Marketing Mix of Kelloggs and 4Ps

The Marketing mix of Kelloggs analyses the 4Ps of Kelloggs, which includes the Product, Price, Place, and Promotion of Kelloggs. Kellogg’s marketing mix comprises marketing strategies that have helped the brand target consumers in emerging markets and developed countries, increase snack growth in the breakfast cereal market, and boost market share through quality Kellogg’s products.

The Kellogg Company believes in positively influencing customer groups because customer value will lead to loyalty, resulting in a large consumer base, sales growth, and greater profits.

Kellogg’s marketing strategy helps create an effective marketing mix framework that will focus on the food products of the Kellogg Company, product life cycle, various distribution channels, inventory management, broker and distributor system, research and market conditions, pricing strategies, and various promotional strategies.

Introduction: Kellogg Company

# Kellogg Company

• Origin Country: United States of America
• Founder: William Keith Kellogg
• Founded: 1906
• Headquarters: Battle Creek, Michigan, USA
• Employees in 2023: 30,000
• Annual Revenue in 2023: 15.315 billion USD
• Net Income in 2023: 960 million USD
• Market Cap in 2023: 23.24 billion USD
• Brand Value in 2023: 8.7 billion USD

The Kellogg Company, or Kellogg’s, is a multinational American company associated with the food processing industry. The manufacturing company is the leading producer of convenience food items and breakfast cereals, which it markets across several countries with renowned brands like Pringles, Frosted Flakes, Corn Flakes Cheez-It, etc.

Kellogg’s was one of the first companies to launch plant-based protein products. The Kellogg Company has strengthened its position in emerging markets through partnerships, divestitures, and acquisitions.

Over time, the company has faced severe food safety concerns that have been dealt with through quality management systems to alleviate consumer fears, if any. The company faces skyrocketing costs and inventory management issues occasionally, but with manufacturing facilities in emerging markets, it has managed to control them significantly.

The Kellogg Company is one of the best breakfast cereal companies in the world, with several brands that have taken the brand name to new heights.

Target Market: Marketing Mix of Kellogg’s

The Kellogg Company is a leading producer of convenience foods and cereals. The products fall into different categories to suit the target consumers of all ages and genders. The breakfast cereal brand has very high brand recognition and visibility in the market. For example, when anyone mentions Corn Flakes, the word Kellogg’s Cornflakes pops into mind.

The company has two primary target consumers: the parents and the children, who are often identified as the purchaser and the influencer, respectively. Kellogg’s regularly provides breakfast clubs, cereal boxes, and Kellogg’s Chocos in schools to attract children. The Kellogg Company has kept different prizes in the cereal box to target children.

Kellogg’s marketing strategy has created a marketing mix framework focusing on the target audiences through different food products. The products fall into several categories and variants of cereal boxes that can easily suit the individual taste and preference of the customer. Kellogg’s Cornflakes targets family audiences, Kellogg’s Coco Pops attracts children, and Kellogg’s Special K is for women who prefer healthy living.

Kellogg’s marketing strategy also targets individuals who often skip breakfast because they do not have the time to cook or cannot cook. In both cases. Kellogg’s products are the best alternatives for a healthy and balanced first meal of the day.

Kellogg’s Marketing Strategy & Marketing Mix (4Ps)

The marketing mix elements help Kellogg’s Company align its business strategy with Kellogg’s marketing strategy for an effective marketing plan. The marketing mix framework is the building block on which all its future marketing strategies are based for achieving desired business objectives.

Kellogg’s marketing strategy and marketing mix elements focus on Kellogg’s products (breakfast cereals, cornflakes, savory snacks, frosted flakes cereal Bars, plant-based protein food products and snack bars, etc.), various distribution channels (grocery stores and major supermarkets, etc.), place strategy, inventory management, broker and distributor system, Kellogg’s prices and Kellogg’s promotion tool and strategy.

Kellogg’s marketing mix ensures full customer value and loyalty by focusing on food safety concerns and quality management systems. This move will boost sales growth in such a way that it will eventually help to gain a better market share in developed and emerging markets.

Kellogg Product Strategy

Kellogg’s breakfast cereal has become the staple breakfast in most households across several countries because of the renowned brand’s effective marketing strategies and marketing mix framework.

Kellogg was the first company to launch the high-fiber cereal “Bran Flakes” in the breakfast cereal market and the first brand to hire a dietician to identify which raw materials would benefit the customers and know more about the product life cycle of the food products. Kellogg’s focuses on quality raw materials and product life cycle because it will eventually ensure customer loyalty for the brand and its products.

