Kellogg's Saudi Arabia: Marketing Analysis and Recommendations

This report provides a comprehensive analysis of Kellogg's operations and marketing strategies within the Saudi Arabian market. It begins with a background of Kellogg's and its marketing approach, followed by an examination of its customer profile, chosen product (breakfast cereals), and the country profile of Saudi Arabia. A detailed PESTLE analysis assesses the political, economic, social, technological, environmental, and legal factors influencing Kellogg's business in the region. The report then explores Kellogg's current promotional activities, cultural considerations, distribution strategy, and price/value proposition. The core of the report lies in its recommendations for market improvements, supported by evidence and rationale, aiming to enhance Kellogg's market performance in Saudi Arabia. The report concludes by summarizing the key findings and recommendations, emphasizing the importance of strategic adaptation to the unique characteristics of the Saudi Arabian market to achieve sustainable growth and success.

qwertyuiopasdfghjklzxcvbnmqw
ertyuiopasdfghjklzxcvbnmqwert
yuiopasdfghjklzxcvbnmqwertyui
opasdfghjklzxcvbnmqwertyuiop
asdfghjklzxcvbnmqwertyuiopasd
fghjklzxcvbnmqwertyuiopasdfgh
jklzxcvbnmqwertyuiopasdfghjkl
zxcvbnmqwertyuiopasdfghjklzxc
vbnmqwertyuiopasdfghjklzxcvb
nmqwertyuiopasdfghjklzxcvbnm
qwertyuiopasdfghjklzxcvbnmqw
ertyuiopasdfghjklzxcvbnmqwert
yuiopasdfghjklzxcvbnmqwertyui
opasdfghjklzxcvbnmqwertyuiop
asdfghjklzxcvbnmqwertyuiopasd
fghjklzxcvbnmqwertyuiopasdfgh
jklzxcvbnmrtyuiopasdfghjklzxcv
Management

Contents
Introduction...........................................................................................................................................3
Background of Kellogg’s.......................................................................................................................3
Customer profile and chosen product....................................................................................................3
Country Profile of Saudi Arabia............................................................................................................4
Promotional activities of Kelloggs Saudi Arabia...................................................................................4
Cultural analysis of Saudi Arabia..........................................................................................................4
Pestle analysis of Saudi Arabia and its impact on the Kelloggs.............................................................5
Price and Value proposition...................................................................................................................6
Distribution channel of Kellogg’s..........................................................................................................6
Market improvements............................................................................................................................7
Conclusion.............................................................................................................................................7
References.............................................................................................................................................8

Introduction
In the recent time, consumers are increasingly demanding healthy products in order to
stay fit and healthy. Due to this, Kelloggs has come up with the breakfast cereals for the
western expatriates and people who prefer healthy food. In the paper, discussion has been
carried on the Kellogg’s customer profile as well as its growth in the Saudi Arabia market. In
addition to this, discussion has been carried on the Pestle analysis of Saudi Arabia and its
impact on the Kellogg’s. The discussion ended with recommending some of the market
improvements.
Background of Kellogg’s and marketing
Kellogg is an American multinational Food manufacturing Company headquartered in
United States. The mission statement of Kellogg is to nourish the family so that they can also
thrive and flourish. More than 100 year ago, founder of Kellogg’s named W.K. Kellogg saw
the promise in single grain. Due to its commitment and passion to nutrition, Kellogg industry
was started. In the recent time, nutrition considers to be the core of its business. Due to the
increasing shift of people toward heath and diet, they are giving focus on taking healthy diet
(Baker & Hart, 2016). Due to this concern, Kellogg has come up with the breakfast cereal for the
people of Saudi Arabia. Market of cereals is growing well in the Saudi Arabia. Kellogg
believed that diet plays an important role in order to stay healthy and fit. Kellogg’s also
ensures to post videos on You Tube so that customers can see the result of Kellogg’s product.
Customer profile and chosen product
Due to its healthy ingredients, it mostly targets the people who are healthy conscious
as well as properly know how to maintain their health. Kellogg’s has stated that mothers in
Middle East take immense delight and pride at the preparing healthy and tasty food for their
family. Due to this, it has started offering breakfast food with the simple grain. The chosen
product cereals is growing well in the Saudi Arabia market by targeting health concerned
people. Western expatriates ensuring the higher consumption of the cereals that has helped
the company in positive way. Growth of cereals mostly comes from the western expatriates
present in Saudi Arabia. The high growth of cereals in Saudi Arabia is seen due to the growth
of women who have joined the workforce. The most substantial growth has been seen in the

