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the chocolatey cereal
“Kellogg is a Global Company Committed to Building Long-Term Growth In Volume and Profit and to Enhancing its Worldwide Leadership Position by Providing Nutritious Food Products of Superior Value”
W. K. Kellogg
for Presweet Cereal
of Competitors in the Presweeter Cereal Industry
PRODUCT LINE/MANUFACTURING MIX
Cap’n Crunch Snack Bars
Honey Nut Shredded
Honey Nut Cheerios
Honey Nut Cheerios
Bagged Value-Priced Cereal
Fruit Cereal Bars
Cranberry Almond Crunch
Oatmeal Cereal Bars
Main barriers to entry in the breakfast cereal market are four major cost factors.
Product development - easy for established manufacturers to duplicate products, new products take more money & time to develop
Distribution - high slotting & promotional fees, limited shelf space, need to create retail demand, all increase costs for manufacturers
Marketing- need to compete against current brands that have been established through large advertising and promotional efforts (t.v., coupon)
High Capital costs - for different types of equipment and plants
Who Are the Buyers?
How Often Do They Purchase?
Where Do they Want to Buy?
Who Are the Influencers?
Who consumes the goods?
Who are Kellogg’s Target Market?
Gas stationsKellogg’sDistribution Players
Retail/Distribution: Grocery stores are responsible for the overwhelming 99%--of cereal sales
Kroger, Target, distrib. centers
Distrib. In stores
PRODUCT LIFE CYCLE
Fastest Growing Foods in the American Diet:
Carbonated Soft drinks
- Ad content standards
- Stakeholder orientation
- Public program support
- More than required
3. Frosted Mini-Wheat
4. Corn Flakes
5. Rice Krispies/Cocoa Krispies
6. Honey Nut Cheerios
7. Raisin Bran
8. Fruit Loops
9. Special K
10. Corn PopsAmerica’s Top 10 R-T-E Cereals