KELLOGG

Kellogg-Growth Strategy

Kellogg-Growth Strategy

Introduction

Kellogg's is an internationally identified premier manufacturer of morning serving of food cereals - with constructing bases in 18 nations and a buyer groundwork including 180 countries. Kellogg's cereal has been selected as the company as this is the leading cereal that is being used throughout the world. What makes a product to reach the global customers is the effective utilization of marketing strategies. Not so long ago the company Kellogg, whose name has become synonymous with ready-made breakfast (ready-to-eat cereal), generally intended to leave different markets. The company has forced buyers to pay more for "better" breakfasts, to which was added a couple of new features, just as manufacturers add third razor blade or toilet paper manufacturers are producing a paper with scent.

Instead of struggling (often by lowering prices) to promote Flakes Raisin Bran, Kellogg brought to market Special K Red Berries, contains fresh-frozen berries. Retail price per pound of Special K Red Berries is $4.36, which is two times greater than that of Raisin Bran. Kellogg has also entered into an agreement with Walt Disney, that to plant children's cereals Mickey's Magix and Mud & Bugs and force parents to pay $3.77 per pound.

Discussion

Kellogg Company has been a leader, almost from the time when the WK Kellogg and his brother started selling corn flakes to the patients of the sanatorium in the distant 1906. But in recent years, pressure from the dime-store brands, and accelerating the pace of life (people prefer to have breakfast on the go) had a negative impact on sales. However, the leadership of the company persisted in believing that Kellogg is the number one at least on the volume.

Product developers and marketers were forced to come up with more heavy products, the larger volume of the box, the smaller flakes, or an increased amount of raisins. The sale of the Series' second box for free "increased sales, but profits were killed and did nothing to encourage loyalty to the company's brand. To achieve the promised quarterly profit, Kellogg was forced to cut spending on advertising and the creation of new products.

Sales and Marketing Concepts at Kellogg

Following three ideas are discussed here as used by Kellogg

The Customer Loyalty Funnel for Kellogg's Frosties

Types of Needs, Wants and Demands for Kellogg's customers

Product, Sales and Marketing Orientation at Kellogg's as Organizations

The Customer Loyalty Funnel for Kellogg's Frosties

Kellogg Frosties is one of the major products of Kellogg which is being sold and utilized in almost every part of the world where the product is available. Kellogg's customer loyalty funnels focus on maintaining relationship with existing customers to retain them. Kellogg strongly believes that retaining customer saves more cost than attracting new customers. One of the reasons is cost research which is involved in attracting new customers. While in retaining existing customers, it becomes easy for Kellogg to save cost from other areas and invest in generating customer loyalty. Kellogg is a market oriented company whose focus is on its customer rather than the ...