International Marketing Mix of Kelloggs Cornflakes
Since 1906, people have come to know Kellogg as a company they can rely on for great- high-quality foods. With projected annual sales of more than $9 billion, Kellogg is the world's leading producer of cereal and a leading producer of convenience foods, including cookies, crackers, toaster pastries, cereal bars, frozen waffles, meat alternatives, pie crusts and cones. The company's brands include Kellogg's®, Keebler®, Pop-Tarts®, Eggo®, Cheez-It®, Nutri-Grain®, Rice Krispies®, Special K®, Murray®, Austin®, Morningstar Farms®, Famous Amos®, Carr's®, Plantation®, and Kashi®. Kellogg icons such as Tony the Tiger, Snap! Crackle! Pop!, and Ernie Keebler are among the most recognized characters in advertising. The products are manufactured in 19 countries and marketed in more than 160 countries around the world.
Kellogg has been found 1906 in Battle Creek, Michigan/ USA. Dr. John Harvey Kellogg and his brother Will Keith Kellogg developed the first wheat flakes of the world. The Battle Creek Toasted Cornflake Company started to produce on the first of April 1906.
In 1922 the company has been renamed into Kellogg Company.
For the project we have chosen Kellogg`s Cornflakes Originals because it is the most known Kellogg product and the basis of the whole Kellogg`s world. It is in nearly every country available.
Kellogg`s Corn Flakes the originals, crispy flakes made out of sweet corn. Valuably Carbohydrates with a lot of vitamins and iron, including calcium out of fresh milk - for a great beginning of the day.
The ingredients are:
Sweet corn, sugar, salt, malt, vitamins ( niacin, vitamin B6, vitamin B2, vitamin B1, folacid, vitamin B12 ) and iron.
The product is sold in different sizes, e.g. in 500 g packages or 750 g, to meet the preferences of different families.
You can find the description of the ingredients and the service hotline number on the left-hand side of each package and on the right-hand side tables about calories and fat content and vitamins. On the top there is the best-before date.
The backside is used for advertising and the front for the label and branding. On each Cornflake`s package back you often find description or stories about famous sports persons or events. In general it is talked about trend-sports.
Often you can find recipes on the back, too and on the front the cock, the symbol for Kellogg Cornflakes Original, is placed. Above the cock we find the Kellogg branding in red letters. These things make it easy for the consumer to identify the product. The flakes themselves are put in a plastic air bag therefore they keep fresh! They are very simple without any overprint.
The cardboard package and the plastic bag are made out of various materials, which are selected after many extensive tests.
Every package is designed to help maintain nutrient levels, freshness and flavor, protect goods during handling, shipping and storage; it is always Kellogg Company's objective to provide the consumer with full packages. However, because products are packaged on automated equipment, space is needed at the top of the package for proper sealing of the inner liner. If the inner liner is sealed imperfectly, moisture may penetrate the food and product freshness may decrease. Some settling of the product in the package may also occur due to handling in transit.
Kellogg is well known for high quality and healthy food and great taste. Therefore the customer has to pay a higher price than for a no name product. Kellogg company wants their products to be known as a masses product for families, adults and children and therefore the price must not be too expensive as a snob`s product. For psychological reasons Kellogg has chosen a prestige-price instead of using demand-pricing. You will not find price differentiations e.g. it is not depending on seasons.
It is cheaper to buy a big box than a normal sized box.
At Kellogg Company, they have always believed in advertising important product information. At the same time, they believe all of their advertising must be socially responsible. Their philosophy says it best:
Kellogg is committed to providing wholesome, quality spot advertising that is truthful and not misleading to consumers and to placing its commercials with quality television programming. In keeping with this commitment, Kellogg believes it has a responsibility to produce advertising, and to place those ads in programs that communicate the standards of good taste and fair practice that guide all of their corporate actions.
The specific content standards, which govern Kellogg advertising, include the following:
· Provide consumers with accurate information about their products in a wholesome manner
· Ensure that the advertising is in compliance with all applicable federal, state, and local laws and regulations, including the self-regulatory guidelines of the National Advertising Division (NAD) and Children's Advertising Review Unit (CARU)
· Avoid advertising themes that include excessive and/or unwarranted acts of violence; or the acting out of anti-social behavior which easily encourages imitation
· Avoid advertising themes that belittle any group based on its social, racial, ethnic, or religious traits, or any person because of his or her age, sex, or handicap. Advertising is made for two different kinds of consumers: For children and for adults. Kellogg has invented especially for their young consumers cartoon characters as the cock for Cornflakes. The advertising for children uses jingles to talk about faster growing, health and strength through eating Cornflakes and good taste.
