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Minimizing Political and Legal Risks
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- V. Kellogg’s in Emerging Markets
- VI. Market Entry Strategies
- Australia: Kellogg’s Acquisition of Specialty Cereals Pty Limited (2008)
- Ireland: Kellogg’s Partnership with Ireland IDA
- India: Adapting Kellogg’s Products for the Market
- VII. Kellogg’s Products and Services Europe, Latin America, North America
- Other Subsidiary Markets
- VIII. Kellogg’s Supply Chain
- Supply Chain: Secondary Sector
- Supply Chain: Tertiary Sector
- IX. Integrated Marketing Communication Kellogg’s Commitment to the Global Marketplace
- Healthy Beginnings Program: The Hispanic Retail Market
- Integration of Social Media
- X. Kellogg’s and Pricing Issues
- XI. Global Operations Summary
Minimizing Political and Legal Risks In order to minimize the potential impact of political and, more importantly, legal risks while expanding into international markets, Kellogg’s often makes use of subsidiaries. As of 2011, the firm maintains subsidiary businesses within each of its global operating segments, allowing for the firm to better accommodate the impacts of differing legal systems and regulatory environments across the world (Kellogg Company 10-K, 2011: 21.01). Since 2008, the firm has invested in several notable subsidiaries designed to help expand the firm’s operations globally while minimizing legal risks. In January of 2008, the firm gained control of United Bakers, a preeminent manufacturer and distributer of cereal and cookie products in Russia, and then June of the same year, the firm acquired a majority interest in Navigable Foods, which manufactures snack products in northeastern China (Kellogg Company 10-K, 2011: 35). Due to the legal complexities inherent in both China and Russia, utilizing subsidiaries in these markets will help the firm to better develop its capabilities overseas while avoiding the considerable legal uncertainties inherent in expansion projects undertaken with little foreign support. V. Kellogg’s in Emerging Markets Kellogg’s, as a firm with operations spanning the globe, has been active in attempting to promote growth by gaining entry into various emerging markets. Using a variety of entry strategies, the firm has established footholds in many emerging markets within Asia, Latin America, Europe, and Africa. By entering into such markets, the firm is better positioned for growth moving forward, as sales growth continues to decline in the more developed markets of North America and Western Europe. In each of these markets, the firm faces varying level of opportunity, and each also presents its own unique set of challenges for the firm to address as it moves forward. The image below illustrates the various regions where Kellogg’s has a presence. 
Image 11: Country Profile Chart (Kellogg’s 2010 Annual Report) Asia-Pacific Kellogg’s Asia-Pacific branch has been in existence since the opening of the firm’s overseas plant in Australia during 1938. While Kellogg’s has maintained a presence in Australia and New Zealand, the company has not introduced significant new investment in these two countries in recent times. In the 1990s, Kellogg’s built its first plants in China, Thailand, Russia, and India. It has turned its focus in the past few years to new emerging markets such as India, China, and Thailand, South Korea and other rising Asian economies (Kellogg’s Company History, 2011). In 2006, Kellogg’s controlled 40% of the market in Asia, but its Asia-Pacific branches consisted of only 2% of sales in the region (Kellogg Eyes China with Cereal, 2006).As the sales in Western Europe continue to fall due to the recent economic crisis, Kellogg’s has shifted its focus to emerging markets in the east. In China in 2008, Kellogg’s acquired Zhenghang Food Co., a cookie and cracker manufacturer, also known as Navigable Foods. The acquisition resembles Kellogg’s usual procedures, as the company acquired two manufacturing facilities, as well as the company’s sales and distribution network (Kellogg acquires Zhenghang Food Co. in China, 2008). The acquisition of Navigable Foods remains an indicator that Kellogg’s is wary of investing in the Asian cereal business, as “People [in Asia] tend to reject cold breakfast or milk," said Hans Shin, president of Kellogg's Asia” (Kellogg Eyes China with Cereal, 2006). Kellogg’s is also developing hot cereals, cereal bars, and whole grain cereals, all product lines the company has experience in, to please the ageing Asian population, which is increasingly demanding healthier options. Kellogg’s takeover of Navigable Foods is also the first Fortune 500 MNC to locate in Yishui County, a move with significant risk, but also rife with potential upside. The acquisition of United Bakers Group, a cracker, biscuit, and cereal producer in Russia signals another new region of expansion for Kellogg’s. United has an estimated 90% of the market share in Russia, indicating Kellogg’s intent to move into this cereal market with full force (Kellogg Corners Russian Cereal Market, 2008). The cereal market in Russia is fairly developed, and thus this move does not involve a high degree of uncertainty about consumer preferences, nor does it require product testing. According to marketing experts in the Russian food industry, consumers are already shifting towards quick, ready-to-eat breakfast meals, such as Kellogg’s Corn Flakes and Rice Krispies, and away from the traditional kasha, or buckwheat porridge, a breakfast dish served in Russia for centuries (Kellogg Corners Russian Cereal Market, 2008). Despite Russia’s natural affinity for American cereal, most other nations in the Asia-Pacific region lack a consumer preference for Kellogg’s largest product market. In this case, Kellogg’s may have to hold back market entry in the cereal industry, and shift focus onto other potential joint ventures or acquisitions in frozen foods, snack foods, or healthy eating options that the Asian market has a growing demand for. If there is not the consumer taste for cereals in Asia, Kellogg’s will have to invest large amounts of money on marketing and advertising with only a small chance of success, a highly risky venture. By redirecting energy to the acquisition of firms with local experience in the growing emerging markets of the Asian Pacific region, Kellogg’s should be able to successfully market itself to the exploding markets of people who’ve recently taken interest in healthier eating and snacking options. Europe As Kellogg’s shifts its expansion focus away from its large production capabilities in Western Europe (its second largest market behind North America), the multi-national company has focused its efforts and investment on large emerging markets in Eastern Europe, such as Turkey. The firm began this shift to the East in 2005, by signing a 50/50 joint venture agreement with the Turkish firm, Ulker. While the US and Europe remain the largest cereal markets, Kellogg’s sees opportunities in markets such as Turkey, with a growing middle class that is generating demand for healthier options, such as cereal. The main concern is that the emerging market will not alter its typical morning meal from the “traditional Turkish breakfast of cheese and olives” (Ulker-Kellogg's Brand is Born, 2005). The Turkish cereal market is far from Kellogg’s Irish cereal market in terms of size, in which an average of 10 kilos of cereal are consumed per year, in comparison to Turkey’s mere 70 grams per year (Ulker-Kellogg's Brand is Born, 2005). As Kellogg’s moves operations into growing middle-class economies and emerging markets such as Poland and Turkey, the firm should take into consideration the cereal market structure in place. Often, the safest and simplest way to integrate the Kellogg’s cereal brands into the local economy is through the acquisition of firms that already possess a large