The Kellogg Company
Customer Snapshot: Overview
It all started with 1 single corn flake
From Corn Flakes to Froot Loops, breakfast wouldn’t be breakfast without Kellogg’s. But margins are tight in the ready-to-eat cereal business. For the Kellogg Company, approximately a third of annual revenue is spent on promotions and trade shows. So every dollar spent on advertising, coupons, sponsorships, and shelf location counts. To keep an eye on trade show spending, Kellogg’s must analyze large volumes of data and run complex simulations to predict which promotional activities will be the most effective.
By combining the SAP® Accelerated Trade Promotion Planning application powered by SAP HANA® and cloud and storage services from Amazon Web Services (AWS), Kellogg’s can achieve the speed, performance, and agility it needs without making a significant investment in physical hardware. That means reduced expenses and more effective promotions for your favorite breakfast foods.
The Kellogg Company
Number of Employees
Line of Business
SAP HANA, SAP Trade Promotion Management
Battle Creek, Michigan, USA
Amazon Web Services (AWS)
Customer Snapshot: History
Customer Snapshot: Business Model
Kellogg Company is committed to establishing and growing relationships with small and diverse businesses, including Minority, Woman, LGBT owner businesses, as well as businesses that fall under the United States federal certification for Veterans, Service Disabled Veteran, Small Business (SB), Disadvantaged Business Enterprises (DBE), Small Disadvantaged Business (SDB) and HUB Zone.
Customer Snapshot: Success Strategy
A Principled Approach to Delivering Food
The Kellogg Company, headquartered in Battle Creek, Michigan, operates in 180 countries. They manufacture ready-to-eat cereals and other food products. In 2013, Kellogg reported net sales of $14.8 billion. Kellogg’s brands include Froot Loops, Frosted Flakes, Special K, Rice Krispies, Pop Tarts, Eggo Waffles, Nutri-Grain Bars, and of course, Kellogg’s Corn Flakes.
Through integrity, accountability, passion, humility, simplicity and a focus on success, the company has created a vibrant culture where ideas can blossom, people can thrive, and success can flourish.
The Kellogg Company’s vision includes a commitment to act with integrity and respect, accountability for actions and results, passion for the business, brands and food, humility and hunger to learn, simplicity and success.
Each day, Kellogg needed to run dozens of complex data simulations on things like TV ad spend, digital marketing, coupon campaigns and other promotions, sales commissions, display and shelving costs—but its system only had the capacity to run just one simulation a day.
Enter SAP: The SAP Experience
Kellogg needed a solution that could accommodate terabytes of data, scale according to infrastructure needs and stay within their budget. The company became interested in an SAP solution called Accelerated Trade Promotion Planning, which is powered by SAP HANA. Amazon Web Services (AWS) offered a fully SAP-certified HANA environment on a public cloud platform. Because SAP works on the cloud, the company knew it could achieve the speed, performance, and agility it required without making a significant investment in physical hardware. Kellogg decided to start immediately with test and development environments for their US operations.
Flexibility and Speed Saves Big Money
Kellogg estimates they will save close to a million dollars in software, hardware, and maintenance over the next 5 years. Using this solution saves more than $900,000 and lets Kellogg run dozens of data simulations a day so it can reduce trade spend. The company is also able to be more agile. Instead of having to wait 30 days to make changes to its trade spend analysis system, the company can spin up instances immediately to perform the necessary data simulations (or calculations).
Better Business: Benefits
Familiarity Breeds Success
Kellogg engineers liked the accessibility and familiarity of the platform, which enabled them to easily apply their existing knowledge and infrastructure skills to the Cloud. In addition, the IT team’s internal customers can now self-fund IT projects—saving the IT team from having to budget for projects from other departments and driving more efficient use of resources.