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The Keebler Company

Essay by review  •  August 27, 2010  •  Essay  •  954 Words (4 Pages)  •  1,770 Views

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The founhder of the company, Godfrey Keebler, started with jus a small bakery in Philadelphia, PA in 1853. During the next two generations, local bakeries popped up around the country, including Strietmann, Hekman, Supreme and Bowman. With the introduction of cars and trucks (carrying the Keebler logo), bakery goods could be distributed beyond the neighborhood and regional distribution began.

In 1927, United Biscuit Company of America was formed. By 1944, there were 16 bakeries in the network from Philadelphia to Salt Lake City and their cookies and crackers were marketed under a variety of brand names for the next 22 years.

Due to tremendous growth and modern business practices in centralized management, product consistency and quality, efficient use of facilities, cost control and mass advertising, the company needed to operate under one name. In 1966, "Keebler" was judged to be the most sound and memorable.

Over the years, Keebler has acquired several other producers of cookies and crackers (i.e., Bake-Line Products, Inc. - The nation's leading producer of private-label cookies and crackers in 1993; merger in June 1996 with Sunshine Biscuit Company - now owned by Keebler Foods Corporation).

Keebler/Sunshine merger brought together two of the oldest and most respected names in the U.S. biscuit industry.

Keebler and products are sold in more than 75,000 retail outlets nationwide, including Puerto Rico and selected international markets. The Keebler company seems to have more than one target market. With variety of products they offer, the company appears to be targeting just about every segment of the population:

+ Parents of young children

+ Young adults

+ Older adults

+ People who enjoy snacking

+ People who enjoy sweets/deserts

The market segmentation is largely homogenous in that the segmented groups:

+ Are generally young children or adults who are relatives of young children

++ Starting at the age of 3 years old, and going up

+ People who don't have time to prepare foods all the time

+ Some brands target older people (i.e., Club Crackers, etc.)

Keebler, in maintaining success in the market, emplys the 4P's as follows:

Product: The company produces a physical good - Cookies/Crackers. In doing this, the company became diversified by the use of several product lines, not just one line of cookie or cracker. Also, in acquiring other businesses, the company thought it best to keep the originating firm's brand name vice-carrying its name on the new product (i.e., Sunshine company). In thins regard, Sunshine's Cheeze-It cracker line would not risk losing customers who are accustomed to that logo on the product or the name being used in association with the product. Also, in the packaging of most Keebler products, the company logo can be seen in some conspicuous corner of the packaging which is something that even the youngest of children can recognize once exposed to the cartoon commercials of Earnie (the Keebler Elf) and his friends. This is a big influential aspect of getting potential customers to purchase their products.

Place: Keebler's products can be found at virtually any location-Super markets, convenience stores, vending machines. The companies also (through special packaging and distribution)

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