CASE STUDY

Using Aims and Objectives to Create a Business Strategy

CONTENTS
CONTENTS

01
Time Context
 CONTENTS

02
01
Time Context Viewpoint
 CONTENTS

01
02 03
Time Context

Viewpoint Statement of
the Problem
 CONTENTS
01
Time Context

02
Viewpoint
03 04
Statement of the Objectives
Problem
 01
Time Context

CONTENTS
02
Viewpoint

03
Statement of the
Problem
04
05
Objectives
SWOT Analysis
 01
Time Context

CONTENTS
02
Viewpoint

03
Statement of the Prob-
lem
04
06
Objectives
05
Alternative So
SWOT Analysis
lutions
 01
Time Context

02
Viewpoint
CONTENTS
03
Statement of the Problem

04
Objectives
05
06 07
SWOT Analysis
Recommendation
Alternative Solu-
tions
 01
Time Context

02
Viewpoint
CONTENTS
03
Statement of the Problem

04
Objectives
05
SWOT Analysis 06 08
07
Alternative Solutions Conclusion
Recommendation
 01
Time Context

02
Viewpoint

03
CONTENTS
Statement of the Problem

04
Objectives
05
SWOT Analysis
06
Alternative Solutions 07 09
08
Recommendation Detailed
Conclusion Action Plan
I. Time Context

Current year of 2023

II. VIEWPOINT

STEVE CAHILLANE
CEO
III. STATEMENT OF THE PROBLEM

What strategic initiatives should

Kellogg's pursue to maintain or
strengthen their premium market
position?
 IV. OBJECTIVES
SHORT TERM OBJECTIVES

• Launch New Premium Products: Introduce two new premium product

lines within the next 12-24 months, capitalizing on emerging food trends
and
consumer preferences.

• Improve Brand Visibility: Invest in digital marketing to increase brand

visibility and engagement, aiming for a 15% increase in social media
following and website traffic within one year.

• Sustainable Packaging: Transition to more sustainable packaging for

50% of their products within the next two years, reducing their environ-
mental
footprint and appealing to eco-conscious consumers.

• Partnerships and Collaborations: Establish two strategic partnerships

 IV. OBJECTIVES
LONG TERM OBJECTIVES

• Diversified Global Expansion: Expand into at least three new interna-

tional
markets, tailoring product offerings to local tastes and preferences, and
aiming for a 15% increase in international revenue within five years.

• Market Leader in Health and Nutrition: Become a recognized leader in

healthy and nutrition-focused breakfast options, with 70% of products
meeting or exceeding strict health and sustainability standards within five
years.

• Digital Dominance: Establish a dominant online presence, with 40% of

sales coming from online channels, and implement AI-driven personaliza-
tion and data analytics to enhance customer engagement.
 IV. OBJECTIVES
LONG TERM OBJECTIVES

• Premium Brand Association: Ensure that the Kellogg's brand is synony-

mous with quality and premium value, allowing for higher pricing com-
pared to
competitors while maintaining or increasing market share.

• Employee Excellence: Develop an employee training and engagement

program that results in a 20% improvement in employee satisfaction and
customer service quality over five years, reflecting the company's
commitment to quality and innovation.
 V. SWOT ANALYSIS

• Strong Brand • Some products • Growing • Competition

recognition are high in awareness of the against other
sugar and importance of a
healthier food
healthy lifestyle
• Wide range of calories alternatives
products • Increasing de-
• Product mand for healthy • Changing
• Commitment to Staleness food consumer
corporate and beverage preferences
responsibility • Perceived as a products
cereal com-
• Partnership to
pany promote a
healthy
lifestyle
 VI. ALTERNATIVE SOLUTION
Diversified Product Lines
ADVANTAGES DISADVANTAGES
Resource Allocation: Developing and
Market Expansion: By diversifying their marketing multiple product lines can be
product lines, Kellogg's can tap into new resource-intensive, requiring significant
customer segments and expand their market investments in research, development,
presence. marketing, and distribution.

Risk Mitigation: Diversifying their product

offerings reduces dependency on a single
product category.

