m The brand is currently marketed on the basis of the noise it

produces when milk is added to it and these sounds, the Snap,

Crackle and Pop, have been the tagline for the brand since
1968.
m The brand makes use of elf-like cartoon characters which
names were Snap, Crackle and Pop, to attract young children
and this strategy has been effective as over 29 million packets
are sold in the UK every year.
m Target market are for Kids under 18
years old

m Parents, Older Adults are its major

purchasers who buy the cereal for their
kids.

m The cereal is purchased mostly in

Grocery Stores, retail and supermarket
chains.
m The situation analysis of the brand would be carried under this
parameters:

a Product situation

a Distribution situation

a Competition situation

a Environmental factors

a Opportunity analysis using SWOT

m The Rice krispies brand originated in 1932 in the United States and is

the number 1 Rice Krispies brand in the world and it has 5 different

variants which are the rice krispies original, rice krispies multi ²grain

shape, rice krispies cereal and milk bars, rice krispies squares chewy

marshmallow and rice krispies chocolate & caramel.

m The brand is available in all big retail and supermarket chain and in

all major markets of he world.

m The brand is present in a number of countries such as ² United

States, UK, Canada, India, Australia, South Africa and a host of

others

m It is distributed to buyers through retail and supermarket chains,

independent wholesalers
m The major competitors to the brand are discount imitation cereal

brands such those offered by Sainsbury, Asda , Tesco but this does

not erode its market share as the brand still enjoys high patronage

and a modest market share.

m The competitors charge a relatively lower price than that offered by

the brand but the different sizes (350g, 450g, 600g and variety

packs) on offer for the brand allows it to fend off this competition

and its marketing strategy using cartoon characters and a colorful

packaging that fascinates its buyers.

 External environmental factors do affect the Kellog·s cereal brand

and these factors include:

à =

 - the recession has affected the brand as people now buy

the cheaper imitation rice krispies brands.

à O
 
- the company is expected by government not to

claim what the brand can not offer as this led to the company

facing health related litigation. The Federal Trade Commission has

found the company· brand wanting in two instances of making

unsubstantiated and misleading claims in advertising on Rice Krispies

boxes.
m 


 - the brand is mostly favored by children and young

adults and a change in the number of this age group would affect

its sales.

m =

- the company has a duty to clean up any pollution

as it could face fines and sanction for any waste or pollution caused

by the company·s opertaion.

m This analysis is necessary to understand
the company·s inner strengths and
weaknesses and the opportunities and
threats that abound in the environment.
è Strengths
è Weaknesses
è Opportunities
è Threats
m Control 42% of global market share for Pre-
sweeter cereal, which is more than triple the
market share of any of their competitors.
m They have the strongest brand recognition and
advertising recollection of all the cereal
manufacturers.

m With sales of nearly $13 billion,kellog·s is the

largest producer of cereal in the world.
m 



 of their U.S. and UK  


in the past few years.

m Follower in Pricing Strategy

m 



 is the biggest area
for growth for the brand.
m Kellogg can continue to 

,
while still remaining in their core business
area, which will increase their profitability.
m If they can 


a better    

and guarantee lower prices, they can
reduce costs while increasing their market
share.
m General Mills, Post, and Quaker Oats are
using  




 



 to erode Kellogg·s share of
the market.
m ]



 brands ( such
as tesco, asda, sainsbury brands) have
been successful in reducing premium
brands in the more commodity like
cereals.
m Kellogg·s
website -
www.Kellogg'scompany.com

m http://en.wikipedia.org/wiki/Rice_Krisp
ies

m https://docs.google.com/viewer?url=
http://sbaweb.wayne.edu/~ssasser/p
p29.ppt