Strategic Position
Comparing Kellogg vs. Red Bull Company
What is the background of the current market?
Kellogg is a very successful breakfast cereals producer in India. Initially, Indians preferred having hot breakfasts, and Kellogg wanted to change that. Moreover, In India, eating habits change from place to place, and this made it difficult for Kellogg to introduce a foreign product to the market. The market initially preferred traditional foods, where they could have Idli Dosas or Paranthas. The company wanted the Indian market to begin taking healthier breakfast cereals. On the other hand, Red Bull is a company that sells energy drinks. Its current market includes teenagers, students, and young students, and especially those who need to boost their energy for athletics, working, or doing assignments. The company also produces sugar free drinks, and it targets the older generation and other demographics that prefer sugar free beverages.
What are the most significant sources of competition for this company?
There are other cereal products, which Kellogg’s products compete with. These include Pepsico’s Quacker Oats, Mohun’s Meakins, Heinz Complan, Amway, Nestle Corn Flakes, Bagrry’s, and Saffola Oats. The giant companies that pose competition to Red Bull Company include Pepsico, Coca Cola, Monster beverages, Nestle, and Dr. Pepper Snapple. All these companies have strong brands that increase competition for Red Bull. Nevertheless, RedBull has a more effective branding campaign than Pepsico (Mullins, 2012).
What are the significant industry trends that could impact your company?
Customers’ eating habits are changing globally, which is a benefit to the company. An increase in health awareness is prompting people to prefer healthy foods, and this is benefiting Kellogg because it sells health breakfast cereals. Technology advancement is also a trend that will benefit Kellogg. I am bound to get innovative ideas on product development, differentiation, and packaging, and offer customers attractive, tastier, and healthier foods. Also, as urbanization increases, the rate at which people are consuming modern breakfast is also increasing. These market trends will also impact on Red Bull market significantly. An increase in health awareness is prompting customers to shift to sugar-free drinks. Fortunately, the company is already producing sugar-free energy drinks to meet the ends of these clients. It is also using the technology available to market its products extensively (Pafitis, 2020).
What are your market segments, not to be confused with industry segments?
Kellogg’s market segments are both demographic and geographic. The company’s products are consumable by kids, adults, and older segment (Mullins, 2012). For instance, Kellogg’s Frosties serve the children while the nut cornflakes serve adults. Kellogg has penetrated the international market. It sells its products in over 100 countries, including the US and India. N the other hand, Red Bull Company targets both students and professionals. It targets college students by issuing free samples in student parties. It targets athletes and has even managed to organize sports events. It also seeks professionals who seek to boost their energy during work.
References
Mullins, J. (2012). Marketing Management: A strategic Decision-making Approach.
Pafitis, E. (2020). Red Bull’s Marketing Strategy: what your company can learn. Retrieved from https://www.startingbusiness.com/blog/marketing-strategy-red-bull