The case study is based on the analysis of marketing mix for Kellogg Company. The marketing mix is an essential business tool used by organizations to determine a product or brand offer. It is normally associated with price, product, placement, and promotion of any organization. These elements help marketers to create the market strategies and positioning of the company. The first element, product, helps a company to understand that how their offering meets the changing needs of customers. The price charged by any company is an important element to assess the sales of the products and place denotes the availability of the product. The last element, promotion, is very important to understand various ways of the positioning of the product (Borden, 1964). Marketing mix of Kellogg Company will help them to plan their marketing strategies and resource allocation (Vignali, 2001).
Product: The products of Kellogg’s can be classified as convenience products. Convenience products are those which are purchased by consumers without much consideration. Most of them are low priced, easily available and frequently parched products (Vignali, 2001). Developing new product is extremely risky and expensive procedure for any business. To develop a new product, the company needs to assess the rapidly changing market and they need to predict the changing needs of customers (Annacchino, 2003). The Kellogg Company is very successful in developing any new product since its inception. Their first established product in the market was cornflakes and it helped them to attain the highest market share in the cereal market. Consumers generally purchase their product easily as the company holds a reputation for providing good quality products. Their existing products are very popular and generate a huge profit for the company. This financial gain helps them to invest in the development of new products and sell them at low price as the cost is covered by the profit.