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Kellogg Case Analysis

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While this past year’s financial situation has not been released yet, Kellogg has been earning a steady amount of profit in the last five years. Nonetheless, the growth rate and revenue fluctuate positively and negatively, which means Kellogg struggles to grow year after year. It has notable years when it introduces new products or it acquires other companies, but mainly because of a declining economy and a fading trend for cereal in the mornings, Kellogg’s has experienced declines in revenues (Kell, 2014, para. 6). Specifically in 2014 and 2012. Research has shown newer generations like the Millennials prefer alternatives to cereals for breakfast, which has made it hard for Kellogg’s to grow their business. The corporation usually redeems…show more content…
Being healthy is a lifestyle choice that has increased over the past few years. In 1955, Kellogg introduced Special K, a cereal that is made from healthy ingredients and focuses on the adult market (“Kellogg Company”, 2015, p.7). Currently, the average person in America is at risk of health disease or is obese (Dinkins, 2001, p.98). There has gradually been in an increase in the want to diet, eat better and exercise, “twenty-three percent of people surveyed were interested in improving their diet” (Dinkins, 2001, p.98). This leads to many food companies creating their own healthier versions of food, and for Kellogg’s it is the dietary products of the Special K chain. According to an article written by Elaine Wong, Special K cereal is number four in “ready to eat” cereal and has made $6.6 billion in sales (2010, p.18). Although the health craze has increased in recent years, there is still a need to market Special K better for healthy…show more content…
There are over five brands of healthy breakfast cereals that Kellogg must compete with. However, Kellogg’s Special K has been able to advance itself into two specific markets; the weight loss market, and the nutrition market. They also have a variety of cereal flavors, while other cereals have limited options. To improve its position in the healthy food choice market, Kellogg’s must target other specific segments with new features and benefits for those segments. It would be an added benefit if Kellogg’s could market cereal in interactive ways like it does already for children’s cereal
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