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Kellogg’s Product Development Strategy

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Internal growth strategies tend to rely on actions such as hiring more employees, growing the customer base, opening new company-owned locations or developing new products through internal research and development. External growth strategies tend to focus on meeting growth objectives by establishing relationships with third parties, such as strategic-alliance partners, licensees, franchisees and co-branding allies.


For example, Kellogg’s Company bolstered their sales dollars by introducing new healthier cereals to meet the growing demand for low-sugar, high-fiber, low-fat cereals. Taking old favorites, like Cocoa Puffs, and making them whole-grain and healthier has increased their sales by 4% over same period last year thus increasing sales organically.


Companies can learn from this example, to evolve their Internal Growth Strategies by designing products and services that fulfils “customer wants” with an objective to increase sales revenues.


YouSigma. (2008). “Kellogg’s Product Development Strategy." From
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