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Kellogg Company Project

Introduction

Headquartered in Battle Creek, MI, the Kellogg Company was founded 97 years ago in 1906. ... Kellogg products are manufactured in over 20 countries, distributed in more than 200 lands. Roughly, one out of every three boxes of cereal sold in the US is a Kellogg’s brand. They produce twelve of the top fifteen cereals in the world; carrying top sellers such as Kellogg’s Corn Flakes, Rice Krispies, and Special K. ... John Kellogg was the chief surgeon at the Battle Creek Sanitarium and his younger brother, W. ... Kellogg, was the business manager. ... Since 1906, people just like you, have come to know Kellogg as a company they can rely on for great-tasting, high-quality foods. With projected annual sales of more than $9 billion, Kellogg is the world’s leading producer of cereal and a leading producer of convenience foods including: cookies, crackers, toaster pastries, cereal bars, frozen waffles, meat alternatives, pie crusts and cones. ... Kellogg began a worldwide expansion of the cereal business with the introduction of Kellogg’s Corn Flakes® in


Canada. In 1922, Battle Creek Toasted Corn Flakes Company renamed the Kellogg Company and the business expanded into Great Britain. 1930, Kellogg became the first company to print nutrition messages, recipes and product information on its packages. 1931, the Kellogg Company sponsored the nation’s first radio network program for children “The Singing Lady”. Today, Kellogg produces more than 40 different cereals with plants in 19 countries, on six continents. The company markets its products in more than 160 countries and employs over 15,600 people in its worldwide organization. ...
Return on Sales (3-5% Average)
Return on sales is the amount of profit a company receives for each dollar of sales after tax. ... 80
*From 2000, Kellogg had separated/categorized the convenience food to snacks and others.
SWOT Analysis

Strengths
Kellogg is the number one cereal company in the world, who is readily identifiable and has a strong brand name, corporate logo and company trademarks. ... Kellogg is a strong community leader and is very involved in many social and educational events for the local Battle Creek community. The company realized a large increase in key financial metrics last year, specifically with earnings per share and gross profit margin. ...
Weaknesses
Kellogg’s suffers from unfair pricing pressure and price discounting from major retailing chains, primarily from Wal-Mart Stores. ... Therefore, Wal-Mart exerts considerable price pressure toward food companies like Kellogg’s. ... Possibly, Kellogg could achieve a higher profit margin by selling cereal elsewhere, but realistically, who doesnt shop at Wal-Mart? ... There are many choices available when it comes time to eat besides Kellogg’s products that many of their product lines are not viewed as absolutely necessary purchases by consumers at the grocery store. ... Kellogg, the original founder of Kellogg organization. ... Kellogg is forming strategic alliances within the entertainment industry, specifically forming alliances that appeal to younger, internet-friendly, college-aged demographic crowd. ...









Strategic Alternatives
Due to the increasingly challenging, overly saturated environment of the prepackaged food industry, Kellogg’s is forced to revise its corporate growth strategy to combat new environmental threats, while simultaneously capitalizing on new business opportunities.


Approximate Word count = 2577
Approximate Pages = 10.3
(250 words per page double spaced)
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