PROPOSAL Team Lima: Travis Butler, Ina Evans, Greg Moldovan, and Keith Phillips 1Team Lima

Our parents are retiring in 4 years We want to look after their future. Resources House Cars $500k in CDs $100k/year Problem 2Team Lima

Planned order Warehouse to Production Quantity of raw goods Production order Process the raw goods into ingredients Production order Combine/cook ingredients Distribution Supply Chain 3Team Lima

Sales History & Data Founded 1906 Battle Creek, Michigan 30,900 Employees Made in 18 Countries Sold in 180 Countries Diversified Products Team Lima4

5 Sales History & Data

$485M – Profit 2 nd Qtr 2012 Team Lima6 Leader in Global Cereal Sales

7Team Lima Sales History & Data Kellogg’s v. General Mills

Breakfast Cereal Frozen Foods Toaster Pastries 8Team Lima Target Markets Healthy Snacks Snacks Cookies & Crackers

9Team Lima Domestic Market North American & International Sales by category in Comparison to Total Sales (2011)

10 Team Lima Domestic Market Sales North American Markets vs. International Markets (2011)

Keebler Cookie’s Pringles Chips Cheez-It 11Team Lima Breaking into New Markets

Children Families Mothers 12 Team Lima Target Demographics Single Men Students Athletes Kellogg’s ultimately has no specific preference for a customer; the goal is to get their product in all households around the world.

Advertising and packaging are key aspects of the marketing mix Television is the primary advertising outlet Kellogg also purchases time and space in a broad range of media Press Posters Radio 13Team Lima Cinema Direct mail Internet Media for Domestic Market Segment

14Team Lima Mission – Staying Focused. Going Further. Vision – To enrich and delight through foods and brands that matter Purpose – Nourish families so they can flourish and thrive Mission Statement

15Team Lima Emphasizes the importance of diversity in the work place Philanthropy is an important part of the Kellogg legacy Focus of charitable contributions helping children reach their full potential increasing opportunities for women and minorities building stronger communities Corporate Culture

16Team Lima Kellogg's Corporate Citizenship Fund (KCCF) More than $420,000 was donated by KCCF to match employee contributions in 2004 Kellogg Care$ program provide monetary donations to nonprofit organizations where Kellogg employees and retirees volunteer World of Children Awards Each year the award and $100,000 goes to someone who has made a significant lifetime contribution to children's futures by greatly improving their opportunities to learn and grow. Charities

17Team Lima DFW Impact Expanding distribution center in Lewisville 200 – 300 local employees Employs a small number of merchandiser and territory managers Merchandisers - part time employees Average salary of $11.17 per hour Territory managers - full time employees Average salary of $44,564 each year.

18Team Lima Price of $55.26 per share as of November 23rd $500,000 will purchase 9,048 shares of Kellogg. Each quarter we can expect to make $3, from cash dividends $15, can be earned in the first year off dividends alone. If dividend value remains constant, our parents would have earned $79, in five years. Investment

19Team Lima Kellogg has a strong history of paying dividends quarterly to all investors and the dividend value has steadily increased. Dividend In the last five years the amount paid in dividends per share has increased

20Team Lima Certificate of Deposit 5 year CD of $500,000 at 3.00% compounded daily. CD maturity value = $552, Income of $52, after five years.

21Team Lima Evaluation Kellogg will earn $27, more than a CD would pay in the same amount of time Projected inflation rate for the next 10 years is 1.38% Benefit of security gained from the insured CD is negated by low rates.

22Team Lima We recommend that our parents invest their entire $500,000 in the Kellogg Company Recommendation