Group Assignment †Breakfast cereal Essay

Executive SummaryExperts worldwide agree that eat is the intimately important meal of the day. eat metric grain is the trump dash to rosiness of a good start to a day as it contains low-fat, nutrient-dense aliment with umpteen all important(p) vitamins and minerals. Not only is texture rock-loving, it is usually a very campaignable price and extremely easy to put unneurotic on a day to day basis. Kelloggs is one of the most(prenominal) successful Australian caryopsis mails on the merchandise today with a diverse range of textures. One of the most recent cereal grasss to the Kelloggs ingathering line is pert first respec shelve intent (SSHH). SSHH focuses importantly on the idea of a consumers having wakeless, well balanced and tasteful start to apiece cockcrow. Although with an alarming level of sugars and some other orthogonal trans fats, it is quite hard to believe that this cereal is smart for the tenderheartedness. This merchandise plan depart focus on developing a sensitively reconstructed look at the way SSHH is put together in order for the cereal to be a more than(prenominal) healthy eat weft. As well as modifying the cereal, the tradeing plan forget look to introduce an announce campaign cogitate on a seat market of Adults (mainly p arnts) and children.ContentsIntroductionKellogg confederation was created by Dr. John Harvey Kellogg and Will Keith Kellogg, his younger brother and business partner. In the late 19th Century, they accidentally disc everywhereed a grade new breakfast cereal. They could not imagine that they had the electromotive force to create a multi-national, gigantic global persistence that would change the eating habits of plenty all all over the whole World. In modern day, Kelloggs consumers want a cereal that is healthy and convenient for their lifestyle. Kellogg Company then continued their exploration and cultivation untill they produced a new result line call smarting take t ime off ruddy summation in 2006. Although Kellogg is one of a limited public figure of top Breakfast Brand, but it still far groundwork the rest in terms of healthful ingredients.Situation AnalysisThe line analysis incorporates both(prenominal) the internal and external marketing environments for the new crossroad line invigorated soak up well nubble. A swot analysis burn identify the strengths and weaknesses of internal, and the opportunities and threats of the external market. The market is focusing on the goals which argon identifying and developing the best of fruit marketing strategies, lead and take place out how to please the customers in a breach way than other contention (Hill & Westbrook, 1997). Hess and Lucas (2004) stated that allocating resources between marketing research and manufacturing, which required us doing the right thing or doing the thing right. Therefore, as a manufacturer, we have to deeply on a lower floorstand our current situation.SWOTP ESTA canker analysis can layout the external environments of the harvest-festival.Goals and ObjectivesCorporate StrategyKelloggs ring that they constantly provide their consumers with high quality nutritious foods that were enjoyable to eat. scarcely it is one of the biggest companies which use a lot of artificial sweeteners and Trans fats in their product. This is not ideal for a cereal with the brand name suffer jump Healthy warmness.ObjectivesBecause voguish bring forth Healthy marrow squash is not as popular as other brands on the product line, so this marketing plan is severe to rebuild the healthy character and increase the market share for the product line. Also the products ingredients do not embrace the brand name stylishness begin Healthy nucleus, which is withal not healthy enough for the consumers, so the ingredients need to change as well. The purpose for this marketing plan is trying to make the product match to its name and build the words Smart lead Healthy Heart in the minds of the many Kelloggs consumers. repoint Markets(S) & SegmentationTarget Market(s)For the purpose of this marketing plan we provide delimit what Target Markets entail it is a market segment that has been purposefully picked by a corporate(s), with the intention of focusing their marketing efforts and or a crowd of customers with similar needs and wants (Elliott, G. et al2012). More importantly, for this plan, the breakfast cereal pains in Australia, accompanimently the Kelloggs Nutrigain and Special K with its imbibe Smart healthy heart c formerlypt we have analyzed that both adults and children allow for be the underlying elements within the demographic variables mainly adults, therefrom this provide be our main hind end market. This is as a result of the ii key aspects the fact that adults (parents) have the buying power (income) therefore they obligate the decision making (initiators), and on the other hand, the kids (ages from 2-12) strat ums are the main consumers as they have a high usage rate.Benefits of the product to the target marketThere is a position of the health factor unspoiled like most cereals, either passive (low-sugar, organic, etc.) or active (functional heart health, gut health) (Innova Market Insights, 2010), and this is critical in creating a positive brand in the market that caters for all demographics in general, but children in particular for the purpose of this plan. Cereal in Australia and Queensland in general is regarded as an cheap product, although, there are some generic brands. Kelloggs Nutrigain has been a gruelling competitor in terms of its taste, however research has shown it needs displace as a healthy product. In addition as a cold cereal it can be offered and packaged in other forms or as a snack style pack for on the going eating.Market Sizes and CompetitionRelative to Australia and similarly , In more developed countries as well as other states including NSW and WA, breakfas t cereal markets, particularly the US and UK, where they tend to be the predominant breakfast choice, the market is extremely competitive, with high levels of product activity and promotional expenditure.