Pringles swot

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TABLE OF CONTENTS

Company Overview..............................................................................................3

Key Facts...............................................................................................................3

SWOT Analysis.....................................................................................................4

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Kellogg Company TABLE OF CONTENTS

COMPANY OVERVIEW

Kellogg Company (Kellogg or ‘the company’) is a multinational producer of breakfast foods, snack foods, cookies and crackers. The company also manufactures and markets ready-to-eat cereals and convenience foods such as toaster pastries, cereal bars, fruit snacks, frozen waffles and veggie foods. It is headquartered in Battle Creek, Michigan and employed about 30,700 people as of December 31, 2011.

The company recorded revenues of $13,198 million in the financial year ended December 2011 (FY2011), an increase of 6.5% over FY2010.The operating profit of the company was $1,976 million in FY2011, a decrease of 0.7% over FY2010.The net profit was $1,231 million in FY2011, a decrease of 1.3% over FY2010.

KEY FACTS

Kellogg CompanyHead Office One Kellogg Square Battle Creek Michigan 49016 3599 USA

1 269 961 2000Phone

Fax

http://www.kelloggcompany.comWeb Address

13,198.0Revenue / turnover (USD Mn)

DecemberFinancial Year End

30,700Employees

KNew York Stock Exchange Ticker

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Kellogg Company Company Overview

SWOT ANALYSIS

Kellogg is a multinational producer of breakfast foods, snack foods, cookies and crackers. The company has a strong brand portfolio that helps it to increase customer loyalty and compete effectively in the marketplace. However, higher penetration of private label food sales, especially during the economic downturn, could impact the company’s sales and also potentially decrease its market share.

WeaknessesStrengths

Frequent product recalls could hamper brand image

Strong brand portfolio aided by appropriate investments on brand building

Geographic and customer concentration could impact sales during tough economic conditions

Focus on product innovation helps to retain customers and improves the product mix

ThreatsOpportunities

Increasing private label penetration could impact the company’s volume sales during economic uncertainties

Acquisition of Pringles to offer platform for product and geographic expansion Emerging health consciousness would drive the demand of the company's products Intense competition and changing global

retail scenarioLocal focus to drive sales in developing and emerging markets Declining world cereal production could

tighten raw material supplies

Strengths

Strong brand portfolio aided by appropriate investments on brand building

With sales of $13,198 million in FY2011, Kellogg is one the world's largest producers of cereals and convenience foods. Indeed, with the recent acquisition of the Pringles business, the company further strengthened its position in the global snacks market and became the second largest snacks producer in the world, as per the latest industry estimates. The company markets its products in over 180 countries through a large portfolio of well recognized brands including Kellogg's, Keebler, Special K, Pop-Tarts, Eggo, Cheez-It, Nutri-Grain, Rice Krispies, Mother's, Morningstar Farms, Murray Sugar Free, All-Bran, Frosted Mini-Wheats, Club, Kashi, Bear Naked, among others. In 2012, Kellogg was named as one of the most trusted cereal brands in Canada by a leading publishing company, and as one of the top five marketers globally by a global publishing company. The company has been recognized by several international organizations for its brand equity. In 2011, Kellogg was recognized

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Kellogg Company SWOT Analysis

as one of the leading global brands by a popular global business magazine and was also listed among the top 100 global brands for 2011 by a leading brand consultancy.

Kellogg has a strong focus on strengthening its brands through advertising and consumer promotion. The company invested $1,138 million on advertising, which is close to 9% of its net sales generated in FY2011. The company’s advertising investment of over $1 billion is more than that of any other company in its peer group.

Investment in brand building leads to increased sales, increased profits and increased margins, in a normalized inflationary environment. Furthermore, with increased sales and a strong portfolio, the company will be able to sustain its strong market position, which, in turn, provides Kellogg with significant bargaining power. The company's brand strength also supports the innovation process in launching new products and enhancing the revenue stream. Kellogg has leveraged its high brand recognition to increase customer loyalty and compete effectively with regional players in various markets.