market share and maintain a well-known reputation. More risky are the ventures into regions with little affinity for Kellogg’s largest product, cereal. In this situation, Kellogg’s should consider acquiring or forming joint ventures with local firms in other product areas of corporate expertise, such as snack foods, cereal bars, or crackers. Latin America Latin America presents another rapidly growing global region in which Kellogg’s has been working to establish a strategic foothold. Currently, the firm maintains operations in such emerging Latin American markets as Colombia, El Salvador, Ecuador, Guatemala, Mexico, and Venezuela, in addition to eight other nations experiencing varying degrees of development(Kellogg’s-Latino, 2011). As the firm describes, Kellogg’s business in these emerging Latin American markets centers primarily around cereal products, specifically brands as Kellogg’s Cornflakes, and the exclusively-Latin American Zucaritas(Kellogg’s: Company Overview, 2011). Beyond these two brands, the firm has also adapted its products to meet local tastes through the creation of ChocosZucaritas, Crusli, Sucrilhos, Vector, Musli, NutriDia, and Choco Krispies cereal brands, which are sold exclusively within these growing Latin American nations (Kellogg Company 10-K, 2011: 2). Due to Latin America’s growing economic strength and sizable markets, these emerging economies present important opportunities for the firm, as Kellogg’s seeks to expand its business into areas with greater growth potential in coming decades. In order to provide its products to many of these emerging Latin American markets, Kellogg’s makes use of importation, as it manufactures a wide array of products within facilities in Mexico, and then ships these goods to locations including Guatemala, Venezuela, and other markets. In 2009, the firm announced the closure of a production facility in the emerging market of Guatemala, in order to better cope with financial pressures and maintain employment levels at the firm’s Mexican facilities (Central American Data, 2009).Throughout the firm’s history, Kellogg’s has shown a strong commitment to the Mexican market, and the firm currently operates three production facilities within the country. In 2007, the firm completed work on its third plant within the nation, located in Toluca, which was erected in response to strong sales growth present in Mexico during the early-2000s. As then Vice President of Kellogg Company Mexico Pablo Villalobos described in 2004, “The state of Mexico's economic and industrial growth, and its proximity to key markets, represent an excellent opportunity for the further expansion of our business.” This recent expansion in Mexico represents a continuation of the firm’s long-held commitment to this market, as the firm has maintained production facilities within the country since 1951 (Knowlton, 2004). As discussed, Kellogg’s has encountered significant legal and political risks while expanding into Latin American markets, particularly in Venezuela. As Kellogg’s describes, the firm primarily relies upon importing products in order to reach its customers within the Venezuelan market, and in 2011, new import controls instituted by the government of Hugo Chavez made it highly difficult for the firm to operate cost effectively within the country (Kellogg Company 10-K, 2011: 14). Due to this high level of political risk, it is likely that the firm’s primary opportunities for growth within the emerging markets of Latin America lie outside of Venezuela, and instead amongst more democratic, less-risky, and potentially profitable nations such as Colombia. As Kellogg’s moves forward and shifts its business to markets experiencing more growth, it is clear that the firm will need to utilize its production facilities in Mexico and beyond to continue to reach consumers within the fast-growing economies of Latin America. Africa The African continent presents another key region with many emerging markets in which Kellogg’s could potentially establish a foothold. Currently, however, the firm’s operations within Africa are limited to the rapidly growing and modern market of South Africa, and do not include the swiftly growing economies of Sub-Saharan Africa and beyond. While South Africa presents a major market for the firm and Kellogg’s has long held a presence within this country, it is clear that in expanding its operations further, Kellogg’s will need to consider the massive potential growth it could enjoy by expanding deeper within the African continent. As described, Kellogg’s operations in Africa are limited to the rapidly emerging market of South Africa, a nation that has experienced significant growth and development post-apartheid. Kellogg’s, however, has maintained a strategic foothold within South Africa since before apartheid’s demise, as the firm opened its sole manufacturing facility within the nation in 1948. The production facility, located outside of Johannesburg, was opened by founder, W.K. Kellogg himself as the firm’s sixth manufacturing facility throughout the globe, and has undergone significant renovations since the 1980s. The plant, which currently employs 260 people, provides all of the firm’s products which are sold throughout the nation, and makes use of an extensive supply chain in order to meet demand across the country (Kellogg Company South Africa, 2011). Kellogg’s entry within South Africa has been unique in several aspects, as the firm has shifted elements of its operations and undertaken several initiatives to meet the unique challenges posed on the African continent. For example, Kellogg’s has worked to address the unique racial and social issues within South Africa through striving to obtain a high level of employee diversity. In 2008, 85% of the firm’s South African employees, and 68% of management came from “previously disadvantaged backgrounds,” indicating a commitment to hiring individuals from a wide range of economic conditions (Kellogg Company South Africa, 2011). In addition, Kellogg’s has maintained initiatives in South Africa designed to help improve energy availability in disadvantaged schools, as well as to provide “nutritional prevention programs” to HIV/AIDS patients in conjunction with the South Africa Joint Aid Management (JAM) program (Senior K, 2008). Through these philanthropic efforts, Kellogg’s has helped to ensure a positive presence within South Africa, by demonstrating a commitment to local social and economic goals. In undertaking such initiatives, the firm can ensure a more positive local perception of its operations, and thus ensure smoother business within this rapidly emerging market. By establishing a foothold within the country early on, Kellogg’s has benefited significantly from South Africa’s recent rise as a key emerging market. It is clear, however, that in order to sustain growth within emerging markets well into the future, Kellogg’s will also need to consider moving its operations further into less developed, yet still rapidly growing markets on the African continent. By doing so, the firm may be able to experience levels of sales comparable to those experienced in rapidly growing markets within Latin America and Asia. VI. Market Entry Strategies Before Kellogg’s enters a new market, a strategic marketing mix and product development plan is crucial. The firm must often revamp existing products and create brands to cater to the new international markets. New products can be added to these markets both externally and internally. Kellogg’s has adjusted itstraditional products to meet the demands of the firm’s international markets. Overall, the company has two key advantages in being able to satisfy the challenges of a global palate. First, many of the cereals have both taste and texture that is enjoyed across international boundaries and amongst different cultures. Kellogg’s is able to retain uniformity among its