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Rolling Case Study of Kellogg's

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STRATEGIC MANAGEMENT TASK #1 KELLOGG'S CASE STUDY It all began in Battle Creek Sanatorium, Michigan USA, in the 1870's. Originally set up by the Will Keith Kellogg and Dr. John Harvey Kellogg brothers, the company was founded on a belief that "you are what you eat". It took the brothers six years to come up with the "correct formula" and create a once wholesome and pleasant to eat breakfast food. They finally had the start up product they had desired for such a long time, the product that within time became the worlds most popular breakfast, the product we today all know as Kellogg's Corn Flakes. It has been more than a decade since the product was introduced for the first time, however, it still remains the most highly rated, favored and preferred breakfast in the world. The Kellogg Company was originally founded in 1906, in Battle Creek, Michigan. It began as a small business entity, employing 44 people, producing one single product. Today the company possesses production plants in 19 countries, markets its products in more than 180 countries, and employs approximately 32 000 people across the globe. ...read more.


All together, that is what makes Kellogg's a premium brand. A brand is considered premium when people believe it is worth the price. It is normally built upon both tangible and intangible attributes, like sensuality, rarity, confidence, authenticity, and of course, quality. Due to their complexity, managing a premium brand is a great challenge. For premium brands the brand image and identity is literally everything. Bad strategic decisions could harm or ruin the reputation of the brand. Kellogg's have directed and harmonized all strategies towards and with their brand image, which has proved to be a winning approach. Living a healthy life recently became an extremely popular trend in modern society. The numbers of people seeking that type of lifestyle were dramatically increasing. The growing demand attracted Kellogg's attention. They decided to promote the message "Get the Balance Right", which was aiming to show consumers the benefits a balanced diet and exercise had. In support of their aim, Kellogg's assigned several objectives, primarily focused on physical activities. The objectives were SMART - specific, measurable, achievable, relevant, and time-related. Kellogg's had to develop a strategy and an action plan, designed to meet those aims and objectives. ...read more.


Attracting and respectively making such customers loyal to the brand is a prerequisite and key for long-term success. Kellogg's demonstrate great corporate and social responsibility. Kellogg's corporate responsibility is organized around the company's four strategic areas - marketplace, workplace, environment and community. Effective communication is of great importance for the success of any strategy. Kellogg's understand that the impact company stakeholders have on the organization is tremendous. They are aware that communicating their message to stakeholders is extremely essential for the company's success. Customers, employees, media, government, sports and health associations could be all recognized as stakeholders of the Kellogg's company. However, customers and company employees may be considered most influential and essential for the organization. Therefore, the company emphasizes the strongest on them, by constantly organizing diverse events, in attempts to communicate their message in the most effective way. Kellogg's strength lies mainly in their well known and trusted brands. The key to Kellogg's success is in the way they strengthen their brands to keep them relevant, resonant and powerful with consumers. Consumers demand variety and convenience, and, now more than ever, value, and that is exactly what the company provides to them. We will continue to execute our sustainable growth model and focused business strategy to deliver sustainable and dependable performance. ...read more.

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