kellogg marketing strategy
DESCRIPTION
It is never enough for business to sell good products under the attractive prices. To make sales and profit, benefit from products should be informed to clients. In marketing, it is usually known as «promotion ". Promotion is all about the companies keeping in contacts with clients. The full programmed communications of marketing of business name " assisting connection " and will consist of a mix of advertising, sale of the personnel, commercial promotion and tools of communications with general public. These strategies are accepted by the organizations: Kellogg and Tesco and they have achieved tremendous success and growth the last decade.TRANSCRIPT
Introduction
It is never enough for business to sell good products under the attractive prices. To make
sales and profit, benefit from products should be informed to clients. In marketing, it is usually
known as «promotion ". Promotion is all about the companies keeping in contacts with clients.
The full programmed communications of marketing of business name " assisting connection "
and will consist of a mix of advertising, sale of the personnel, commercial promotion and tools
of communications with general public. These strategies are accepted by the organizations:
Kellogg and Tesco and they have achieved tremendous success and growth the last decade. In
this work, four key elements of assisting connection are described in more detail. It is useful to
define four main elements of assisting connection before consideration of their forces and
restrictions.
Advertising
Any paid form of impersonal communication of ideas or products in “the main mass-
media ": that is TV, newspapers, magazines, emblems of a bulletin board, radio, cinema, etc.
Advertising is intended to convince and inform. Two basic aspects of advertising are the
message (that you want that your communication has told) and environment (as you receive your
message across)
Personal Sale
Oral communication with potential buyers of a product with intention to make sale
through personalized efforts is widely called personnel selling. The personnel, selling can
originally concentrate on development of relations with the potential buyer, but always will
come to an end finally attempt “to close sale “.
Commercial Promotion
Maintenance of stimulus to clients or on the channel of distribution to stimulate the
demand on a product by commercial approach is widely called Commercial Promotion.
Advertising
Communication of a product, brand or business, placing the information on it in mass-
media, not paying during time or a place of mass-media directly is otherwise known as
communications with general public or public relation.
1. Advantages and Disadvantages of Each Element of the Promotional Mix (P2)
Mix Element Advantages Disadvantages
Advertising Good for building awareness
Effective at reaching a wide audience
Repetition of main brand and product
positioning helps build customer trust
Impersonal - cannot answer all a
customer's questions
Not good at getting customers to
make a final purchasing decision
Personal Selling Highly interactive - lots of
communication between the buyer and
seller
Excellent for communicating
complex / detailed product information
and features
Relationships can be built up -
important if closing the sale make take
a long time
Costly - employing a sales force has
many hidden costs in addition to
wages
Not suitable if there are thousands of
important buyers
Sales Promotion Can stimulate quick increases in sales
by targeting promotional incentives on
particular products
Good short term tactical tool
If used over the long-term,
customers may get used to the effect
Too much promotion may damage
the brand image
Public Relations Often seen as more "credible" - since Risk of losing control - cannot
the message seems to be coming from
a third party (e.g. magazine,
newspaper)
Cheap way of reaching many
customers - if the publicity is achieved
through the right media
always control what other people
write or say about your product
Kellogg is the world leading supplier of a grain cereal of a breakfast with 39 brands and
42 %-s' shares in the British market. Success at Kellogg is achieved with the help of carefully
planned strategy. It establishes the clear purposes and the purposes and uses force of its brands to
help this to achieve them. Kellogg operates its brands to guarantee, that everyone has unique
position in minds of its clients. It names an arrangement of a product. Kellogg has developed a
range of products for various shares of the market of grain cereals of the Great Britain for 1.1
billion £.
1.1 Development of Aims and the Objectives for Promotion of Goods
Managers at Kellogg understand that their purpose should correspond to expectations of
consumers. The consumers maintained by research and publicity, more and more want a message
more healthy way of life. Kellogg wanted to be a part of this debate, and to advance the message
' Receive the Right of Balance '. Also it is required to show, that it was the responsible
organization. This idea concerning the corporate responsibility also has been built in planning.
As soon as the wide purpose is established, managers then establish definite purposes
which can be measured. The purposes should be SMART.