Advertising for adults tries to convince the consumer through showing the young, successful and dynamic business generation while eating Kellogg Cornflakes for breakfast. Kellogg mostly advertise in the TV and nearly never in newspapers because they want to reach their wide spread field of consumers that consists person from all sectors of society. With his private property W.K. Kellogg has been very generous. During his whole life he spent approximately $ 66 million for different charities. In 1930 he set up his own W.K. Kellogg Foundation which is today one of the three biggest charity foundations in the USA. As PR Kellogg sponsors also famous sport persons or and sport events e.g. surfing.
Inside the packages sometimes you can find stickers or little figures to attract children for the product.
Consumer gifts of supermarkets often contain small test packing of Kellogg Cornflakes. Sometimes Kellogg organizes design competitions for children campaign. The exercise is to design the package back. The best is seen for a couple of weeks on the Kellogg packages. Kellogg Company has for each promotion sector and each brand an own department:
· Product Management
· New Product Development
· Consumer Understanding
· Consumer Affairs
· Promotion Marketing
· Nutrition Affairs
· Product Communications/PR DISTRIBUTION
Kellogg distribution is normally indirect. The whole distribution works through retailers and wholesalers.
The product is available in nearly all kinds of supermarkets, including petrol stations and little shops.
Kellogg decided in 1914 to enter international markets. The first has been the Canadian market. The reasons for that have been the same language in Canada as in the US so therefore Kellogg company need not to change package label and design and advertising. Also the distribution ways have not been to far. No shipping was needed as to other English speaking countries.
First there have been only sales departments. The first production has been opened in Sydney, Australia in 1924.
Meanwhile Kellogg company produces in 19 countries whole over the world and its products are sold in over 160 countries.
After the national sales departments importers and distribution partners have been hired e.g. in Germany the first distribution-company of Kellogg Cornflakes has been Reiss-Handels AG Premium. But Kellogg has bought them very quickly. Kellogg Germany and others have been founded but not all of them started to produce on their own. Their responsibilities have been the distribution and the national marketing.
Nowadays in 19 countries Kellogg Cornflakes are produced and soled in other 160 only importing countries.
Kellogg Cornflakes is an international product and the package size, labeling and the ideas of the design are therefore all over the world the same.
The main thing that differs in each country is of course the language. In some cases there are special law regulations. Therefore some things have to be added on the package as example in Germany and other European states the "green point" (a symbol for special recycling). All over the world prestige pricing is used because the quality and health of Kellogg Cornflakes is international well known.
Of course the price differs for those countries who produce Cornflakes on their own, but the only reason for that is the normal adaptation to the welfare standard of each country. In the importing countries the price may differ more, because of the longer distribution ways; tariffs, quotas and duties; forward exchange cover and perhaps delays in shipment and payments for the importer.
The promotion takes care of all the different demands of each country. For example it is used a typical Back-Panel-Promotion. Other national known persons and national sport events are sponsored than in the USA.
Also the nationwide common topics concerning sport trends and the health sector are used to reach the habitants of each country. About these topics is spoken in national TV spots and also on the backside of the packages.
E.g. in Germany Kellogg advertises at the moment particularly by using the actual subject health. Therefore you can often find several diet and healthy recipes on the back of Kellogg Cornflake Packages.
The presence in the world wide web is very progressive and strong. Here is only a small selection of Kellogg homepages all over the world:
Kellogg USA; Kellogg Canada; Kellogg UK; Kellogg Korea; Kellogg Spain; Kellogg Sweden; Kellogg Germany...
These homepages provide information about the product, quality, company and competitions to the consumer. The consumer also has the chance to write complaints and questions to the company via email.
The layout of the homepages is sometimes obviously very different e.g. the Korean homepage is very colorful. Bride colors and cartoons are used to attract especially children. In comparison to that you will find a very conservative and serious British homepage in which less colors are used and the aim is to attract mostly adults.
Finally you often do not realize that is an international product because it is very harmonized with the needs of the consumers of each country.