Marketing Strategy and SWOT Analysis of Kellogg’s

Breakfast is the most important meal of the day. We’ve all heard that phrase before. The idea behind that is that as we are sleeping we spend energy, as surprising as that sounds. Also, right after we wake up, we haven’t eaten since the day before. Thus, to make up for it and re-energize we have to start our days right. Breakfast preferences vary for different people. But there is one particular food item that regardless of age hits home. And that is cereal. Kellogg’s will be the chosen topic of today’s blog as one of the leading American producers of cereal.

Let’s start the discussion of this blog by looking at the mission and vision statements of the company.

The mission statement of the company is as follows.

“Our purpose is to nourish families so they can flourish and thrive. Our heritage drives the future of our company and keeps us excited about tomorrow.”

Firstly, whether done intentionally or not, the words ‘nourish’ and ‘flourish’ rhyme which may bring more attention and concentration to the statement.

Breakfast is a big family bonding moment which is why the family presence in the sentence makes a lot of sense.

The company’s goal is not just to sell products but to actually do good to people. It takes into consideration what is best and what the customers may potentially look for.

All in all, one thing that we can gather from this statement is the dedication to consumers.

Here is the vision statement of Kellogg’s.

“To enrich and delight the world with foods and brands that matter.”

The simplest explanation is that this company wants to have its big investment in the world. One of its core wishes for the future is to make a change but in a fair way.

The statement is very brief which might leave people thinking that whatever is needed to be said is not told. However, it is actually the opposite. With a short and catchy statement, the company has not only found a smart way to have people instantly focus but also it is so simply written that it does not leave many questions.

Furthermore, let’s think about the positioning strategy that Kellogg’s uses.

To contribute to it, take a look at this Instagram post.

In the photo, we see two rice crispy treats in a heart shape, and below that, we see “my moms”. At first glance that may not provoke any thoughts but if we are a little more careful, we will notice that the colors used for the treats are the same as the LGBT flag. Then, the caption makes it obvious that this post is dedicated to Mother’s day. It is a way to congratulate all the mothers out there as they are doing their duties amazingly.   

Now, what does this post, in particular, tell us about Kellogg’s? There are a few points that we would like to mention.

The first one is the positivity towards the LGBT community. It brings into the picture not just the community but everybody around. This is talking about the equality of all living creatures and the goal of spreading kindness and acceptance by the company.

It is also interesting how the company chose Mother’s Day specifically for spreading this kind of message. That way the company is not only showing a different approach but a great one. One that is simple but very fresh and amazing. With more messages like this, one day we will live in an incredibly fair world.

So these thoughts point us to nothing but the conclusion that the archetype that Kellogg’s has chosen to go for is The Innocent.

Additionally, let’s point out the information that we hold about this archetype.

Desire: to experience paradise.

Aim: to be happy.

Strategy: do things right.

The messaging levels of the mentioned archetype are the following.

Level One: a desire for purity, goodness, and simplicity

Level Two: childlike simplicity, naive, dependent, obedient, trusting, idyllic

Level Three: renewal, positive, reinventing, reframing, cleansing, reentering the Promised Land

Level Four: an almost mystical sense of oneness, whereby Innocence comes from values and integrity, not outer experience, being, not doing             

The innocent archetype provides a good identity for brands that:

• Provide a relatively simple answer to an identifiable problem
• Are associated with goodness, morality, simplicity, nostalgia, or childhood
• Have functions associated with cleanliness, health, or virtue-and that are infinitely replicable
• Are priced moderate to low
• Are produced by a company with straight-arrow core values
• Desire to differentiate from a product with a tarnished image

Moving along, let’s get to the SWOT Analysis of Kellogg’s.

Strengths

Worldwide Presence: This company’s products are available in 180 countries. 18 of them are also manufacturers. This makes it that Kellogg’s holds second place worldwide in the snack food category. Something that had an immense impact on it was the acquisition of the Pringles potato chips.

Strategic Acquisition: Kellogg’s has taken over a bunch of companies throughout the time. This made it possible for the company to make use of its numerous resources. The biggest investment and acquisition that Kellogg’s made was theKeebler Company. That took place back in 2001. Afterward, the company has acquired other brands such as Bear Naked, Natural Touch, Cheez-It, Murray, Famous Amos, Austin Cookies and Crackers, Garden Burger, and etc.

High Awareness: when it comes to advertising, sparing money is out of the question for this company. Within a year, it spends over a billion dollars, and, as a result, it is the largest cereal manufacturer in the world. The strategy of being present in developed economies and spheres brings so much success to this company. For instance, Kellogg’s is one of the official sponsors of the U.S. Olympic and Paralympic Teams. 

Marketing Initiatives: It is important to come up with smart marketing ideas while putting a brand out there. What Kellogg’s does, is that since the beginning it has made it pretty clear that the ultimate and most important aim is to fight hunger. It is a very important and valuable message especially in today’s toxic diet culture to not forget that eating is an important aspect of survival. Among the marketing initiatives that Kellogg’s uses stand Walmart, Master brand TV campaign, and so many more. They assisted in the company’s establishment as a global brand.

