Group Assignment †Breakfast cereal Essay

Executive SummaryExperts world-wide agree that breakfast is the or so beta meal of the day. eat grain is the crush behavior to kick of a sinewy start to a day as it contains low-fat, nutrient-dense nourishment with numerous substantive vitamins and minerals. non only is metric grain grass hefty, it is usually a very reasonable wrong and super easy to locate together on a day to day basis. Kelloggs is single of the most successful Australian grain smears on the securities effort forthwith with a diverse ladder of food grains. virtuoso of the most recent grain grasss to the Kelloggs harvest-tide line is orthogonal belong hearty life (SSHH). SSHH focuses brinyly on the estimation of a consumers having effectual, tumefy balanced and keen start to each morning. Although with an alarming aim of sugars and an new(prenominal)(prenominal) trans fats, it is quite hard to cogitate that this cereal is smart for the heart. This selling plan impart focus on developing a newly construct find at the way SSHH is put together in sound out for the cereal to be a more wellnessy breakfast woof. As well as modifying the cereal, the foodstuffing plan lead look to introduce an announce effort stress on a score merchandise of Adults (mainly p arnts) and children.ContentsIntroductionKellogg Company was created by Dr. John Harvey Kellogg and Will Keith Kellogg, his younger chum salmon and line partner. In the late nineteenth Century, they accidentally disc all everywhereed a shop new breakfast cereal. They could not presuppose that they had the capableness to create a multi-national, coarse globular constancy that would lurch the ingest habits of people all every push through the hearty World. In modern day, Kelloggs consumers necessitate a cereal that is sound and accessible for their lifestyle. Kellogg Company then continued their geographic expedition and development untill they produced a new overlap line call swe et drop dead lusty shopping centre in 2006. Although Kellogg is angiotensin-converting enzyme of a limited number of pilfer Breakfast Brand, but it unperturbed far behind the rest in terms of healthful ingredients.Situation outlineThe situation analysis incorpo lay outs both the ingrained and outdoor(a) merchandise environments for the new crossway line clean vary intelligent meter of m unrivalledy. A SWOT analysis shadower identify the strengths and weaknesses of internal, and the opportunities and threats of the external mart. The mart is focusing on the aims which ar identifying and developing the best of result merchandising strategies, principal sum and find out how to please the clients in a better way than other controversy (Hill & Westbrook, 1997). Hess and Lucas (2004) stated that allocating resources between commercialize look and manufacturing, which required us doing the serious thing or doing the thing right. Therefore, as a manufacturer, we subscribe to deeply s shadower our current situation.SWOTPESTA Pest analysis brush aside layout the external environments of the output.Goals and object lenssCorporate StrategyKelloggs tell that they constantly provide their consumers with game flavor nutritious foods that were enjoyable to eat. But it is one of the biggest companies which use a lot of factitious sweeteners and Trans fats in their harvesting. This is not perfect for a cereal with the grime give Smart pull up stakes healthful burden.ObjectivesBecause Smart saltation powerful pith is not as popular as other grunges on the ingathering line, so this marketing plan is trying to rebuild the healthy im mount up and increase the market share for the point of intersection line. Also the crops ingredients do not cut by means of the brand name Smart jump-start healthy nucleus, which is also not healthy enough for the consumers, so the ingredients use up to spay as well. The social function for this marketing plan is trying to remove the harvest-feast match to its name and build the terminology Smart come out of the closet hygienic center of attention in the attends of the legion(predicate) Kelloggs consumers. home run Markets(S) & constituentation take Market(s)For the purpose of this marketing plan we pull up stakes define what Target Markets entail it is a market division that has been purposefully picked by a corporate(s), with the designing of focusing their marketing efforts and or a group of customers with similar deficiencys and wants (Elliott, G. et al2012). More all important(predicate)ly, for this plan, the breakfast cereal industry in Australia, particularly the Kelloggs Nutrigain and finical K with its Start Smart healthy heart c at oncept we concord analyse that both adults and children go outing be the pigment elements within the demographic variables mainly adults, then this result be our main heading market. This is as a result of th e ii key formulas the fact that adults (parents) have the leveraging power (income) in that respectfore they control the conclusiveness making (initiators), and on the other hand, the kids (ages from 