Determining the Demand – The company always conducts market research, including consumers, to

understand the demand for corn flakes.

Estimate the Cost – Kellog’s also looks into its production cost, advertisement cost, and other costs
to determine the total cost of the corn flakes.

Analyzing the competitors – As there are many corn flakes manufacturers to compete with them, the
company conducts research to analyze their costs, prices and offers.

Pricing Policy - Kellog’s uses a competitive pricing policy for its corn flakes. Kellogg’s keeps prices
flexible to compete with other players and depending on sales growth.

Finalize the pricing – Company finalizes its corn flakes price based on all the above factors.

Adapting the price –

1. Geographical Pricing – Different manufacturing costs at different places also play a big role in
finalizing the prices of corn flakes at various locations.
2. Price Discount - Kellog’s announces discounts and schemes such as coupons that can be
redeemed for free products in corn flakes to generate more sales because high volume sales
generate more revenue.

The price approach in Kellogg's marketing plan is as follows:

Kellogg's prices are competitive.

Research and market circumstances are used to determine pricing. Kellogg's frequently employs
discount programmes as well as other schemes such as coupons that may be redeemed for free
items. Kellogg's maintains its prices flexible in order to compete with other companies and to
accommodate sales growth. Given their market dominance, Kellogg's price approach in the
marketing mix is frequently controlled by their own brands. During the pandemic, the firm provided
cereals worth more than $10 million as part of their CSR project to help battle hunger throughout
the world.