Refrences

Co, K.N. (2016) Our history | Kellogg’s. Available at: https://www.kelloggs.com/en_US/who-we-are/our-history.html (Accessed: 24 November 2016).

Committee, U.S.O. (2016) USOC rekindles Kellogg sponsorship. Available at: http://www.teamusa.org/News/2011/April/18/USOC-rekindles-Kellogg-sponsorship (Accessed: 24 November 2016).

CULLINEY, K. and BakeryAndS (2014a) New year, new waistline, new market? Kellogg slashes snack bar prices by 29%. Available at: http://www.bakeryandsnacks.com/Manufacturers/New-year-new-waistline-new-market-Kellogg-slashes-snack-bar-prices-by-29 (Accessed: 24 November 2016).

CULLINEY, K. and BakeryAndS (2014b) New year, new waistline, new market? Kellogg slashes snack bar prices by 29%. Available at: http://www.bakeryandsnacks.com/Manufacturers/New-year-new-waistline-new-market-Kellogg-slashes-snack-bar-prices-by-29 (Accessed: 24 November 2016).

History.com (2016) Check out the Kellogg’s® history Website. Available at: http://www.kellogghistory.com/history.html (Accessed: 24 November 2016).

Klara, R. (2016) How America’s top 2 breakfast cereal makers are responding to soggy sales. Available at: http://www.adweek.com/news/advertising-branding/how-americas-top-2-breakfast-cereal-makers-are-responding-soggy-sales-172020 (Accessed: 23 November 2016).

Merritt, C. (2016) ‘Bundle pricing strategy’, Small Business Chron, .

Nestle 150 years timeline (2016) Available at: http://www.nestle.co.uk/media/newsfeatures/nestle-150-years-timeline (Accessed: 24 November 2016).

Posted and Spinner, J. (2015) Kellogg’s refreshes packaging, website. Available at: http://www.packagingdigest.com/packaging-design/kelloggs-refreshes-packaging-website (Accessed: 24 November 2016).

Poulter, S. (2013) On sale in Tesco, GM cereal that makes children hyperactive: U.S. Import of lucky charms contain artificial colours that UK watchdog urges manufacturers to avoid. Available at: http://www.dailymail.co.uk/news/article-2401275/Lucky-Charms-On-sale-Tesco-GM-cereal-makes-children-hyperactive.html (Accessed: 24 November 2016).

The differences between Kelloggs and Nestles marketing strategies

Kellogg's

Kelloggs is a multinational food manufacturing company with an income over 4 billion a year. Most of us know them as the top of the market company when it comes to cereals. Kelloggs was found in 1906 by Will Keith Kellogg and his brother John Harvey Kellogg, Their first cereal and product was Kelloggs toasted corn flakes which was a great success and the company has been on a rise since. John Harvey Kellogg and Will Keith Kellogg accidentally flaked wheat berry. That gave them the idea to flake corn which created recipe of corn flakes. Kelloggs corn flakes changed the way to have breakfast forever and although these brands are most known for their breakfasts, there are more everyday products we purchase that are thanks to these brands. 

Kellogg's background 

• 1915 The first high fibre cereal was introduced by Kelloggs famously known as barn flakes.

• 1942-1945 During World war 2 Kelloggs workers produced "K-nations" for the U.S. armed forces which were overseas and in the period of time Kelloggs introduced the new while-grain cereal which helped people in America get nutrition. This shows the more caring and generous side of Kelloggs. 

• 1950s The Famous tony the tiger appears for the first time when Kelloggs made their sugar frosted flakes. (history.com, 2016)

• 1970s The Kelloggs company published their nutrition policy. They became the first company to list the amount of sugar they have in their products like frosted krispies and oat barn.

• 1990s Kelloggs "on the go" cereal bars were a big hit considering all you have to do was unwrap the bar and eat it so if you were in a hurry to be somewhere the on the go cereal bars were very useful. (Co, 2016)

 Nestle

 

Nestle is the worlds largest company when it comes to food, world leading nutrition, health and wellness company. famously knows for their breakfast cereals like cheerios and shredded wheat. They've been in the market for over 150 years. Nestles breakfast cereals are manufactured by their business partners general mills which after a joint venture are called Cereal partners.

(Nestle 150 years timeline, 2016)

 

 

Why and how nestle has become one of the leading companies in the world?

(click link below)

 

Kelloggs Product

Every product has a "product life cycle". This life cycle has 4 stages to it which are Introduction, Growth, Maturity, Decline. Meaning at some point in time the product will die, Some products like Kelloggs cornflakes have cemented their place in the market which is the maturity stage in the product life cycle one of the reasons for that is because more and more people are wanting a healthy life style and Kelloggs Cornflakes have earned themselves an image as a healthy cereal to eat for breakfast which leads to more and more people buying the product meaning it wont go out of the market anytime soon. (klara, 2016). 

