Marketing Strategy Assignment: Developing A Marketing Plan For Kellogg’s
Task: In this marketing strategy assignment, you are tasked to construct a detailed marketing plan for Kellogg’s.
The marketing plan developed within this marketing strategy assignment is the most effectiveand analytical tool to examine the marketing activities and also this innovative approach helps to understand the performance of the management and also this process plays a significant role to analyze the competitive market and also helps to examine the business environment to enhance the profit margin and also this process helps to revenue the business growth. This report has discussed the marketing plan and current marketing environment of KELLOGS and also this writing has discussed the problems of this company related to the marketing plan and also explain the solutions (Kelloggs.com.2022).
New marketing plan execution intro
Kelloggs uses a mixture of demographic and geographic and psychographic segmentation and analyzes the customer’s demand and as well as the company follows an innovative targeting strategy. A strong product portfolio is an innovative approach and effective marketing strategy to understand and develop the competitive advantages. The company helps the different companies to distribute cereals and snacks. The company follows many innovative approaches to enhance the brand value and develop the profit margin of the company. Distribution strategy plays a vital role to increase sales and for that reason, the company follows different channels for distribution channels e-commerce sites also play a vital role to enhance the profit margins of the company (Wineland et al., 2021). Competitive analysis is considered to be effective which helps to enhance the profit margin. The application of the advertising, campaigns, and as well as effective promotion strategy helps to enhance the reputation of the company and also this process helps to enhance the brand value of the company. Brand equity plays a vital role to execute and maintain the proper marketing plan of the company. Kelloggs follow innovative strategies to connect with the next generation of consumers and also the company is effectively associated with international events such as FIFA and also Olympics to connect with the customers and also this process helps the company to enhance the brand value and profit margins of the company (Kotler, 2021).
BCG matrixplays a vital role to analyze the competitive market and also helps to examine the business environment to enhance the profit margin and also this innovative analytical approach helps to revenue the business growth. The CSR activities help the company to win many awards on the different platforms. Raw materials, pricing strategy, and also quality helps the company to achieve success and also those factors help enhance the performance of the company. Pricing is generally based on market research and also evaluates the market conditions of the business environment. The company uses many programs and also, they offer many discount schemes and offer schemes of coupons. This innovative pricing strategy helps the company to enhance its sales growth and develop its profit margins of the company. During the pandemic situation, the company donates the cereals according to the report that is worth more than $ 10 million to fight against hunger globally (Deepa et al. 2021). Place and distribution strategy play a vital role to execute the marketing plan properly. The company follows different distribution channels to revenue growth of the company and the company follows innovative strategies to direct selling strategy and door to door delivery and most importantly provide innovative products to the supermarkets. The application of e-commerce sites also plays a vital role to enhance the profit margins of the company. on the other hand, social media is the most effective way to communicate with the customers to enhance the relationship with the customer’s and this is the most effective and significant asset of the company. and also, the company released a PC game called mission nutrition to enhance the growth of the snack and also this process helps to enhance the availability purposes (Kellogg, 2021). promotion strategy is the significant factor to enhance the reputation of the company and for that reason, the company has mascots to represent the brand in an effective way and also this process helps to grab the attention of the children. The company proposes the merchandise and packaging strategy helps to enhance the reputation and distribution sales of the company.
Current marketing environment
Climate change is a significant factor and this factor affects the food industry. The proper food distribution channels are a mandatory factor to enhance the sales margin of the company. The marketing environment is defined on the basis of the performance control of the company, targeted market. These are based on two types of environment such as micro-environment and macro environment. The microenvironment is controlled by the internal factors of the company and the company highlights the government forces, technological and ecological impact. On the other hand, the internal factors of Kellogg's company are based on the size of the market, suppliers, and also highlight the customer retention management and most importantly analyze the competitor’s strategy and investigate the profit margin of the UK market environment.
Marketing trends: revenue the cereal production and examine the customer’s demand and analyze the demand of the cereals in the breakfast are the major factor to enhance the growth of the company. Review the performance of the cereal industry and also the growing economy in UK provides the opportunities to the people to spend money on branded and premium quality products.