(Innova Market Insights, 2010) everywhere three-quarters of global breakfast cereal launches recorded over the past year had a health positioning of some kind, rising to over 92% in Australia and 85% in the US (Food & swallow Process 2010). In Australia the introduction of innovativefunctional cereals, with launches over the years including Nestls Uncle toby jugs Plus Omega 3 Lift and Health wise for Bone Well cosmos, Kelloggs Just Right Antioxidant (www.industrysearch.com.au).SegmentationIn the breakfast cereal market we perceive that because there are so many products with many similarities, we have decided to position our products using a brand position outline. Companies within the same sectors segment the market in antithetical ways for differing preys. Using Kelloggs Spec ial K and its cereals the following draw highlights the experiences (attributes) that we position the product. In the diagram below we have used division based on experiences within various ages or demographics (kids, teens and adults).Positioning purposeSegment Profile Sections and Market Positioning MapFigure 2.The breakfast cereal segment has the most diverse product range within the industry life stages segmentation and Kelloggs can increase its market size by refocusing its promotional activities and advertising onto its all-bran brand as it targets parents and therefore promoting an image which helps harbour a healthy digestive system, managing blood glucose levels and maintaining a healthy heart because of its high role levels. (Digestion & Food, all bran.com).Marketing MixThe product name Smart extraction Healthy Heart itself describes the aim of Kelloggs. Research provided by American Heart Association and BEACH (Bettering the rating and Care of Health) indicate th at Smart Start Healthy Heart is the only product in the cereal market which helps reduce the chances of increasing blood wedge and Cholesterol levels. This is very ripe for kids at a younger age as it reduces the chances of heath malady in their adult period. As the product is going through a development stage, the major(ip) advantage bequeath be its reduced levels of sugar, which sooner contained 38% of the overall nutrition. This change in Smart Start Healthy Heart forget reduce the make out of calories produced, making it a better breakfast cereal.According to Dr. William Dietz( sharpenor of the Division of Nutrition and Physical Activity), Parents need to be in charge of what food is served to their kids. This is particularly important as it helps maintain health standards. The product designs attract more mature audiences as you consult to words like Smart and Healthy. Parents in this case are the major audience as the product contains features, which helps kids to make a healthy start to their day. The product brand is also considered as a key point for parenting selection. Kelloggs is one of the leading brands in the cereal industry. specifyWhen it comes to distributing product, an important factor is to consider whether the product pass on be distributed right away or validatoryly. For a newly established business it is hard to demonstrate awareness of brand through direct marketing. Since Kelloggs is already a well cut brand in the Australian market it has potential to distribute in both direct and indirect markets, however indirect dispersion through retail industry would be a good selling point. The retail industry is made up of 3 major distribution areas which include grocery stores, convenience store and other peculiar(a) categorised stores. The grocery sector is the most dominant distribution canalize for the cereal market. According to the 2006 ABS data (Figure 1), 52% of the turnover of the food and drinks industry was earned through grocery stores. Kelloggs should continue to distribute the product to its major grocery distributers, such as Woolworths, Coles and other grocery outlets, payable to the faster volume growth rate in the grocery delight (Table 2).Contact with the retailers should be maintained on weekly basis, this helps both parties to hold up to date with the supply of stock as well as helps resolve any issues relating to the product. Since cereal products are demanded in grocery stores, competition will be much tougher as there will be many other contrary brands, however the features contained in Smart Start Healthy Heart makes it special to stand out in earlier of other products displayed. Kelloggs will be able to raise speedy awareness of SSHH through the grocery stores as nutritious snacks are demanded in the industry (Table 2). Another selling point would be through the plan of technology. In todays era technology is a free-and-easy need, as both parents and kids browse through internet every day. This gives Kelloggs opportunity tosell products online through its own website thus creating an opportunity for direct selling.PriceThe primary function of pricing is to specify how much money will be received in exchange for the product supplied. all(prenominal) customer needs a unique, compelling and profitable reason to bargain for a product. A change in a product practically involves change in a price however Kelloggs Smart Start Healthy Heart should aim to keep their price same. The reason for this is because Kelloggs is already a well develop brand. For some, price will always be a major determinant, whereas for others, it may come subdue to the product quality and the benefits of the product. Price is also conducted through the design of the cereal box. The design and layout of Smart Start Healthy Heart cereal drags the guardianship of mature audiences.One of main question which comes to mind when deciding a cereal brand is, is this product healthy? According to the American Heart Association Smart Start Healthy Heart is the only sanction breakfast cereal proven to reduce high blood pressure and cholesterol. Breakfast cereals on average cost around $4.50 Plus, Kelloggs Smart Start Healthy Heart should be priced at $4.00. When products are change at a lower prices it often results in higher sales, peculiarly when launching a new or improved product because people want to try it and see how the product works.PromotionPromotion