Saudi Arabia in hot cereals. It has also shown the consumer shift towards the wellness and
health items (Sadat-Ali, Al Elq, Al-Farhan & Sadat, 2013).
Country Profile of Saudi Arabia
It is found that the Kingdom of Saudi Arabia is the biggest Arab country in the
Middle East. It is also monarchy where king named “Salman Bin Abdul-Aziz Al Saud”
succeeded to the throne on 2015, January. Second person in line is King’s son, Crown Prince
“Mohammed bin Salman bin Abdul-Aziz Al Saud.” King in the Saudi Arabia
The chosen product breakfast cereals are growing well in the market of Saudi Arabia.
Under this product, it has effectively targeted the local consumers and western expatriates.
(Covin, Garrett, Kuratko & Shepherd, 2015). Due to this, it wants to drive the awareness among
people related to the cereals vitamins and nutrients. The growth of its cereals is seen in the
Saudi Arabia use to large population of western expatriates.
Pestle analysis of Saudi Arabia and its impact on the Kelloggs
Political factors: It is true that companies all over the world function under some political
environment. In Saudi Arabia GDP (Gross Domestic Product) has expanded to 0.5 YoY in
the June 2019. Besides this, the nominal GDP has also reached to 197.3 USD in the June
2019. The growth in GDP has also brought Kellogg’s to grow in the market of Saudi Arabia
(Schroeder, 2018).
Economic factor: it is one such significant factor affects the Kellogg’s in doing business in
Saudi Arabia. Due to the fluctuations in exchange rate, it tends to get affected. As per the
forecasting report, it is found that the local and expat workers who are leaving Saudi Arabia
will affect the breakfast cereals. Cost of living is also increasing for the Saudi Arabia people.
Due to this, many middle-income people are expected to leave Saudi Arabia (Al Rajhi, Al
Salamah, Malik & Wilson, 2012).
Social factors: In the recent time, consumers are increasingly looking for the products that are
healthy quotient and rich in nutrition. By keeping, this in mind Kellogg’s has also started
offering the healthy breakfast cereals. At the same time, it has also using the online channel
for its products that tend to fulfil the demand of technological advanced customers. Besides
this, customers also mostly get attracted toward the discounts and offers. For this, Kellogg’s
also offers several discounts and schemes to the customers of Saudi Arabia (Field, 2006).

Technological factors: Due to the increasing changes in technology, it is essential for the
firms to give emphasis on the adoption of innovative technologies. At the same time, virtual
reality is also one such growing and big trend in all the companies. Due to this, Kellogg’s
also uses Virtual reality to see more cornflakes. Manufacturer of breakfast cereal Kellogg’s
has been working with the third part VR companies in order to determine the better or
effective way for displaying its new product available in the stores. (Arab News, 2019). The
VR headsets of Kellogg precisely and closely monitor the eye movement of users.
Environmental factors: Government is giving increasing giving emphasis on protecting the
environment by undertaking safety measures. In this regard, Kellogg Company has taken the
initiatives to give emphasis on causes that re benefitting children. It always remembers that
the support for communities can put the significant impact on people who are in need.
Kellogg reputation is also achieved by it due to the quality and safety of its product that it
sells around the world.
Legal factors: the authority of Saudi Arabia has brought a new law. This law directly includes
the healthy food strategy (Attari, 2019). Under this, it has signed the voluntary agreement
with the several food suppliers and producers. Under this, companies are required to reduce
the salt, sugar, and fat content from their products. Under this, Kelloggs has also signed the
pledge to cut down the fat and sugar. In addition to the rules and laws, Kelloggs always give
its emphasis on the food safety. For this, it believes that time-to-time auditing is essential.
Promotional activities of Kelloggs Saudi Arabia
Kelloggs is heavily promoting its cereals with the help of store promotions and
television advertising. From the last few years, it is found that it has seriously started
investing in those category by targeting the expat community as well as indigenous
population. Still, Saudi Arabia is found to be less developed market for the breakfast cereals
in the Middle East. It therefore still has the advantage to increase the investment in
advertising and innovation (Aljobair, 2018). Kelloggs has also increased its level of
distribution across the market of Middle East by tripling its marketing budget in the last few
years. It is also giving its total emphasis on ensuring that its marketing is designed for the
Middle East. For increasing promotion, it is also using sampling due to the less awareness of
customers. In addition to this, Tomlinson also started the campaign for the Kelloggs. The

campaign directly gives emphasis on the healthy eating, and exercise. In this way, it can
regularly give its concern on the use of different promotional activities (Koe, 2018).
Cultural analysis of Saudi Arabia
Saudi Arabia culture is directly defined by the Islamic heritage. The Saudi society has
been evolved over the years, their traditions, and value from the customs. Due to the
increasing attention of people on healthy diets, Kelloggs has also come up with the different
flavours in the Middle East. In Saudi Arabia, people are giving their attention on the healthy
diet as compare to eating fast food. Due to the healthy wellbeing, people have shifted their
demand and needs toward the purchasing of healthy cereals. Due to this reason also, Kelloggs
cereal has gained the higher growth opportunities in Saudi Arabia market (Basahel & Yamin,
2017).
Distribution strategy of Kellogg’s
It is found that Kellogg sold its cereals with the help of one distributor. In the recent
time, small number of the Pop Tarts is being import with the help of non-Kelloggs authorized
non-dependent importer. It was however removed from the shelves of store. It used to
discourage such kind of imports and take the necessary steps for minimising the confusion of
customers. In addition to the offline channel, Kellogg’s is also selling its products through the
online channel. Due to the increasingly technological changes, customer tends to rely more
on the online challenge. By keeping this in mind, Kelloggs started doing the online delivery
of its products. In its online channel, it has he selection of product.
Price and Value proposition
Kellogg’s always follow the competitive pricing. Due to this, prices are always based
on the market condition and research. Kellogg’s always provide discount as well as some
other scheme such as coupons to its customers. Therefore, Kellogg’s keep the prices flexible
in order to compete with the other player (Jin, Almousa & Kim, 2018). In the recent time,
consumers only purchase those products that met the standards of “Saudi Arabian Standards
Organisation.” by maintaining its quality as per this standard; it is able to maintain its value.
Moreover, customers also mostly choose Kellogg’s cereals for their breakfast (Silverman &
Trujillo, 2019).

