Kellogg case study

1. Kellogg’s Case study: Extending the Product Life Cycle
Q.1) Using current products familiar to you, draw and label a product life cycle diagram,
showing which stage each product is at.
8
7
6
5
4
3
2
1
0
PLC
INTRODUCTION GROWTH MATURITY DECLINE
Introduction
Growth
Maturity
Decline

2. PLC of Current Products:
Phase I- Introduction Stage: Smart TVs.
Phase II- Growth Stage: Smart Phones.
Phase III- Maturity/ Saturation Stage: DVD Players/ Basic Mobile Phones.
Phase IV- Decline Stage: Black & White TVs/ Type Writers.
Q.2) Suggest appropriate aims & objectives for small, medium, & large business.
Aim for a small business can "Survival", to survive in the market and look for profits.
OBJECTIVE- IS TO 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.
OBJECTIVE- IS TO 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.
OBJECTIVE- IS TO GROW BY 20% EVERY YEAR FOR THE NEXT 3 YEARS.

3. Q.3) Explain the difference between market oriented routes and product oriented routes in
Ansoff’s matrix.
The Ansoff Matrix is a strategic planning tool that provides a framework to help executives,
senior managers and marketers devise strategies for future growth
Difference between market oriented routes and product oriented routes
1. Basic focus
2. Approach to customer
3. Promotional mix
4. Pricing policy
5. Segmentation/ Target market.
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.

4. 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.