is an essential element in the marketing mix. It is used as an important marionette by businesses to inform, remind and persuade customers about the products and services they have to offer. most(prenominal) competition can be taken out through fit promotion strategies, especially in the breakfast cereal industry. Smart Start Healthy Heart has the ability to be advertised in many different promotional areas as it is a product operating under Kelloggs brand. According to the Kelloggs annual report, it has a turnover of over $13.2 Billion. Keeping in mind of the turnover, it allows Smart Start Healthy Heart to be advertised across many different TV convey to reach out to mature audience and little kids. Advertisements of Smart Start Healthy Heart should be aired mostly during early morning and evening whenchildrens are watching cartoon and kids programs. bring promotion involves part of pull strategy through discounted offers. Coupons are the best way to approach audiences who like purchasing cheaper products. This can be do through newspaper advertisements and kids magazines. A major selling point through promotion is the use of trade promotions, which involves push strategy such as point-of-purchase display. This can help portray the Healthy Eating image through store displays and free samples of Smart Start Healthy Heart. Personal Selling is also another option to consider as Kelloggs can send company reps to different areas to promote the cereal.Implementation/ Action Plan/ ScheduleThe primary objective for creating an natural process plan is to have the ability to visibly see which action needs to be terminate, by when and by whom. In doing this, management will have a much easier way of managing individual performance and know that there is a certain chance of an objective being completed by a deadline. Below is the Action Plan that has been constructed for the recreation of the Kelloggs cereal Smart Start Healthy HeartObjectiveexpect DeadlineDepartment ResponsibleResearch Current Customer Satisfaction31/01/2013Research DepartmentEvaluate Current Customer Satisfaction15/02/2013Research DepartmentReduce Sugar and Keep Relatively analogous Taste31/03/2013 crosswayion DepartmentRedevelop Cereal calamity Aesthetics31/04/2013Retail DepartmentDecide on innovative Price, Place Distribution31/05/2013 guidanceDevelop Advertising driving force31/07/2013ManagementImplement Marketing CampaignManagementThe supra Action Plan is an accurate estimation of the ambitious goals that need to be completed in order to make the Kelloggs Smart Start Healthy Heart Cereal a high quality, nutritious breakfast option that is enjoyable to eat for both Adults and Children. Also, this action plan will aim to successfully rebuild this cereal line into having a more popular, healthy image which will in turn increase market and future profit for the company.SupermarketsConvenience StoresIndividual StoresEvaluate CampaignTV AdvertisingInternet AdvertisingJanuaryFebruaryMarchAprilMayJuneJulyAugust kinfolkOctoberNovemberDecember(Above is a Gantt chart of the project schedule for the beginning of 2013.) The table higher up similar to the table, demonstrates the specific time frame (spanning over 1 year) in which Kelloggs will strive to complete the listed objectives. In regards of distribution, it is shown above the Kelloggs should strive to distribute the Smart Start Healthy Heart cereal into supermarkets year round as it is imperative that there will not b e a shortage in supermarkets. Further distribution into certain convenience stores and more individual stores are more uncaring as the cereal is in less demand for the smaller stores. The evaluation of the current campaign of this cereal is also very important therefore as shown above it will be scheduled to occur once every three calendar months. For the advertising aspect for the cereal, it has been decided that both TV and Internet advertising will be done at the beginning of the schooling period so that the advertisement will target both adults and children.Evaluation & Control ProceduresThe purpose of having control procedures is to ensure that current objectives are being completed and ensuring that there is a contingency plan in place if the objectives fail to meet the arrogate standard. To measure whether the objectives are being met, it is shown in the above Gantt Graph that there is a Campaign Evaluation being undertaken once every three months, this will measure produc t profitability, store demand and customer feedback. To measure product profitability, during the 2 month period where noevaluation is undertaken, there will be a set goal set by management of the amount of cereal boxes ordered from supermarkets, convenience stores and individual stores, if the goal is not met, all incisions mustiness rethink their strategy of how to appeal this cereal to customers. This method will also be used to measure store demand. For customer feedback, the research department will hire extra workers to conduct a survey on potential customers from a variety of supermarkets and convenience stores. All the negative feedback will go back to the required departments to further improve this cereal.Conclusions and recommendationsTo conclude, Kelloggs will need to focus on restructuring the Smart Start Healthy Heart cereal in the two main areas of production Reducing the amount of sugars in the cereal to maintain its reputation of being a cereal that is healthy for the heart, and start a promotion campaign focusing on advertising at the beginning of school periods so that the major target market will be aimed toward Adults (parents) and children. By changing a few simple characteristics in the cereal, the company will have the possibility to persevere strongly committed to communicating with children and their parents regarding the role of an active lifestyle and appropriate food choices (Elliot, 2012).Bibliography/Reference ListAtkin, C. K. Observation of parent-child interaction in supermarket decision-making, ledger of Marketing, 42(4), 41-45 Bainbridge, J. (2010, Mar 17). 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