NEW DELHI INSTITUTE OF MANAGEMENT

ASSIGNMENT
ON

EPRG FRAMEWORK
-KELLOGGS COMPANYFOR
GLOBAL BUSINESS ENVIRONMENT

SUBMITTED TO:

SUBMITTED BY:

Ms. Gauri Modwel

Deepali Baranwal
Roll No: 12
Section: A

COMPANY OVERVIEW
Consumers around the world enjoy Kellogg Company products, one of which Kelloggs
Corn Flakes has been part of a wholesome, delicious morning for more than a century.
Our company began with only 44 employees in Battle Creek, Michigan, in 1906. Today
we manufacture in 18 countries and sell our products in more than 180 countries around the
world.
For more than 100 years, innovation and their
commitment to being the best in the
categories in which we compete has guided
our Company. From being the first company
to offer premiums in cereal boxes to being
the first to fortify the cereals, Kellogg has
historically been a leader in industry,
innovation and marketing.
The founder, W.K. Kellogg, had a strong
commitment to nutrition, health and quality.
His vision continues to drive improvement in the products and processes, with the goal of
providing great-tasting, nutritious products that meet the most rigorous quality standards.

COMPANY HISTORY
Kellogg Company was formed when production of Kelloggs Corn Flakes began at W.K.
Kelloggs newly formed Battle Creek Toasted Corn Flakes Company in 1906. The readyto-eat cereal innovation would change the way people eat breakfast worldwide. W.K.
Kelloggs product innovation and drive for market expansion influences the Kellogg
Company and the food industry around the world today.
W.K. Kellogg began worldwide expansion of the company in 1914. By 1938, Kellogg had
build plants in England and Australia. After W.K. Kellogg's death in 1951, Kellogg
continued to expand its operations, building plants in Latin America and Asia. In 1958
Tony the Tiger won a contest over Katy the Kangaroo to become the sole spokescharacter for Kellogg's Frosted Flakes and a mainstay in American culture.
Breakthrough Kellogg food innovations include breakfast convenience foods like PopTarts toaster pastries, Eggo frozen waffles, and Nutri-Grain bars. Kellogg has
established itself as an industry leader with health-conscious, innovative breakfast choices
like Special K, All Bran and Product 19 cereals.
Kellogg continued to expand its operations and innovate by acquiring the vegetarian-based
food group Worthington Foods in 1999 and the organic-based food group Kashi Company
in 2000. Kellogg also acquired snack leader Keebler Foods Company in 2001. A multi-year
global relationship with Kellogg and Disney was formed in 2002 to introduce several new
cereal and snack food products to the market.
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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 2006 sales of almost $11 billion, Kellogg
Company is the worlds leading producer of cereal and a leading producer of convenience
foods, including cookies, crackers, toaster pastries, cereal bars, frozen waffles and meat
alternatives.
Consumers around the world are enjoying Kellogg products, one of which Kelloggs Corn
Flakes has been part of a healthy, delicious morning for a century. The company that
makes breakfast and snacks for millions began with only 44 employees in Battle Creek,
Michigan, in 1906. Today, Kellogg Company employs more than 26,000 people,
manufactures in 17 countries and sells its products in more than 180 countries.

KELLOGGS AROUND THE WORLD

One of Kellogg Companys greatest competitive advantages is our global infrastructure.
Our founder, W.K. Kellogg, started the company more than 100 years ago and quickly
expanded into new geographies. The early adoption of this growth plan has provided us
with a global business today.
Kellogg products are manufactured in 18 countries and marketed in more than 180
countries around the world.