Products (Product Mix): Kellogg’s Marketing Strategy

The product mix in Kellogg’s marketing strategy includes breakfast cereals, savory snacks, and convenience foods. All its products are excellent sources of minerals and vitamins and boast of the best quality, especially the cornflakes that pair best with milk in the morning and have become one of the staple breakfast items.

The different products fall into several categories: breakfast cereals, corn flakes, savory snacks, snack bars, frosted flakes, cereal bars, frozen breakfast, etc.

Some of the most popular products in Kellogg’s marketing strategy include

Kellogg’s CornFlakes

The Corn Flakes is a nourishing, low-fat, and cholesterol-free breakfast item that boasts natural raw materials and goodness of protein, vitamins, iron, and calcium. With Corn Flakes, Kellogg’s marketing strategy has shown strong market leadership in the cereal segment. The brand from the USA sells Corn Flakes cereal boxes, a complete breakfast item for every morning in several Corn Flakes flavors.

• KELLOGG’S CORNFLAKES WITH REAL ALMOND & HONEY
• KELLOGG’S CORN FLAKES ORIGINAL
• KELLOGG’S CORNFLAKES WITH REAL STRAWBERRY PUREE
• KELLOGG’S CORNFLAKES WITH REAL HONEY

Kellogg’s Chocos

Chocos is a wheat-based cereal first launched to attract children but soon became a favorite of the all-age group. Kellogg’s regularly introduces flavors to keep the customers happy, increase snack growth, and prove its market leadership in the cereal segment to competitors.

• CHOCOS MOONS AND STARS
• CHOCOS DUET
• CHOCOS MAGIC HEARTS

Snack Bars and Bites

Kellogg’s marketing strategy ensures the brand’s market leadership in the snack bars and bite segment for more sales growth and market share. The company from the USA sells savory snacks through brands like Rice Krispies, Corn Pops, Nutri-Grain, etc.

• KELLOGG’S APPLE JACKS JUMBO BOX
• KASHI SOFT-BAKED BREAKFAST BARS, CHOCOLATE
• PURE ORGANIC STRAWBERRY AND BANANA LAYERED FRUIT BAR

Frozen Breakfast

Kellogg’s marketing strategy and mix elements ensure the brand’s market leadership in the delicious and versatile frozen breakfast segment. Important brands like Eggo and Kashi deal with the frozen breakfast segment, ensuring more sales growth and market share in developed and emerging markets.

• APPLE PIE EGGO EMPANADAS
• PEACH PARFAIT EGGO WAFFLERS TACOS
• KASHI GO PROTEIN WAFFLES, VANILLA

The product mix of Kellogg’s in 2023 is as follows (Source)

1. Cereals: This is Kellogg’s flagship product category. It includes famous brands like Corn Flakes, Frosted Flakes, Rice Krispies, Special K, and Froot Loops.
2. Snack Foods: Kellogg’s produces a variety of snack foods. This includes brands like Pringles (potato crisps), Cheez-It (cheese crackers), and Nutri-Grain (soft baked breakfast bars).
3. Frozen Foods: Eggo waffles and pancakes are well-known products in this category.
4. Vegetarian Foods: Kellogg’s owns the MorningStar Farms brand, which offers a wide range of vegetarian and vegan products like veggie burgers, sausages, and chicken nuggets.
5. Health and Wellness Bars: Brands like Special K bars and Kashi bars fall into this category, catering to health-conscious consumers.
6. Noodles: In some markets, Kellogg’s offers instant noodles as part of its product mix.
7. Organic and Natural Foods: Through the Kashi brand, Kellogg’s offers organic cereals, snacks, and other food items.

Company Recalled products

The company’s recalled products are a serious concern for a food-related brand because they can lead to severe issues like a dip in the market share. The company recalled some of the products in the past because of the food safety concerns raised against them. The company’s recalled products and food safety concerns have made customers skeptical about the brand’s quality management system and helped competitors gain a competitive advantage.

Kelloggs Place Strategy

The Kellogg Company has spread its presence with manufacturing facilities and marketing operations to 180 countries worldwide. The public company traded on the New York Stock Exchange operates with the help of its subsidiaries Rxbar and Kashi.

The renowned brand established its largest manufacturing plant at Trafford Park in Greater Manchester, United Kingdom, and has its UK headquarters. Kellogg’s was one of the few companies that held the Royal Warrant from the Late Queen Elizabeth II until her demise in 2022.