That is certain, measurable, achievable, realistic and time concerned. The purposes have
been established in three main areas:
* Encouraging and advancing physical activity for health
* Use of packing to advance a measure of the balanced way of life
* Use of brands of the foodstuffs to help consumers makes choices.
1.2 Strategy
Strategy is a set of the plans developed to cause specific result. Kellogg worked with
Association of Amateur Swimmers (ASA) with 1997. The purpose of ASA is, it is close to those
Kellogg as they want that everyone ' liked to float as a part of a healthy way of life '. Swimming
is also activity of family and ' skill for a life '. Kellogg became the main sponsor of swimming
events in the Great Britain, sponsored more than 1.8 million competitions in one year.
Communication with ASA also has helped Kellogg to support active way of life through other
organizations. For example, it has development, driving on a bicycle based promotion with
Sustrans, conducting viable transport association of the Great Britain. It also encourages going.
Free pedometer promotion with All Bran has inspired people to go further, and Kellogg
sponsored other events of walking and action. In the field of packing and marks of the
foodstuffs, Kellogg uses symbols, showing the healthy Instruction Daily Quantities Components
such as salt, sugar and fat to help consumers to make choices.
1.3. Communication
Success of Kellogg in achievement of its objectives occurs because of effective ways
with which it has supported communication with clients. For example, it uses characters of
animations to inform and to advise to children and parents about importance of exercises. It also
has made advertising the leaflets and has made their accessible on its website. Internally,
Kellogg uses internal magazine to advance the message.
2. Kellogg's and the marketing mix (D1)
With annual turnover from more than 4.5 billion £, Kellogg is the world leading
manufacturer of products of a grain cereal and foodstuff of convenience, such as cookies,
crackers and the frozen wafers. Its brands include Flakes of the Grain, a Nutri-grain and Rice
Krispies.
Kellog is the global organization, Its products are made in 19 countries all over the world
and sold in more than 180 countries. In uncertain world, where strategy of the organization will
be to concentrate on products and the brands which positions the market leader or in strong
second position, the company trusts, that this center on the basic and successful products allows
this to provide consecutive both reliable returning and the award for it not a disputable property.
When the company it is similar to which Kellog's investigates change in its marketing, it can
consider four elements. They are known as connection of marketing or 4Ps:
A product
This element concerns, as offers of the company to meet changing requirements and needs
from clients. Growth in more healthy way of life creates opportunities for Kellogg to increase
number of products for this segment.
The price
The amount which the company charges for its product is important in definition of sales.
Super brands, it is similar that Kellogg can to charge the premium because of force of quality of
a product and brand.
A place
Where clients can buy a product and it is also important factor in definition of sales. If brand
it is similar Special K it is not supplied in supermarkets where the majority of purchases is made,
sales will be lost.
Promotion
The message suitability of products is essential for sales which will be made. Uses
Kellogg are higher than on promotion line similar to advertising of TV just as below promotion
to a line is similar an on - package to promotions and to realization of sample.
In consideration Special K, the company has concentrated on change products through
new variants. Though Specially K there was already known brand, its full potential has been
never achieved. It was considered as an independent product, and Kellogg has not created any
variants or expansions brands to develop the basic product. (W. K. Kellogg Foundation, 2010)
Managers can solve when to make key, changes on the basic product, analyzing its
position within the limits of a cycle of a life of a product. The analysis of a cycle of a life
recognizes, that products have a final life, and analytics chart of performance of products
through some stages, from its start up to various stages of growth while it does not achieve a
maturity and finally to decrease.
The life cycle of a product can last only a few months (for example with folly, or general
hobby or as with Special K, it is a lot of years. Though it was a successful product, Kellogs
recognized an opportunity to stretch mark investments which will be:
Recover it
Expand and further develop stage of growth
Help to detain the beginning of a maturity.
Kellogg has been convinced that such investments will help to support force of brand in
quickly changing market.
3. Promotional Campaign (P1)
Kellogg produces 42 % value of grain cereals “ready is” used in the Great Britain, by
producing it is the market leader. Kellogg divides its markets into six shares so that marketing
could be pursued. They include “the Tasty Beginning” such as Flakes of the Grain and the Crust
Nut, «Management of the Form " such as Special K, «Approved Mum " type Rice Krispies and "
Internal Health ", such as All - bran.
