Page 1: Introduction
The Kellogg company was founded in 1898 by W.K. Kellogg and his brother, Dr. John Harvey Kellogg. Through experimentation with flaked corn, W.K. Kellogg created the recipe for Corn Flakes. In 1906, he opened the “Battle Creek Toasted Corn Flake Company” and recruited his first 44 employees. Together with these employees he developed the initial batch of Kellogg’sCorn Flakes bringing to life his vision for great-tasting, ‘better-for-you’ breakfast foods.
Kellogg embraced every opportunity to make a difference in peoples’ lives and was motivated by his passion to help people improve their health. Today, over a hundred years since it was first founded, the Kellogg company still upholds his original values. The company is the world’s leading producer of cereals and a market leader in health and nutrition. Kellogg’s was one of the first companies to print nutrition labels on its packaging and, in 2007, was amongst the first companies to print Guideline Daily Amounts (GDA) on its products to inform the public about the food they are eating. This has helped the company to engage with a market more concerned with healthy living.
With a vision ‘to enrich and delight the world, through foods and brands that matter’ Kellogg’s employs over 31,000 people worldwide. Its products are manufactured in 18 countries and sold in over 180 countries. Kellogg’s well known cereal brands include Coco Pops®, Rice Krispies®, Crunchy Nut® and Special K®. With a 37% market share of the value of the UK’s breakfast cereal market, Kellogg’s has a wide range of products including 25 brands of cereals, cereal bars, and snacks.
The food manufacturing sector is highly competitive, with consumers having considerable choice over which products they buy. For Kellogg’s to remain as market leader it needs innovative marketing strategies to help ensure that it is manufacturing the right products to meet consumer needs, that the products are sold at the right price and in the right locations (place) and that the promotion of its products is suited to the target audience.
This case study demonstrates how Kellogg’s uses groundbreaking and innovative strategies to market its products.