Kellogg operates across all markets with the help of its brands like Kellogg’s Special K, Kellogg’s Frosted Flakes Cereal Bars, Kellogg’s Cornflakes, Eggo, MorningStar Farms, Kellogg’s Chocos and Mini-Wheats etc. The four largest markets of the brand are the United Kingdom, the United States of America, Canada, and Australia.

In 2022, Kellogg Company announced it would separate and consolidate three divisions of plant-based protein, breakfast cereals, and savory snacks into three independent companies. The reshaping of the portfolio was meant to boost performance, increase snack growth, and encourage more sales in developed and emerging markets.

Global Snacking Co., North America Cereal Co., and Plant Co. are the three independent companies. In March 2023, the Kellogg Company announced that the Global Snacking Co. and North America Cereal Co. would be named Kellanova and WK Kellogg Co., respectively.

Place and Distribution Strategy:

Kellogg’s strategy has created a marketing mix framework focusing on the broker and distributor system and various distribution channels to link the manufacturing plants and the end customers.

The channels used in the brand’s distribution strategy include grocery outlets, supermarkets, e-commerce portals, convenience stores, corner shops, mom-and-pop stores, petrol pumps, mini superstores, vending, and the direct sales force.

Grocery stores

Kellogg’s marketing strategy ensures that most products are available at grocery stores so that regular customers can easily purchase them at their convenience.

Supermarkets

Kellogg’s marketing strategy ensures that all the major supermarkets sell the products to the customers at their counters.

Direct Sales Force

Kellogg’s regularly sells its products with the help of a direct sales force at its retail outlets.

Online Stores

After the pandemic, most people prefer to buy even food items from the comfort of their homes. Kellogg’s products are available at the brand’s online stores and other shopping portals.

Kellogg’s place strategy is as follows:

1. Global Distribution Network: Kellogg’s utilizes a widespread global distribution network, ensuring their products are available in over 180 countries and leveraging direct sales and partnerships with retailers and distributors.
2. Retail Presence: The company has a strong presence in various retail formats, including supermarkets, hypermarkets, convenience stores, and online platforms, ensuring accessibility to a wide range of consumers.
3. Strategic Placement in Stores: Kellogg’s products are strategically placed in stores, often in high-visibility areas like end caps and near the breakfast foods aisle, to maximize consumer attention and ease of access.
4. Local Manufacturing Facilities: To cater to regional tastes and reduce shipping costs, Kellogg’s operates numerous manufacturing facilities worldwide, tailoring products to local preferences and regulations.
5. E-Commerce and Digital Platforms: Embracing the shift towards online shopping, Kellogg’s has strengthened its presence on e-commerce platforms and digital marketplaces, offering direct-to-consumer options and participating in digital marketing strategies.

Kellogg Pricing Strategy

The pricing strategies in the marketing mix framework are one of the most essential elements of a brand. Kellogg’s marketing strategies focus on research and market conditions before setting up a pricing strategy. Moreover, the company faces skyrocketing costs for raw materials and ingredients used in manufacturing.

Kellogg’s marketing strategies have considered all the factors like the company’s skyrocketing costs, research and market conditions, and the perceived value of the products in the market and then created a pricing strategy that will take the brand forward in the consumer market.

Strategic actions regarding quality breakfast cereals, savory snacks, and plant-based protein foods have improved growth and success in recent years, reflected in more sales and better profit margins.

Kellogg’s price strategy reflects a sophisticated blend of market understanding, consumer segmentation, and competitive positioning, a hallmark of its enduring market success. Here’s the breakdown:

1. Competitive Pricing: Kellogg’s often employs competitive pricing, setting prices comparable to or slightly lower than their competitors. This strategy is evident in highly competitive markets where multiple brands vie for consumer attention.
2. Premium Pricing for Specialized Products: Kellogg’s adopts a premium pricing strategy for their specialized or niche products, such as organic or health-oriented lines under the Kashi brand. This reflects the higher value proposition and unique selling points these products offer.
3. Promotional Pricing: Regular promotions, discounts, and bundled offers are a staple of Kellogg’s pricing strategy. These tactics boost short-term sales, attract price-sensitive consumers, and encourage the trial of new products.
4. Psychological Pricing: Kellogg’s also employs psychological pricing strategies, such as pricing products at $2.99 instead of $3.00. This makes the price appear significantly lower and can influence purchase decisions.
5. Geographic Pricing Variability: Recognizing the economic diversity across different regions, Kellogg’s adapts its pricing to suit the local market conditions, purchasing power, and competitive landscape. This approach ensures market penetration and relevance across diverse geographic markets.

Pricing Strategy: Marketing Mix of Kellogg’s

Kellogg’s marketing strategies concerning the price mix include competitive and discounted pricing.

