On my honor as a student, I have neither given nor received any unauthorized aid on this assignment/exam.

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Strengths

Weakness

Opportunities

Threats

Advertising with great impact on young consumers

The rise of the cost for the main manufacture products

Greater publicity in social networks

Competition with similar products at lower prices

Financial performance during several years

Changing expectations among Investors

Extension of products

Higher raw material costs

International recognized

Products with high sugar content that raises concerns in public health

People are looking to eat more healthy

Consumer now prefers tastier cereal

The only large very high fiber brand in the market

Awareness of the brand is declining

Creation of manufacturing firms in other countries

The quantity of competitors in the snacks market

Corporate social responsibility

It has stopped innovating new products

Baby-Boomer Market

Concern for health and good nutrition

Based on the information above, their main problem is the quantity of competitors in the cereal and snacks market, now there are a great quantity of products on the retail stores that can be a great competence to Kellogg. Another big problem is that the people in our generation is really concerned about the health and now they are trying to avoid products with high quantities of sugar because disease like diabetes, this will cause that for example the snacks that are the less healthier, need a change in their products to make it a healthy product so people will buy it.

Recommendations

After the great research on the firm Kellogg on their financial statements and ratios, my recommendations for the firm to have a better performance are listed here:

- Develop an advertising campaign on the Internet in digital media to promote healthy foods to young people, so with this they recover the market for young people in the snacks market.

- Through social networks create partnerships with an influential personality where highlight the nutritional value of the product, so people that is looking for a healthy product can understand what is the main goal of Kellogg.

- They need to recruit more Baby-Boomers so their advertisement focus now more on the young people because the 86% percent of the people that buys Kellogg is because the tradition and not because the innovation on the new products.

- Focus their advertisement in Brand Loyalty.

- Find new raw material with similar taste, because the cost of this products are being too expensive for the size of the production of Kellogg.

- Focus on the social requirements about the healthy food and the low sugar products, in order to have more participation on the market in South America.

- Improve their quantity of products in Asia, because the people from that continent do not recognize the brand when they listen to the name, therefore is a big place to marker their snacks in order to introduce healthier food to cities like Shanghai or Tokyo.

Conclusion

After all the research of Kellogg, the company is in a great spot now on their business-life, but they have some big problems that they need to solve in order to be successful on the next 10 or 20 years. The recommendations I did are based on their financial ratios and the explanations of why they lost or won money compared to the last year, and also based on the comments of the people in the social networks and diverse articles on the internet.