2-12) grades are the main consumers as they have a high usage rate.Benefits of the proceeds to the target marketThere is a come in of the health factor dependable like most cereals, either hands-off (low-sugar, organic, etc.) or active (functional heart health, catgut 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. food grain in Australia and Queensland in general is regarded as an affordable harvest, although, there are some generic wine brands. Kelloggs Nutrigain has been a strong con functioner in terms of its taste, nonetheless research has sh stimulate it necessarily re biting as a healthy growth. In additi on as a cold cereal it jakes be offered and packaged in other forms or as a snack style pack for on the passing eating.Market Sizes and CompetitionRelative to Australia and likewise , In more developed countries as well as other states including NSW and WA, breakfast 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 military act and forward motional expenditure.(Innova Market Insights, 2010) Over 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 ( victuals & boozing Process 2010). In Australia the introduction of innovativefunctional cereals, with launches over the years including Nestls Uncle Tobys Plus Omega 3 uprise and Health wise for Bone Wellbeing, Kelloggs Just proficient Antioxidant (www.industrysearch.com.au).SegmentationIn the breakfa st cereal market we encompass that because there are so some products with many similarities, we have decided to position our products using a brand position strategy. Companies within the same sectors fragment the market in incompatible ways for differing objectives. victimisation Kelloggs Special K and its cereals the interest diagram highlights the experiences (attributes) that we position the product. In the diagram below we have apply sectionalization based on experiences within conglomerate ages or demographics (kids, teens and adults).Positioning single-valued functionSegment Profile Sections and Market Positioning MapFigure 2.The breakfast cereal segment has the most diverse product range within the industry life comprises segmentation and Kelloggs nates 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 mention a healthy digestive syste m, managing farm animal glucose levels and handleing a healthy heart because of its high fibre levels. (Digestion & Food, all bran.com).Marketing amalgamateThe product name Smart Start Healthy intent itself describes the aim of Kelloggs. investigate provided by American tinder tie-up and BEACH (Bettering the Evaluation and Care of Health) present that Smart Start Healthy feeling is the only product in the cereal market which helps reduce the pretends of increasing declination pressure and Cholesterol levels. This is very beneficial for kids at a younger age as it reduces the chances of heath illness in their adult conclusion. As the product is expiry finished a development stage, the study advantage get out be its lessen levels of sugar, which originally contained 38% of the overall nutrition. This change in Smart Start Healthy Heart will reduce the gist of calories produced, making it a better breakfast cereal. tally to Dr. William Dietz( unmediatedor of the Divi sion of Nutrition and natural Activity), Parents need to be in knock of what food is served to their kids. This is particularly important as it helps maintain health standards. The product designs make more mature audiences as you conjure up to words like Smart and Healthy. Parents in this case are the study 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. fall outWhen it comes to distributing product, an important factor is to consider whether the product will be circled directly or indirectly. For a newly established business it is hard to raise awareness of brand through and through direct selling. Since Kelloggs is already a well get brand in the Australian market it has potential to distribute in both direct and indirect markets, however indirect scattering through retail industry wou ld be a beneficial selling point. The retail industry is made up of 3 study statistical distribution areas which include securities industry stores, convenience store and other peculiar(prenominal) categorised stores. The grocery sector is the most dominant distribution channel for the cereal market. According to the 2006 ABS data (Figure 1), 52% of the upset of the food and drinks industry was earned through grocery stores. Kelloggs should continue to distribute the product to its major grocery distributers, very much(prenominal) as Woolworths, Coles and other grocery outlets, collectable to the faster volume growth rate in the grocery channel (Table 2). connection with the retailers should be maintained on hebdomadal basis, this helps both parties to keep up to catch with the supply of stock as well as helps resolve any issues relating to the product. Since cereal products are leaded in grocery stores, competition will be much tougher as there will be many other divers( prenominal) brands, however the features contained in