International Marketing Strategy of Kellogg's
International marketing is referred as the marketing carried out across global borders. It is the strategy that uses expansion from the domestic country of a firm to other nation. International marketing involves the identification of needs of people across the world. It can be defined as the multi-national process of planning and executing the prices, promotion, conception and allocation of goods and services to satisfy needs of individual and organization (Buckley, 2002). This report is prepared to analyze the international marketing strategy of Kellogg's. It is a multinational American food manufacturing company headquartered in Battle Creek, Michigan, United Sates. Kellogg's is an international organization and its products are produced in 19 countries across the world and sold in more than 180 nations. They use various methods to promote the brand and foremost among these are the design of company’s logo. Here in the report global marketing mix of Kellogg's and Internationalization Process Theory is discussed.
Critical analysis of marketing mix of Kellogg's
Marketing mix is the set of controlled variables that create the strategic position of goods and services in the marketplace. It the strategy used by organizations to provide greatest experience it customers. Organization uses this concept in their marketing assignment strategy to introduce their product in international market (Dana, 2004). Kellogg's uses standard marketing mix in their business operations in order to introduce their products in foreign market and to maintain growth in international market. The marketing mix of Kellogg's is enumerated:
Product relates to how the organization offers meet the different needs and wants of customers. In the present era the growth in healthier life styles creates opportunities for Kellogg's to introduce products in this segment and satisfy the needs of customers. The products of organization involve positive features like packaging, desirability, looks and healthier etc (Elman and Elman, 2003). They offer health foods to their customers. Company offers products that have their own identity in order to differentiate from their competitors.
Organization considers the values, beliefs and culture of their customers and offers their products according to that. The key core brand characteristics of Kellogg are emphasizing on quality and nutritional that will apply on products of organization. They are example of multiple product branding within the range is given its own clear personality and identity (Gerybadze and et.al. 2010). Company focus on product and brands that are either the market leader or in a strong second position, organization believes that this concentration upon successful and core products enables it to provide reliable and consistent returns.
Kellogg's continuously offer innovative and healthier products in order to meet the changing needs and wants of customers. Company put emphasis on development of products which people ant and conduct market research to recognize the needs and preference of customers. They provide high quality and best features to their people in order to satisfy their needs and meet the demand of target market. Organization emphasize cereal’s convenience and nutritional value, organizations helped influence U.S. customers age 25 to 49 to eat 26% cereal than people hat age at five year previous (Hastings, 2012). They had expanded their operations three times fast as the average grocery category. Firm maintain its success over their competitors by introducing innovative products. Kellogg's acquired Pringle potato crisps in 2012 by Procter & Gamble and became the world’s second-largest snack food company. They constantly introduce novel products according to demand of customers in different nations in order to satisfy them and increase their profitability and market share in divers countries.
It is the important element in determination of perception of people towards goods and services of organizations, so firm is required to charge right prices in order to attract customers. Customers have their own perspective about the value of product so firm needs to consider the suggestions of people while they set pricing strategy for their product and services (Herrera, 2012). Price is the important element of marketing mix which plays an important role to attract customers. The amount charge by company is important in determination of sales of firm. Kellogg's can charge a premium prices for their products as they offer high quality, innovative and healthier products. Organization use different pricing strategy for different segment market. They consider culture, values and beliefs of customers in determination of prices of products. Company considers people from all class for development of policies regarding prices (Hutt and Speh, 2012).
Kellogg's promote Nutrigrain as an all day snack rather than as a breakfast food. They introduce new flavors to cater to all categories of people. Pricing is the important strategy which creates sales revenue. It is determined by the detection of what customers perceive is the value of product on the sale. This strategy is important as it decide the growth and revenue of firm in global market (Lamb, Hair and McDanial, 2008). While companies develop pricing strategy, they consider the demand and supply element. Organization offer high quality, healthier products so they charge higher prices for their products.
Kellogg's offer products in different range so that all class people can buy their products. This helps them to attract more customers and gain their commitments towards firm. They consider the exchange rate fluctuations, import or tariff duties and cost of production and transportation while determine their pricing strategy. Kellogg's follow high price strategy to create positive feel among people as they can feel that company providing high quality products to them.
Place is the destination where customers can purchase products and it is important factors in determination of sales of organization. It is concerned with the several methods of storing and transporting goods and making them available in the market for sale. Selection of right place for sell of products is very important for organization. The products of Kellogg's are easily available in all retail stores across the world (Lamb, Hair and Mcdaniel, 2008). They offer variety of products to their customers and they are easily available which highly attract customers. The products of organization are available in supermarkets and other retail stores where most purchase are made by customers. They sell their goods and services in over 180 countries, so people can buy their products all over the world.
