Kellogg’s company, also known as, Kellogg and was formerly known as Kellogg’s of Battle Creek founded by, two brothers, will Keith Kellogg and john Harvey Kellogg, in 1906 at Battle Creek sanitarium. It’s headquarter is located at Battle Creek, Michigan, United States. Kellogg Company is in the business of cereal and convenience foods, which are as follow, cracker, frozen waffles cereal bars, cookies and toaster pastries. It has production units in 18 countries; its geographical segments and target markets are in 180 counties. Kellogg’s company largest production unit is in Manchester, United Kingdom. Some of the famous brands the company are; corn flakes, Cheez it, Morningstar farms, Cocoa krispies, Apple Jake and rice Krispies.
BCG Matrix of Kellogg’s
BCG matrix is designed by a private consulting management firm, for those companies, which have multiple profit centers. It shows the position of each company on the four quadrant graph in terms of company relative market share and industry sale growth rate. BCG matrix identify the need of segment in terms strategic planning. This four dimensional matrix comprises of four component, which are as follow, Question mark, Stars, Cash Cows and dogs. Segments which lie in each quadrant requires, distinct strategy from those of others. The operations of the company is managed, by 9 different segments, which are based on geographical segmentation and product category segmentation. Following are the segments of the company, The U.S Morning Foods segment, which comprises of the following products; health and wellness bars, toaster pastries, beverages and cereal. U.S snacks segment, which include the following products; Cereal bar, fruit flavored snacks, cookies and savory snacks, U.S specialty segment, kashi segment, Asia pacific segment. Detailed BCG matrix of Kellogg’s company is given below;
Question Mark
Question mark are those segments, which are operating in high growth industry and have low market share. U.S morning foods and kashi segments fall into the category of question mark. Industry witnessed high sales growth in 2016 but unfortunately, market share of Kellogg company U.S morning foods and kashi segments declined by 6 %.
Cash Cows
Segments which have low industry sales growth rate and high market share are embraced in the category of stars. U.S specialty segment comes in to the fold of Cash cows; this segment represent services of food away from home channel. U.S specialty is low growth industry and Kellogg Company is generating high revenue out of this segment. In 2014 and 2015 there was a slight decline in the revenue nonetheless, 4th quarter of 2016 has witnessed tremendous increase in the revenue. Kellogg’s should execute product development and market diversification strategy to generate more revenue from the mentioned segment.
Stars
Stars include those segments which have low industry growth rate and high market share. U.S snacks is incorporated in to the category of stars. Despite the low industry sales growth rate U.S snacks segment of Kellogg’s company generates high revenue amongst all segments. Europe segment also falls in to the stars category. Such profit centers should execute the following strategies, Product development, market development and market penetration.
Dogs
Dogs comprises of those segments which have low industry growth rate and low market share. Asia pacific segment of Kellogg’s company comes into the category of dog. Retrenchment and liquidation strategies should be executed on such segments.
References
Kellogg Company, Annual report. Retrieved from.
http://investor.kelloggs.com/~/media/Files/K/Kellogg-IR/Annual%20Reports/kellogg-2015-AR-10-K-v3.pdf
K’s vs. Competition, Revenue Growth by Segments. Retrieved from.
http://csimarket.com/stocks/competitionSEG3.php?code=K
The Gospel of Consumption, Retrieved from.
https://orionmagazine.org/article/the-gospel-of-consumption/
K’s comparison of Quarterly Growth Rates to its Peers. Retrieved from.
http://csimarket.com/stocks/competitionNO3.php?code=K
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