Introduction The Kellogg Company was founded in 1906 and is a major competitor in the breakfast cereal industry. During 2013, Kellogg Company reported sales of $14.8 million and net income of $1.82 million. Overall, the company's products are manufactured in 18 different countries and generate sales in more than 180 countries. Since the company is a leader in cereal production, it would be wise to analyze other countries for export, such as Indonesia. Especially since international sales in the Asia-Pacific market segment increased by $11 million. This market segment includes India, Japan and Southeast Asia. Currently, Indonesia is the fourth most populous country, with a population of 247.2 million. Furthermore, the current trend of breakfast cereals is increasing in Indonesia. Indonesians in particular are interested in cereals with a flaky consistency. The market can be called elastic, as the target audience is able to justify the high prices with the additional health benefits. (Kellogg Company, 2013). According to the international database Euromonitor, in 2013 spending on bread and cereals increased by $134.3 million since 2008. And currently, the company's Corn Flakes product is marketed in the following countries: United States, Canada, Mexico, Ireland and United States. Kingdom. (Branding, n.d.). With this potential interest, it would be logical to relaunch the company's Corn Flakes product as "Flakes" in the Indonesian market. Situation Analysis The company's alternatives could be evaluated using the Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis tool.StrengthsOne of the company's strengths is longevity in the industry. Particularly......half of the paper......this problem, the company can set up different in-store promotion strategies that will help generate sales for the products. Finally, there may be issues with the price. If Kellogg's entered the Indonesian market with a lower product cost than its competitors, it could potentially start a price war. Before entering a price war, Kellogg's should evaluate sunk costs and financial stability as these wars can push competitors out of the market and cause bankruptcy. Kellogg's should be wary of creating or participating in a price war as it has unfavorable consequences and effects. Overall, Kellogg's should focus on gaining market share with the company's promotions and global engagement strategy as these tactics will ultimately produce sales. Additionally, these sales can be used to develop new strategies for financial stability and longevity in the future.
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