INTERNATIONAL MARKETING CASE STUDY Kelloggss Company In todays intensely competitive, rapidly changing and highly complex environment

characterized by diminishing customer loyalty, the need to be market focused and customer centric is more critical. SWOT Analysis reveals: 1. Strengths: Tradition Brand recognition Diversity in products Distribution (having manufacturing plants in 17 different countries) Social Responsibility Promoters diversity, healthy lifestyles

2. Weakness: Maturity - many products are in mature stage and are at a peak profitability Broad Market- target consumers from many different demographical areas High prices 3. Opportunities: Expanding distribution New global communities for the companies Small presence in central and eastern Europe which presents an opportunity for expansion. Development of a better pricing strategy 4. Threats: Price competition Product proliferation strategy used by its main competitors, General Mills, Post, and Quaker Oats in order to erode Kelloggs share of the market. Moreover, discount imitation cereals brands have been successful in reducing premium brands in the more commodity like cereals. These, however can be countered through brand loyalty.

Company Introduction Recent Statistics: Kellogg is the worlds leading producer of cereal and one of the largest producers

of convenience foods with 2009 sales of nearly $12.6 billion. With distribution in more than 180 countries, Kellogg's produces some of the world's most iconic and easily recognizable brands including: Keebler, Pop-Tarts, Eggo and Rice Krispies. As of FY 2009, the company generated 67% percent of its revenues in North America, 19% in Europe, 8% in Latin America, and the remainder in the Asia Pacific region. In the first quarter of 2010, Kellogg generated revenues of $3.3 billion, an increase of nearly 5% from the previous year; net income for the quarter increased more than 30% to $418 million. During the quarter, operating profit grew 20% from Q1 2009 to $637 million. Net sales and operating profits increased for every geographic region except for Latin America. International (32.3% of Sales, 30.6% of Operating Profit)

Latin America accounts for 8% of Kellogg's sales and is the company's single fastest growing regional market; Mexico is now the company's third largest market after the U.S. and the U.K. The Asia Pacific region accounts for 6% of sales and holds potential windfalls for Kellogg if they're able to penetrate the region's huge consumer markets in countries like India and China.

Region Europe Asia Pacific

Total Sales 2009 ($M) Percentage of Total Sales $2,361 $741 18.8% 7.7% 5.9%

Latin America $963

Outlook Of The Case Study: 1980 - Problem of developing a market for ready to eat cereals in the Latin American region. No market as well as no competition. Latin Americans had different breakfast habits as compared to the Americans. The problem was especially prominent in Brazil. The Latin American market, mainly Mexico and Brazil, showed great potential as a Kelloggs ready to eat cereal market. The demographics fit the ready-to-eat market - growing number of families with children and younger population mix. Developing economy enables consumers to spend more of their income on food Challenge was to create nutritious breakfast habit among the Brazilians/ Latin Americans. Advertising through Novellas right idea but expression went wrong which gave a wrong message to the customers of Kelloggs as a snack product. Kelloggs wanted to portray ready to eat cereal as a part of a complete to be eaten in a bowl with milk along with other foods to make a complete breakfast. Second attempt of advertising through novellas - scene represented a complete Kellog breakfast in a way that Brazilians could relate to. The advertisement focussed first on nutrition, then on flavor and finally on ease of preparation. As a result of this campaign, sales in Brazil increased Kellog controlled of 99.5 percent of the ready to eat cereal market in Brazil. However, per capita cereal consumption was low. Although kellog controlled the market, there was not much of a market to control. Real problem was How could kellogg further convince the Brazilians of the importance of eating a nutritional breakfast in order to establish a long term market?