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KELLOGGS PRODUCTS
With 2009 sales of nearly $13 billion, Kellogg Company is the worlds leading producer of
cereal and a leading producer of convenience foods, including cookies, crackers, toaster
pastries, cereal bars, fruit-flavored snacks, frozen waffles and veggie foods.
Brand Names

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Kelloggs,
Keebler,
Pop-Tarts,
Eggo,
Cheez-It,
All-Bran,
Mini-Wheats,
Nutri-Grain,
Rice Krispies,
Special K,
Chips Deluxe,
Famous Amos,
Sandies,
Austin,
Club,
Murray,
Kashi,
Bear Naked,
Morningstar Farm,
Gardenburger and
Stretch Island.
Water

Product Lines

Cereal
Crackers
Cookies
Snacks
Frozen Foods

KELLOGGS COMPANY- A TRANSNATIONAL-CUM-GLOBAL

COMPANY
Kelloggs is a transnational company as it does business across the countries having their
own manufacturing units ang it is a global company because it does business in many
countries. It is evident from the following:
North America
1. Canada
2. Mexico
3. United States
Latin and South America
4. Latin America
5. Venezuela
Asia
6. Southeast Asia
7. Greater China
8. Japan
9. Korea
10. India

Europe
1. Benelux
2. Denmark
3. Germany
4. Espana
5. France
6. Greece
7. Ireland
8. Italy
9. Netherlands
10. Poland
11. Sweden
12. Finland
13. Turkey
14. United Kingdom
15. Norway

Oceania
11. Australia

Africa
16. South Africa

Middle East
12. Middle East

Caribbean
17. Caribbean

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STRATEGY OF KELLOGGS -COMPARISON BETWEEN UK AND

TAIWAN
UK

Taiwan

60,943,912 (July 2008 est.)

Population

22,920,946 (July 2008 est.)

white 92.1%, black 2%, other

5.6% (2001 census)

Ethnic group

Taiwanese (including Hakka) 84%,

mainland Chinese 14%, indigenous 2%

constitutional monarchy

Government

multiparty democracy

Developed, service industry

plays important role

Economy

cereals, oilseed, potatoes,

vegetables; cattle, sheep,
poultry; fish

Agriculture

Developed, import & export is important

rice, corn, vegetables, fruit, tea; pigs,

poultry, beef, milk; fish

PEST ANALYSIS
UK
Political/Legal

Socio-Cultural
Environment

Taiwan

Stable Political Environment

with Strict Law

Stable Political Environment with

Less Strict Law

Private enterprise encouraged

Foreign investment is welcomed

Western Life-style
Have a tradition of eating
cereals as breakfast

Eastern Life-style
No such tradition, thus need
to be persuaded by mass
marketing campaign

Economic

Economy is growing, but facing

a downturn

Economy is growing, with a good

future outlook

Technological

Good infrastructure and well

established channels of
distributions

Good infrastructure and well

established channels of
distributions

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Industrial Analysis- Porters Five Forces Analysis

UK

Taiwan

Power of Buyers

High

Medium

Power of Suppliers

Low

Low

Low

High

Market is already very competitive

New market

Threat of Substitute Products

Relatively low

Relatively high

Intensity of Rivalry

High

Medium

Threat of New Entrants

STRATEGY OF KELLOGGS IN THESE TWO COUNTRIES

Price Strategy
UK

Taiwan

Price reflects different value

Charge more for brand value
Price competitive
Payment: credit cards

Price reflects quality

Charge more for brand value
Price competitive
Payment: cash

Products Differences between UK & Taiwan

UK

Taiwan

Long

Enter time

short

Over 40

Types of product

Only 5

All ages, but more on healthy care

Target customers

Children and office people

Special K

Special product

Black-Sesame

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ADVERTISING
UK Kelloggs

TAIWAN Kelloggs

Promoting Campaigns

Promotion Campaigns

Drop a dress size promotion

Swimming coupons for children

TV Advertising
Focus on the health benefits of cereals for
breakfast
Online Special Offer