products internationally due to the standardization of manufacturing techniques. There is one slight variation, however, when it comes to the firm’s cornflakes. The firm’s plants operating within the U.S and Europe use different corn, thus the cornflakes sold in the U.S appear as a paler yellow in comparison to those found in Europe. Despite this difference, the firm has demonstrated a strong ability to maintain consistent levels of product quality throughout the globe. Second, Kellogg’s is also able to meet the preferences of the firm’s potential markets. The company has a strong knowledge base in the global marketplace,and also possesses many experts in the firm’s grain and fruit technology. One example is the chocolate coating used by the firm that is slightly altered for tastes in various countries, as the Spanish prefer sweeter chocolate than consumers in the UK, while those in Greece also prefer a blander form chocolate (Vignali, 2001). The concept of how breakfast is incorporated into various cultures is a barrier that Kellogg’s has had to overcome as well. In India, most middle-class families prefer hot breakfasts, and therefore Kellogg’s had to create a new eating habit for this market. In Brazil, large-breakfasts are not common, and cereal is often eaten dry as nutritious snacks--a shift which Kellogg’s hasadjusted to. Adjusting to international markets is vital for success, and overall Kellogg’s has done well with meeting such challenges and being successful in global markets (Vignali 2001). Australia: Kellogg’s Acquisition of Specialty Cereals Pty Limited (2008) In the September of 2008, Kellogg’s announced that it would acquire Specialty Cereals Pty Limited, one of the leading natural cereal companies in Australia.Specialty Cereals Pty Limited is a privately-owned business that manufactures cereal in French’s Forest, Sydney, Australia. The company was founded in 1988, and produced such brands as Vogel’s, Wild Oats, and Cerevite. In 2007 to 2008, Specialty Cereals’ had net sales totaling $17 million. Acquiring Specialty Cereals served as an opportunity for Kellogg’s to expand its business, and to enter the growing natural food segment. According to Kellogg’s 2009 Annual Report, the company “paid $37 million cash in connection with the transaction, including approximately $5 million to the seller’s lenders to settle debt of the acquired entity.” The firm’s Annual Report also indicated that“assets acquired consisted primarily of property, plant and equipment of $19 million and goodwill of $18 million” (Kellogg Company Annual Report, 2009). Kellogg’s and Specialty Cereals had served as a co-manufacturers and co-packers for 20 years. Kellogg’s brands complemented the existing Australian portfolio of brands, and this was a much welcomed acquisition. As a result of this acquisition, a small manufacturing facility with 51 employees was added to the manufacturing network in Australia and the new facility reports to Kellogg’s Asia Pacific unit (Kellogg-Australia, 2008). Ireland: Kellogg’s Partnership with Ireland IDA In 2005, Kellogg’s decided to establish its European headquarters in Dublin, Ireland as a result of a partnership with an Irish firm, IDA. IDA, an Investment Promotion Agency, played large role in attracting Kellogg’s investment in the Irish economy. Kellogg’s is the leading provider of breakfast cereals in Ireland, and continues to adapt its products to meet the ever-changing preferences of Irish consumers. As is described, the Kellogg Company decided to directly invest in Ireland for five main reasons: Ireland has the best tax model in Europe, a high quality of life, ease of access for all plants and customers in Europe, lower cost profile than competing locations, and availability of skills and knowledge (IDA Ireland, 2011). As Kellogg’s looks to expand its European market, it is extremely important that the new headquarters provides the firm with a competitive advantage over international competition. The central office in Dublin supports four manufacturing sites in Europe, and the decision to locate in Dublin “fits into Kellogg’s long-term strategy to consolidate its position and pursue growth in Europe” (Bakery and Snacks, 2004).The headquarters in Dublin has been successful in penetrating into the EU market and taking advantage of the possible growth opportunities in this region. The division now includes Kellogg’s UK and Ireland and extends as far as Russia, Turkey and the Middle East (Food and Drink Business, 2011). As the European market continues to grow, so has the firm’s headquarters in Ireland. The firm recently announced an expansion in order to be able to support its teams in the local markets. Kellogg’s decision to establish a headquarters in Ireland, thus far, has proven to be beneficial. Kellogg’s was able to establish an organized structure in Europe and thus to take advantage of the market opportunities in the enlarging EU. Tim Mosby, the Area President of Kellogg’s, stated, “Ireland and the IDA proved to be the best option being a cost effective and efficient base with good access and communications to the EU market from a Euro-based location” (IDA Ireland, 2011). India: Adapting Kellogg’s Products for the Market In 1994, a newly liberalized Indian economy found itself becoming the new economic hotspot for competitive companies. With the Indian economy liberated from decades of restrictive regulation, numerous multinational companies found themselves salivating at the prospect “of bringing their brands to almost a billion new customers. Fast-rising disposable incomes and a growing middle-class consumer culture [made] the market even more enticing” (Nemer&Bhan, 2006).Finding success in India has proved to be troublesome for the firm, but Kellogg’shas finally been able to implement various initiatives which have proven to be successful. Advertising and investment in key brands helped promote the Kellogg’s brand, as well as the implementation of school contact programs and effective packaging (Gadhoke, 2011). Furthermore, marketing to children acted as the entry point and offered easier access to the Indian breakfast table. Capitalizing off the firm’s success with children, Kellogg’s was then able to move “to an all family positioning, which helped [them] broad-base its appeal and gain a larger share of the breakfast pie” (Gadhoke, 2011). In addition, Kellogg’s has seen wide success by introducing Kellogg’s Corn Flakes with Iron Shakti. By dramatizing “lack of mental alertness due to lack of iron and its consequences in a larger social context,” Kellogg’s Corn Flakes with Iron Shakti (Indian for power) have seen success in the Indian market(Gadhoke, 2011). Kellogg’s has also looked to increase the penetration of its brands through affordability, mainly by adopting a small-package strategy. The small pack for Kellogg’s Corn Flakes proved so successful in market testing, that the company decided to launch it nationally in 2010 (Sindu, 2010). Yet increasing competition from PepsiCo, who has increased its focus on Quaker and additionally plans to bring “more products from its global breakfast portfolio” could prove troublesome for Kellogg’s in India(Sindu, 2010). VII. Kellogg’s Products and Services Europe, Latin America, North America Due to the international nature of Kellogg’s operations, the firm has had to adapt its product offerings, both amongst its core Kellogg’s and its other brands, in order to properly meet consumer demands. Since food tastes and preferences vary immensely across the globe, Kellogg’s must often shift the types of food products offered throughout different regions in order to meet local desires. While a definite emphasis has been placed on adaptation of food products, the firm also provides several core brand items, including cereals such as Kellogg’s Corn Flakes, to markets throughout the world with little variation. Due the high demand for this