulations 2008 – this means that business
cannot use contentious selling techniques which could be perceived as aggressive and obtrusive.
They cannot be dishonest behind the causes of them doing certain activities, such as they cannot
have a closing-down sale if they are not actually closing (Louviere and et.al., 2013). It is
required so businesses do not push people into spending money that they don’t want to spend and
the aim is to stop people from being pressured into buying something or thinking that they are
helping by spending money.
Consumer Credit Acts 1974 and 2006 – Businesses must have a license if they want to
sell goods on credit or sell loans. The act sets out a list of requirements such as they must update
their customers on their accounts and if they fall behind on payments. This is to protect people
from forgetting and then years later getting a large bill from the company and demanding them to
pay. This is required to stop businesses from taking advantage of consumers. The aim is to stop
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people from falling into debt as businesses should credit check people when the ask for a loan or
credit.
Consumer Protection (distance selling) Regulations 2000 – This is to do with selling
goods when there is no face-to-face transaction taking place. The regulation requires businesses
to provide information that is clear and concise so consumers can decide on whether they should
make their purchase from that company. This is required to ensure that people don’t set up
companies online and lie about the reasons and ethics of the business (Mentzer and Gundlach,
2010).
TASK 2
P3 How a selected organisation uses marketing research
There will be define different methods and techniques of marketing research which all
are stated under following:
Types of market research
 Primary research
 Secondary research
Then under primary research, there are other types of market research:
 Qualitative research
 Quantitative research
Primary research: Primary research is also known as field research. It is the process of
collecting data that does not already exist form questionnaires, surveys, customer interviews and
internet feed back. Primary research allows an organisation to focus on both qualitative and
quantitative issues. It also enables them to addresses specific research issues as they control the
search design to fit their needs in order for them to plan their market efficiently. However, some
disadvantages are that comparing it to secondary research, primary research may be very
expensive in preparing and carrying out (Anda and Temmen, 2014).
Quantitative research: Quantitative research is based on numbers and is more
statistically valid. This type of research involves questions such as “how many?”, “who?”, “how
often?”. Businesses uses this research just to find out how many people actually respond to the
questionnaires and surveys that were handed out.
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Qualitative research: Qualitative research is of more detail, it is based on beliefs and
intentions. This kind of research deals with questions such as “why?” And “how?”. Business
organisation use this type of research to assist in their marketing to find out in more detail the
opinions of their customers and the public, to know why they do not like a particular ingredient,
or to know what they would like to improve (Clayson and Haley, 2013).
P4 Use marketing research for marketing planning
Illustration 1: SWOT of Kellogg's
(Source: SWOT Analysis: Theory, 2016)
Strengths in the SWOT analysis of Kelloggs
1. Worldwide presence: Kellogg’s products are manufactured in 18 countries and marketed
in over 180 countries. Kellogg’s became the world’s second-largest snack food company
by acquiring the Pringles potato crisps brand from Protector & Gamble for $2.7 billion in
a cash deal in 2012.
Weaknesses in the SWOT analysis of Kelloggs
1. Questionable marketing campaigns: Some of Kellogg’s marketing has been questioned in
the press, prompted by an increase in consumer awareness of the mismatch between the
marketing messages and the products themselves which resulted into negative word of
mouth.
2. Slow Innovation: Although the cereals market is overcrowded with local, National &
international brands but despite of this extent of competition Kellogg is not able capture
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the market in the developing markets reason being slow innovation in contents of the
cereals (Gummesson and Mele, 2010).
Opportunities in the SWOT analysis of Kelloggs
1. Market penetration: Penetrating further in the current market & targeting other
developing markets will help the company in increasing its sales.
2. Changing lifestyle: With the growth of the urban population, their hectic & changing
lifestyle people are looking for some easy meals to put down their hunger & save their
time which is the driving force the growth of the cereal industry.
Threats in the SWOT analysis of Kelloggs
1. Intense competition: Inter Industry & intra industry rivalry is one of the major factors that
are affecting the industry as a whole. Ready made foods, Local food joints, restaurants in
close proximity are some of the reason that restricts the growth of cereal industry.
2. Government regulations: Government policies relating to the contents & ingredients used
in the cereals is creating a big hurdle in their growth (Brown and Cave, 2010).
TASK 3
P5 Explain how and why groups of customers are targeted for selected products
The product is targeted to young adults and students who have an accessible income or
choose to use the product for certain purpose, might be listening to music. They need to make
sure that their product is reaching its targeted audience by the right way of communication with
the customers within the market. The business must make sure that the product is released within
the right area in which they can operate and maximise profit. The organisation segments the
market by using demographic (age, income, occupation etc. The importance of segmentation is
to understand the customer needs and wants, right product, in the right place at the right price
with the right promotion. So the company will know who their market target is and who to sell
their product to. The base of segmentation is demographic (Taylor and et.al., 2011).