 

 

Kelloggs packaging comes in a lot of different shapes and sizes purely because of the fact that it matches their consumers needs that's why when it comes to Kelloggs you have the following sizes

• Kelloggs cereal fun pack
• Kelloggs family box
• Kelloggs variety pack
• Kelloggs 50% extra box

Having different packaging for all of their cereals means that they will stand out and be different from each other so that if a person does not like one particular cereal from the brand, they will not be put off by the packaging of another and make the assumption that all of the brands' cereals are similar. 

In the year 2000 Kelloggs made their packaging more brighter. Reason being it will catch more consumers attention and will bring a "brighter outlook to the day" (posted and spinner, 2015)

Although Kelloggs is most known for their cereals, they also do other products such as cereal bars including cereal bars for Coco Pops, Special K and Frosties. By coming up with this idea, it helps to ensure that they are catering for the people that do not have time to sit down in the mornings and dedicate time to having a normal cereal breakfast but still would like to have something on the go. the cereal bars are an intelligent way to ensure they are widening their market. The convenience of these bars is the most attractive aspect as they can be consumed anywhere without needing milk or cutlery. 

Nestle Product

In America one of the best known cereals is nestle's famous cereal snack lucky charms. For the last 50 years lucky charms have had a stable place in the maturity stage in the product life cycle however in the UK a lot of eyebrows are being raised about the fact that ingredient used to make lucky charms isn't safe. the Genetically Modified corn plant which is one of the ingredients in the lucky charms is actually used to make toxin that kills pests other reasons why people want lucky charms banned in the UK is because of the amount of artificial colouring used in the product but since America is more lenient towards these aspects of food, it is extremely popular. This can move the product to the Decline stage in the product list cycle (poulter, 2013)

The Nestle cereals packaging includes different sizes but also what you see now on their packages is that they've started putting "whole grain guaranteed" on the top of their boxes to expand their brand to more people who are into healthy eating. 

Price

Kelloggs have decided to cut down the prices of their cereal bars by 29% in some supermarkets. The reason behind this price deduction or adding special offers to a product is really clever. The pricing strategy Kelloggs used is the pricing of market penetration. Their aim is to keep the buyers attracted to the product which is really important for Kelloggs cereal bars to do at This time of year specially when people want to start losing weight for new years so if they were to see the price drop or an off on a cereal bar it will tempt the customer more to buy their product.

Steve Osbourn, innovation business manager at leatherhead food research said  "i dont track business to the level of detail like retailing pricing, but it would seem that 29% is quite a lot reall. its going to make them much more competitive. And the fact theyve gone in with a point of sale too - this is full on marketing activity"

 (Culliney and BakeryandS, 2014b) 

(click link below as an example of an off Tesco are doing for Kelloggs cereal bars)

http://www.tesco.com/groceries/product/details/?id=262103875



Example of a price drop/offers

Nestle (merit, 2016)

Nestle use bundle pricing strategy a lot which basically means selling a set of goods at the same time in a package which helps the buyer save money if they were to buy that product one at time a time singularly. (merit,2016)

Not only in supermarkets there's actually an open group on facebook and other social media selling nestle products in bundles. (click link below to see)

https://www.facebook.com/search/top/?q=Bundle+Nestle&init=public

Being a student the pricing strategy that attracts me more is the Nestles bundle pricing strategy purely because of the fact that it saves me money. Normally in a supermarket I buy many of the items in bulks reason being I don't need to keep going back to the supermarket every few days, this saves me time and money and this is not something that just applies to students. People who are older tend to buy more stuff in bundles because they might not have the energy to be in an out the supermarket a couple of times a week. 

A great way Nestle sells its bundles packs of its products is through Facebook. In my opinion Kelloggs pricing strategy wouldn't interest me because the cereal bars Kelloggs sell are going 29% cheaper which might seem like a big deduction but compare to other chocolate bars out there the Kelloggs cereal bars are still higher priced. 

Nestle is also known for more than just their cereals and breakfast foods. Nestle is the brand behind the household favorite chocolate KitKit and also their Nescafe Coffee and SMA Nutrition. Nescafe is one of the leading instant coffee brands in the United Kingdom with many smaller branches such as Nescafe Dolce Gusto and Nescafe Cafe Menu. By expanding the markets that they are delving into, Nestle is creating bigger profits and bigger demand for their products. Items such as coffee and chocolate will always be in demand and so by choosing to go into these markets, Nestle is ensuring that they are going to be around for longer. 

