1. International Strategy of Kellogg’s
Comparison Between UK and Taiwan

2. Kellogg’s Profile
 Founded in 1906 in US
 An American multinational producer of
breakfast foods
 Marketed in 180 countries around the world
 ‘Ready to eat’ cereal dominates the market
 In 2006, sales revenue reached 10.6 billion
dollars
 In 2007, they extend business to East Asia
 Investing heavily in its advertising

3. Countries' Profile
UK Taiwan
60,943,912 22,920,946
Population
(July 2008 est.) (July 2008 est.)
white 92.1%, black Taiwanese (including
2%, Ethnic Hakka) 84%, mainland
other 5.6% (2001 group Chinese 14%,
census) indigenous 2%
Christian 71.6%, mixture of Buddhist and
Muslim 2.7%, Hindu Taoist 93%, Christian
1%, other 1.6%, 4.5%, other 2.5%
unspecified or none Religions
23.1% (2001
census)
rces: CIA Worldfact https://www.cia.gov/library/publications/the-world-factbook/index.html

4. Countries' Profile
UK Taiwan
constitutional
Government multiparty democracy
monarchy
Developed, service
Developed, import &
industry plays Economy
export is important
important role
GDP
$35,300 (2007 est.) $29,800 (2007 est.)
-per capita
cereals, oilseed,
rice, corn, vegetables,
potatoes,
Agriculture fruit, tea; pigs, poultry,
vegetables; cattle,
beef, milk; fish
sheep, poultry; fish
Sources: CIA Worldfact https://www.cia.gov/library/publications/the-world-factbook/index.html

5. Situation Analysis – Internal
Firm’s Competencies (Kellogg’s as a whole)
Corporate Level: Senior management vision is to be the
market leader
 Strategic: to serve the need of the consumers and
customers through the power of their employees and
brands
 Long experience in global coordination and supply
chain management
 Skilled staff, lots of training and promotional
opportunities

6. Situation Analysis – External
PEST Analysis
UK Taiwan
Political/Legal Stable Political Environment
with Strict Law
Stable Political Environment
with Less Strict Law
Private enterprise Foreign investment is
encouraged welcomed
Western Life-style Eastern Life-style
Socio-Cultural Have a tradition of eating No such tradition, thus need
Environment cereals as breakfast to be persuaded by mass
marketing campaign
Economy is growing, but Economy is growing, with a
Economic facing a downturn good future outlook
Good infrastructure and well Good infrastructure and well
Technological established channels of established channels of
distributions distributions
Sources: CIA Worldfact https://www.cia.gov/library/publications/the-world-factbook/index.html

7. Situation Analysis – External
Industrial Analysis- Porter’s Five Forces Analysis
UK Taiwan
Power of Buyers High Medium
Power of Suppliers Low Low
Low
Threat of New High
Market is already very
Entrants competitive
New market
Threat of Substitute Relatively low Relatively high
Products
Intensity of Rivalry High Medium
Sources: CIA Worldfact https://www.cia.gov/library/publications/the-world-factbook/index.html

8. SEGMENTATION and TARGETING
(UK) (Taiwan)
Ready to eat
Product Ready to eat Cereals
Cereals
Demographic Adults, Children, Pre-school Children,
(Age, sex, income Elderly, Men, Women Teenagers,
group) Middle-High income Middle-high income
Convenient, healthy
Nutritional, healthy,
Behavioral breakfast
Light snack

9. POSITIONING
UK Taiwan
 Healthy, convenient  Healthy and nutritional
breakfast food for the
whole family western style breakfast
for adults
 Low calorie breakfast
food or snack food  Healthy and nutritious
breakfast food for
children

10. POSITIONING (Taiwan)
High Price
Q
K
G
C
Low Quality V High Quality
G - General Mills
K - Kellogg's
C - Cereal
V - Vita
Low Price Q - Quaker
Source from: http://www.vaughns-1-pagers.com/food/breakfast-cereals.htm

11. POSITIONING (UK)
High Price
K
N
A
Low Quality High Quality
DC
w
K - Kellogg’s
N – Nestle
A – Alpen
DC – Dorset cereals
W – Weetabix
Low Price
Source from: http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=227674

12. Branding Strategies
UK Taiwan
Branding Corporate Branding Corporate Branding
strategy
Source: Kellogg's UK http://www.kellogg.co.uk/ Kellogg's Taiwan http://www.kellogg.com.tw

13. Price Strategy
Taiwan UK
 Price reflects quality  Price reflects different
 Payment: cash value
 Payment: credit cards

14. Product Strategies
Product development
• Introduction of new product through innovation.
Market development
• Maintain global position
Diversification
• Introduction of new products to fit new
customers needs
• Discretionary modification
Sources: Kellogg Annual Report 2007 http://annualreport2007.kelloggcompany.com

15. UK
 Over 40 different types
 Covers most types of consumers
 Large packaging
 More focus on healthy diet
in recent years
Source: Kellogg's UK http://www.kellogg.co.uk

16. Taiwan
 A new market for the company
 Only 5 types of product currently
 More focus on children and office workers
 Source: Kellogg's Taiwan http://www.kellogg.com.tw

17. Products Differences
between UK & Taiwan
UK Taiwan
long Enter time short
Over 40 Types of Only 5
product
All ages, but more Target Children and office
on healthy care customers people
Special K Special Black-Sesame
product

18. According to Hofstede, UK and TW are culturally Diametric
PDI Power Distance Index
IDV Individualism
MAS Masculinity
UAI Uncertainty Avoidance Index
LTO Long-Term Orientation
Kellogg's has adopted different approaches to market its
products
 Differences: Marketing Strategies and Marketing Mix
 Similarities: Channel of Distribution
 Recommendation: Marketing Strategies are successful but
need further improvement

19. Marketing Communication
UK Kellogg’s TAIWAN Kellogg’s
Promoting Campaigns Promotion Campaigns
•Dropa dress size promotion •Sponsor baseball association
•Swimming coupons for children •Cartoon character ‘Donny’
•Free spa products with bulk
TV Advertising
order
•Focus on the health benefits of
cereals for breakfast TV Advertising
•Colourful, fun and memorable to
Online Special Offer
children
•Free baseball cap
Online Game
•Obtain free cereal
Source: Kellogg's UK http://www.kellogg.co.uk/ Kellogg's Taiwan http://www.kellogg.com.tw

20. Marketing Communication
UK Kellogg’s TAIWAN Kellogg’s
Sponsorship Package
•Kellogg's
sponsors the •Carton character
Amateur Swimming Association Product Flavour
Product Diversification •Grain-black sesame
•Dried fruit bags
Source: Kellogg's UK http://www.kellogg.co.uk/ Kellogg's Taiwan http://www.kellogg.com.tw

21. UK and Taiwan Promotion
Campaign: Weight Loss
Please watch the following TV commercial
UK: http://www.youtube.com/watch?v=evXhcJPDRvE
Taiwan: http://www.kellogg.com.tw/

22. UK Promotion Campaign: Swimming
coupons for children
Sources: Kellogg’s UK http://www.kelloggs.co.uk/whatson/swimming/

23. UK Online Promotion
• Collect 5 Coupons to receive free Baseball Cap
Taiwan Online Game
• Obtain free cereal
Source: Kellogg's UK http://www.kellogg.co.uk/ Kellogg's Taiwan http://www.kellogg.com.tw

24. THANK YOU FOR YOUR
ATTENTION
ANY QUESTIONS?