Marketing plan for Kellogg (Other (Not Listed) Sample)

MARKETING PLAN
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Marketing Plan
Introduction
Kellogg is a multinational company that is committed to fostering long-term expansion in volume and profits. Kellogg also aims at advancing its global leadership position by offering nutritious food products of better-quality and superior value. The market for breakfast cereal is an extremely dynamic with a raft of products available and with an objective of targeting various market segments. For this reason, this report will tackle the reasons why Kellogg’s segment the breakfast cereals through a combination of behavioral, psychological, demographic, and geographic factors. This report will also give an in-depth assessment of Kellogg’s Coco Pops in the breakfast cereal market to demonstrate the market positioning of the brand. The Marketing mix for Kellogg Coco Pops is accordingly stated.
Situational Analysis
Internal Analysis
Following an internal analysis of the present performance of Kellogg’s and its auxiliary brands such as Pringles and Coco Pops, statistics indicate that year over year, the company has been able to increase its revenues from $13.2 billion to $14.2 billion. Most imposingly, Kellogg has been able to trim down the proportion of sales committed to selling, administrative and general costs to 26.76%, down from a figure of 28.12%. This led to a growth in its bottom line from $866 million to $961 million (Winson, 2013, p. 48). The company has managed to develop a wide variety of products aimed at different segments within its market. These products target the various age groups above the age of three years. Consumers of breakfast cereals consider Kellogg’s as a high quality manufacturer.
SWOT
The SWOT analysis aims to look at the company’s outlook in terms of its strengths, weaknesses, opportunities, and threats. This is a great way of gaining a thorough and detailed perspective into the company and its future prospects.
Strengths
* Brand loyalty: Kellogg’s products drive customers back repeatedly and its iconic red logo is visible on most of the cereal boxes in local supermarkets (Anderson & Vincze, 2004, p 19).
* Solid revenue growth: Kellogg’s reported revenue of $14.197 billion in 2012. This was a significant increase compared to the $10.907 billion registered in 2006 (Winson, 2013, p. 51). This represents a steady and secure rate anticipated to sustain into the near future.
* Institutional vote of confidence: Institutional investors hold about seventy-eight percent of outstanding shares (Vonnegut, 2010, p. 64). This demonstrates the confidence that big-money investors have in the future prospects of the company.
* Geographic diversity: Kellogg’s markets and sells its products in over 180 countries globally. This cushions the company from the effects of economic problems that are unique to one country or market.
Weaknesses
* Dependence on one product: Kellogg’s derives a good proportion of its revenue from a pool of cereal brands. While these brands may be different, they still fall under the category of cereals. If the popularity of breakfast cereals were to dwindle, the company would fall into serious trouble (Tybout & Calder, 2010, p. 39).
* Market saturation: The products of Kellogg’s can be found in nearly every market worldwide. This gives very little room for geographic expansion.
* Debt: As of 2012, the company had $7.366 in debts in its balance sheets (Shankar & Carpenter, 2012, p. 42). Until the company can fully settle this debt, it will have a caustic effect on its core business.
Opportunities
* Product innovation: the company has consistently innovated and produced new products and brands. Further product innovation is plausible and should stimulate sales growth.
* Acquisitions: in 2012, Kellogg’s acquired Pringles, a Procter & Gamble brand (Shankar & Carpenter, 2012, p. 30). Further acquisitions are very likely in the future, and this could help in fuelling the company’s growth prospects.
* Selling brands for cash: Kellogg’s can sell its brands in the same manner that it can buy brands from other companies. This can help the company in raising capital and funds to pay down its debts.
Threats
* Competition: Increased competition to provide the best cereal products to consumers for the least price reduces a company’s margins. The food industry remains among the most crowded (Dahlén, Lange & Smith, 2010, p. 60).
* Escalating food prices: The world food prices keep rising, and further effects of this phenomenon may force Kellogg’s to either transfer the extra costs to consumers or face a reduction in its margins.
