The Economy Where Does Kellogg’s Do Business?

The Economy

Where does Kellogg’s do business?

Kellogg’s has been in business in the United States since 1906. Their “ready-to-eat” cereals changed the way most people start off their day. In 1914 Kellogg’s began expanding their business world wide. Within 24 years Kellogg’s became an established product in England and Australia. They continued to expand to Latin America and Asia. (Kellogg History). Now over 100 years later, Kellogg’s employs over 26, 000 people world wide, they have manufacturing plants in 17 countries and they sell their products in over 180 countries (for a list of manufacturing countries see Appendix A Table I).

Kellogg’s sells a variety of products in each country, many of them similar to what can be found in the United States and some unique to their locations. In Canada they have a product called Vector which is a meal replacement or energy bar (Product - Vector). In Mexico they have a product called Choco Melvin that appears to be a chocolate drink similar to Olvatin (Kellogg’s Choco Melvin). In the Middle East they have a product called Choco’s which is a cereal consisting of chocolate flavored wheat flakes (All the Latest Kellogg’s Products).

The marketing for Kellogg’s products also varies from country to country. In the United States we have Snap, Crackle and Pop as the icon for Rice Krispies and Cocoa Krispies, in other countries they have a cartoon monkey as the icon for that country’s version of this product. Another example of differing marketing strategies occurred before 1958; Kellogg’s Frosted Flakes was promoted by Tony the Tiger in the United States and Katy the Kangaroo in Australia (Kellogg History). Tony the Tiger eventually won a marketing contest, making him the sole icon for Kellogg’s Frosted Flakes.

Economic Factors

Since Kellogg’s is such a large corporation it is necessary for them to pay attention to the ever-changing economies in which it does business. There are many factors that can be measured. Inflation and unemployment are explored further in this paper.

Inflation

Inflation is the steady increase of consumer prices and/or the decrease in the purchasing power of money (What is the Real Definition of Inflation?). Inflation affects businesses as well as consumers. For businesses