Kelloggs Special K Essay Example | Topics and Well Written Essays - 3500 words

Kelloggs Special K - Essay Example The company was established at the Battle Creek Toast Corn Flake Company in 1906. It was founded by Will Keith Kellogg to illustrate the increase in his wealth from his work with the brother John Harvey Kellogg at the Battle Creek Sanitarium. The wealth had been created out of sale of Kellogg's Toasted Corn flakes on a huge scale. This led to the renaming of the company into Kellogg Company in 1922 (Kellogg Company, 2011). The strength of the company lies in its world-class innovation abilities. SITUATIONAL ANALYSIS The internal analysis of Kellogg Company is that it focuses on business. Its senior management is aimed at becoming the leader in food retailing industry worldwide. To achieve this, they are empowering their employees and building their brand supported by the integrated focus strategy and operating principles. The foundation of its business lies in its values, its people and its societal commitments. Its core competencies are the skills among the employees that provide th e advantage to the company consisting of the resources available. Kellogg's has far reaching; well defined and clear competences to enable them beat a world’s best. The competences are; it is strategic, functional, and has a corporate ability. It has a flexible structure of organization that fits in the demands and needs of the locals. Kellogg has been developing its image through creating a customer values, customer service efficiency and proper channels of distribution. The Marketing Mix â€Å"Marketing Mix is a well established framework that helps marketers to plan their approach to each market† (Smith. & Chaffey, 2005). Marketing mix of Kellogg’s which is mainly concerned with cereal products, being the major producer of cereal in the world. Consumer wants are fulfilled through the products sold. The current world has consumers that are much more concerned with their health; they tend to buy food products that are healthier especially for their children. Ke llogg’s K special has a range of products that meet the customer demands that are currently higher than expected. They have products that are low in fat, have no preservatives and they have no artificial flavors. There packaging is attractive to children because their mail target is children. Kellogg's supplier power lies under its customers. It poses mainly medium power when purchasing from suppliers. Wheat varies in price because of its extensive force and the cost is passed onto customers of Kellogg’s. Michael Porter’s Five Forces theory states that an industry is influenced by five forces, which are Barriers to Entry, Supplier Power, Buyer Power, Degree of Rivalry and Threat of Substitutes (Kurtz et al., 2009). Kelloggs is not an exception at all and the effect of the forces is evident in its financial as well as managerial reports. Kellogg's product lines are cereals, crackers, cookies, snacks, frozen foods and water. The benefits that a consumer gets are h ealthy products that are standard in nature. The products are manufactured in over 17 countries and are marketed in more than 190 countries according to their annual reports for 2009. The highest consumers are the North America with a 67% margin followed by Europe at 20% then Latin America and Asia Pacific at 8% and 5% respectively. Buyers of Kellogg's products are mostly supermarkets and