Kelloggs

Q# Explain what is meant by a Premium Brand?
A Premium brand is a brand that holds a unique value to a market through the design,
engineering and quality that is provided.
Another thing is certain -- a brand is considered premium only when we believe it is worth the
price. And that's where we can dig deeper.
Premium brand is built upon specific tangible and intangible attributes that give it a sense worth:
Sensuality -- it is sensory, tactile and a bit mysterious.
Rarity -- it represents a discerning choice, intriguing because it is uncommon.
Confidence -- it projects a feeling of intrinsic worth.
Authenticity -- is has a sense of "true north" and remains true to this ideal.
Quality -- it is consistent and shows extreme attention to detail.
Q# Describe the difference between an aim and an

objective.
An aim is where the business wants to go in the future, its goals. It is a statement of purpose,
e.g. we want to grow the business into Europe.
Business objectives are the stated, measurable targets of how to achieve business aims. For
instance, we want to achieve sales of 10 million in European markets in 2004.
A mission statement sets out the business vision and values that enables employees, managers,
customers and even suppliers to understand the underlying basis for the actions of the business.
Business Objectives
Objectives give the business a clearly defined target. Plans can then be made to achieve these
targets. This can motivate the employees. It also enables the business to measure the progress
towards to its stated aims.
The most effective business objectives meet the following criteria:
S Specific objectives are aimed at what the business does, e.g. a hotel might have an
objective of filling 60% of its beds a night during October, an objective specific to that business.
M - Measurable the business can put a value to the objective, e.g. 10,000 in sales in the next
half year of trading.
A - Agreed by all those concerned in trying to achieve the objective.
R - Realistic the objective should be challenging, but it should also be able to be achieved by
the resources available.
T- Time specific they have a time limit of when the objective should be achieved, e.g. by the
end of the year.
The main objectives that a business might have are:
Survival a short term objective, probably for small business just starting out, or when a new
firm enters the market or at a time of crisis.
Profit maximisation try to make the most profit possible most like to be the aim of the
owners and shareholders.
Profit satisficing try to make enough profit to keep the owners comfortable probably the
aim of smaller businesses whose owners do not want to work longer hours.
Sales growth where the business tries to make as many sales as possible. This may be
because the managers believe that the survival of the business depends on being large. Large
businesses can also benefit from economies of scale.
Q# Outline the purpose of Kellogg's work with the ASA.

Sponsoring swimming programmes
For many years Kellogg has been working to encourage people to take part in more physical
activity. The company started working with the Amateur Swimming Association (ASA) as far back
as 1997, with whom it set some longer term objectives. More than twelve million people in the
UK swim regularly.
Swimming is inclusive as it is something that whole families can do together and it is also a lifelong skill. The ASA tries to ensure that 'everyone has the opportunity to enjoy swimming as part
of a healthy lifestyle'. As a lead body for swimming, the ASA has been a good organisation for
Kellogg to work with, as its objectives match closely those of the company.
Kellogg became the main sponsor of swimming in Britain. This ensured that Kellogg's sponsorship
reached all swimming associations so that swimmers receive the best possible support. Kellogg
sponsors the ASA Awards Scheme with more than 1.8 million awards presented to swimmers
each year. This relationship with the ASA has helped Kellogg contribute in a recognisable way to
how individuals achieve an active healthy balanced lifestyle. This reinforces its brand position.
Q#. Using examples to support your dialogue, evaluate