Customer Loyalty: Offering a variety of

premium products can increase customer
loyalty as consumers have more reasons to
engage with Kellogg's brand.
 VI. ALTERNATIVE SOLUTION
Premium Brand Acquisitions
ADVANTAGES
Instant Market Entry: Acquiring established
premium brands in complementary product
categories allows Kellogg's to instantly enter
new markets and gain market share without
building new products from scratch.
Brand Synergy: Synergies between Kellogg's
and acquired brands can be leveraged to
create cross-promotional opportunities and
enhanced brand recognition, further
strengthening their premium image.
Product Portfolio Expansion: Acquisitions
can
rapidly diversify Kellogg's product portfolio
and cater to evolving consumer preferences.
This can enhance the brand's appeal to a
wider range of consumers.
DISADVANTAGES
Integration Challenges: Merging the opera-
tions and cultures of acquired companies can
be
complex and may result in disruptions. It's
important to ensure a smooth transition to
maintain brand consistency.
Financial Risk: Acquisitions often involve
significant financial investments and risks.
Overpaying for an acquisition or encountering
unforeseen issues could strain Kellogg's
finances.
Brand Dilution: If not managed effectively,
acquiring multiple brands can dilute the focus
and identity of the Kellogg's brand, leading to
potential confusion among consumers.
 VI. ALTERNATIVE SOLUTION
Premium Packaging and Branding Emphasis
ADVANTAGES
Enhanced Brand Perception: Focusing on
premium packaging and branding can
immediately elevate the perception of
Kellogg's products, making them more
appealing to premium-seeking consumers.
Cost-Effective: Compared to diversifying or
acquiring brands, this strategy is often more
cost-effective and less resource-intensive,
requiring investment primarily in packaging
and marketing.
DISADVANTAGES
Limited Product Differentiation: Premium
packaging alone may not address the
underlying need for product innovation and
healthier options, potentially limiting the
company's ability to meet changing consumer
preferences.
Risk of Superficiality: Relying solely on
packaging and branding to convey a premium
image may be seen as superficial by
consumers if the product quality and
substance do not align with the premium
image.
 VII. RECOMMENDATION

“Kellogg’s should focus on product

innovation and Health-Centric offerings.”

Though implementing this recommendation involves a strategic

shift towards healthier, sustainable, and premium products that
align with evolving consumer preferences while leveraging Kel-
logg's brand equity. It addresses the weaknesses and challenges
while
capitalizing on the advantages to maintain or enhance their
premium market position.
 VIII. CONCLUSION
In the face of changing consumer preferences, evolving market dynamics, and
increased competition, Kellogg's faces the challenge of sustaining and enhancing its premium
position in the market. This case study has highlighted key considerations and provided
recommendations to address this critical issue.

To maintain and strengthen their premium market position, Kellogg's should focus
on product innovation and health-centric offerings. This approach aligns with the shifting
consumer demand for healthier, more sustainable, and nutritionally superior options. By
introducing new premium product lines that cater to these preferences and promoting the
nutritional benefits of their offerings, Kellogg's can reinforce its premium brand image.

Furthermore, transitioning to sustainable packaging and emphasizing eco-conscious

practices will demonstrate the company's commitment to environmental
responsibility, appealing to environmentally-aware consumers.
 VIII. CONCLUSION
It is important to acknowledge that implementing these recommendations comes
with challenges, including the need for significant investments in research and development,
competition in the premium health and sustainability market, and the necessity of consumer
education. Nevertheless, the advantages are substantial, including increased relevance to
modern consumers, brand enhancement, and the potential to establish market leadership in
the premium health and sustainability segment.

In conclusion, Kellogg's must adapt to changing consumer preferences and market trends by
focusing on innovation, health-centric offerings, and sustainability. These steps will allow the
company to remain a prominent and premium player in the market, meeting the expectations
of today's health-conscious and environmentally-aware consumers while staying true to its
brand heritage. By taking this strategic approach, Kellogg's can continue to evolve
and thrive in an ever-changing and competitive food industry.
 IX. DETAILED ACTION PLAN
ACTION TIMELINE COST ADVANTAGE
$200,000 or • Attract health-conscious consumers
Higher. • Differentiate from competitors
(depending
Product Innovation 6-12 months • Create buzz and anticipation for
on R&D and
marketing new products
efforts) • Potential for premium pricing
• Meet the demand for healthier
food choices
Health and Nutrition Immediate • Enhance brand reputation and
$100,000
Focus and ongoing trust
• Attract health-conscious consumers
• Potential for increased sales
• Better understand consumer
preferences
Consumer
Immediate • Make data-driven decisions
Insights and Data $100,000
and ongoing • Enhance product development
Analytics
• Improve customer satisfaction and
loyalty
 IX. DETAILED ACTION PLAN
ACTION TIMELINE COST ADVANTAGE

$100,000 or • Connect with consumers on a

Higher personal level
(depending
Digital Marketing Immediate • Reach a broader audience
on digital ad
and Engagement and ongoing • Collect valuable consumer data
spend and
technology • Adapt to the changing landscape of
Investments) marketing

• Access new customer bases

$100,000 • Co-create unique, limited-edition
(varying
Partnerships and products
1-2 years based on
Collaborations • Boost brand recognition and
partnership
agreements) reputation
• Mutual marketing opportunities
• Create a strong visual brand iden-
tity
Premium Packaging • Increase shelf appeal and consumer
6-12 months $50,000
and Design interest
• Suggest quality and premium value
• Potentially justify premium pricing
 IX. DETAILED ACTION PLAN

ACTION TIMELINE COST ADVANTAGE

• Knowledgeable, engaged staff
provide better customer service
• Foster a company culture of quality
Employee Training Immediate
$100,000 and innovation
and Engagement and ongoing
• Improve workplace morale and
retention
• Attract and retain top talent
$1,000,000 or • Access new markets and customer
Higher segments
due to market
Global Expansion 2-3 years research, • Increase revenue and market share
distribution • Diversify risk across regions
setup, and • Leverage global presence and
marketing reputation
Prepared by: Jopet Ylanan
Carlo Rey Maano