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Marketing Strategy of Kellogg’s – Kellogg’s Marketing Strategy

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Incorporated in 1906 by W.K Kellogg, Kellogg’s initially started the business with breakfast cereals i.e.  ready to eat cereals but over the period of time it ventured out to the products beyond breakfast. Today its product portfolio includes convenience foods such as snacks, biscuits, waffles, pastries cookies and crackers.

“Kellogg’s” brand name is famous globally but the company have its brand portfolio consisting of brands such as Murray, Austin, Famous Amos, Cheez-it and Keebler.   

Segmentation, targeting, positioning in the Marketing strategy of Kellogg’s –

Kellogg’s uses a mix of demographic, geographic and psychographic segmentation to market its 1600 products in around 180 countries around the world.

Differentiating targeting strategy is used by Kellogg to make its products available across different channels.

Did you know?

Kellogg’s Company Split Completed: On October 2, 2023, Kellogg’s officially finalized its separation into two independent companies: Kellanova and WK Kellogg Co. Kellanova focuses on global snacking, international cereal and noodles, and North America’s frozen breakfast business, while WK Kellogg Co concentrates on the North American cereal segment (Source: Kellogg’s Press Release, October 2023).

Strong Financial Outlook: Post-split, Kellanova projected net sales between $13.5 billion and $14 billion for fiscal year 2023, leveraging the growing demand in the global snacks market, which is anticipated to reach $138 billion by 2025 (Source: Kellanova Financial Outlook, October 2023).

The world’s largest cereal company uses product/ benefit based positioning strategies to highlight the benefits of their products to the customers.

Marketing mix – Here is the Marketing Mix of Kelloggs.

SWOT analysis – Here is the SWOT analysis of Kelloggs. 

Mission- “Not Available”

Vision- “Enrich and delight the world through foods and brands that matter”

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Tagline-“Let’s make today great”.

Marketing Strategy of Kellogg’s - 1

 

Competitive advantage in the Marketing strategy of Kellogg’s –

Manufacturing Facility: Kellogg’s has manufacturing facilities in more than 20 countries which are helping it to make its products available in more than 180 countries globally.

Strong product portfolio:  Being world’s largest cereal maker and 2nd largest maker of cookies & snacks are helping the company to distribute more than 160 countries globally.

Kellogg’s spends more than its 8% of its revenue brand building exercise which is helping the company in emerging as a powerful brand in some of the developing markets in the world.

BCG Matrix in the Marketing strategy of Kellogg’s –

Having brands in its portfolios such as Murray, Austin, Famous Amos, Cheez-it and Keebler has helped the company to offer various choices to a customer under the umbrella brand Kellogg’s.

The business segments of Kellogg’s such as Ready to eat cereals and crackers, frozen foods are stars in the BCG matrix and all others products are questions marks in the BCG matrix.

Distribution strategy in the Marketing strategy of Kellogg’s –

Being part of the FMCG industry, Kellogg’s make its products available to the end customers through different channels such as its distributors, own sales force, convenience stores, e-commerce sites and chain of supermarkets such as Walmart, Tesco, big bazaar, 99 stores etc.

Brand equity in the Marketing strategy of Kellogg’s –

Revamping/ redesigning its old website or engaging in CSR activities or representing the brand by winning various awards and accolades worldwide at various platforms; Kellogg’s in its objective to connect with the next generation of consumers have created High TOMA (top of mind awareness) in the market. Kellogg’s have been associated with many international events like FIFA, Olympics and many others to connect with the customers. As has been bagged many awards such as Fortune for being the world most admired company, Interbrand for being world’s best global brand, by Forbes and many others.

Marketing Strategy of Kellogg’s - 2

 

Competitive analysis in the Marketing strategy of Kellogg’s –

Kellogg’s faces competition from various local, national and International companies who are dealing in unbranded or private brands. Factors affecting the competition are the cost of raw materials, quality, price, convenience services and advertising & promotions by the companies.

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Market analysis in the Marketing strategy of Kellogg’s –

The market and product in which Kelloggs’s deal with are overcrowded with a large number of players.

Change in consumption pattern, changing lifestyle, migration of people from rural to urban and metro cities in shaping the demand analytics of the ready to eat products whether it is cereals, bakeries, pastries or any other item. The rise in disposable income and literacy level is also affecting the consumption graph as forecasted by the companies in this industry.

Customer analysis in the Marketing strategy of Kellogg’s –

Customers of Kellogg’s consists of B2C and B2B. Mainly people from urban or metro regions are the major customer segments which are targeted by Kellogg’s.

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About

Hitesh Bhasin is the Founder of Marketing91 and has over a decade of experience in the marketing field. He is an accomplished author of thousands of insightful articles, including in-depth analyses of brands and companies. Holding an MBA in Marketing, Hitesh manages several offline ventures, where he applies all the concepts of Marketing that he writes about.

Comments

  1. imesh says

    HI
    1. what are the basic consumer behavioral model

    2. how to use segmentation variables

    3. how to targeting strategies

    4.

  2. Navoda says

    What are the targeting strategies of Kellogg’s chocos?

  3. Kent S Pruzan says

    A new cereal with a compelling name “bitcone”, small pieces of waffle cone

  4. Phakamani says

    What are targeting strategies employed by Kellogg’s South Africa?

  5. Anthony says

    what is your behavioral, demographic, psychographic, geographic segmentation

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