* Market shift: While cereal is still the preferred breakfast meal, there is a possibility that another breakfast meal that is distinct from cereal may be invented.
Goals and Objectives
While Kellogg’s still lead the breakfast cereals market, other competitors are increasingly making forays and Kellogg’s must consistently strive to better position its brands if it is to maintain profitability (Calkins, 2008, p. 21). Our goal is to increase sales through advertising and create a sense of wistfulness to revenue from the product. Kellogg’s website and the social media will also be used to create awareness for the product and to interact with our customers. Ultimately, our mission is to create a lasting image of a tasty breakfast cereal in the minds of consumers to boost sales and improve the company’s image.
Market Segmentation
Two key standards must be considered in the analysis of the target market for breakfast cereals. These include segmentation and positioning (Shankar & Carpenter, 2012, p. 36).
Segmentation
Market segmentation as a strategy entails fragmenting a wider market into distinctive groups of buyers who have varying behavior, characteristics, and needs. The breakfast cereal market is composed of a broad range of consumers. To access the market, the breakfast cereal will be targeting a specific group of buyers out of the many types. Kellogg’s has segmented its consumers into children and adults with its sweet offering. Coco Pops is essentially meant for children, even though it is also advertised to adults. While the nutritional credentials of Coco Pops mean that it could be advertised to children, Kellogg’s has adopted an approach of marketing it to mothers. The segmentation for Kellogg’s Coco Pops is predominantly demographic segmentation.
Due to limited resources, Kellogg’s must make the choice to service specific categories of consumers with specific products. With the increasing diversity in tastes among modern consumers, Kellogg’s has taken note of the advantages of servicing a number of new markets. Demographic considerations span beyond the demand of breakfast cereal (Pride & Ferrell, 2008, p. 14). Because Coco pops is marketed mainly to mothers, the population of women with obese children will affect the demand for individual cereals attributes and brands such as those that are high in protein by low in carbohydrates. Women are becoming increasingly informed and with their role changing from that of household chores to working professionals. For this reason, educated woman are more informed.
Their day-to-day purchasing and decision making involves both food health requirements and food requirements. Market research indicates that this segment has a potential for high profits as more individuals change to fitness and healthy lifestyles for their children. Kellogg’s Coco Pops is healthy for the children. Coco Pops is a high protein cereal that is high in fiber and contains little carbohydrates. It is also laced with chocolaty delight. The chocolate in the cereals have certain health benefits because they contain antioxidants in the form flavonoids. The flavonoids also have an effect vascular health of the children such as improving the flow of blood to the heart and brain and improving blood pressure. The health mindful women market is a growing demographic segment where Kellogg’s can effectively capitalize.
Positioning
Positioning is vital because it enables Coco Pops to be differentiated from cereals from other manufacturers. It also gives consumers a cause to purchase the product. Positioning encompasses two basic elements. The first is the physical characteristics and the potential that a brand offers while the second aspect relates to how customers see the brand compared to other competing brand. Cadbury, Weet-Bix, and Nestle, through its Cherrios brand, emerge as the main competitor for Kellogg’s Coco Pops. Other notable brands in this category include Crispix, Corn Flakes, Mini Wheats, Crunchy Nut, Froot Loops, Komplete, Just Right, and Sustain. All of the above brands are positioned along with Kellogg’s Coco Pops, with one target market, which is health conscious mother seeking healthy and nutritious breakfast cereal for their children.
Marketing Mix Strategy
Product
The product is a breakfast cereal targeted for kids. Kellogg’s employs an individual branding strategy to distinguish the product from the other brands that it produces such as Frosties, Pringles, Cocoa Krispies, Keebler, and Nutri-Grain. The packaging consists of Coco Pops well known smiling character who looks in high spirits while eating the cereal. The packaging shows the cereal being wetted with milk to show prospective customers how pleasant it looks. The Coco Pops brand recently had a vintage makeover, with the company offering retro packs in selected st...