Kellogg ’s Case study : Extending the Product Life Cycl e

Q.1) Using current products familiar to you, draw and label a product life cycle
diagram,showing which stage each product is at.

PLC of Current Products:

Introduction Stage: Holographic projection technology, virtual reality experiences, self-driving
vehicles.
Growth Stage: Tablet PCs, Ultra HD 4k curved TVs, 100% electric vehicles

Maturity Stage: Laptops, HD flat screen TVs, gas/electric hybrid vehicles

Decline Stage: Typewriters, analog TV, low MPG vehicles

Q.2) Suggest appropriate aims & objectives for small, medium, & large
business.

These are the appropriate aims & objectives for small, medium, & large business.

MAKE 15% RETURN ON INVESTMENT.

Aim for a medium sized business would be to maximize their profits and growth to expand
their current business operations and increase market share.

ACHIEVE SALES OF €10 MILLION IN THE FIRST YEAR.

Aims for Large business would be external growth, i.e. taking over their competitors in the
market. Secondly it would be adding value and quality to their products, and finally providing
service to the community in some way, like giving funds to charities and opening up its
branches in development area where development.

GROW BY 20% EVERY YEAR FOR THE NEXT 3 Year

.3) Explain the difference between market oriented routes and product oriented routes
in Ansoff’s matrix.

Difference between market oriented routes and product oriented routes

Basic focus: The basic focus of a company with a production orientation is toward maximizing
production output. Market-oriented companies respond to marketing research and tailor their
products in accordance with what they perceive to be the demands of the market

Approach to Customers: A business with a marketing orientation is essentially led by the needs
of its customers.Marketing research outcomes determine how much of a product is produced--
old products may be discontinued and new products invented based on the needs or desires of
consumers.a production-oriented company does not pay close attention to the needs of its
customers and is focused primarily on making the maximum number of products.

Approach to Advertising: A production-oriented company does not focus a great deal of energy
on advertising. A business with a production orientation sees itself as fulfilling a need and
assumes that as long as customers are aware of their product and can afford, they will buy
itmarket-oriented companies spend a great deal of money on advertising. A market-oriented
company carefully cultivates a brand in the minds of potential customers in an attempt to
influence them to buy its products instead of a competitor's products.
 Q.4) Consider the decision taken by Kellogg to opt for product development. Suggest a way
in which it could have diversified instead. Justify your answer.

Kellogg had a strong position in the market for both healthy foods & convenience foods.
Nutri-Grain fitted well with its main aims and objectives and therefore was the product and brand
worth rescuing.With the help of Ansoff’s matrix, the best alternative for the given situation
was Market Penetration. Market Penetration involves re-launching the product or
increase brand awareness Kellogg opted for this strategy & successfully implemented strategy.
The strength of Kellogg is the distribution / channel management. If Kellogg has to diversify
itself the most likely option for growth is to make an acquisition of a product line like quality
oats manufacturer.