Kellogg’s Marketing Mix (4Ps) Strategy

Published by MBA Skool Team, Last Updated: April 19, 2020

Marketing Mix of Kellogg’s analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the Kellogg’s marketing strategy. As of 2020, there are several marketing strategies like product/service innovation, marketing investment, customer experience etc. which have helped the brand grow.

Marketing strategy helps companies achieve business goals & objectives, and marketing mix (4Ps) is the widely used framework to define the strategies. This article elaborates the product, pricing, advertising & distribution strategies used by Kellogg’s.

Let us start the Kellogg’s Marketing Mix & Strategy:

Kellogg’s Product Strategy:

The product strategy and mix in Kellogg’s marketing strategy can be explained as follows:

Kellogg’s has mulitple business segments which are based on product category or geography. Segments based on product catergory are US morning foods, US snacks. The products in the marketing mix of Kellogg’s covers breakfast cereals, as well as other foods items. The US morning foods segment consists of products like cereal, toaster pastries, nutritional bars and beverages with prominent brands like Kellogg’s Cornflakes, Kellogg’s Chocos, Kellogg’s Frosties, Kellogg’s Coco-pops, Special-K, Kellogg’s Froot Loops etc. the US snacks segment consists of cookies, crackers, savory snacks, cereal bars and fruit flavored snacks.

Breakfast cereal generates a revenue of more than $400 billion in sales globally each year and comprises majority of global sales. Snacks generate $230 billion globally in total sales each year and represent significant share of worldwide sales. Pringles is the largest brand in this category. New variants such as Pringles Tortillas have been introduced to increase sales. Kellogg’s emphasises on innovation launching a range of new products and variants such as Cheez-It Crunch'd , Kellogg's Raisin Bran with Cranberries, Eggo gluten free waffles. Kellogg’s is adapting is products according to consumer preference for healthier snacks with visible ingredients such as granola, fruits and nuts gluten-free Special K and Kashi sprouted grains and organic cereal.

Image: flickr-photos/jeepersmedia/ 

Kellogg’s Price/Pricing Strategy:

Below is the pricing strategy in Kellogg’s marketing strategy:

Kellogg’s follows competitive pricing. Pricing is based on research and market conditions. Kellogg’s regularly uses programmes such as discounts and other schemes such as coupons which can be redeemed for free products. Kellogg’s keeps prices flexible to compete with other player and depending on sales growth. However, given their market leadership, the pricing strategy in the marketing mix of Kellogg's is often dominated by their own brands.

Kellogg’s Place & Distribution Strategy:

Following is the distribution strategy of Kellogg’s:

The largest 4 markets for cereals are U.S., Canada, U.K. and Australia. Kellogg’s is focusing on emerging markets. Kellogg’s has various distribution channels such as convenience, vending, mini superstores and high frequency stores. Kellogg’s sells its products through its direct sales force for resale by grocery stores. Kellogg’s also uses broker and distributor system for certain products. Kellogg’s markets some of its brands to supermarkets through a direct store-door delivery system. Kellogg’s is trying to make its products very easily available. Kellogg’s also has distribution through ecommerce.

Kellogg’s gets a large portion of its sales through stores like Walmart.

Kellogg’s Promotion & Advertising Strategy:

The promotional and advertising strategy in the Kellogg’s marketing strategy is as follows:

Kellogg’s focuses on building a strong brand to increase sales. Kellogg’s uses various promotional strategies under its marketing mix. Kellogg’s has been the sponsor for USA gymnastics and kid’s series such as dragon tales. Kellogg’s uses prizes in cereal boxes as a promotional tool to target children. The brands have mascots which represent the brand and attract children. Kellogg’s has also sponsored motorsports events. Merchandising is another promotional tool. Kellogg’s released a PC game called Mission Nutrition with some special packs of cereal. Social media is being used for marketing campaigns. To increase snacks growth in emerging markets Kellogg’s has begun targeting brand messaging on special occasions and has expanded the availability of convenient cup and on-the-go packaging. This covers the entire Kellogg’s marketing mix.

About Kellogg’s:

Kellogg's is a multinational food products company based in the United States. It is the largest cereal company in the world with sales of more than $14 billion. It is the second largest producer of cookies, savory snacks and crackers. The vision of the company is “To enrich and delight the world through foods and brands that matter”. Kellogg's produces cereal, crackers, pastries, bars, and other snacks with speciality in breakfast cereal. Kellogg's products are produced in 20 countries and are marketed in over 180 countries. It employed more than 25000+ people. Kellogg’s has high level of competition from companies like General Mills, PepsiCo etc.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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