and other key company products, the firm has made sure to guarantee its availability throughout the world, while also making a distinct effort to create region-specific offerings for consumers. In terms of the firm’s global product markets, North America still presents the main focus of the firm’s operations. North America currently dominates in terms of the firm’s sales, for out of the firm’s $12.4 billion in sales in 2010, nearly 75% stemmed from purchases of cereals, snacks, frozen, and specialty items in North American markets (Kellogg Company Annual Report, 2011: 9). Due to this emphasis placed on North America, the firm has paid special attention to developing items beyond its normal product base for North American consumers. Specialized products marketed by the firm include such cereals as Smart Start and Fruit Harvest, as well as the acquired brand Bear Naked, which offers various granola-based products in the United States (Kellogg Company 10-K, 2011: 1-2). While the firm has not had to necessarily adapt its previously created products to meet North American demands since the U.S and Canada remainthe firm’s primary markets, it is clear that Kellogg’s has shown commitment in these nations to developing products to meet changing consumer needs and desires. Following North America, the European market serves as the firm’s second largest overall market, with $2.4 billion in net sales in 2010, representing 17.9% of the firm’s total business (Kellogg Company 10-K, 2011: 14). While the firm offers many of its major brand products in Europe, it has also developed such cereals as “Coco Pops, Chocos, Frosties, Fruit’n’Fibre, Kellogg’s Crunchy Nut Corn Flakes, Honey Loops, Kellogg’s Extra, Sustain, Muslix, Country Store, Ricilies, Smacks, Start, Pops, Optima, and Tresor” for sale in the European marketplace (Kellogg Company 10-K, 2011: 2). Due to the highly-westernized cultures of the European countries in which the firm maintains operations, the firm has not needed to adapt its products as dramatically as it has in other, less-Westernized markets such as India and other Asian nations. From 2009 to 2010, the firm’s net sales in Europe dropped by 3%, representing the largest sales decline amongst the firm’s four operating areas (Kellogg Company 10-K, 2011: 14). As the firm describes in its most recent annual report, the firm’s operations in the United Kingdom have experienced many challenges, mainly stemming from recent deflation. While the firm has been experiencing issues within this market, Kellogg’s remains the leading cereal brand in many European nations in terms of market share, including France, Germany, Ireland, Italy, Spain, and the aforementioned United Kingdom. The firm has been making recent strides in order to improve its performance within this market as well, primarily through the introduction of new products. More specifically, the firm hopes to combat its recent sales shortfalls through the introduction of “Special K Clusters” and the chocolate cereal “Krave” within the United Kingdom (Kellogg Company Annual Report, 2011: 4). While the firm has shown a commitment to creating new products for this market, it is also apparent that the firm’s future adaptations and new product introductions will be focused within nations outside of the mature, static European marketplace. Latin America remains another of the firm’s core markets, and Kellogg’s has been active within the region to produce a variety of products to better meet local tastes and preferences. As of 2010, Latin America represented the firm’s third largest operating area, with net sales of $923 million. (Kellogg Company 10-K, 2011: 14) The firm has introduced a variety of brands specifically targeting Latin American consumers, including such cereals as “Zucaritas, Choco Zucaritas, Crusli, Sucrilhos, Vector, Musli, NutriDia, and Choco Krispies.” Kellogg’s also makes use of the Latin America-specific brand Kaos in order to market snack products in Mexico and other nearby Latin nations (Kellogg Company 10-K, 2011: 2).By creating these brands, the firm has demonstrated a commitment to adapting its products to better fit the unique desires of Latin American consumers. While the firm has not been adapting in terms of developing completely new product lines for these Latin American markets, it has been active in altering its existing products to better fit Latin American tastes, as exemplified by Zucaritas, the Latin American equivalent of Frosted Flakes (Kellogg Company Annual Report, 2011: 12). In terms of products demanded within Latin America, as of 2010 the firm witnessed a decline within snack sales, while sales of its cereal products experienced an increase. Latin America remains another key area for growth for Kellogg’s, though from 2009 to 2010, the firm’s net sales fell by nearly 4% overall. Much of this decline, however, stemmed from fluctuations with in Venezuela, as political instability and high levels of inflation caused imports to this market to decline significantly. In addition, the firm’s operating profit declined by 2% from 2009 to 2010 within Latin America, largely due to rising commodity prices. While the firm would be wise to pursue further expansion via new products into this market, it is clear that Latin America lags behind Asia in terms of potential growth opportunities (Kellogg Company 10-K, 2010: 14-15). India When Kellogg’s entered the Indian cereal market, the average cereal customer in India consumed only 2 grams of cereal per annum, in comparison to a 5-kilogram annual average in the global market (Kellogg India, 1). Kellogg’s has had to overcome several major cultural barriers in this market, which included the relatively price-sensitive consumers, the history and availability of a traditional breakfast, and the customer uncertainty with processed foods and their nutritional components. By introducing several products targeted at various consumer groups however, the firm has been able to overcome many of these challenges. For the health-conscious Indian mother, the firm introduced Special-K; for the Indian child, Chocos, which offers a chocolate taste with nutritional components; and for the family, Corn Flakes, which has been advertised with the messagethat the product enhances mental performance.In 1998, the company attempted to adapt products by creating three lines of Corn Flakes: mango-elaichi, coconut-kesar, and rose (Riding the Indian Tiger, 2008: 221). The Company soon realized however the lines were too outlandish to interest consumers, and thus the Indian market returned its focus to more signature Kellogg’s cereals. Turkey When Kellogg agreed to a joint venture with the Turkish food manufacturer, Ulker, in 2005, it undertook a huge challenge in the marketing arena. Turkish consumers are relatively new to eating breakfast cereal, and Ulker’s product choices demonstrate the firm’s uncertainty to introduce a number of new brands in the market. Recently, Ulker and Kellogg have chosen to focus on Coco Pops and Special K cereals, and adapting the Special K Bar to new flavors, such as nectarine and sour cherry, which are more likely to appeal to Turkish consumers (Ulker, 2011). South Africa Although Kellogg’s has been in the South African market since 1923, the company has renewed its focus in the last decade on improving the quality and nutritional components of the most popular cereal brands in the market. Corn Flakes remains the top cereal in the South African cereal market, but the company strives to, “fine-tune the golden colour and crunchy texture of Kellogg's® Corn Flakes® by selecting only the best maize hybrids grown by South African farmers” (Kellogg in South Africa, 2011). The cereal market in South Africa grew by the introduction of five different cereal varieties including Coco Pops and Strawberry Pops for children, while the firm also introduced All-Bran and Special-K cereals to target the