Weaknesses

Questionable Marketing Campaigns: Opposing the fighting hunger idea, some things come into question for companies like these. Things such as the actual health benefits of the products offered. Because cereals are high in sugar and semi-harmful ingredients such as high-fructose corn syrup, food bloggers have not failed to speak up about their concerns. Also, another thing that Kellogg’s sometimes does is sending out marketing messages that are not linked with the products themselves. Of course, with the stimuli of the press, consumers have become more aware and alarmed of those instances.

Slow Innovation: Even though Kellogg’s is a leading cereal company not only locally, but also internationally, there is still a competition that it has to keep up with. As it is not a very innovative company, targeting the developing markets is kind of a challenge.

Opportunities

Market Penetration: Getting more insight into the current market can potentially be very beneficial for this company. That way the developing markets will be targeted automatically as well, enabling the company to boost its profits.

Changing Lifestyle: Nowadays, people are becoming busier and focused on pursuing their professional lives. That makes it impossible to spend extra time preparing meals. Therefore, the big opportunity here is that making cereal is pretty easy. It will take no longer than three minutes. Employees prefer to spend their time effectively and freeing it whenever possible.

Targeting Restaurants and Hotels: A great way to broaden a business’s gains is going for Restaurant and Hotel chains. A lot of companies have already done this, and now it is Kellogg’s turn.

Threats

Intense Competition: The cereal industry is sort of at risk when it comes to growing because a lot of similar categories, such as readymade foods, local food joints, and restaurants close in proximity make it challenging.

Government Regulations: The Government slowly but surely pays extra attention to the ingredients that are used in cereals. As already mentioned, cereal is high in sugar and other ingredients like such that make it less healthy.

Changing Lifestyle: With people getting busier, another thing that they like to do alongside spending less time on cooking, is spending no time at it at all. Take-away foods are pretty easy and something that people may turn to more as the lifestyle continues to alter.     

And let’s get to the last section of this blog, which will be about the segment that Kellogg’s has chosen to target.

Let’s watch a short advertisement to help us find out.

At the beginning of the video, we see a typical family of three having breakfast. It looks pretty normal. But shortly after we come to find out that they are actually missing a member. So the mother makes a bowl of cereal for the little girl to take to her sister. The latter is obviously going through a mentally challenging time hence her still being in bed. The next day her little sister does the same thing but with a joke as an accompanier. And eventually, the bringing breakfast action kind of becomes a routine between two sisters.

Towards the ending of the video, we are shown a different period of time where the girl is already doing alright. And when her little sister enters the room to give her the usual bowl of cereal, she is not in bed. But rather, near the dining room table, reunited with the whole family.

“Each day is a gift of a new beginning” because this is a Christmas cereal advertisement. However, there are 364 days left in the year which can all be equally as special.

The rather evident importance of family, the care towards one another, and the ambition towards positivity and happiness make it evident that the segment that Kellogg’s has chosen to target is Actualizers.

Lifestyle and values:  

This segment is critical and careful about the things they do, and all the efforts are pulled off as a result. They usually have a plan and know exactly what to do.

Actualizers care about pursuing a career and, thus they do not fail to search for new opportunities. However, at the same time, the amount of money they earn does not define their success.

Family is the center of Actualizers’ lives. After a long and exhausting day of work, a good source of refreshment is quality time with family.

This segment is also pretty modern. Arts, music, foreign culture, and international events are a part of their interests, however, they also try to keep up with the ongoing development of technology.

Actualizers are environmentally friendly and they take precautions for it. For example, they limit their use of plastic.

When it comes to their appearance, actualizers just like to be comfortable. No jeans will be seen in their closets.

Attitude to shopping:  

Actualizers spend their money wisely. They mostly use premium products but only if it is needed. Every now and then, this segment will purchase items that they do not really need but it is a rare occasion.

When it comes to shopping, Actualizers like to plan ahead, to not spend extra and unnecessary time in different stores.

Interesting facts about Actualizers:

They 

• Feel good at home with family and friends
• Like hanging out with family 
• Prefer a quiet evening at home or in the garden
• Enjoy having weekend dinners with family
• Care about the meaningfulness of their chosen activities
• Love reading books, watching movies, admiring arts
• Are drawn to films about nature and arts
• Feel like in order for their kids to be provided with interesting activities, they need to often go outside to places like theaters, cinemas, exhibitions, concerts, walks, and why not even restaurants 
• Do not typically go in for sports but watch them and read about them
• Read local and international news to stay informed about what is happening in their surroundings and in the world 
• Are interested in politics, economics, environment, finance, business, and real estate 
• Really care about the development of their kids. And they will go out of their way to try fun ways of upbringing the children. 
• Are very comfortable with using the internet
• Watch TV only for rare occasions when looking for specific programs. 
• Are above-average radio listeners. 

To sum up, Kellogg’s is a leading cereal company that is pretty delicious and uses smart marketing strategies to contribute to the wellness of its consumers. In this blog, we analyzed its mission and vision statements, archetype, SWOT, and segment. For more blogs like this, check out our main website where we consistently come up with new content.