Analysis of Kellogg's Strategic Position in the Global Market

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Added on  2022/11/28

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This report analyzes the strategic position of Kellogg's, a major player in the food and beverage industry, focusing on its market challenges and opportunities. The analysis highlights Kellogg's target clientele, including health-conscious individuals and parents of young children, and examines its product offerings, such as cereals, cookies, and snacks. It identifies key competitors like General Mills and Mondelez International and discusses the impact of changing consumer preferences on Kellogg's sales. The report details how the company has responded to these trends through research and development, product redesign, and packaging updates. Furthermore, it provides a comprehensive overview of Kellogg's international operations, emphasizing its focus on both children and adults seeking healthier lifestyles. The report concludes by summarizing the factors that have influenced Kellogg's market performance and its strategic responses to maintain its competitive edge.
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Running head: STRATEGIC POSITION
STRATEGIC POSITION
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1STRATEGIC POSITION
The current market background of the company in discussion, Kelloggs, reveal the fact
that the company has majorly been targeting the people who have been dealing with issues of
their breakfasts. The major clients of the organization refer to those who have been having issues
with the cereal intake within their body. The company majorly targets the women who have been
facing issues due to their obesity and are known to have been highlighting the issues regarding
their health (Kelloggs.com., 2019). The target clientele of the organization also includes the
parents of the younger children. the cereals that are marketed by the company are known to have
been crispy and fun for the children who love to have the cereals for their breakfast.
The major products that are manufactured by Kellogg’s are the food products that are
directed at the all sections of the society. The products majorly refer to the cereals, cookies,
crackers and other snacks. These are majorly targeted at the children who are observed to enjoy
these products during their snack timings (Kell, 2014). The major competitors of the company
refer to the other organizations who have been delivering the cereals that are necessary for the
development of the children and the other clientele of the company. The company faces a huge
amount of competition due to the companies like the General Mills, Mondelez International,
Kraft Heinz, J. M. Smucker and other such companies that tend to deal in the cereals and similar
food products that cater to a wider section of the society (Kelloggs.com., 2019).
The company in discussion, Kellogg’s is observed to be highly affected by the current
trends in the given market. The sales of the company have declined due to the change in the food
habits of the target clientele of the company. The company is observed to resort to the
department of the research and development in order to deal with the issues that have been
stemming from the changes in the market trends. The major factor that had affected the changes
within the company referred to the issues that had arisen from the sales of the existent products
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2STRATEGIC POSITION
of the company (Bloomberg.com., 2015). The company was further observed to have put forth
the redesigning of the products as well as redesigning of the packaging of the product in order to
boost the sales of the given food products manufactured by the company, Kellogg’s.
The company is a well-known name in the food and beverage industry that has been
operating on an international level. The company is majorly based in the United States and
mainly caters to the children and the health-conscious people who have been living all-over the
world. The company also targets the women of the world who have been trying to control their
obesity and thereby maintain a healthy lifestyle (Kelloggs.com., 2019). The company is affected
by some of the major trends within the international markets which led to the decrease in the
sales of the company. However, the company overcame the crisis with the help of the research
and development department.
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3STRATEGIC POSITION
References
Bloomberg.com. (2015). Will Kellogg’s Cereal Sales Ever Return to Normal?. Retrieved from
https://www.bloomberg.com/news/videos/2015-02-27/will-kellogg-s-cereal-sales-ever-
return-to-normal-
Kell, J. (2014). Decline in cereal sales bites into Kellogg’s results. Retrieved from
http://fortune.com/2014/10/30/kellogg-breakfast-sales-drop/
Kelloggs.com. (2019). Retrieved from https://www.kelloggs.com/en_US/home.html
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