The competitive nature of the company is based on different parts such as kids, adults, and as well as the teen market segmentation for cereals. The company follows different strategies and offers different types of products to attract kids, teens, and adults to enhance the profit margin, and also most importantly this innovative analytical approach helps to revenue the business growth. The CSR activities help the company to win awards on the different platforms. The company provides mainly different types of cereals and cereals are based on appearance and also taste. For the kid’s segmentation, the company offers different types of cereals that are extra sugar with marshmallows and also provides different types of prizes. The company uses these factors to grab the attention of the kids because these factors are a match for the kids (Vollrath et al., 2021). For the teen segmentation, the company realizes the importance of healthy eating habits, and for that reason, Kellogg’s offers cereals with artificial colors, flavoring colors, and also colorizing the flavor to attract the little grow up children successfully.
Production and distribution channels:
The application of the Competitive analysis is considered to be effective which helps to enhance the profit margin. The help of advertising, campaigns, and also effective promotion strategy helps to enhance the reputation of the company, and also this process helps to enhance the brand value of the company (Thompson et al. 2021). Social media is the most effective way to communicate with the customers and also the company released a PC game called mission nutrition to enhance the growth of the snack and also this process helps to enhance the availability. This innovative process helps to enhance the number of brand engagements.
Customer lifetime value
Valuable relationships with the customers play a major role for the company and this is the major asset of the company. The application of the RFM analysis helps to examine and also monitor the customer’s purchase and this analytical tool is based on the customer’s approach. R stands for the recency process and this process highlights the recent purchase techniques of the customers. Fand M evaluates the purchasing factor and also how much the customers spent on the products of the company. This is the most effective approach to examine the purchasing power of the customers. According to the report, 80% of the future customers and 15 percent of the misclassified and also the poor customers are not demanding special treatment (Emond et al. 2021). CLV highlights the contribution of the customers to revenue the growth of the company and also this process significantly helps the company to detect the targeted customers.
Detailed problem description
Similar to other major food retailers, Kellog’s faces a high level of marketing challenges within their operational environment in the last year, and the problems are related to the major supply chain issues and higher cost inflation. The food-based organization faces a high level of disruptions in their supply chain activities and due to the supply chain disruptions, the organization’s cereal business during the second and third quarter in 2021 is reduced in a remarkable manner. However, the other business areas of Kellog are including plant-based foods, breakfast items, and snacks have witnessed positive growth. Despite having supply chain issues, shortage of workers, and freight, the consumption growth rate of Kellog’s shows positive trends. Due to the major supply chain issues, Kellog’s net income ended at $307 billion in the month of Oct 2021. And it has shown a slight decrease to $2.055 billion from $2.059 billion (Kelloggs.com.2022).
Apart from the external issues, Kellog’s also witnessed some major internal setbacks in terms of emerging food formats within cereal, frozen from the plant-based and griddle protein along with specific packaging formats and snacks. However, despite having interrupted production, the organization maintained its growth level on a two-year CAGR basis, and its revenue-based managerial actions showcase the positive price/ mix growth. At the same time, as per the opinion of Kellog’s CEO, the price realization along with favorable execution of the productivity activities is highly crucial in terms of reducing the margin pressures of incremental costs and high inflation cost, and deficiencies linked to the vast bottlenecks and economy shortages. Along with the significant supply chain issues, Kellog’s overall productivity was also reduced due to the major labor strike, and within the UK and Mexico, the strike of approximately 1400 workers hampers the organization’s “global supply chain activities' ' (Kelloggs.com.2022).
With the major disruptions related to the labor strike, Kellogg faces major challenges in terms of reducing the rate of labor turnover, and the organization can focus on its pay packages and employment programs. Due to the major disruption in production activities and problematic supply chain activities, Kellog’s organic sales rate has been reduced and during the covid period, the organization’s pringle factory in Malaysia was closed for a certain period in the year 2021. As per the Chief Executive officer, Steve Cahillane, despite having a positive trend in customer demand, the supply chain issues of Kellog’s can last for a longer period. However, the strong market performance in cereal can act as a satisfactory factor for Kellogg’s in order to maintain a sustainable position within the highly competitive market.