Promotion is the process of communicating the information about goods and services of organization among customers. It helps people to take purchase decision. Organization uses different types of methods for promotion of their products among customers all over the world. Communication of information about products is important for sales to be made (Pride and Ferrell, 2004). Kellogg's uses integrated marketing communication through increased promotions and advertisements. They utilize the media and press to launch new advertising strategies. The objectives of organization behind advertisement to create customer awareness, remember about company and to feel positive. They use television, social media, and posters for promotion of its products. They use free sample technique for promotion of their products.
Kellogg's conducted series of campaigns with the objective to tap into the health-conscious concern of its target audience. Organization has strong commitment to corporate social responsibility which helps to gain attention of people. They use various methods for promotion of their products and they focus on designing attractive log of company (Richter, 2012). Organization use digital marketing for communication of information among customers about their products. The website of firm highly attracts its customers and they use online marketing in which they communicate information through social media such as Facebook, Google etc.
From the above discussion I would say that marketing mix strategy adopted by Kellogg's for marketing of their products in global market is standardized. The strategy used by firm increase the customer’s awareness and creates brand loyalty as people have adequate knowledge and information about products of company (Pauwels, Lommelen and Matthyssens, 2004). The marketing strategy of organization increases the sales and profitability. They offer innovative, high quality and healthier products to their customers in order to provide satisfaction and gain their commitment. Organization offer products according to needs and preference of people and they mostly focus on health of customers.
Price the important element to attract customers so, Kellogg's offers their products in all price range. They consider values, beliefs and demand and supply concept while formulating pricing strategy. Organization has effective pricing strategy which highly attracts customers and also helps in development of positive image in the mind of customers. The place strategy adopted by company is also effective as their product is easily available in all retail outlets and supermarkets across the world. This strategy helps to provide higher customer satisfaction and to gain their loyalty.
Kellogg's uses different promotional strategy to communicate information about their product and services among customers and to gain their commitment. They use social media, free sampling, television advertisement, newspapers, magazines etc. These are the most effective methods to communicate about products of company (Charles, 2011). These promotional techniques increase the sales of organization and develop strong corporate image of company among customers. So, marketing mix used by Kellogg's is very effective as it helps to develop brand awareness among customers and to gain their loyalty. It increases the market share of company in international market.
International process theory of Kellogg's
Internationalization is the process of increasing organization participation in international market. The International Process Theory states that organization required to expand their business assignment operations in different nations and to increase profitability through global market share. The International Process Theory adopted by Kellogg's is enumerated:
International entrepreneurship theory of Kellogg's
This theory of internationalization states that entrepreneurs think globally and recognize the culture of different nations in order to expand their business internationally. Entrepreneurship is the process which develops the innovative, risk taking and active participation behavior among people so the objectives and mission of company can be achieved (Richter, 2012). Organization uses advance technology for identification of expectations, attitude, needs and culture of people so that effective product can be provided to customers.
Kellogg's use this theory as they have innovative, risk taking and participative behaviors and they use advance technology to identify needs, expectations and perception of customers. This process plays an important role in success of organization. They consider the values, beliefs and culture if customers and develop their products according to that in order to provide higher level of satisfaction. Company use internet and social media for identification needs and wants of people as these are the most effective method (Wenderoth, 2009). They focus on development of innovative, high quality healthier products in order to attract customers and satisfy their needs. Company use effective marketing strategy to communicate information about product among customers and to gain their attention.
The internationalization process of Kellogg's helps to increase high brand awareness among customers and increase the sales of products in different market across world. They develop good relationship with suppliers, customers, employees and other stakeholders in order to increase growth of firm in context of market share. The internationalization process of Kellogg's is very effective which helps it to make place in the top 100 brands. It increases the sales and profitability of firm and also enhances the number of customers (Lorette, 2014). The process assists company to gain customers loyalty in different nations and increase their international market share.
From the above report it can be articulated that marketing mix used by Kellogg's is standardized which helps it to attract customers and to increase sales of company. The product strategy used by company is very attractive as they provide high quality healthier products to their customers and their price strategy is also effective as they offer all range products to people. The products of company are easily available in supermarkets and all retail outlets which help to provide convenience and satisfaction to customers. They use various promotional strategies that help to increase brand awareness and enhance market share. The internationalization process of Kellogg's is very effective as it increase the market share of firm in global market. They use social media to gain attention of people and other promotional technique which helps to develop strong relationship with customers and increase profitability.
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