Kellogg Report
Competition General Mills Corporation is on the top of the Kellogg’s list of competitors. ... Kellogg’s earned its growth through the food industry, but General Mills earned its growth through investment in unrelated business in 1960’s and 1970’s. ... Post, a former patient of the Kellogg brothers. ... Kellogg also faces strong competition from store brand cereals. These store brands are in direct competition with Kellogg’s products and are sometimes placed on shelves next to each other to facilitate price comparisons. ... Historically, Kellogg had a policy of not making any private label or store brand cereals. This policy changed in February 2000, when Kellogg announced that it would provide five cereals to Aldi, the largest German discount supermarket operator. ... Kellogg knew that advertising would be important to the success of his company and therefore Kellogg has advertised its product extensively. The company insisted that the color and style of Kellogg (the company’s logo, or distinctive sign) be identical on all of its products the worldwide. ... Kellogg has been a sponsor of the Olympic Games since 1923 and has featured a series of gold medal winners on its cereal packages. For example, Kellogg’s Corn Flakes boxes have featured figure skaters Scott Hamilton and Rosalynn Sumner (1984); speed skaters Dan Jansen and bonnie Blair (1992); and sprinter Marion James and swimmer Jenny Thompson (2000). Over the past decade, Kellogg had reoriented some of its advertising to stress the health aspects of its products. Kellogg has used super model Cindy Crawford in advertising and on television in an attempt to invigorate its Special K cereal business by associating it with women and fitness. ... Financial Analysis To better understand Kellogg’s financial situation, a financial analysis was done. ... A comparison has also been done on how Kellogg’s financial health compares to its major competitor, General Mills. ... Ratio Analysis Kellogg General Mills Ratio 2002 2001 2002 2001 Current Ratio . ... Kellogg’s current ratio is slightly lower than the recommended range of 1. ... This means that it is possible that Kellogg’s has a little more liabilities than is recommended. ... Kellogg’s liquidity ratio is similar to the industry average. ... Kellogg’s collects its receivable accounts in about 35 days, which is a good amount of time.