SWOT Analysis

INDERECT

An indirect competitor of Kellogg is breakfast restaurants. According to Mintel, middle-income earners are more likely to purchase breakfast at a restaurant (Mintel, 2018d). This can compete with Kellogg because of the convince it offers to consumers. It can be purchased in transit to their destination and eliminate the amount of dirty dishes at home. Though it can be more expensive, consumers are more likely to purchase because of the outweighing benefits.

Healthy breakfast options are a growing competitor to Kellogg. Though Kellogg does have nutritional options, their popular flavors are filled with sugar, such as, Frosted Flakes, Fruit Loops and Captain Crunch. To a health conscious consumer, Kellogg does not provide the healthiest option for breakfast. This may cause consumers to avoid the company’s cereals all together (Mintel 2018b).

A growing threat to the breakfast industry in America is the choice to avoid breakfast all together. Despite the convenient choices, consumers still claim their schedules do not allow time for a meal in the morning (Mintel, 2018d). This will cause sales in foods perceived for breakfast, like Pop-Tarts, to drop. This is a growing competition not only for Kellogg as a breakfast company but also General Mills, Mendelez International and Kraft Hienz’s breakfast products.

STRENGTHS

The need for convenient breakfasts is growing in America. Mintel Studies of the younger population shows that one in five is eating breakfast while in transit (Mintel, 2018a). Also, being one of the oldest breakfast cereal companies, Kellogg has the ability to capture audiences with the nostalgia of their company’s products including Pop-Tarts. Pop-Tarts have a prolonged shelf life as well. The variety in flavors allows Pop-Tarts to fill any craving; fruity, rich or sweet. The price is appealing to frequent consumers, especially in large families.

WEAKNESSES

Toaster pastries are generally seen as an unhealthy option by the public (Mintel, 2018b). Pop-Tarts are viewed as a classic breakfast food, even introduced as such. It is viewed as a child's snack (Mintel, 2018c)

OPPORTUNITIES

According to Mintel, less than half American Adults eat breakfast everyday, with 28 percent of adults saying they eat the same things as their children (Mintel, 2018c). This is important when considering products higher in sugar such as Pop-Tarts. An expanding trend is cereal and breakfast food for snacks in the middle of the day (Taylor, 2015)

THREATS

Health trends in America that popularize smoothies and more natural breakfast options. Also, companies that offer a healthier prepackaged breakfast options are becoming increasingly popular.

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