The Times 100 - Edition 13 - Kellogg's Brief Case Study

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Kellogg's

Using aims and objectives to create a business strategy

Introduction

Kellogg is the world's leading supplier of breakfast cereal. It has 39 brands and a 42% share of the UK market. Kellogg makes a range of products for the various segments of the UK's market. The market is worth £1.1 billion a year. Kellogg's success is achieved through careful planning. It sets clear aims and objectives. It then uses the strength of its brands to help it reach them. Kellogg ensures that each brand has a unique place in the minds of its customers. This is called product positioning.

Developing aims

Kellogg's managers set aims. These must match what consumers want. In recent years, consumers have shown that they want to lead more healthy lives. Kellogg wanted to be part of this debate. It promotes the message 'Get the Balance Right'. It also wanted to show that it corporate responsibility. This means showing that it is a company that cares for both its consumers and the environment. An aim is a broad statement of where a business wants to be. Kellogg's aim was therefore to reinforce the idea of a healthy lifestyle.

Objectives

Once a broad aim is put in place, objectives can then be set. These should be SMART. This stands for:

  • Specific;
  • Measurable;
  • Achievable;
  • Realistic and
  • Time related.

They were set in three main areas:

  • promoting physical activity for health
  • using packaging to promote a balanced lifestyle
  • using food labelling to help consumers make healthy choices.

Strategy

A strategy is a set of plans designed to reach the aims set. Kellogg's strategy included helping people become active. It has worked with the Amateur Swimming Association (ASA) since 1997. The ASA's want everyone to 'enjoy swimming as part of a healthy lifestyle'. These closely match those of Kellogg. Swimming is also a family activity and a 'skill for life'. Kellogg became the main sponsor of swimming in the UK, providing over 1.8 million awards per year. The link with the ASA also helped Kellogg to support active lifestyles in other ways. It linked with Sustrans, which promotes sustainable transport. This led Kellogg to develop a cycling based promotion. It also encourages walking. A free pedometer given away with All Bran inspired people to walk further. Kellogg has also sponsored other walking events. Kellogg uses symbols on its packs to show healthy Guideline Daily Amounts of ingredients such as salt, sugar and fat. This helps consumers to make choices.

Communication

Kellogg's success in reaching its aims is due to the clear ways by which it conveys them to customers. It uses cartoon characters to advise children and parents about exercise. It has also produced leaflets. These can be obtained from its website. Internally, Kellogg uses its in-house magazine to promote the message.

Conclusion

Kellogg knows from research that a balanced diet and regular exercise help people stay healthy. It is communicating this message through its brands and promotions.

     
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