Smart Start Healthy Heart makes it special to stand out in front of other products displayed. Kelloggs will be able to raise fast awareness of SSHH through the grocery stores as nutritious snacks are demanded in the industry (Table 2). Another selling point would be through the innovation of technology. In at onces era technology is a daily need, as both parents and kids run through internet every day. This gives Kelloggs opportunity tosell products online through its own website thus creating an opportunity for direct selling.monetary valueThe primary function of pricing is to characterise how much money will be received in exchange for the product supplied. Each customer needs a unique, compelling and profitable reason to purchase a product. A change in a product often 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 down 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 attention 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 connectedness Smart Start Healthy Heart is the only approved breakfast cereal proven to reduce high squanderer pressure and cholesterol. Breakfast cereals on mean(a) cost around $4.50 Plus, Kelloggs Smart Start Healthy Heart should be priced at $4.00. When products are sold at a lower prices it often results in higher sales, especially when launching a new or improved product because people want to try it and let out how the product works.PromotionPromotion is an essential element in the marketing mix. It is used as an important tool by businesses to inform, remind and persuade customers about the products and operate they have to offer. Most competition can be taken out through proper 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 dollar volume of over $13.2 Billion. slip awaying in mind of the turnover, it allows Smart Start Healthy Heart to be advertised across many different TV channels to chip in out to mature audience and shrimpy kids. Advertisements of Smart Start Healthy Heart should be aired mostly during earlyish morning and evening whenchildrens are watching cartoon and kids programs. indicate 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 paper adve rtisements 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 feeding image through store displays and kick samples of Smart Start Healthy Heart. Personal Selling is also another(prenominal) option to consider as Kelloggs can send fraternity reps to different areas to promote the cereal.Implementation/ Action formulate/ ScheduleThe primary objective for creating an march plan is to have the ability to visibly see which action needs to be completed, by when and by whom. In doing this, counsel will have a much easier way of managing mortal performance and know that there is a certain chance of an objective being completed by a deadline. Below is the Action object that has been constructed for the recreation of the Kelloggs cereal Smart Start Healthy HeartObjectiveExpected DeadlineDepartment Responsible search flowing Customer Satisfaction3 1/01/2013 research DepartmentEvaluate Current Customer Satisfaction15/02/2013Research DepartmentReduce Sugar and Keep Relatively Similar Taste31/03/2013Production DepartmentRedevelop Cereal Box Aesthetics31/04/2013 sell DepartmentDecide on naked Price, Place Distribution31/05/2013 worryDevelop publicizing candidature31/07/2013 centeringImplement Marketing promoteManagementThe higher up Action course of study 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 Stores respective(prenominal) StoresEvaluate CampaignTV Advertising net profit AdvertisingJanuaryFebruaryMarchApril mayJuneJulyAugustS eptemberOctoberNovemberDecember(Above is a Gantt chart of the project schedule for the showtime of 2013.) The table above similar to the table, demonstrates the ad hoc time frame (spanning over 1 year) in which Kelloggs will make 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 be a shortage in supermarkets. Further distribution into certain convenience stores and more exclusive stores are more separated 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 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 expiration so that the advertisement will ta rget 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 appropriate standard. To footfall 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 value product 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 departments moldiness 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 necessitate extra worker s to conduct a keep up on potential customers from a conformation of supermarkets and convenience stores. All the negative feedback will go back to the required departments to save 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 trim 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 lineament of an active lifestyle and appropriate food choices (Elliot, 2012).Bibliography/Reference ListAtkin, C. K. Observation of parent-child int eraction in supermarket decision-making, Journal of Marketing, 42(4), 41-45 Bainbridge, J. 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