Kellogg company is a strong market leader

Kellogg Company is a strong market innovator in the production of cereal and convenience foods. With 2009 reported profits of $1. 3 billion. The business maintains a respected position in the creation of cereal and convenience foods, including cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and veggie foods. THE BUSINESS'S brands include Kellogg's, Keebler, Pop tarts, Eggo, Cheez-it, Nutri-Grain, Rice Krispies, BearNaked, Morningstar Farms, Famous Amos, Special K, All-Brain, Frosted Mini-Wheats, Club and kasha. Kellogg products are created in 18 countries and sold in more than 180 countries around the world. Its global headquarters are in Struggle Creek, Michigan, USA. Kellogg trades under the ticker symbol NYSE. K

This marketing plan is targeted at extending Special K products, one of the numerous Kellogg Company brands. Special K Brand under Kellogg's mother or father company cereal has recorded huge amount of sales since lunch time, hence the extension, to maintain the product at a 'Growth' cycle.

The Analysis of this report was provided in a SOSTAC platform produced by PR Smith, which detailed why, how, when and where, the product brand was to be long with the view to extend market talk about and contend favorably in the UK convenience food industry.

2. 0 Situational Analysis:

Market Summary

The value of the united kingdom cereals market is just about 1. 1 billion per season. Kellogg has a 42% market show of the worthiness of the UK's breakfast time cereal market. Reported income for full time 2009 were $1. 2 billion, or $3. 16 per diluted share, a rise of 6 percent from full-year 2008 of $1. 1 billion. The company has developed a range of products for the segments within this market, directed at all age groups over three years old. As a market leader, it keeps a distinct high quality position within the market. This means that it has self confidence of its consumers and a huge market share.

Special K, under the shape management market segment, was unveiled in UK, October 1999, it is advertised primarily as a diet aid that can be eaten to help one lose weight and stay fit. It frequently has give-away offers for various health and fitness products and contains dieting information on the back of the box.

In the united kingdom, Special K presently comes in ten types

Special K

Special K Red Berries

Special K Crimson Berries

Special K Peaches & Apricots

Special K Bliss Creamy Berry Crunch

Special K Bliss Strawberry & Chocolate

Special K Oats & Honey

Special K Yoghurt

Special K Sustain

Special K Medley

Special K is a successful Product brand of Kellogg. Applying the merchandise life cycle, it is possible visualize different phases of the Special K brand. The merchandise life cycle shows the change of product sales over time.

Customer Analysis:

Special K' cereal and pubs is for everybody and is being used by customers aged 3 and above. The increasing assorted customer's needs lead to the successful collection extensions of the brand. Further to the, are the need for shape management products and the necessity for these products to address the weight and healthy living issue in UK.

Being that Kellogg's company likes brand loyalty and economics of size, Special K No Added Glucose will be added to buying options of existing brand and prospective customers, as a wholesome product located to satisfy this 'Shape Management'emerging market segment. It really is strategically targeted at the weight mindful consumers. This consists of the Obese, overweight, diabetic, runners and generally for everyone as an aid to keep fit.

Competitor Evaluation:

Kellogg's is the marketplace leader and likes a strong position. However, Special K has as its major competitors-ALpen, something brand of Weetamix Company and Weight Watchers, on the condition management and healthy living cereal and bars market.

Applying the porters five forces model, you'll be able to examine Special K's competitive position


Alpen No Added Sugars cereal a product of Weetamix Company

Weight Waters no glucose cereal

Nestle Whole grain-low fat

General Mill's Green Giant-no added sugars.

New product development

Marketing prowess


All existing cereal manufacturers or companies

Start up costs

Cost advantages

Access to distribution channels


Low moving over costs

Available substitutes

Product differentiation

Industry profits


Supplier monopoly

High transitioning costs

Unique product

Importance of provider to buyer

Forward integration threat


Price sensitivity

Advanced knowledge and self-reliance of choice

Drives demand

Own profit potential

Associated savings

Backward integration threat

Marketing Environment:

Applying a PESTLE research, main points will be the socio-cultural, environmental and scientific factors.

Socio-Cultural Factors:

Consumer Orientation/conception: There exists the notion that cereal products and meals are for kids and younger children. This belief has been historically erupted by the interpersonal culture that associates infants with cereals.

Life Style: The rushed and busy lifestyle of consumers in the united kingdom, would impact on the consumption of Special K no added sugars cereal. People, especially the students and working school, scarcely eat at home, but settle for On-the-go junks foods, coffee and fatty refreshments.

Shifts to behavior

Population demographics

Environmental Factors:

The need for Environmentally Ecological business operations from start to finish, which to some extent has cost implication to organizations

Green Issues.

Technological Environmental Factors:

Emergence of new communication programs to reach customers

Improved production processes


Internal Market Environment Audit:


Strong brand/Awareness

Market Leader

Economics of scale

Brand existence and acceptability

Premium product


Customer loyalty

Derived learning curve result -competitive advantage

Product differentiation

Quality functions and procedures


Sales motivated by promo and pricing


Emergent condition management product customer needs.

Special K brand, achieved recognition as an advantage

Opportunity to re-enforce the progress life pattern of the Special K brand

New customers/markets



Price battle with competitors

New ground breaking products

3. 0 Targets: SMART


Extending and widening of Kellogg Special K product line, with the intro of Special K No Added Sugars Cereal in UK.