Market improvements
When the Saudi Arabia government for reducing the content of salt, sugar, has passed
a new law and fat from their products, Kelloggs has also launched the new Coco Pops cereal
with the sugar. Sugar has been reduced by 40 per cent in the market of GCC. In the next year,
it has also launched the healthy version of Coco Pops biscuits in which salt, sugar, as well as
fat will be slashed by 26 per cent, 7 per cent, and 40 per cent. For bringing the improvement
in market, it has also made the commitment to reduce the sodium in its food product across
the world by the year 2021 (Payne, Frow & Eggert, 2017).
In addition to this, it is recommended to ensure the proper market research. Careful
marketing efforts will bring the several new opportunities for Kellogg’s lying in the market.
At the same time, it is also suggested to ensure the sustained and solid efforts in the
techniques. It is further suggested to not giving up because no business is able to see the
instant response from the customers. In order to ensure the effective presence on the social
media site, regular research is required on the part of organisation. Due to the increasing use
of You tube By the Saudi Arabia people, it is suggested to upload time-to-time videos on You
Tube so that customers come to know about the health benefits of its product.

Conclusion
In the limelight of above discussion, it can be concluded that Kelloggs has effectively
tapped the Saudi Arabia due to its healthy offering. Due to the healthy food product demand,
Kellogg’s breakfast cereal is getting huge growth. At the same time, growth in GDP has also
positively impacted the Kelloggs in terms of consumer spending.

References
Aljobair, M. O. (2018). Characteristics of cereal flakes manufactured using date syrup in
place of sugar. Nutrition & Food Science, 48(6), 899-910.
Al Rajhi, A., Al Salamah, A., Malik, M., & Wilson, R. (2012). Economic Development in Saudi Arabia.
Routledge.
Arab News. (2019). Kellogg’s Products free from Pork Derivates: Binzagr. Retrieved from:
https://www.arabnews.com/node/221357
Attari, L. (2019). Saudi Authority launches healthy Food strategy. Retrieved from:
https://www.s-ge.com/en/article/news/20192-c7-middle-east-food-strategy-healthy-
foods
Baker, M. J., & Hart, S. (Eds.). (2016). The marketing book. Routledge.
Basahel, A., & Yamin, M. (2017). Measuring success of e-government of Saudi Arabia. International Journal of
Information Technology, 9(3), 287-293.
CEIC. (2019). Saudi Arabia Real GDP growth. Retrieved from:
https://www.ceicdata.com/en/indicator/saudi-arabia/real-gdp-growth
Covin, J. G., Garrett Jr, R. P., Kuratko, D. F., & Shepherd, D. A. (2015). Value proposition evolution and the
performance of internal corporate ventures. Journal of Business Venturing, 30(5), 749-774.
Field, R. (2006). Breakfast cereals rise and shine in the Middle East. Retrieved from:
https://www.arabianbusiness.com/breakfast-cereals-rise-shine-in-middle-east-
204952.html
Jin, B., Almousa, M. O., & Kim, N. (2018). Retailing amid regulation and religion: The unique cultural
challenges and opportunities facing market ventures in Saudi Arabia. Journal of Cultural Marketing
Strategy, 3(1), 70-81.
Koe, T. (2018). Kellogg’s Mars, Nestle Pledge to reduce sugar, salt and fat as Saudi launch
the Healthy Food strategy. Retrieved from:
https://www.foodnavigator-asia.com/Article/2018/09/25/Kellogg-s-Mars-Nestle-
pledge-to-reduce-sugar-salt-and-fat-as-Saudi-authorities-launch-the-Healthy-Food-
Strategy

Patino, A., Pitta, D. A., & Quinones, R. (2012). Social media's emerging importance in
market research. Journal of Consumer Marketing, 29(3), 233-237.
Payne, A., Frow, P., & Eggert, A. (2017). The customer value proposition: evolution, development, and
application in marketing. Journal of the Academy of Marketing Science, 45(4), 467-489.
Sadat-Ali, M., Al Elq, A., Al-Farhan, M., & Sadat, N. A. (2013). Fortification with vitamin
D: Comparative study in the Saudi Arabian and US markets. Journal of family &
community medicine, 20(1), 49.
Schroeder, E. (2018). Kellogg makes progress against CSR targets. Retrieved from:
https://www.foodbusinessnews.net/articles/11900-kellogg-makes-progress-against-
csr-targets
Silverman, D., & Trujillo, R. (2019). Evaluating the effectiveness of nonlinear pricing in the breakfast cereal
industry. United Kingdom: Routledge.