Promotion 

Kelloggs sponsored team USA in Rio 2016 Olympics. A world wide event as big as the Olympics Kelloggs came up with the idea that as a part of the deal Kelloggs products should be placed in Olympics training centres and other team venues. (committee, 2016)

(Below is a picture of Team USA gymnastic team promoting Kelloggs cereals)



Nestle advertise exceptionally well in which gives their brand a friendly vibe. Below is an advert about Nescafe giving someone a good start to their morning without them knowing.

Clink link to watch Nestle's advert

with over 3 million views on the advert above on just YouTube alone indicates that this advert was a success.

With nestle having so many products that are consumed by people with all ages they need to make the advertisements for all sort of different age groups that's why in some of their adverts they will have someone grown up and one of the most successful way Nestle advertise now is through social media by creating twitter account which attracts the younger generation. Their famous product KIT KAT alone has over 350k followers on twitter.

Kit Kat twitter account. click link to see their tweets or even give them a follow

KELLOGS and NESTLE use different methods when it comes to Promotion and advertising but with Kelloggs using their sponsorships in big events such as the Olympics and football games attracts more people towards their brands specially if their favorite athlete in Olympics are promoting it where as when it comes to Nestle doing so good advertising their products on social media and on TV it definitely attracts the younger generation towards them. I really like athletes in the USA Olympics team so for Kelloggs to sponsor the USA team  during events it makes me want to buy the product more. The way Nestle advertise using social media is such a smart way to get attention. I use twitter a lot and Nestles product such as kit kat are followed by a lot of people so just the amount of followers kit kat has makes you want to try it to see what all the fuss is about regardless of if your interest lies in chocolate or not.

Process

The way Kelloggs deliver their product is in three steps:

1. Primary sector - This is where all of Kelloggs raw materials are distributed to all their companies around the world. 
2. Secondary sector - This where all of Kelloggs products are made using their raw materials and shipped off to the wholesalers.
3. Tertiary sector - This the sector where all the secondary companies who have Kelloggs products do quality checks, distribution and transportation process. This is a way of companies to find out exactly everything they want to know about the Kelloggs product and its raw materials. this is potentially the most important step in the process as if the products do not qualify and pass the necessary tests and checks then it results in an overall waste of resources, time and money. 

(one of the very first Kelloggs delivery trucks pictured below)

Everyday nestle delivers more than 140,000 tonnes of product from warehouses to their customers. millions of farmers rely on nestle for their income considering nestle sources millions of agricultural raw materials.

Nestles way of delivering their products:

• Products are sent to the manufacturing unit
• After checking is the quality of the products are at a top level, Products are then sent to the distributor.
• The distributors responsibility is to check the availability of the product in their area .
• The distributors then send it to the wholesaler who then supply it onto supermarkets.

Comparing Nestle to Kelloggs. Kelloggs have a better procedure of delivering the products to their wholesalers where as nestle take the more old fashioned route. Kelloggs have their delivery system on their website whereas nestle don't share much about their actual distribution or their products,

Place 

Kelloggs is a company that takes its location of manufacturing serious that is why it is located in 18 different countries around the world and they are UK, Canada, Australia, Asian countries and Latin America, from these eighteen manufacturing plants they sell in nearly one hundred and eighty countries on a daily basis.

Their current largest manufacturing branch is located in the UK in Manchester at Trafford Park that is in England, however this company does not only make the product but also handles its distribution channels in place and handles its network efficiently, within the team they have sales members, brokers and also distributors. By having such a large network of employees and with a large section of distributors, Kelloggs is able to expand their network and ship to overseas which is giving them a higher profit and a higher demand for their product.

With too many products and consumers asking for this product the company has opened up warehouses that keep well-stocked supply products which makes it quicker and easier from there to be delivered to the retailers. Kelloggs have contracts with retailers to deliver products in time schedule for customers in a faster pace.



Nestle get 90% of their sales and revenue are from Europe that is where nestles products have their main business.

Nestles set up is being ran in 86 different countries so you can imagine how big of a company nestle are. Obviously the nestles products are not straight away sent to the market to sell. there is a procedure that includes:

• Manufacturer
• Distributor
• Wholesaler
• Retailers
• Consumers

Nestles set up is in 86 different countries where as Nestle products are manufacture in 18 different countries. Putting all the stats aside just the way Nestle place everything just sounds more organised and controlled where as Kelloggs placing makes them sound like a small country still trying to make a name for themselves.



In conclusion after writing about Price, Product, Place, Process, Promotions of Kelloggs and Nestle you can see the way they market their product and how it impacts their company. My personal view having used kelloggs and Nestles products for years it gives me a better understanding of the procedure they go through and how accurate everything has to be for the product to be delivered to us.