Marketing Case Studies

In 1980, Peter A, Horekens, marketing director for Kellog company, was faced with the problem of developing a market for ready-to-eat cereals in the Latin American region. Although Kellog had no competition in the ready-to-eat cereal market in this region, they also had no market. Latin Americans did not eat breakfast as the Americans did. The problem was especially prominent in Brazil. To create a market and increase sales in this region, Horekens had to create a nutritious breakfast habit. Kellog Company, which headquartered in Battlecreek, Michigan, was founded in 1906 by W.K. Kellog. The company continued to operate successfully with sales in 1980 amounting to 2,150.9 million U.S. Dollars. The Kellog Company manufactured and marketed a wide variety of convenience foods with ready-to-eat cereals topping the list. The company’s products were manufactured in 18 countries and distributed in 130 countries. The ready-to-eat cereals sales made up the majority of Continue reading

For years, Avon lady was a fixture in American  neighborhoods.  Selling door-to-door built Avon into the world’s largest manufacturer  of beauty products. Avon operates in 135 countries and besides  the cosmetics it also sells jewelry, home furnishings, and babycare  products. Avon pioneered the idea of hiring housewives for  direct selling cosmetics in the neighbourhood. But in 1980s, as  millions of women began to work outside the home, the cosmetics  maker’s pool of customers and sales representatives dwindled,  and its sales faltered. By 1985, its profits were half what they had  been in 1979. Consumer research showed that many women thought Avon’s make-up was  “stodgy,” its gifts products overpriced, and its jewelry old-fashioned. So the  company created a more contemporary line of jewelry, lowered the prices of  its giftware to offer more items under $15, and expanded its lipstick and nail  polish colours. On the selling side, recruiting sales people had Continue reading