The importance of segmenting the customers is to understand the needs and want of the
customer using the marketing mix (price, place, product and promotion). The segmentation will
be demographic which include age, income, occupation etc. they might use mosaic to target
families in a neighbourhood (Buttery and et.al., 2011).
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TASK 4
P6 Develop a coherent marketing mix for a new product or service.
Kelloggs is an American Public ltd company that deals in manufacturing of food
products. This multinational company was founded in the year 1906 by Will Keith Kellogg, and
has its headquarters in Michigan in United States.
Product in the Marketing mix of Kelloggs:
 Cereal Bars
 Frozen Waffles
 Cookies
 Toaster Pastries
 Snacks having flavours of fruit
 Vegetarian Foods
The cereals of Kelloggs are its cash cow mainly because it has a large market share for
cereals across the world. The major advantage of its cereals is that it focuses on fitness, which
has made it an instant hit as a breakfast option (Chandon, Laurent and Valette-Florence, 2016).
Place in the Marketing mix of Kelloggs: Kelloggs is a global company and serves a
worldwide area that includes manufacturing plants in nearly eighteen countries like Canada, UK,
Australia, Asia and Latin America. The marketing and selling of its products is achieved in
nearly one hundred and eighty countries.
Price in the Marketing mix of Kelloggs: The company always determines the actual
selling price of the product after conducting a thorough market research that also involves the
consumers. It also looks into its own production costs, the advertisement costs and the profit.
Lastly, after analysing every aspect of the market research it determines the prices of the
products.
Promotions in the Marketing mix of Kelloggs: It has an excellent marketing strategy.
In order to make the consumer aware of its brand and their products it has taken the usual help of
media. Its promotional campaigns are telecast on the television especially on the kids channel
and the prime time slot. Kellogg’s has rightly targeted the women and kids as they realize the
potential of these two sexes (Block and et.al., 2011).
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CONCLUSION
From the above mentioned research report, it has been concluded that different type of
marketing techniques and methods which were helps enhanced awareness of new products and
goods in external market place. There has been defined some legal rules and regulations which
assists maintained all marketing activities or operations. Along with this, for evaluating current
status of Kellogg's company so there has been used SWOT method in research project.
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REFERENCES
Books and Journals
Anda, M. and Temmen, J., 2014. Smart metering for residential energy efficiency: The use of
community based social marketing for behavioural change and smart grid introduction.
Renewable Energy. 67. pp.119-127.
Block, L. G., and et.al., 2011. From nutrients to nurturance: A conceptual introduction to food
well-being. Journal of Public Policy & Marketing. 30(1). pp.5-13.
Brown, K. G. and Cave, J., 2010. Island tourism: marketing culture and heritage–editorial
introduction to the special issue. International Journal of Culture, Tourism and
Hospitality Research. 4(2). pp.87-95.
Buttery, J. P., and et.al., 2011. Intussusception following rotavirus vaccine administration: post-
marketing surveillance in the National Immunization Program in Australia. Vaccine.
29(16). pp.3061-3066.
Chandon, J. L., Laurent, G. and Valette-Florence, P., 2016. Pursuing the concept of luxury:
Introduction to the JBR Special Issue on “Luxury Marketing from Tradition to
Innovation”. Journal of Business Research. 69(1). pp.299-303.
Clayson, D. E. and Haley, D. A., 2013. An introduction to multitasking and texting: Prevalence
and impact on grades and GPA in marketing classes. Journal of Marketing Education.
35(1). pp.26-40.
Gummesson, E. and Mele, C., 2010. Marketing as value co-creation through network interaction
and resource integration. Journal of Business Market Management. 4(4). pp.181-198.
Louviere, J., and et.al., 2013. An introduction to the application of (case 1) best–worst scaling in
marketing research. International Journal of Research in Marketing. 30(3). pp.292-303.
Malhotra, N. K. and Malhotra, N. K., 2012. Basic marketing research: Integration of social
media. Boston: Pearson.
McKenzie-Mohr, D., 2011. Fostering sustainable behavior: An introduction to community-based
social marketing. New society publishers.
Mentzer, J. T. and Gundlach, G., 2010. Exploring the relationship between marketing and supply
chain management: introduction to the special issue. Journal of the Academy of
Marketing Science. 38(1). pp.1-4.
Palmer, A., 2012. Introduction to marketing: theory and practice. Oxford University Press.
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Taylor, S. A., and et.al., 2011. Student engagement and marketing classes. Journal of Marketing
Education. 33(1). pp.73-92.
Online
INTRODUCTION TO FASHION MARKETING, 2017. [Online]. Available through:
<http://www.arts.ac.uk/fashion/courses/short-courses/fashion-marketing-
communications/fashion-marketing-course/>. [Accessed on 20th July 2017]
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