The desired target markets
As per the business perspective of Kellogg’s, the organization mainly promoted itself as the food provider who majorly focuses on a healthy lifestyle especially a major provider of healthy breakfast. However, the organization can majorly target children who are 3-12 years old and other senior adults who are above approximately 65 years old (Chan and Raharja, 2018). The ready-to-eat cereal market is predominantly handled by Kellog’s and the organization mainly focuses on adults and children. In addition to that, Kelleog’s target market strategy is also built upon the perspectives of consumers’ busy lifestyles. At the same time, the pricing strategy and marketing campaign that Kellog’s uses in order to target the customers are specifically designed for the middle class and upper-middle-class family who lead a busy lifestyle and prefer to consumer “ready to eat” healthy food (Morgan et al. 2019).
However, in terms of the desired target market, Kellog’s can target the youth and young adults who prefer healthy options in their food consumption activity. At the same time, in terms of targeting young adults, the organization can promote its brand in an innovative manner with a better marketing approach (Quero and Ventura, 2019). At the same time, Kellog’s can launch a marketing campaign named “Beyond Breakfast” and through this marketing campaign, the organization can promote the importance of fitness and can also showcase the significance of balanced lifestyles that the youth can implement in order to witness the positive physical transformation. The organization can also target the youth by promoting their brand as the “fast meal options” for the young adults who are habituated with busy lifestyles. However, in this case, Kellogg’s needs to remove the major differences that are associated with age, and gender.
The desired value propositions
The value proposition canvas is termed as the functional tool that helps a product or service that is positioned as per the customer’s needs and values. Based on Kellog’s value proposition model, the organization’s diversified product range and positive market growth can be considered effective gain creators. At the same time, the organization’s products like various flavored food items such as Corn pops, Mueslix, Rice Krispies, and Froot Loops has a high level of market value and are considered as the most trusted and safe food options for the customers who wish to lead a healthy lifestyle (Beheshtian-Ardakan et al. 2018) . On the other hand, the major pain relievers for Kellog’s can be the positive demand trend and effective brand value despite having the high level of issues associated with the supply chain activities and labour strikes. In terms of customer jobs, Kellog’s can create multiple options for their customers in their global supply chain network and marketing activities.
Figure 1: The value proposition model
(Source: Quero and Ventura, 2019)
The desired positioning
In the above section, it has been explained that Kellogg’s target customers are children who are primarily 3-12 years and adults who are approximately 65 years looking for healthier ready to eat food options. As per the existing positioning strategy, the organization can promote itself as the family brand and their item named “corn flakes” are hugely popular within the UK households especially between adults and young women (Gajanova et al. 2019). From the map, it can be witnessed that Kellogg’s basically uses high prices strategy in order to target the upper middle-class customers.
Figure 2: The desired positioning map
(Source: Developed by author)
The desired marketing strategy
In the above section, the desired value proposition and desired positioning map is explained as per the business scenario of Kellog’s with supportive documents.
Kellogg’s basically diversified their vast product range into several categories based on the customer’s preferences and health concerns. The organization has Corn flakes, Oats, Muesli, Crunchy granola, Chocos, and all these items have a huge brand value and can become a popular household name.
In terms of marketing communication, Kellogg’s can mostly rely on a social media marketing campaign in order to target young customers and through the social media marketing tools, Kellogg’s can form some relevant marketing campaigns with better marketing content.
As per the branding strategies, Kellogg’s can adopt digital marketing tools and the adoption of various digital marketing tools can help Kellog’s in terms of getting access to young customers (Kelloggs.com.2022).
In terms of pricing, Kellog’s can opt for competitive pricing policies, and through the adaptability of competitive pricing, Kellogg’s can easily analyze the pricing strategy of the other existing market competitors.
As per the distribution channels, Kellogg’s can adopt the different e-commerce sites and can also adopt digital marketing tools such as social media, email marketing, and video conferencing.
The market plan is the major factor to develop the profit margin of the company and also this process helps to enhance the profit margins of the company. On the other hand, with the help of social media, the company could easily communicate with the customers to enhance the relationship with the customer’s and this is the most effective and significant asset of the company. The company follows many innovative approaches such as the company releasing PC game called mission nutrition to enhance the sales margin and revenue growth of the company. The application of innovative strategies and online brand promotion purposes helps the company to grow globally.
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