health-conscious, adult customer. In 2000, the Special K Bar was introduced, offering red cherry and chocolate flavors, along with a Coco Pops Cereal Bar, reflective of the popularity of the children’s cereal. Kellogg’s has not expanded its product lines in markets such as South Africa because of the preference for the traditional brands such as Rice Krispies, Corn Flakes, and Frosties. In 2008, Kellogg’s sold 55 million boxes of Corn Flakes to the South African market alone (Kellogg in South Africa, 2011). Kellogg’s attempts to introduce new brands of cereal have not been nearly as successful as its renewed focus on improving the more traditional cereals, and thus it is in its best interest to expand production in the current cereals in this market. Other Subsidiary Markets Kellogg’s has taken a different approach to the products offered in emerging markets, such as China, by acquiring firms already offering a wide variety of products in line with the company’s core product base. In China, Kellogg’srecently acquired the aforementioned Navigable Foods, a cracker, cookie, and biscuit producing company. This market entrance strategy allows Kellogg’s to introduce products with more certain consumer responses. Other examples of joint venture opportunities with established firms include the previously mentioned examples of United Bakers in Russia, a cookie, cracker and cereal producer, and Specialty Cereals, a ready-to-eat cereal manufacturer in Australia (Kellogg’s Form 10-K Annual Report, 2010: 33-34).Entry into these markets using this technique requires little product adaptation, as the distribution networks, production techniques, and marketing strategies are already in place. However, these markets may create opportunities for Kellogg’s to implement its own products in the future. VIII. Kellogg’s Supply Chain The ability to manage the supply chain of a product from the beginning stages of production to the moment when the consumer purchases it from a retailer is crucial to a company’s success. There are three main sectors in an industrial supply chain: Primary/extractive, secondary/manufacturing, and tertiary(The Times 100, 2009). The primary sector is responsible for sourcing raw materials such as oil, coal, or food stocks (i.e. wheat and corn). The secondary sector consists of the manufacturing portion of the chain, during which products are assembled. In this sector, Kellogg’s purchases rice for the firm’s Rice Krispies, and purchases corn for the firm’s Cornflakes. The tertiary sector provides other services, but does not involve the actual production of goods. In order for a supply chain to flow fluidly, many parts such as “research, quality, purchasing, sales, and transport and distribution,” must work together(The Times 100, 2009).Kellogg’s understands the importance that storing and transporting the firm’s products has, and manages these processes in the best way possible in order to minimize cost and environmental impacts. Kellogg’s also has a strong focus on lean production or, “an inventory system enabling the streamlining of processes and elimination of waste” (The Times 100, 2009). The firm routinely evaluates its supply chain method to make sure waste is being reduced while desired outcomes are still being obtained. Doing so allows Kellogg’s to be more competitive and profitable since costs such as overhead and unit costs are significantly reduced. Kellogg’s performance demonstrates that carrying out all aspects of the supply chain is proper manner to be efficient, and rather that it is more cost-friendly to specialize in the realm of manufacturing in which firms specialize. For Kellogg’sdistribution and transport needs, the firm uses partners and does not maintain its own distribution fleet(The Times 100, 2009). Supply Chain: Secondary Sector Kellogg’s specializes in the secondary sector of its supply chain. The firm relies on primary suppliers for such raw materials as wheat, corn, cocoa, rice, and sugar to be used in manufacturing processes (The Times 100, 2009). This process enables Kellogg’s to produce over 40 different types of breakfast cereals and snacks as well as having the ability to be a “large-scale manufacturer and stores sufficient stocks to meet customer orders” (The Times 100, 2009).Kellogg’s Research and Development (R&D) programs have been able to create recipes that have expanded the assortment of Kellogg’s products(The Times 100, 2009). Just like many other large-scale manufacturers, Kellogg’s must take into consideration various aspects of its operations. Such factors include:
Kellogg’s has also improved its supply chain in England by becoming a member of England’s Food and Drink Federation. England’s Food and Drink Federation (FDF), “is an umbrella organization for food and drink manufacturers and has called on its members to improve its environmental performance” (The Times 100, 2009). This organization accomplishes this by reducing, “(1) levels of packaging to consumers, (2) use of water during production, (3) impact of transportation, (4) waste to landfill, and (5) energy use during production.” Kellogg’s has also agreed to “improve water efficiency, reduce wastage, and cut CO2 emissions,” by signing an agreement with 21 major companies via the FDF(The Times 100, 2009). Supply Chain: Tertiary Sector The third and final component of the supply chain is the tertiary sector which does not produce or manufacture goods, but rather provides the services such as retail outlets like a grocery store that sells manufactured products to its consumers(The Times 100, 2009). Kellogg’s also maintains several important relationships with companies in the tertiary sector. Tesco and ASDA are the major retail supermarkets in England, and Makro also has a major presence within the wholesale sector(The Times 100, 2009).Kellogg’s relationship with the retail store is vital for promoting the firm’s products, for the way in which these firms market Kellogg’s products reflects consumers brand association and experience with the Kellogg Company. Kellogg’s has established several initiatives that give retailers added value and benefit Kellogg’s through increasing sales. With Tesco, Kellogg’s has started the Shelf Ready Unit which “displays Kellogg's products easily and effectively” (The Times 100, 2009).The supermarket benefits from such initiatives since setting up the display takes less time, staff, and monetary spending. It also presents Kellogg’s products in an aesthetically pleasing manner to customers and thus increasing the turnover rate of products in the store. Supply Chain: Summary Being able to manage the supply chain efficiently and productively is important to ensure a company’s product is successful from start to finish. Selling and marketing a product to the right people, in the right place, and at the right time need to be factored into the equation. Kellogg’s is adept at consumer research which allows them to better target consumer needs. Through using in-store promos, Kellogg’s ensures that its goods are well-featured at preeminent retailers, and thus that they are noticed by consumers. By using a just-in-time inventory strategy, high warehousing costs are also eliminated. The firm’s distribution system has also been streamlined through partnerships with firms such as TDG, and has also accommodated computerized inventory systems. These systems monitor when supplies are running low as well as when shelves are empty, and can also automatically generate and place an order for more of the depleted product(s). Kellogg’s has done a very thorough job in minimizing transportation costs, ensuring on-time deliveries, cutting stocking costs, maintaining competitive prices, and minimizing fuel and heating expenses--all activities which keep customers at the end of the value chain both loyal and satisfied (The Times 100, 2009). Below is an illustration of the flow of Kellogg’s supply chain. 