3.1. Promotion
Effective marketing mix has four elements. The good product, easily accessible under the
correct price is required. Promotion allows consumers to know assistance, that the product exists
and encourages them to buy it. Methods of promotion include advertising, communications with
general public, price reductions and special offers. To promote Kellogg have three key elements
which should work together. They involve the consumer, the advertising message, strong and
encourage selling at retail trade to support a case.
3.2 Effective promotion
Recent two effective assisting 'events' illustrate, as how these elements are brought
together. The first pursued the market of family, using characters from ТМ of Star Wars. It
involved 30 second advertising TV, the dialogue support, assisting packages with free gifts and
communications with start of the ending of cinema Is old. Kellogg observed changes in its
market to measure success of this campaign. It saw, that its share in the market " ready is " for
participating marks in sector of family has raised from normal 40-45 % up to 53 %, and more
than 800000 additional domestic facilities have bought one of the Stars Wars TM brand.
3.3 Above and below a line
Above the lines promotion is directly paid for to advertise type in press and on TV. Below the
lines the charge includes all other methods such as the competitions, special offers and public
relation. Objectives of kellogg aims at below a line is to charge in both consumers and retail
trade. For example, promotion, Star War TM included the offers added by value brought in
consumers through trading and special inserts of a package for the consumer.
3.4 Kellogg starts an cartoon advertising campaign for Special K
LONDON - the Giant of a grain cereal of breakfast Kellogg operates an advertising
campaign across 6m packages of its skim Special mark K.
The promotion aims to drive women interested in lifestyle issues to a dedicated website
focusing on fashion and beauty, food, interior design, salsa dancing and travel. Visitors of a site
are capable to unload the coupon of the discount for a grain cereal and to answer, that the choice
of questions on their personal tastes which will be entered into a prize draws to win a holiday ,
worth 2000 .
The review also is allocated with state of Angels of Office and the British Association of
Therapy of Beauty and members of Cosmetology to their clients together with typical packages
Special K Red Berries.
4. The aims and objectives of Tesco (M1)
Tesco similarly to any other company has objectives and the aims which they create and
try to meet within the limits of time of a set. Operating at such large scale demands, the clear
path for full of success and to sustain market position, therefore Tesco has obviously taken the
purposes of settlement and the objectives as a serious problem. Clearly Tesco was successful,
and I believe, that it was through settlement ' SMART ' the objectives, which have provided first
the company with a clear path on, where they want to go, and each store with a path that they
should make to meet full objectives Tesco as a whole. It is realistic in the today's modern world
there are now more needs to concentrate on other factors than only financial for the company to
be successful. The companies should estimate ethical factors just as the client has concentrated
factors and to investigate, how to execute them.
5. Concept of Marketing Mix (M1)
The concept of marketing mix is in the best way described demanding, that it is " a set of
controlled variables of marketing, which the firm mixes to make the answer which is required in
the target market. " It is made of four Postscripts: a product, the price, a place, and promotion. In
context Tesco, their entrance in the Chinese market should adapt considerably to culture of
consumers in the mentioned site. However, the company should take in; mean the basic
standards to which their company adheres. Changes in a condition of services in terms of four
Postscripts should not deviate completely to the standards peculiar to the company. The previous
discussions show offers of the researcher. (Business Studies Exam Paper,2010)
A product
Management Tesco should allocate strategy of development of a product as soon as they
have taken under the control their shop in China marketing their existing products, exporting
products in various areas of the country and in so performance urgent forward on possible
opportunities of increase of market penetration of the company and a market share. Tesco should
consider to restoration or revision of models of their products to provide the Chinese clients, that
they want and what they require. In this way, Tesco could develop own products of mark of a
store which could be marketed strategically within the limits of territory of China.
The price
Looking at situation Tesco, one way which it could get advantages of cost, increasing
efficiency duties of process, expanding exclusive contact to the big supplier is lower than
materials of cost, or avoiding several expenses in general. If the competing organizations in the
country are unable to lower their expenses for comparable quantity, Tesco will be capable to
support of competitive advantage, anchored leadership of cost.