Dried fruit bags

TV Advertising
Colourful, fun and memorable to children

Free baseball cap

Kellogg's sponsors the

Swimming
Association
Diversification

Sponsor baseball association

Cartoon character Donny
Free spa products with bulk order

Online Game

Sponsorship

Obtain free cereal

Package
Amateur
Product

Carton character

Product Flavour

Grain-black sesame

KELLOGGS REGIOCENTRIC APPROACH

Consumer Segment
Products are manufactured in 17 countries and are
countries.
Top Revenue Regions (Dollars are in Millions):
North America
$6,807.8
Europe
$2,013.6
Latin America
$822.2
Asia Pacific
$533.6
Total
$10,177.2

marketed in more than 180

67%
20%
8%
5%
100%

However, the regiocentric approach can also be identified as: Kellogg Company's business
is broadly divided into two divisions: Kellogg North America and Kellogg International.
Kellogg North America includes retail cereal, retail snacks, and frozen and specialty
channels businesses in both the United States and Canada. Kellogg International is divided
into businesses in Europe, Latin America, and Asia and Australia (Asia Pacific).
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The North American Retail Cereal business includes many of the Company's popular
brands such as Special K and Kellogg's Frosted Flakes, and Kashi, our natural brand. The
North American Retail Snacks business includes Keebler cookies and crackers, such as
Chips Deluxe and Cheez-It, wholesome snacks, such as Nutri-Grain bars, fruit snacks such
as Kellogg's Streamers, and our popular toaster pastry brand, Pop-Tarts. The Frozen and
Specialty Channels business includes brands such as Eggo and Morningstar Farms, and the
food service, convenience store, vending, and drug store businesses.
The Kellogg International business focuses almost exclusively on the cereal and
wholesome snack categories within the respective regions. The European business includes
cereal brands such as Special K and Crunchy Nut Cornflakes and wholesome snacks such
as Special K bars. The Latin American business also focuses predominantly on cereal,
including brands such as Zucaritas and Kellogg's Cornflakes, and wholesome snacks such
as All-Bran bars. The Asia Pacific business includes cereals such as Kellogg's Bran Flakes
and All-Bran in Japan and Nutri-Grain in Australia. Our snack brands in Asia Pacific
include Special K bars, Nutri-Grain bars, and Muesli bars.
Country Specific Products:
All-Bran Bran Flakes (UK),
All-Bran Extra Fiber, All-Bran Guardian (Canada),
Choco Krispis (Latin America)
Chocos (India,Europe),
Coco Pops (Europe, Australia),
Genmai Flakes (Japan),
Guardian (Australia/NZ),
Honey Smacks Sultana (Australia/NZ),
Just Right Crunchy Blends Apple, Date & Saltana (Australia/NZ),
Krave (UK),
Komplete (Australia),
Raisin Bran Crunch, Sultana Bran (Australia/NZ),
Sultana Bran Crunch (Australia/NZ),
Special K Honey & Almond (Australia),
Special K Forest Berries (Australia),
Special K Light Muesli Mixed Berries & Apple (Australia/NZ),
Special K Light Muesli Peach & Mango flavour (Australia/NZ),
Special K Dark Chocolate (Belgium),
Special K Milk Chocolate (Belgium),
Special K Sustain (UK)
Strawberry Pops (South Africa)
ZimZ!, mini cinamon-flavoured spirals, sold only in Germany and Austria

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REFERENCES
Websites:
1.
2.
3.
4.
5.
6.

www.slideshare.com
www.docstoc.com
www.scribd.com
http://en.wikipedia.org/wiki/Kellogg_Company
http://annualreport2007.kelloggcompany.com/24.aspx
http://www.fundinguniverse.com/company-histories/Kellogg-Company-CompanyHistory.html
7. http://www.kellogg.co.jp/company/about/index.html
8. http://www.kelloggcompany.com/company.aspx?id=32
9. http://www.kelloggcompany.com/company.aspx?id=38
10. http://www.kelloggs.co.uk/
11. http://www.linkedin.com/companies/kellogg-company
12. http://www2.kelloggs.com/
13. http://www.slideshare.net/william_campbell/kelloggs-presentation
14. http://www.slideshare.net/gabslion/kelloggs-presentation-4282673
15. http://www.scribd.com/doc/28609538/kelloggs-2010
16. http://www.slideshare.net/finance23/kellogg-annual-reports-2003
17. http://www.slideshare.net/finance23/kellogg-annual-reports-2008
18. http://www.slideshare.net/finance23/kellogg-annual-reports-2005
19. http://www.slideshare.net/finance23/kellogg-kellogg-q1-2008-earnings-release

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