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Kellogg's decision-makers in the United States can use Porter's Five Forces as a strategic management tool to conduct industry analysis. It will be useful to Kellogg's decision-makers in mapping the competitive forces in the consumer/non-cyclical industry in both domestic and foreign markets.
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The Porter Five Forces determine how the Food Processing industry is structured.
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Geographic segmentation, Demographic segmentation, Psychographic segmentation, and Behavioral segmentation are the four main categories that best describe Market Segments for Kellogg Company:
Due to the diverse cultures, preferences, and administrative systems of prospective customers, geographic segmentation is extremely effective for Kellogg in the international markets. Second, it is wise to do geographic segmentation if the cost of transportation is crucial in delivering the value proposition because the costs of serving customers in various locations will vary greatly.
Based on factors such as gender, income, occupation, age, life cycle stage, ethnicity, religion, and generation, demographic segmentation divides the mass market into smaller segments and groups. Given that Kellogg's products offer a superior value proposition, the company should divide its customer base based on two main demographic factors: prospective customers' income and life cycle stage.
In order to categorize potential customers into different groups based on personality traits, purchasing habits, consumption preferences, opinions on social issues, leisure pursuits, hobbies, and a variety of other factors, Kellogg can use psychographic segmentation. In addition, people in the same demography can have a variety of psychographic traits depending on their individual life experiences and upbringing.
Based on their attitudes, product knowledge, product uses, and other responses to a product, buyers are divided into groups by behavioral segmentation. Marketing professionals think behavior factors are a good place to start when creating consumer segments. The organization can concentrate on key features with the aid of behavior segmentation and can give customers features they are more likely to use.
The supply chain management system at Kellogg's includes specific processes that are carried out to guarantee that the manufactured product is made available to its final consumer. The industry has divided the supply chain into three sectors:
Various departments and functions coordinate and collaborate throughout the supply chain system, including the purchasing, quality control, sales, transportation, and distribution processes. Therefore, any company's business strategy should consider the amount of Kellogg Stakeholder Engagement, how to obtain raw materials from the best sources and how to use those materials in the production of a product.
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