Competitive Pricing Strategy

Kellogg’s faces stiff competition from several companies in the market. Kellogg’s marketing strategy and marketing mix have adopted a competitive pricing strategy and kept similar product prices to gain a competitive advantage in the market.

Discounted Pricing Strategy

The brand’s marketing mix and strategies have adopted a discounted pricing strategy that uses discounts and incentives like coupons and special packs as promotional tools to reduce the product price. The company faces skyrocketing costs and hence keeps the product prices at the higher end, but when they sees that the perceived value is less, they adopt a discounted pricing strategy to attract customers with lowered prices.

Kelloggs Promotion Strategy

Kellogg’s marketing mix and marketing strategy has adopted various promotional strategies to promote its products in the consumer market. Kellogg’s promotional tools include digital marketing, print media, brand messaging, special packs, discounts, coupons, CSR activities like fighting hunger globally, social media posts, and marketing campaigns.

Traditional Media Advertising

The marketing mix strategy of the brand uses traditional media as an effective promotional tool to its advantage. Ad campaigns are shown via the digital and print media through television channels, radio, newspapers, magazines, leaflets, flyers, hoardings, and billboards.

Social Media Marketing

Amongst the brand’s various promotional strategies, perhaps social media marketing is the most important. The brand has an official presence on platforms like Facebook, Twitter, Instagram, and YouTube, sharing informative and engaging social media posts to promote the brand and its offerings. The company donated cereals worth millions as a promotional tool for fighting hunger globally and posted it on its social media account to highlight its endeavor.

Direct Marketing

The marketing strategy focuses on direct marketing as a promotional tool to please its existing customer base and attract potential customers. The brand uses direct mail, special packs, discounts, coupons, and personalized messages to target its customers

CSR Activities

Kellogg’s is actively involved in CSR activities. The brand is known to feed 375 million people with child feeding programs and donations. The company donated cereals worth millions to fight hunger globally. The brand offers support to 1 million farmers, especially small-holders and women, and also helps in the conservation of natural resources.

Sponsorships

Kellogg’s has entered several sponsorship programs as part of its marketing strategy. It sponsors “What’s My Line,” a CBS panel show, “Kellogg’s Tour of Gymnastics,” and “Bowl Games,” college football.

Recycled or On-The-Go Packaging

Kellogg’s marketing strategy has created a marketing mix framework where special attention is given to the product packaging. The brand is known to have the smallest plastic footprint in terms of packaging compared to other global brands. It uses recycled paperboard cartoons for on-the-go packaging; nearly 76% of the product packages are globally recycled.

Even when the first cereal box of Corn Flakes was introduced in 1906, the boxes were packaged in recycled content to ensure a maximum product life cycle. Currently, 100% of the timber-based on-the-go packaging for the cereal box is sustainable-certified, low-risk, and recycled sourced.

Digital Campaigns – Notable Digital Marketing Campaigns

The digital marketing strategy includes displaying marketing campaigns through television and social media platforms. Kellogg’s is known for creating some of the finest ad campaigns in the advertising world.

Nourishing India’s Potential

“Nourishing India’s Potential” is an ongoing program or a drive to offer a bowl of Kellogg’s cereal with milk as a nourishing breakfast to underprivileged people.

Kellogg’s Nutri-Grain Commercial

The digital marketing strategy includes showing supportive and encouraging ads like “Kellogg’s Nutri-Grain Commercial.”

Breakfast Se Badkar

A solid and steady global footprint in the breakfast cereal market was the reason for the “Breakfast Se Badkar” ad campaign. It celebrates the insight of an Indian mother who always wants to feed the extra spoon to her child.

Kellogg’s promotion strategy includes a multi-faceted approach:

1. Extensive Advertising: Utilizing TV, print, digital media, and social media platforms for widespread and targeted advertising campaigns.
2. Partnerships and Sponsorships: Collaborating with sports events, educational initiatives, and health campaigns to enhance brand visibility and reputation.
3. Consumer Promotions: Offering coupons, contests, loyalty programs, and in-store promotions to drive sales and encourage brand loyalty.

Some Recent Video ads and Print ads of Kellogg’s are:

Key Takeaways from Kellogg’s Marketing Strategy and Marketing Mix

The key takeaways from Kellogg’s marketing mix and Kellogg’s marketing strategy are

• Focus on strategic priorities and financial targets
• Enable increased operational flexibility
• Allocation of resources in consistency with strategic priorities
• Realize profitable growth
• Maintain an aggressive promotional strategy

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