Kellogs Critical Analysis

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Date Submitted: 04/20/2014 07:40 AM

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Critical Analysis Kelloggs

Kellogg’s brand is known for its vast and lengthy run as producing cereals of all kinds, especially sugary foods marketed toward children in the United States. Over the past several years, growth has declined due to several significant factors. One being substitutes for cereal. People are constantly on the go, and breakfast cereal was once the alternative to cooking meats in the morning. However, today there are faster, easier breakfast options for consumers. The second major factor is nutritional value of the products Kelloggs offers. Consumers today are more health conscious than ever before, and declining sales in sugary cereals shows a correlation between the two. The problem that Kelloggs has is that they need to boost sales and profits. Kelloggs has purchased the Pringles brand from Proctor & Gamble in an effort to reach out to foreign markets. The idea is that Pringles are more popular worldwide than current Kelloggs products. The issue with this is that Pringles itself has not shown growth in recent years and statistics show that the vast majority of consumers are from the United States and some from Western Europe. This does not seem like international snack food success.

Kelloggs has the opportunity to penetrate domestic and foreign markets in a different way. By simply labeling foods as a “good source of whole grain” or “high fiber” or “rich in vitamin D” is not a truthful perception of the foods that they are selling. Kelloggs needs to create more truly health conscious alternatives to their sugary cereals and foods. They already offer the Special K brand whose purpose is this, however, is a 150 calorie snack bar really all that healthy? The simple answer is no. Of the top 20 worst cereals that rank in High Fructose Corn Syrup and transfats, Kelloggs takes the majority with 9 of the top 20. In addition, the top 10 best cereals ranked from being low in sugar, high fructose corn syrup, transfats and abundance in fiber...