We decided to first analyze the breakfast habits of Latin American people and their preferences. Brazil Brazilians have morning coffee, black coffee, cow milk, yogurt and white cheese are quite popular, and so are fruit juices. The coffee or juice accompanies bread rolls or sliced bread with jam or butter, grilled sandwiches of ham and cheese, slices of cake such as corn cake, orange cake and carrot cake. As for children, the most popular are sweet cookies or crackers with jam, toasts with fruit compote called tostadinha accompanying chocolate milk or hot chocolate, "mingau", a hot porridge made with cow's milk, corn starch, sugar and vanilla with cinnamon sprinkled on top, as well as cornflakes or sucrilhos (frosted flakes) with milk. Mexico In the past, when Mexico's population was predominantly rural and agricultural, breakfast tradition included hot beverages and breads at dawn, and a heavier midmorning, consisting of an egg dish, chilaquiles, meats, beans, tortillas, pastries, and fruits. Commercial cereals are widely consumed now. Usually, workday breakfasts differ from weekend or leisure day breakfasts in the amount and types of foods. Restaurants and hotels serve mainly buffet-style breakfasts with a variety of foods, oftentimes including "quesadillas" of various fillings, scrambled eggs, refried beans, chilaquiles, fruits and cereals. In the north it is common to have salchicha con huevo (scrambled eggs with sausage) or machaca con huevo (scrambled eggs with beef jerky, in some places also called machacado), and wheat tortillas. In the central and southern regions of the country, corn tortillas are commonly consumed. Most breakfast dishes in the state of Veracruz are called antojitos (this word can be used for other meals), which consist of pastries made with corn flour and tend to be quite fatty. The most common antojitos are picadas (or pellizcadas, a tortilla with a sauce, onion and fresh cheese topping) and empanadas (tortillas filled with an ingredient like cheese, chicken or huitlacoche); in the northwest birria (beef or goat stew) and barbacoa (steamed beef or lamb) are also very popular.

Colombia
In Colombia there are various breakfast staples. In the Cundinamarca region people eat changua: a soup of milk, scallions, and cheese. In the Tolima region, a tamal tolimense is eaten in the company of hot chocolate and arepas. Tamales tolimenses are made with rice, dry legumes, beef, chicken and pork, egg, potato, and seasonings, covered with a maize dough, cooked while wrapped in a banana leaf. In Antioquia the usual fare includes arepa (arepa antioquea, a typically home-made corn bread), with either cheese, fried eggs, or fried meat as well as hot chocolate as drink. Cuba Breakfast in urban areas traditionally consisted of caf con leche that was sweetened and included a pinch of salt. Toasted buttered Cuban bread, cut into lengths, was dunked in the coffee. In rural Cuba, farmers ate roasted pork, beans and white rice, caf con leche and cuajada sweetened with caramel.

Dominican Republic
In the Dominican Republic the main dish for breakfast is called mangu (mashing boiled plantains). It is prepared with ground plantain mixed with butter and is usually eaten with salami, fried cheese, eggs (fried eggs or scrambled eggs). This dish is usually accompanied by cafe con leche, hot chocolate, or juice. Another main breakfast dish is the sandwich, prepared with cheese, ham, salami, or scrambled eggs. This is often accompanied with coffee, hot chocolate or juice. To make this particular sandwich the Dominican people use a bread called pan de agua (water breada simple bread made with water, flour, yeast, and salt). Other kinds of bread are also used to make this simple meal.

Ecuador
In Ecuador breakfast depends on the region it is served. Along the Pacific Coast (litoral), breakfast mainly consists of strong black coffee brewed in a special little aluminium pot

(caf de olla), fried plantain and white hard cheese made locally. It can include also an omelette and fresh fruit juices. In the highlands (Sierra), breakfast may include some black coffee or herbal teas (infusiones) with some fresh bread rolls, and scrambled eggs.

Guatemala
In Guatemala they eat scrambled eggs with frijoles (beans) and tortillas with some cheese, fried banana and sometimes chirmol (tomato sauce with condiments). Also, depends of the region, the Guatemalan people eat Paches (like a "tamal" but made from potaoes, pork or chicken, hot chile), Tamales (made from corn dough, spicy red sause, pork or chicken. Everybody likes to drink coffee (boiled coffee), atol (hot beverage from oats, corn or dough).

Results and Recommendations:

The primary objective of a sales promotion is to improve a company's sales by predicting and modifying your target customers purchasing behavior and patterns. 1. Kelloggs should try a third attempt at advertising through novellas but this time, it should advertise its variety of products for different demographic groups. Like: A product like:krispies for children K challenge for women High protein cereals for men High fiber, easy to cook and digest cereal for old people, etc.

It also should be kept in mind the cult of the family so, while advertising, these products should be distributed by the head of the family. This would increase per capita consumption of kelloggs. 2. Kelloggs should use gym and dieticians for distribution. Dietician may recommend cereals as a healthy breakfast. Currently eating healthy is a global trend and people are increasingly aware of their health. So dieticians recommendations are of value to customers. This would also increase the sales. Inclusion of cereals in weight loss techniques by using K Challenge. 3. Many schools serve breakfast to students, there are canteens in colleges and universities. Young generation is very health conscious too. So promotion through school and colleges would also be of value.