Image 12: Kellogg’s Supply Chain (The Times 100, 2009 http://www.thetimes100.co.uk/downloads/kelloggs/kelloggs_14_full.pdf) IX. Integrated Marketing Communication Kellogg’s Commitment to the Global Marketplace Kellogg’s has always valued and seen the importance of its global presence, which has been increasing since the company was founded. As John A. Bryant, President and CEO; and Jim Jenness, Chairman of the board, describeKellogg’s “…believe[s] that our [Kellogg’s] global presence makes us a stronger company. Having a broad geographic footprint enables us to leverage our successes and transfer knowledge from one region to another” (Kellogg Company Annual Report, 2011). During 2011, Kellogg’s global focus was on the main categories of cereal and snack products, while also emphasizing the firm’s frozen food segment in North America. Kellogg’s stated goals also emphasize the importance of the firm’s global markets. As the firm describes, its goal is “to be the consumer’s top choice and the clear leader in category growth,” while achieving “this goal through our commitment to our focused strategy, business model and operating principles combined with the power of our brands, our dynamic innovation pipeline, the strength of our categories and our global presence”(Kellogg Company Annual Report, 2010). In 2010 Interbrand, one of the world’s largest brand consulting agencies, ranked Kellogg’s 35thout of all global brands,and the highest amongst the packaged food manufacturers segment. In 2008, Kellogg’s invested in the global research center at the headquarters in Battle Creek, MI demonstrating a vested interest in global innovation(Kellogg Company Global Code of Ethics, 2011). Kellogg’s also maintains a document known as the Global Code of Ethics, which demonstrates the firm’s commitment and investment in the global marketplace. This code, as the firm describes, “… reflects our commitment to operate worldwide in a manner that is respectful and ethical, whether we are interacting with customers, consumers or each other” (Kellogg Company Global Code of Ethics, 2011). This document, “describes ethical responsibilities applicable to all employees of Kellogg Company, including all of its affiliates and subsidiaries, as well as its agents (which includes consultants, independent contractors and other representatives). Healthy Beginnings Program: The Hispanic Retail Market As part of the firm’s integrated marketing communications, Kellogg’s has developed numerous programs designed to connect with consumer segments in an innovative fashion. One such program has been the Healthy Beginnings Program, first utilized in 2007. The business objective of the Healthy Beginnings Program was to increase sales volume in Hispanic markets by leveraging corporate events as well as driving traffic to local retailers. From the consumer side, Kellogg’s began the program to help Hispanics who have growing health concerns yet hold limited or no healthcare coverage. Some of the preeminent health concerns faced by Hispanics include heart disease, diabetes, lactose intolerance, and obesity. To implement this program, Kellogg’s utilized the following strategies:
As part of this program, Kellogg’s sponsored the traveling Healthy Beginnings Parking Lot Tour. At this event, bi-lingual nursesadministered health screenings which includedcholesterol and glucose blood tests; as such services were free to consumers who purchased four participating products. Also included in the program were self-administered BMI tests, as well as opportunities for individuals to receive blood tests. Free samples of Lactaid (since many Hispanics are lactose intolerant), as well as Frosted Strawbery Mini-Wheats, and Murray sugar free cookies were also provided. The event also catered to families with entertainment by including photo ops with popular Kellogg’s logos Tony the Tiger and Tango the Cow. Featured below is an illustration of the village that was set-up during the parking lot tour which took place over a 6-month period of time from the Spring through Fall of 2007 (Healthy Beginnings Program, 2007). 
Image 13: Healthy Beginnings Parking Lot Tour Promo, 2007 (Healthy Beginnings Program, 2007http://www.hispanicretail360.com/hispanic360/images/pdf/galanoudis.pdf)
Image 14: Kellogg’s Healthy Beginnings Program POS Kits (Healthy Begginngs Program,2007 http://www.hispanicretail360.com/hispanic360/images/pdf/galanoudis.pdf) Magazines for both non-Hispanic and Hispanic consumers were published in conjunction with this program, and were part of the free educational materials received when making a purchase at participating grocery stores. Consumers had a strong reception of the magazine, with many wanting it mailed to their homes on a monthly basis. Many consumers, however, also expressed the sentiment that coupons for Kellogg’s products ought to be included as well.Consumers were able to provide feedback to Kellogg’s, and share their likes and dislikes about the program. Overall, public opinion was very positive and supportive of the initiative. Consumers found it family-friendly, and many also appreciated the bilingual resources. Their opinion on brand awareness was well-received and many enjoyed the free product samples. Some of the issues that consumers relayed with the program included that they were often confused as to which products qualified and counted towards participation in the program. Many also wanted the event at each location to last longer than one day. Regarding logistics, it was difficult for the firm to coordinate the parking lot events as well as to adequately prep store managers with the displays that were mailed to them (Healthy Beginnings Program, 2007). Other IMC Strategies Kellogg’s has recently partnered with London marketing company Brand Learning in an effort to further develop “their ‘K-way’ of marketing, embedding a new language, common tools and engaging on a global scale with its learning programme” (The Drum, 2011). Currently, Kellogg’s various marketing teams operate under a largely decentralized model, and Kellogg’s is looking to foster a more cohesive marketing team and global marketing strategy with the help of Brand Learning. With the help of Brand Learning, Kellogg’s is looking “to build world-class marketing capabilities...[and] a marketing team inspired, equipped and enabled to drive strong returns in this increasingly complex consumer/brand landscape” (The Drum, 2011). In Ireland, Kellogg’s popular cereal Coco Pops in no longer solely relying on Coco the Monkey as the face of the cereal: Kellogg’s has employed Jedward, a popular Irish hip hop duo, to help promote the cereal’s brand. Initially, there were rumors that Coco the Monkey, the long-time face of the Coco Pops brand, would be axed in favor of Jedward; but Kellogg’s quickly slashed those rumors, releasing a press release that confirmed Coco would remain the ambassador for the chocolate cereal (Business and Leadership, 2011). Kellogg’s also faced much criticism from health watchdog groups in the United Kingdom concerning its television advertisements for certain products. Kellogg’s promotional efforts for its Nutri-Grian Soft Oaties claimed the products were “wholesome cookie goodness...[and they] were made with oats and wheat, source of fibre, 6 B vitamins & iron” (Hills, 2009). Furthermore, the advertisements claimed the cookies were meant to be enjoyed “as part of a healthy balanced diet & lifestyle” (Hills, 2009). Yet, consumer watchdog Which? and two members of the public complained that these advertisements implied the cookies were healthy, when they were actually “high in sugar, fat, and saturated fat” (Hills, 2009). Kellogg’s argued the advertisement clearly stated the snacks were a cookie and not a healthy snack. Furthermore, the cookies were packaged in single serving packages and were labeled with Guideline Daily Amount (GDA) information (Hills, 2009). Which has also complained about Kellogg’s marketing of Coco Pops Straws, claiming the ads are “misleading and socially irresponsible” (Just-Food, 2006). Sue Davies, the policy advisor, argues that the advertisements “send a confusing message about what is healthy and what is not to both children and parents. [Coco Pops Straws are] yet another example of the irresponsible marketing techniques used to push unhealthy food to children” (Just-Food, 2006). After facing much criticism concerning its sugary products, Kellogg’s has worked to cut sugar levels and boost fiber in many of its latest UK products. One of Kellogg’s new products, Coco Pops Choc N’ Roll is being targeted to parents, with advertisements highlighting the product’s great taste as well as nutritional value. Greg Peterson’s, Kellogg’s UK managing director, reiterated the company’s new commitment to nutrition, stating that Kellogg’s has invested “two years in developing this food so it meets some of the most rigorous nutritional standards in the world...[and pricing] it cheaper than any other branded chocolate cereal on the supermarket shelf” (Business-Leadership, 2011). Integration of Social Media Kellogg’s has been able to stay up-to-date with consumers’ dynamic needs through utilizing social media outlets. In 2010 Kellogg’s started their MyPlan app for mobile phones which promotes Special K products as a popular weight-management brand. With the app, users can “create diet plans, find recipes, track progress, and get helpful dieting tips anytime, anywhere” (Kellogg Annual Report, 2010). Kellogg’s also has a Facebook presence where consumers can share their love of Kellogg products. This technique has served as a highly cost-efficient means of advertising and building brand loyalty. At the end of 2010, Pop-Tarts had over 2.6 million Facebook fans,while Cheez-It also possessed over 1 million (Kellogg Annual Report, 2010). Below are images of the phone app and Facebook page. 