how Kellogg communicates and discuss how this enables it
to position its brand.
PROMOTING EXERCISE
Working with the ASA helped Kellogg set up links with a number of other bodies and partners. For
example, Sustrans is the UK's leading sustainable transport organisation. Sustrans looks at the
different ways that individuals can meet their transport needs in a way that reduces
environmental impact. It is the co-ordinator of the National Cycle Network. This provides more
than 10,000 miles of walking and cycle routes on traffic-free paths throughout the UK. To meet its
business objective of encouraging and supporting physical activity Kellogg is developing a
promotion for a free cyclometer which will be advertised on television in 2007.
Walking is one of the easiest ways for people to look after themselves and improve their health.
To encourage people to walk more often, Kellogg has supplied a free pedometer through an offer
on All-Bran so that individuals can measure their daily steps. During 2006 more than 675,000
pedometers were claimed by consumers. From a research sample of 970 consumers, around 70%
said they used the pedometer to help them walk further. Kellogg's Corn Flakes Great Walk 2005
raised more than 1 million pounds for charity on its way from John O'Groats, through Ireland and
on to Land's End. In 2004, 630,000 people took part in the Special K 10,000 Step Challenge.
KELLOGG / COMMUNITY
Kellogg has also delivered a wide range of community programmes over the last 20 years. For
example, the Kellogg's Active Living Fund encourages voluntary groups to run physical activity
projects for their members. The fund helps organisations like the St John's Centre in Old Trafford
which runs keep-fit classes, badminton and table tennis.
Since 1998 Kellogg has invested more than 500,000 to help national learning charity ContinYou
to develop nationwide breakfast club initiatives.
Since 1998 Kellogg has invested more than 500,000 to help national learning charity ContinYou
to develop nationwide breakfast club initiatives. These include start-up grants for new clubs, the
Breakfast Club Plus website, the Kellogg's National Breakfast Club Awards and the Breakfast
Movers essential guide.

Breakfast clubs are important in schools because they improve attendance and punctuality. They
help to ensure that children are fed and ready to learn when the bell goes. Kellogg promotes
breakfast via these clubs, not Kellogg's breakfast cereals. Together Kellogg and ContinYou have
set up hundreds of breakfast clubs across the UK, serving well over 500,000 breakfasts each
year.
Having set an aim, managers make plans which include the right actions. These ensure that the
aim is met.
For an aim to be successful, it must be supported by specific business objectives that can be
measured.
Each of the objectives set for Kellogg was designed to contribute to a specified aim. Kellogg's
objectives were to:
encourage and support physical activity among all sectors of the population
use resources to sponsor activities and run physical activity focused community programmes
for its consumers and the public in general
increase the association between Kellogg and physical activity
use the cereal packs to communicate the 'balance' message to consumers
introduce food labelling that would enable consumers to make decisions about the right
balance of food.
SMART objectives
Well-constructed objectives are SMART objectives. They must be:
Specific
Measurable
Achievable or Agreed
Realistic
Time-related.
Each of the objectives set by Kellogg was clear, specific and measurable.
This meant Kellogg would know whether each objective had been achieved. The objectives were
considered to be achievable and were communicated to all staff. This made sure that all staff
agreed to follow certain actions to achieve the stated aims. The objectives were set over a
realistic time-period of three years.
By setting these objectives Kellogg set a direction that would take the business to where it
wanted to be three years into the future.
Effective communication is vital for any strategy to be successful. Kellogg's success is due to how
well it communicated its objectives to consumers to help them consider how to 'Get the Balance
Right'. It developed different forms of communication to convey the message 'eat to be fit' to all
its customers.
External communication
External communication takes place between an organisation and the outside world.
As a large organisation, Kellogg uses many different forms of communication with its customers.
For example, it uses the cartoon characters of Jack & Aimee to communicate a message that
emphasises the need to 'Get the Balance Right'. By using Jack & Aimee, Kellogg is able to advise
parents and children about the importance of exercise. These characters can be found on the
back of cereal packets.
The company has also produced a series of leaflets for its customers on topics such as eating for
health and calcium for strong bones. These are available on its website.
Internal communication
Internal communication takes place within an organisation. Kellogg uses many different ways to
communicate with its employees. For example, Kellogg produces a house magazine which is
distributed to everybody working for Kellogg. The magazine includes articles on issues such as
getting the balance of food and exercise right. It also highlights the work that Kellogg has
undertaken within sport and the community.
To encourage its employees to do more walking, Kellogg supplied each of its staff with a
pedometer. Such activities have helped Kellogg's employees to understand the business
objectives and why the business has created them. It also shows clearly what it has done to
achieve them.
Kellogg is demonstrating good corporate responsibility by promoting and communicating this
message whenever it can and by investing money in the appropriate activities. This was the
broad aim. To achieve this aim, Kellogg set out measurable objectives.
It developed a business strategy that engaged Kellogg in a series of activities and relationships
with other organisations. The key was not just to create a message about a balanced lifestyle for
its consumers. It was also to set up activities that helped them achieve this lifestyle.

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Q# Explain what is meant by a Premium Brand?

Q# Describe the difference between an aim and an

Q# Outline the purpose of Kellogg's work with the ASA.

Q#. Using examples to support your dialogue, evaluate

Movers essential guide.

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