To increase market talk about by 10%, compete favorably in the fast moving cereal and convenient food industry, and in the end add value to customers and stakeholders. The demand for no sugars added products are on the increase and competition have previously launched into this concept. To meal Special K in to the UK market, which happens to be Europe's most significant Kellogg consuming country.

Achievable- (Objective)

To Lunch break Special K' No added Sweets cereal in July 2010, in a projected one year period.


The Extending of the Special K series is a realizable goal, owing to the actual fact that the Product Brand has been very successful since intro and following a up surge & trendy utilization of healthy low calorie, low fat and No glucose foods. This expansion is also an impressive plan, consistent with Kellogg's corporate and business company eyesight and objective of sustainable expansion.

Targeted Customers: Consumers aged 5 and above. These include individuals-families, Students, Pros. Especially, dieticians, diabetic, Obese, players and young mothers. The Special K No Added Sweets line is a response to growing customer demand.

3. 1 Eye-sight and mission

"Kellogg Company's Vision and Mission claims define their concentrate upon sustainable development, our broadened classification of communal responsibility and the true strength of our company - our people and our brands. "


4. 0 Strategy:

The first strategy in line with the product extension is to make customer awareness to this product offer and then develop more customer bottom part.

Market Penetration strategy: To permeate the prevailing market and gain higher market show, increased brand recognition and raise the Special K product life circuit.

Market Development Strategy: To develop the form management market portion, using the product extension to attract new customer foundation. E. g customers who do not, take in sugar.

Product Development strategy: By the improved recipe, flavour, taste. (No sweets flavor or preference)


Segmentation: condition management sections - Consumers who want healthy, low fat, sugar free cereals. The worthiness proposition here is the healthy meal offer.

Targeting: we are targeting all healthy meals seeking consumers, but with special target to condition management sections.

Positioning: Healthy and Good - Healthy and tasty

5. 0. Practices: The marketing mix exists as a couple of controllable tactical tools used to implement the strategy. The 7 Ps marketing mix catalyses the implementation of your strategy.

Product: Our extension of Special K range and the addition of the No Sugars flavour is a tactical strategy consistent with our mission to fully capture more markets sections and consolidate our consumer networks. New package deal will be introduced.

Place: We will continue with existing value supply and distribution networks to get this to product open to our cherished customers. Special deals will be given the stores that record large syndication. This may further inspire our value stations to get Special k no added Glucose at the marketplace place. Supermarkets, shops, convenience stores and Online.

Price: Market penetration costs will be deployed to get rapid market share, it is because there exists an considerable competition on the market. As well as the cereal market is a sensitive one.

Promotion: These promotional methods will be used to talk effectively to the consumers- Advertising, sales special offers, direct marketing, ditital marketing and personal selling

People: The data marketing team, the IT and Software team, R&D team are involved with co-creating the product. Every person in the business is an integral part of this mission in various perspective. They have been updated with product knowledge to impact the clients.


















22, 000


40, 000

Research Team

Select Advert Agency

30, 000

Marketing Dept

Brief Web Designer

30, 000

IT Dept

Set Up Database

50, 000

Software Dev.


TV Advertising

300, 000

Marketing Dept


100, 000

Marketing Dept

Magazine Inserts

50, 000

Marketing Dept

PR/Sales Promotion

200, 000

Marketing Dept

Digital Marketing

250, 000

Marketing Dept

Step 2

Control: Balance Report Card.

The Balanced Scorecard is a tactical planning and management system, used to align business activities to the eye-sight and strategy of the business, improve inner and external marketing communications and monitor organizational performance against tactical goals.

7. 1 KPIs-Key Performance Signals:

Quality control

Financial results

Marker research

Managing information system

Sales analysis

Service levels

Market talk about analysis

Financial results

CRM-New customers bought, retained

Product awareness

Competitor performance




Performance appraisal of employees

Financial Examination:

Contingency Planning:

50, 000 set aside as financial reserve.

Productive capacity reserve

Safety measures set up should there be any devastation at promotion sites Etc

Critical Reflective Writing:

Learning End result:

The the fact is, I never really had an idea of the gigantic duties or amount of work involved with marketing planning, from begin to finish.

Haven proved helpful in banking businesses for 4 years; I never observed marketing departmental tasks as a challenging one. I will usually think they pretend to be active when they are actually not, as the operations staffs will be the only value adding workforce.

The component marketing planning and its matrix, which I am thrilled to be able to produce a marketing plan, never have only opened my sight and head to wider conceptual, theoretical and useful aspects of marketing. I now appreciate the essence of the lifestyle of different tasks and departments in an company, marketing planning and why it is essential in business-to effectively identify customer needs, create products/market offerings appropriately, in order to increase revenue, earnings, ROI and lessen costs.

Marketing planning I now understand, is a multi faceted, cross-functional activity that details every aspect of the organizational life. I have gained a knowledge of how the marketing- combination interact, to facilitate a rational business decision and reduce the complexity of business operations which ultimately offers a dimension of realism to a company's hopes for the future.

I will go back into work, with a knowledge of the real need for a strategic planning. I will proof learning, and make respected revolutionary effects as a director and perhaps 'A marketing Manager'

It won't be business as standard.

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