One of the largest names when it comes to breakfast is Kelloggs cereals. They are so famous that they are being used for breakfast across many countries and people just love these cereals. Kelloggs has a large variety of cereals and is one of the companies which is looked up to for its marketing abilities.
Here is the SWOT analysis of Kelloggs.
Strengths in the SWOT analysis of Kelloggs
- Worldwide presence: Kellogg’s products are manufactured in 18 countries and marketed in over 180 countries. Kellogg’s became the world’s second-largest snack food company (afterPepsiCo) by acquiring the Pringles potato crisps brand from Procter & Gamble for $2.7 billion in a cash deal in 2012.
- Strategic Acquisition: Kelloggs has acquired various companies over the years which helped it in optimizing the use of its resources. Kellogg’s made its largest acquisition, theKeebler Company in the year 2001. Over the years, it has also gone on to acquire Morningstar Farms and Kashi divisions or subsidiaries. Kellogg’s also owns the Bear Naked, Natural Touch, Cheez-It, Murray, Austin cookies and crackers, Famous Amos, Garden burger (acquired 2007), and Plantation brands.
- High Awareness: Kelloggs is successful in creating awareness in developed economies. It is world’s largest cereal maker by sales, which spends more than $1 billion annually on brand advertising and marketing and is an official sponsor of the U.S. Olympic and Paralympic Teams.
- Marketing Initiatives: It has positioned itself as a brand meant for fighting hunger specifically as an alternative to the breakfast i.e. breakfast cereal brand which has helped the company to acquire the share of wallet of the customers. “Fighting Hunger” initiative with Walmart, Master brand TV campaign and many others are some of the major marketing initiatives that helped Kellogg in establish itself as a global brand.
Weaknesses in the SWOT analysis of Kelloggs
- Questionable marketing campaigns: Some of Kellogg’s marketing has been questioned in the press, prompted by an increase in consumer awareness of the mismatch between the marketing messages and the products themselves which resulted into negative word of mouth. Food bloggers have also questioned the marketing methods used by cereal manufacturing companies such as Kellogg’s, due to their high sugar content and use of ingredients such as high-fructose corn syrup.
- Slow Innovation: Although the cereals market is overcrowded with local, National & international brands but despite of this extent of competition Kellogg is not able capture the market in the developing markets reason being slow innovation in contents of the cereals.
Opportunities in the SWOT analysis of Kelloggs
- Market penetration: Penetrating further in the current market & targeting other developing markets will help the company in increasing its sales.
- Changing lifestyle: With the growth of the urban population, their hectic & changing lifestyle people are looking for some easy meals to put down their hunger & save their time which is the driving force the growth of the cereal industry.
- Targeting Restaurants & hotels: Many companies from FMCG & food industry are tying-up with Restaurant & hotel chains to expand their business. There’s great opportunity lying ahead for Kelloggs if they can generate their business from this growing segment.
Threats in the SWOT analysis of Kelloggs
- Intense competition: Inter Industry & intra industry rivalry is one of the major factors that are affecting the industry as a whole. Readymade foods, Local food joints, restaurants in close proximity are some of the reason that restricts the growth of cereal industry.
- Government regulations: Government policies relating to the contents & ingredients used in the cereals is creating a big hurdle in their growth.
- Changing lifestyle: With the increase in the urban population office going people use to have less time so now they are shifting to “Take away outlets” to save their time.