Market Segmentation of Kellogg’s. 

Kellogg’s is an American Public Limited Company that manufactures food goods. Will Keith Kellogg started this international corporation in 1906, and its headquarters are in Michigan, United States. The current chairperson of the corporation is James M Jenness, and the CEO is John A Bryant. Kellogg’s now has the distinction of being the world’s second-largest snack food manufacturer. The company’s objective has been to give healthier food items to its devoted customers. Today, we’ll look at Kellogg’s market segmentation.

Let’s start with Kellogg’s positioning strategy.

What are you having for dinner? That isn’t Raisin Bran or Grape Nuts, but why not? According to research, whole-grain cereal is high in vitamins and fibre while low in calories and saturated fat. Cereal, on the other hand, is traditionally consumed for breakfast in the United States.

That is not an option. Who says? Who are the advertisers? What if Kellogg’s developed a “dinner cereal?” and invested heavily in marketing? This “dinner cereal” would undoubtedly be no different from any other cereal; it would just give us “permission” to deviate from the standard and do things a little differently. And I promise there will be fewer obese individuals in the world.

When you’ve spent the day running around like a maniac and come home late, making supper might seem overwhelming when you all want to sit comfortably and put your feet up. Pouring oneself a bowl of cereal may appear to be a depressing supper option, but it may be fantastic.

If you pick your cereal correctly, without added sugar, it may provide a healthy dosage of vitamins and minerals. Whole grain cereal contains dietary fibre, B vitamins, minerals, protein, and other nutrients.

At the same time, it is evident from their comments that they have values and morals. They all tackle hardships with smiles and hope for the best. All of the information suggests that Kellogg’s caters to the Traditionalists section.

Values and way of life:

Traditionalists are mostly married, middle-aged men and women who emphasize their families above all else. They go to great lengths to ensure their family’s safety, security, and stability. Representatives from this section highly value children’s upbringing and are exceptionally kind and attentive to them.

Traditionalists strive hard to ensure that children receive a proper education. They believe it is critical to instil values and morality in the next generation and to nurture them with discipline.

This group mostly leads to a steady, tranquil, and well-organized existence. They directly link this way of living to a profession. As a result, Traditionalists stand out in the workplace for their passion, quality, and honesty. These folks love spending quiet time at home with their families. They need to be used to living an exciting and artistic life.

Shopping Attitude:

People in the Traditionalists target sector have an efficient taste in purchasing. These folks are more concerned with comfort than with elegance. In general, people enjoy shopping and the practice of spending money. Traditionalists frequently spend on high-end goods and things.

They are, however, primarily bargain seekers. This target segment’s representatives place a high value on the quality of the things they purchase. They would rather spend more, buy less, and ensure that the quality is there. Traditionalists are not brand loyal. They are drawn to new items and brands readily.

Then we’ll go through Kellogg’s business approach.

Kellogg’s, headquartered in the United States, has been the world’s leading cereal manufacturer since 1906. Kellogg’s goods have been a part of delightful mornings for people worldwide for a century. Its operations have two divisions: Kellogg’s North America and Kellogg’s International.

The North American area, which includes Canada and the United States, accounts for 66% of the company’s income. The remaining 34% is from Kellogg’s overseas markets, which include Europe (20%), Latin America (8%), and Asia Pacific (6%). Ready-to-eat cereals are available, as are cereal bars, cookies, toaster pastries, crackers, frozen waffles, snacks, and vegetable meals. 

Kellogg’s success is primarily due to its perceived healthy image compared to other daily breakfasts and snacks such as chocolate and crisps. They designed the devices to be portable enough to be transported anyplace. They provide a variety of cereal bars that are ideal for folks who are rushing out the door in the morning.

Few Kellogg’s items are pretty adaptable since mothers may feed them to their children as a snack between breakfast and lunch. The sodium level of the meals is a vital issue that the corporation must address. Kellogg’s is attempting to make goods with less salt and more fruits in the bars and cereals for consumers concerned about their health.

For over a century, they have designed items for all age groups, from infants to adults. Innovation has had a more substantial impact on Kellogg’s market.

Kellogg’s has gained consumers by introducing new goods in response to shifting demands and consumer tastes. They sold the items at a reduced price, making them affordable to the typical household and keeping many clients.

Kellogg’s markets its products- it does not produce cereal for any other company that sells it under its brand. All of these factors combined to help the company succeed and become the world market leader in a highly competitive market.