Image 15: Kellogg’s MyPlan Phone App (Askalexia.com)
Image 16: Screenshot of Kellogg’s Facebook (Facebook.com)
Kellogg’s has faced numerous challenges in recent years, as it has struggled to control costs in the face of a global recession. Rising commodity costs remain a major source of price risk that Kellogg’s must learn to manage effectively. As the company’s annual report describes, Kellogg’s has “historically used the combination of long-term contracts with suppliers, and exchange-traded futures and option contracts to reduce price fluctuations in a desired percentage of forecasted raw material purchases over a duration of generally less than 18 months” (Kellogg Company 10-K, 2011: 26). Not only do commodity price fluctuations occur in raw materials such as corn, wheat, soybean oil, and sugar, but also in the fuel and energy markets. Kellogg’s relies primarily on propane and natural gas in its manufacturing business, and the use of commodity derivative instruments for fuel is central to controlling costs. The firm notes that, “The total notional amount of commodity derivative instruments at year-end 2009, including the natural gas swaps, was $213 million” (Kellogg Company 10-K, 2011: 26). Kellogg’s expects costs to rise by about 6% in total 2011, and the company has also hedged lower prices on about 40% of commodity costs in 2011 (Kellogg Third-Quarter Profit Falls 6.4% as Cereal Sales Decline, 2010). Through commodity price hedging, Kellogg’s can effectively cope with the unforeseen price fluctuations in the commodities it uses in production. By locking in lower prices before prices escalate, the company has managed to control costs significantly. Since Kellogg’s has little control over the inputs it uses and the rising price of corn, sugar and other raw ingredients, hedging price risk is imperative to the company. Long-term contracts are also central to the firm’s efforts tocontrol commodities costs. In order to cope with rising input and fuel prices, Kellogg’s has sought creative ways to price its many products. In India, Kellogg’s has focused marketing efforts on single serving ready-to-cook oatmeal and similar cereals. Not only do these smaller packs match Indian preferences for a convenient and health-conscious breakfast, but they also provide an entry in to the Indian cereal market based on price-sensitivity. The smaller packs are a third of the price and have primarily revolved around Kellogg’s six variants of Corn Flakes, Oat Flakes, and Oat Bites. The two oat based cereals are part of Kellogg’s “Healthy Heart” campaign, which is targeted at the rising number of health-conscious adults in India. The oat products are offered in 200-gram, 400-gram, and 1-kilogram packs. The smaller packages induce the price-sensitive, Indian consumers by offering convenience and lower prices in one serving. In 2010, Kellogg India finally relented to strong pressures to increase prices after a 5-year gap. In those 5 years the company experienced increases in major input costs on commodities such as wheat, corn and cocoa (Singh, 2010). Though Kellogg’s wanted to continue its low cost strategy, the rise in input costs proved to be too great to hold prices constant. Holding down product prices for 5 years was critical for Kellogg India in order to change the consumer perception that cornflakes were a premium product. According to an executive, the strategy was successful and the “premiumness” associated with the brand has diminished over the last 5 years(Singh, 2010). One important way of analyzing Kellogg’s pricing strategy is to study the firm’s relative price positioning in a given market in comparison to other cereal brands. For example, in Latin America, Asia, and India, Kellogg’s is considered high quality and is relatively expensive. Domestically and in the United Kingdom however, Kellogg’s most popular cereals are considered to be cheaper, less-healthy brands. The high-end American cereals tend to be sold in smaller quantity with more of a nutritional focus. In order for Kellogg’s to succeed in the global marketplace, the firm must first realize that its reputation differs greatly depending on the market. In the Indian marketplace, for instance, Kellogg’s few competitors tend to provide less-expensive lines of cereal. In this situation, it would be to Kellogg’s benefit to base its marketing strategy on promoting its high-quality, health-conscious varieties of cereals aimed at consumers in the rising middle-class. In other markets, such as the United Kingdom, Kellogg’s should continue to compete on the basis of keeping prices low relative to other firms in the market. By keeping focus on production, transportation, low commodity costs, and the development of the most popular brands, Kellogg’s can retain its market power through low prices in European markets. Pricing Competition Kellogg’s is currently facing a very large threat when it comes to product pricing. The firm is currently involved in a “price war” with its largest competitor General Mills, and appears, thus far, to be losing. On October 12, 2010, Kellogg was forced to cut its third-quarter and 2010 financial targets due to major skids in sales. Overall sales at Kellogg’s fell 4% from last year, with Asia-Pacific being the only operating segment to experience a gain. All four of the firm’s regions, however, experienced declines in operating profit (Andrejczak, 2010). The firm’s overall pricing during this time dropped 3.6 % and narrowed the gross margin to 43.4% from 43.9%. Kellogg’s hope was to rejuvenate these losses through a slight price increase in 2011. Kellogg’s management is targeting a 2% to 3% increase in prices due to the rising commodity costs the firm faces(Andrejczak, 2010). However, this stiff price competition will continue to pose a threat to Kellogg’s as it attempts to raise the prices of its products. “Fewer Flakes” As mentioned, increases in the prices of commodities have forced Kellogg’s to raise its prices. Consumers are never happy when a firm makes the decision to raise prices on its products, and thus Kellogg’s has created a strategy to minimize the amount in which it must raise its prices. Kellogg’s announced in July 2006 that it would trim the box size of Frosted Flakes, Frosted Mini-Wheats and Rice Krispiesby 5.3% to15%, resulting in “fewer flakes” (Consumer Reports, 2006).According to EphramLeibtag with the U.S. Department of Agriculture’s Economic Research Service, this strategy serves as “a way to raise prices to make it look like it’s not as large an increase as it really is”(Consumer Reports, 2006).Kellogg’s is clearly searching for innovative ways to increase prices to cover costs while simultaneously not upsetting consumers. XI. Global Operations Summary Throughout much of the world, Kellogg’s serves as one of the preeminent manufacturers and marketers of “ready-to-eat cereals and convenience foods.” With manufacturing operations located in 18 separate nations throughout the world, and a market presence in 180 nations, Kellogg’s has truly established itself as a formidable global provider of food products, and is enhancing this reputation by seeking expansion into other markets (Kellogg Company 10-K, 2011: 1). Through the firm’s strategic positioning as a market leading, quality-focused producer of breakfast and other food items, Kellogg’s has been able to leverage its brand equity and the well-known nature of many of its key products while finding success throughout the globe. By continuing to develop new product offerings which are more specifically geared to consumers in various global markets, it is clear that Kellogg’s is poised to continue its expansion overseas, while shifting its attention away from the highly saturated markets of Europe and North America and towards developing economies in Latin America, Africa, and Asia. It is clear that Kellogg’s greatest opportunities for growth lie within the rapidly developing markets of Asia, Latin America, and Africa. As has been described, the firm’s sales in Latin America and Asia have grown significantly over recent years, indicating a greater emphasis placed on providing to consumers within these markets. Recently, Asia has demonstrated the greatest degree of growth potential that the firm is able to exploit. From 2009 to 2010, the firm’s net sales within Asia increased by 13.7%, with an actual increase in volume of products sold by 4.3%. With its rapidly developing economies, and with Kellogg’s increasing investment in subsidiaries in China, it is clear that the firm is poised for further growth in this market in the future. Latin America presents another crucial area for growth for Kellogg’s, though from 2009 to 2010, the firm’s net sales actually declined by 4.1% overall. As the firm describes in its 2010 10-K however, much of this decline was attributable to political influences within such nations as Venezuela, and high levels of inflation (Kellogg Company 10-K, 2011: 14, 26). If Kellogg’s hopes to ward off sales declines in the highly saturated North American and European markets, it must maintain its current growth in Asia, while also turning the tide in Latin America and better positioning itself in these growing markets. Africa presents another area in which Kellogg’s may be able to significantly expand its operations in the near future. Though the firm’s current operations in African are now limited to the relatively developed market of South Africa, by utilizing the tactics it has used to penetrate rural areas in this African nation, Kellogg’s may be able to expand its operations deeper into the African continent. Africa currently serves as one of the most rapidly expanding economic areas across the globe, and by penetrating into these nations with growing middle classes, Kellogg’s could experience significant financial benefits. Though the firm will need to adapt its products due to the environmental and cultural differences inherent within Sub-Saharan Africa, based off of the firm’s past success in adapting products in nations such as India, there is little reason to think Kellogg’s does not have the ability to do so. In terms of explaining the firm’s international success, product adaptation serves as one of the most critical aspects of Kellogg’s operations. Kellogg’s has demonstrated a strong aptitude towards shifting products to better meet the unique needs of various markets, as well as towards developing new products for diverse global consumer groups. Whether it has been through Zucaritas in Latin America, Chocos in Europe, or Cerloa in Asia, Kellogg’s has developed strong brands within its diverse markets better designed in meeting consumer needs (Kellogg Company 10-K, 2011: 2). As Kellogg’s continues to expand internationally, it will need to maintain and continuously exploit this capacity to adapt products, in order to better accommodate environmental, cultural, and economic differences as it moves across international borders. In terms of recommendations for the firm in order to enhance performance, we as analysts would point to expansion into Africa as one of the firm’s largest possible opportunities. Moving into Africa would allow the firm to expand its consumer base and utilize already established strategies for penetrating developing markets, just in a new environmental and cultural context. In Africa, a lack of economic development and climatic conditions make it difficult for the firm to successfully market such food items as cereals and other breakfast foods. Without refrigerators in order to store milk, many African consumers are unable to enjoy the firm’s cereals, which serve as Kellogg’s key products. We would recommend developing unique products better designed to meet the environmental and economic conditions of Sub-Saharan Africa, such as African-specific cereal bars which require no milk to consume, and thus no refrigerator. While the firm should be mindful of the rising middle-class in Africa and thus market its existing brands in these African nations as well, it should also be active in serving the substantial number of consumers in these nations lacking such resources. Overall, by expanding into Africa, Kellogg’s would be better able to sustain annual growth, and to combat declining sales in the saturated North American and European markets. In summation, Kellogg’s currently serves as one of the preeminent providers of breakfast and other snack foods throughout the globe. Through expanding its operations into Asia, Latin America, and Europe through acquisitions, subsidiaries and joint ventures, Kellogg’s has been able to become a market leader in countries throughout the globe. As this decade progresses and the firm faces new challenges due to market saturation both in the U.S. and in Europe, further expansion into Asia, Africa, and Latin America will become even more crucial. Due to the firm’s record in successfully adapting products to meet consumer needs and preferences throughout the world, we as analysts believe that Kellogg’s is up to this challenge, and will find further success internationally well into the future. Works Cited Albert, Angeline. (2011, April 21). Former PepsiCo Executive Snapped Up By Kellogg’s. Retrieved from http://www.supplymanagement.com/news/2011/kelloggs-hires-former-pepsico-executive/ Directory: modules -> portfolio modules -> Final accepted manuscript published in Atmospheric Pollution Research, October 20, 2015, doi modules -> Information assurance program manual table of contents modules -> Paralympic Sport Information modules -> This project has been funded with support from the European Commission (226388-cp-1-2005-1-de-comenius-c21). This publication reflects the views only of the authors modules -> New Zealand crews qualified for the 2016 Rio Olympics regatta in all 10 events modules -> Ορολογία στην Ξένη Γλώσσα Ενότητα: cad/cam & cnc παναγιώτης Τσατσαρός Τμήμα Μηχ. Αυτοματισμού ΤΕ Άδειες Χρήσης modules -> Module specification modules -> University of kent module specification template portfolio -> Rebirth: General Motors and Capital Structure Movements portfolio -> Based on the available information, is Atlanta the best location for a distribution center to serve the southeastern region? If not, what would you recommend? Download 207.83 Kb. Share with your friends:
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