Kellogg Company Market Sales Discussion Response In response to at least two of your peers, discuss their responses and your point of view.Two peers’s resp

Kellogg Company Market Sales Discussion Response In response to at least two of your peers, discuss their responses and your point of view.Two peers’s responses are in document.Please download the attachment. Discussion 1
In 2014, Kellogg reported a 31% drop in their profit because of the steady decline of
sales of breakfast foods and snacks in America (Kell, 2014). It’s not that Americans
stopped eating breakfast it’s just that they started eating different kinds of breakfast.
The sales of eggs, yogurts, fruits and oatmeal began to increase which lead to the
decrease of cold cereal sales. This industry trend impacted Kellogg more than any
other company because they relied so heavily on their cereal sales for their company
profit. General Mills was, and still is, one of Kellogg’s biggest competitors because
they not only sell some breakfast cereals and snacks, but they also sell convenient
meals and pet foods. Another competitor of Kellogg is Quaker Oats, owned by
PepsiCo. Quaker sells hot and cold cereals, cookies, snacks, cereal bars, organic
options, and more. Post Holdings Inc. is another of Kellogg’s biggest competitors
because they own brands like Honey Bunches of Oats, Honey Maid, Chips Ahoy,
Nutter Butter, and more (Bhasin, 2018).
Aside from purchasing Keebler and Pringles to diversify their products so cold cereal
was not their highest percentage of profit, Kellogg still needed to do more. One change
they implemented was a new way to market cereals. No longer did they just market
cereal as a breakfast to be eaten in a bowl with milk, but they decided to team up with
top chefs to create new easy recipes that use their cereals for other meals. This new
marketing technique was called Stir It Up and included new and improved ways to eat
cereal and how to create your own protein bars at home (Taylor, 2015). Kellogg used
to market mostly to children when they came out with new fun and sugary cereals
while marketing their healthier or blander cereals to adults.
Overtime, however, Kellogg’s expanded their marketing techniques to encompass
anyone, anywhere for any and all of their products, however, their key segments are
mainly people from urban or metro areas. After acquiring brands such as Cheez-It,
Keebler, Morningstar Farms, and Pringles, Kellogg has an even larger target market
and they use product and benefit-based positioning strategies to reach more customers
(Bhasin, 2018). In the end, Kellog upheld their core beliefs and principles since 1898
and now serve their product in 180 countries across the world. Kellogg’s also made
number 79 on the Forbes list of Just 100 Companies of 2019. With a net worth of 3.5
billion dollars it is safe to say that Kellogg did not let their brand die with cold cereal
(Kellogg, 2017).
Discussion 2
Kellogg’s, along with General Mills and Post are a few of the brands that most of
us have known since as long as we can remember. All the different products,
including a copious amount of cereal, waffles, and other breakfast food have been
enjoyed as kids and even now as adults. Kellogg’s specifically was one of the
biggest and most popular cereal/breakfast food companies in the United States for a
very long time. However, over the past few years, Kellogg’s revenue has deceased,
management problems have raised, and new trends and lifestyles have caught on.
According to the Bloomberg video about Kellogg’s sales, there is a shift in the
market from breakfast food such as cereal and waffles to healthier options such as
eggs, yogurt, and oatmeal (Bloomberg, 2015). Also in this video from 2015, Devin
Leonard from Bloomberg Business week talked about how since this shift started to
become more and more prominent, Kellogg’s has faced several sales and revenue
decreases from 2010 to 2015, and the competitors, including General Mills and
Post, have been generating more sales (Bloomberg, 2015). In addition, Kellogg’s
competition doesn’t just stop at other cereal companies, other breakfast substitutes
that are healthier options as mentioned before like eggs, oatmeal, yogurt, etc. are
becoming more prevalent.
Kellogg’s itself has marketed as a healthy lifestyle brand, and Leonard mentioned
that Kellogg’s has extension lines for breakfast bars, drinks, and other breakfast
items as well. Kellogg’s seems to target a bunch of different market segments
including different demographic, geographic, and psychographic segmentation for
its 1600 products to around 180 different countries around the world (Bhasin,
2018). This segmentation include kids and adults, people with healthy lifestyles in
mind, rural and urban areas, etc. Kellogg’s has a wide range of consumers.
Threats to Kellogg’s sales and business are the trends that have become popular in
terms of healthier lifestyles and food trends as well. The first was mentioned in the
Bloomberg video with Devon Leonard, it was mentioned that today, and for the
past few years, there was been a gluten revolution. Within this revolution people
have stopped eating gluten for some of the health benefits, and where can you find
gluten? Definitely in cereal, which was mention as about half of Kellogg’s
profits (Bloomberg, 2015). There are other food and lifestyle trends that can affect
the business of not just Kellogg’s but all cereal companies. Other trend is plantbased options for diets and savory breakfasts are being more and more popular as
well (Food Service Director, 2018).
Changes need to happen if Kellogg’s wants to be on top again and have its sales
and revenue increase and not keep decreasing. In the Bloomberg video, there was
discussion on buy outs, some other big company comes in and buy Kellogg’s and
turns it around. This also goes into another factor of management issues that were
also talked about in the video. If there is a change in the management of Kellogg’s
maybe the new perspective will turn some things around and improve marketing
and the end result of sales and profit.
So how is Kellogg’s doing from the point that video was taken in 2015 to today?
According to Macrotrends.net, in 2016 the annual revenue was $13.014B, a 3.78%
decline from 2015. In 2017 the annual revenue was $12.92B, .7% decrease from
2016, but not a bigger decrease like in 2016. Then on the upside, last year in 2018
Kellogg’s revenue ending September 30, 2018 was $13.469B, a 6.87% increase
over a year (Macrotrends, 2018). This was the first increase in revenue for at least
4 or 5 years. Since 2015, Kellogg’s hasn’t had the best revenue and business
compared to its past reports, but if in 2019 and years to come Kellogg’s keeps
increasing revenue, it could be on its way to how the business used to be. Kellogg’s
still have to be aware of the food and lifestyle trends in order to keep up with future
trends and it needs to keep innovating to keep up and be sustainable in the future.

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