Breakfast Cereal Case Study

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The breakfast cereal global market can be described as soaked with a low or even no growth rate in most developed nations. But a significant amount of consumption growth is found in many emerging markets in Eastern Europe, Middle and Far East, Africa and Latin America. Since the world’s largest food manufacturer is powerful in terms of global presence, capabilities and brand portfolio General Mills and Nestle` companies are considered to be at the global stage of the internationalization process where coordination and incorporation of activities happens between international subsidiaries in global markets. General Mills began its internationalization in 1968 and extended its integration strategy in Japan and Latin America until 1990. Joint…show more content…
On the other hand, Nestlé` benefited from General Mills strong proficiency in breakfast cereals consumer food category to insist on strategic product lines among its portfolio. This has created powerful competitive environments for branded products, particularly in categories such as cereals for an Example Kellogg’s and CPW, as most of customers have started to pay more attention on price than brand individuality, this shift in focus on other labels, like Kellogg’s amplified quality as the battle for consumer faithfulness and self-belief in their label products. This was Established in 1906 was the world’s market leader in cereals all the way through of twentieth century and was owned 30 per cent of world market share for breakfast…show more content…
Yet in the aspect of Production, General Mills possess more than thrice the number of production facilities that Kellogg’s has. It is significantly seen that General Mills has been increasing its budget for Research and development while Kellogg’s is continuing its support for the (W.K. Kellogg’s institute). Taking in to account the aspect of marketing, Kellogg’s has been the market leader and has over 40 cereal brands while (CPW) has only 12. Kellogg’s uses diversification strategies allowing consumers to choose from a wide range of cereal types such as diet, vegetarian etc. This is not seen in (CPW). The success of CPW in the Asian markets can be noted as a key competitive indicator compared to Kellogg’s which was unable to secure a good market share in the Asian region including (Russia) and (China). Although, as a whole, (Kellogg’s) can be considered to have a solid and strong international competitiveness compared to (CPW) which is not far

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