Kellogg’s is a food producing organization whose foremost items are prepared to-eat grains, treats, toaster cakes, oat bars, natural snacks, solidified waffles, and other natural foods. These items are made in 18 nations and sold in more than 180 nations (Kellogg’s, 2016). The grain items sold under the Kellogg’s name and are chiefly distributed through the basic supply chain with direct links offering additional benefits to the customers.
In 1898, Will Keith and John Harvey brought forth the well-known breakfast grain Kellogg’s Corn Flakes (Kellogg’s, 2016). Because of Will Keith success in 1906 the Battle Creek Toasted Corn Flake Company was born as well. Today Kellogg’s is the main producer of breakfast oats in the world. Between 1938 and the present day Kellogg’s has opened assembling plants in the UK, Canada, Australia, Latin America and Asia (Kellogg’s, 2016). Kellogg’s delivers an extensive variety of oat items, including the recognized understand brands of Kellogg’s corn chips, rice crisps, natural fiber products, and, in addition, the nutri-grain oat bars.
The main idea of Kellogg’s production lies in an idea that enhanced eating routine prompts better wellbeing. The Kellogg’s Organization’s statement of purpose claims that “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” (Kellogg’s, 2016). It means that the company is dedicated to providing healthy eating solutions and building long-term sustainability.
There are several factors that may impact the company’s performance. Firstly, there is vigorous competition among the traditional breakfast and snack brands. Since the company is operating in different countries around the world, it is subject to different lifestyles, especially when it comes to the food culture. For example, the western lifestyle has an established tradition of eating cereal for breakfast. However, eastern countries have to be pursued by more rigorous advertisements. Thus, catering for the latter market takes more financial effort and requires a different marketing strategy (Mukesh, Jain, & Trehan, 2010). What is more, Kellogg’s was the primary organization to utilize television as its fundamental medium of advertising. TV has remained an imperative commercial strategy for this company. It also likewise utilizes other forms of advertising to augment its products in order to delay the lifecycle of an item that is approaching its declining stage.
Secondly, modern people are living in a fast routine. That is why, they do not have enough time for cooking. For them, the Kellogg’s products are an excellent choice. Even though almost a decade ago their target market mainly constituted children, now their clients are both adults and children.
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Thirdly, there are some financial difficulties that modern consumers are facing. Nowadays, the world economy is growing, but some countries are facing downturns, whereas others have a good future outlook. Due to such disparities among varying countries, people from less wealthy backgrounds are not able to buy expensive breakfasts. That is why, they would rather choose the traditional and cheap option (Gupta, 2015).
From this perspective, the management should pay attention to these factors in order to stay competitive. These days the question of health is really critical. People are becoming more responsible for their lifestyles. The development of the biological and natural foods is occupying more and more market share. Therefore, people have a wide range of products in the food segment to choose from. The inability to cater for health-conscious buyers will decrease the sales of the company, because the question of health is very important (Mukesh et al., 2010).
Secondly, one of the biggest problems in the modern world is obesity, especially among children. What is more, most of the Kellogg’s products have high sugar contents. Ready to-eat cereals are the fourth greatest source of sugar in the eating regime of Americans, behind sugary beverages, pastries, and sweets (Gupta, 2015). Children aged from four to eight have a little understanding of calories contained in such sugars, as their limit is around 12 grams per day (Gupta, 2015). That is the amount of sugar contained in one portion of Kellogg’s Fruit Loops. Consuming even small amounts of such sugary breakfast rules out the consumption of other, natural sugars, which should be part of a sound eating routine of a young person (Gupta, 2015).
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Lastly, it is important to propose some actions that can help deal with the abovementioned issues. The management team should consider the possibility of changing its production. It is advisable for them to decrease the amounts of sugar in their goods and consider the opportunity to become a more natural producer. The Kellogg Company should focus on promoting approaches that are intended to impact the turnover of buyers. There is a need not only to make the buyers happy with their purchases, but also build solid connections in order to secure their faithfulness. Another basic question that can help the company keep more buyers is in the form of product release. Verifiably, the purpose behind the box is to share the key information that buyers need to know about the product. Regardless, considering that adolescents are the largest client base of Kellogg Cornflakes, there should be a handout or children’s magazine that will cover the necessary dietary information and look attractive. It may influence their health choices and motivate them to stay healthy (Mukesh et al., 2010).
To sum up, the quickly changing business environment may pose some challenges for the company. For this reason, it is important to take social modern trends into account. Moreover, it is vital to respond to them quickly and efficiently. An international company such as Kellogg’s should change its strategy to better cater for a healthy lifestyle, because the young generation considers this issue really important.
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