Essay About Market Share And Kellogg’S Australia

Kellogg’s Australia – Essay – dorothy12345
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Kellogg’s Australia
Kellogg’s AustraliaSituation Analysis: market share, relative market shareMarket Share MetricsTable 1: Kellogg’s Australia Market Share Metrics 2013~2017Market Share (%)20132014201520162017Revenue Market Share17.817.116.315.615.4Relative Share13112611110197Source: IBISWorld 2012-20171.1 Market ShareAs a key indicator of market competitiveness, market share has been used to measure the sales performance of a brand in a given period and in a given geographical area (Nakanishi and Cooper, 2010). In this case, identifying Kellogg’ s market share is an effective way to comprehensive how well the brand is performing in the past five years and to assess their market opportunity and potential. As shown in table 1, the market share of Kellogg’s Australia has been continually declining since 2013. This could be due to a few reasons. One is that the growing number of health conscious consumer in recent years has hurt the demand of Kellogg’s traditional products like Coco Pops. Consumers are slowly moving from cereal breakfast to other more balanced breakfast options (Rolfe, 2015). Secondly, Kellogg’s market share is confronted with threats both from the rise of private-label brands and the increasing cost of raw materials (IBISWorld, 2017). As Kellogg chief executive John Bryant claims, Kellogg is facing more competition from smaller manufacturers that is positioned as ‘healthier alternatives.” These factors has retained the profitability growth of the brand. Thirdly, the drop of Kellogg’s market share is also related to the continued product innovation and aggressive marketing from its major competitors like Nestle. Meanwhile, between the year 2016 and 2017, there is a slightly slump of 0.2% market share of Kellogg’s in Australia market. This can be explained by the brand’s effort in constructing plans for controlling costs  as well as increasing their profit margin(Kellogg’s, 2016). By implementing a zero-based budgeting strategy in 2016, Kellogg’s has lifted the earnings of per share. 1.2 Relative ShareThe relative share metrics of Kellogg’s illustrates the brand’s relative market positions compared to its biggest competitor Australian Health & Nutrition Association Limited (AHNA). AHNA also known as Sanitarium is an Australian-owned public unlisted company that manufactures a range of products including breakfast cereals. Its flagship brands in the breakfast food category such as Weet-Bix has given the brand a lead in the ready-to-go cereal segment. Based on Table 1, Kellogg has been over-run Sanitarium for many years and in 2017 its market position dropped to being the  number 2 largest manufacturer in Australia. The boosting of Sanitarium’s market share could due to the ‘skip-breakfast’ trend among young demographics and the popularity of time-saving breakfast. Additionally, Sanitarium has been consistently strengthening its brand perception as “nutritious and convenience’ through marketing campaigns in the the past few years, which has attracted to consumer who concerns about health issues (IBISWorld, 2017). Compared to Sanitarium, Kellogg’s slow speed in terms of innovations and response to the latest trend may also contributes to its underperformance in Australia market.

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(2017, 10). Kellogg’s Australia. EssaysForStudent.com. Retrieved 10, 2017, from
“Kellogg’s Australia” EssaysForStudent.com. 10 2017. 2017. 10 2017 < "Kellogg’s Australia." EssaysForStudent.com. EssaysForStudent.com, 10 2017. Web. 10 2017. < "Kellogg’s Australia." EssaysForStudent.com. 10, 2017. Accessed 10, 2017. Essay Preview By: dorothy12345 Submitted: October 23, 2017 Essay Length: 530 Words / 3 Pages Paper type: Essay Views: 269 Report this essay Tweet Related Essays Aboriginal's and Racism in Australia Australian society is made up of a wide variety of groups. These groups of people have different cultural traditions and economic and social background. The 1,074 Words  |  5 Pages General Information About Australia General Information about Australia Australia is situated in the south-west of the Pacific Ocean. The area of this country is 7,7 million square kilometres. The 1,738 Words  |  7 Pages Childhood and Socialisation in Australia Socialization is the human process of learning to become a member of our society, and how each individual learns to fit into a group (Jureidini 529 Words  |  3 Pages Reliance Marketing Plan for Australia Part-1 Executive Summary This report deals with the introduction of the Telecommunication giant in India Reliance communications, by giving a brief introduction about the company, its 2,242 Words  |  9 Pages Similar Topics Women Australia Role Women Australia 19001941 Get Access to 89,000+ Essays and Term Papers Join 209,000+ Other Students High Quality Essays and Documents Sign up © 2008–2020 EssaysForStudent.comFree Essays, Book Reports, Term Papers and Research Papers Essays Sign up Sign in Contact us Site Map Privacy Policy Terms of Service Facebook Twitter