A place
To develop its success in its retail actions, Tesco should make millions-strong
investments of pound into expansion of stores in areas with the low income and vicinities.
Becoming involved with is similar - inclined public and groups of a private sector it is similar to
local community based associations, colleges, and chambers of commerce, Tesco it will be
capable to open sites in poor areas in China. Planning of these areas will allow the company to
receive trust local stars and advantage increases benefits from local authority, providing
employment to local residents.
Promotion
Approach Tesco should make the old strategic plan, which is focused on manufacture of
value to expand loyalty of their clients which consider preservation of well combined central
Chinese business, so to connect in not food as food products and services, to develop globally
and to establish a sphere sliding at retail of services is similar to dialogue visiting of shop.
Finally to say that object of marketing mix will be to satisfy the client. That Tesco should make
should know in basically needs of the client for their target country. However, the company
should not concentrate on simple knowledge of needs of consumers. It also should expand good
relations with them, guaranteeing a competent condition of its product and services. Alongside
with them is a condition of suitable service which cares the client to strengthen their satisfaction.
(Tesco Marketing Mix, 2010)
6. Promotional Campaign by Tesco (D1)
Tesco in the beginnings has launched a new advertising campaign to advertise local
choice milk. The announcements of TV playing leaguing role Martin Clunes and Fay Ripley
already appear on screens of TV. The retail seller also has taken out a number of announcements
with one page in national newspapers last week. Kari Daniels, the cooled director of a category
of the foodstuffs for Tesco, has told, that clients have told the companies that they wanted, that it
was easier to buy the local foodstuffs. “This last advertising campaign strengthens our obligation
to 'local choice' and distributes a word to a lot of clients which they now have chance to support,
through their own decisions of purchase, an agriculture which they want to sustain in the future.
However, DFoB expected, that volumes will increase as a result of heavy promotion
which Tesco carried out. “Tosco spends money for this promotion so sales will collect, and it
means, that we should be capable to receive more the involved farmers,” he has told. “It would
be desirable to hope, it gathers messages to the big and best things.” 'local choice' is priced under
higher price than standard milk and suppliers of the farmer receive retails of milk about 23p/litre.
There are 14 accessible versions: Dorset, Devon, Cornwall, Somerset, East Anglia, Northern
East, the Southern East, the Southwest, Heart of England and Wales. (Buckley, Neil, 1995)
Conclusion
The analysis of marketing mix is a fundamental step to effective strategy. Where other
analysis is more connected to an environment and the analysis of feasibility, 4 P's, Post scripts of
marketing, including a product is direct, an estimation, accommodation and promotion are four
wheels of a vehicle on which the path of success of marketing of the organization actually
depends.
Advertising campaigns use a range of channels to help kinds of commercial activity to
achieve clients with their messages. In business in (B2B) the markets, commercial methods of
promotions and higher lines of campaign are not used extensively. Tesco does not invest in
television campaigns, radio-announcements or the big newspaper announcements. Its promotion
works around of needs of large-scale professional buyers. These customers need information
about Tesco products and the benefits these can offer their organizations. They need confidence
that the company is reputable and can deliver on its promise. Tesco focuses on providing
customers with accurate and timely information through its own magazines and its website. It
takes care to develop promotional campaigns that target customers through direct mail and
email. Tesco assesses its promotions Carefully. It measures the volume of business generated by
each promotional campaign to evaluate whether it has met targets Successful kinds of
commercial activity use all tools at their order to remain above their chosen market. Kellog was
capable to use set of business tools that it is successful to launch brand of a Nutri-grain. These
tools included a cycle of a life of a product, Ansoff’s matrix and connection of marketing. Such
tools are useful when is used properly. Kellogg was capable to see, that though the Nutri-grain
satisfied its strategic structure - the healthy, convenient product of a grain cereal is was
underperforming in the market. This information was used, alongside with the purposes and the
purposes of business, to develop strategy to continue success. At last, when Kellogg checked
growth and restarted products against its own purposes, it has met all purposes: Repositioning
the brand with the help of marketing, mix up, to come back, the brand to growth, improves
frequency of purchase, represents new clients to brand.
References
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(accessed March 19, 2010)
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