Kellogs presentation

strategic management....product failure

1. Kellogg's Breakfast Mates
Presented to:
Dr. Muhammad Arsalan Ghouri
Group Members
Syed Mohammad Danial Hassan
Syed Farasat Ali

2. Content
Kellogg's Introduction
Competitors
Reasons of Failure Kellogg's Breakfast Mates
Recommendations

3. Company Introduction
Kellogg Company (also known Kellogg's, Kellogg,
and Kellogg's of Battle Creek) is an
American multinational food manufacturing company.
Company was founded in 1906.
Headquarter in Battle Creek, Michigan, United States.

4. Company Introduction
Our Vision: To enrich and delight the world through foods and brands that matter.
Our Purpose: Nourishing families so they can flourish and thrive.
1898 - Recipe of the Product. (Research and Development)
1906 - W.K. Kellogg opened the “Battle Creek Toasted Corn Flake Company”
1914 - Kellogg’s® Corn Flakes® was introduced by opening factories in Australia, England, Mexico, Japan, India and more.
1915 - Kellogg introduced Bran Flakes, the first high-fiber cereal.
1923 - The first in the food industry to hire a dietitian for defining the roles of different foods played in proper diets.
1930 WK Kellogg Foundation whose mission - to help children realize their potential.
1942-1945 - Proudly produced Kellogg’s Raisin Bran for the U.S. armed forces (whole-grain cereal)
1997 — We opened the W.K. Kellogg Institute for Food and Nutrition Research
2006 - Celebrated 100 years commitment to nutrition, health and quality. We also celebrated our future - by creating
new Kellogg’s Special K Bars.
2009-2010 Kellogg’s® Froot Loops®. Now, in the U.S., Kellogg Company offers more ready-to-eat cereals that provide at
least one good source of fiber (3 grams) and one-half serving of whole grains (8 grams) than any other U.S. food company.
Today — We’re proudly upholding the values W.K. Kellogg instilled more than 100 years ago — but now we’re doing it in 180
countries across the world.

5. PRODUCT RANGE

6. Competitors
General Mills Inc.:  is an American multinational manufacturer and marketer
of branded consumer foods sold through retail stores. It is headquartered in
Golden Valley, Minnesota, a suburb of Minneapolis
Aldi (Germany) is a leading global discount supermarket chain with almost
10,000 stores in 18 countries, and an estimated turnover of more than €50bn.
National Biscuit: Nabisco is an American manufacturer of cookies and
snacks headquartered in East Hanover, New Jersey.
Heinz : The H. J. Heinz Company, or Heinz, is an American food processing
company. Headquarters in Pittsburgh, Pennsylvania. It was founded by Henry
John Heinz in 1869

7. Addvertisement

8. Kellogg's Breakfast Mates
Reason of Failure
Cool milk
In order to accommodate for the consumer’s preference for
cool milk, Kellogg’s eventually decided to place Cereal Mates in
refrigerators to imply that consumers should have the milk cold.
Price
Breakfast mate was charged premium for convenience. Its retail
price was in range from $1.39 to $1.69 depending on retail store.
Consumers felt that was too expensive for what they perceive as
a four. Oz. box of cereal.

9. Reason of Failure
Advertising/ Packing not children friendly
As if the consumer wasn’t confused enough, Kellogg’s complicated matters
further with the advertising campaign for Cereal Mates. The TV ads featured
young kids helping themselves to the product, while their parents lay snoring
contentedly in bed. However, the packaging of the product was far from
child-friendly, and if they left their kids to help themselves, the parents would
have probably been crying (or at least getting cross) over spilt milk.
Taste
Breakfast Mate was portable packet to be used when one is out of his home.
This can be kept in lunchbox, briefcase, brownbag, and desk drawer. But the
problem was the milk get warm up at the ambient temperature. This caused
the change in taste of milk.

10. Recommendations
Placing:
Kellogg's breakfast mates should had to place in
category of cereals rather than in refrigeration.
Walk the talk:
As in the advertising they show that the packing is
children friendly, so, it should be but it was not.
Pricing:
Pricing should be matched with the benefits.

11. Recommendations