Kellogg’s goal was to be the food business of choice while simultaneously educating people on the necessity of a balanced lifestyle, which their products may help them achieve. “To promote sustainable growth via the power of people and brands by better meeting the needs of customers, consumers, and communities,” the mission states.

Based on their vision and purpose, they developed a plan to attain their goals and objectives using their position and brand image. Kellogg’s targeted distinct kinds of individuals and designed goods to appeal to their mindsets. The company’s overarching strategic goal is a “Balanced Lifestyle.” 

It implemented these strategies through tactical plans. Encouraging physical activity among all age groups and sponsoring these activities with company resources, communicating the balanced diet to consumers through cereal packs, and introducing food labelling to help consumers understand the balanced diet content of their products. The suggested Guideline Daily Amounts (GDA) is crucial to Kellogg’s product labels.

It provided the customer with information about the number of nutrients in a serving of Kellogg’s food. Their marketing strategy is to encourage customers to participate in swimming programs organized by the company in collaboration with the Amateur Swimming Association.

Now let’s consider Kellogg’s Marketing Mix.

Product: 

Kellogg’s is involved in the food processing sector and produces a variety of cereals and other products. Many of its items result from increased awareness about living a healthier lifestyle. Among its valuable products are the following:

Cereals include All-Bran, Chocos, Chocolate Corn Flakes, Cinnamon Toast;

Crunch, and Nut Feast;

Crackers;

Bars of Cereal;

Waffles, Frozen;

Cookies;

Pastries for the Toaster;

Snacks with fruit tastes;

Foods for Vegetarians.

Kellogg’s cereals are its cash cow, owing to its significant global market position in cereals. The main benefit of its cereals is that it emphasizes fitness, making them instant success as a morning alternative.

Place: 

Kellogg’s is a global firm with production units in over eighteen countries, including Canada, the United Kingdom, Australia, Asia, and Latin America. Its goods are marketed and sold in almost one hundred and eighty countries.

The company’s most extensive production facility and European branch offices are at Trafford Park in Manchester, England. The firm has its distribution channel and efficiently manages the network. Salespeople, brokers, and distributors make up the team.

To reach consumers at the right time and location, the firm has also constructed warehouses where a well-stocked supply of items is kept and shipped swiftly and effectively as needed. Kellogg’s has interacted directly with merchants to provide items to customers as quickly as possible.

The product’s availability in line with the consumer’s appropriateness is a critical deciding element in sales numbers. Ample stockpiles are stocked and exhibited at all retail malls and numerous stores to boost sales. Many consumers buy Kellogg’s on purpose, but spontaneous purchases also play a significant role.

Price: 

After extensive market research that includes customers, the corporation always establishes the total selling price of the product. It also considers its manufacturing expenses, advertising expenditures, and profit. After studying every part of the market research, the company determines the pricing of the items. 

This pricing is somewhat adjustable and competitive since the corporation offers discounts and programs to increase sales because higher volumes result in more revenues. Different production costs in various locations have also resulted in diverse product pricing practices. With more cereals continuously spread in all areas, pricing is shifting more toward competitive prices than anything else.

Promotions: 

Kellogg’s has a fantastic marketing approach. As usual, it has used the media to raise customer awareness of its brand and products. It shows its promotions on television, particularly on the kids’ channel and prime time. Kellogg’s has wisely targeted women and children, recognizing the potential of these two demographics. One is the house’s influencer, while the other is the decision maker (especially the kitchen).

Print media displays advertisements in newspapers and magazines. To entice children, the corporation has regularly included several present things in cereal boxes. The customers appreciated this. Kellogg’s marketing approach also included distributing amusing comic books with the Corn Flakes for children.

The corporation has used merchandise to market its products. Another promotional ploy introduced a PC game Mission Nutrition alongside certain special cereal packets. Free samples of new items and current developments have aided the corporation in raising awareness about the latest product’s debut. Kellogg’s became the sponsor of the #41 Chevrolets in auto racing in 1992.

Between 1993 and 2006, the firm also sponsored “Terry Labonte.” The firm includes its ingredients, nutritional value, and other essential information on the packaging boxes as part of its promotional activities and educational material. This material is available in both English and the local language. Kellogg’s is a leading FMCG company that other FMCG firms go to for promotional and managerial ideas.

Conclusion

We were able to investigate Kellogg’s marketing segmentation extensively. We learn about the company’s history and the Traditionalists Brand Archetype. We discovered much about Kellogg’s marketing mix and how it affects the company’s positioning approach. As a result, we can undoubtedly assert that Kellogg’s is deserving of its fame and fortune.

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