Marketing Proposel For a Product - Research Proposal Example

Marketing Proposal for a Product 1. Executive Summary The Kellogg Company or Kellogg’s offers various kinds of products to its valuable customers. The company must implement the strategy of marketing mix and targeting in order to market its product of Special K. The company can target especially the women and geographic markets for the product. In order to market the product, the company would have to devise certain effective implementation plans that include conducting surveys, meetings and analyzing the products of the competitors. The aforementioned strategies and the plans would ultimately support the company to effectively market the product of Special K. 2. Company Description The Kellogg Company which is prominently acknowledged as Kellogg’s or Kellogg is regarded as a multinational company that manufactures various food products such as vegetarian foods, crackers, cereal along with convenience foods and snacks among others. The official headquarter of the company is positioned in Michigan, United States. The different products of Kellogg’s are produced in 18 countries and promoted in excess of 180 nations. Kellogg’s started its production as Kellogg’s Corn Flakes in the year 1906 and significantly developed a product line of well-known readymade cereals over the years that comprise Kellogg’s All –Bran, Complete Bran Flakes and Rice Krispies among others. It has been apparently observed that Kellogg’s arrived into the business of health food that manufactures significant number of products which are sold in different markets. Consequently, the company is earning considerable profits through its effective production as well as packaging strategy (Brown, Keegan, Vigus, and Wood, “The Kellogg Company Optimizes Production Inventory, and Distribution”). The vision of the company is to deliver quality products for making the world healthier. The main objective of the company is to provide healthy nourishment to every members of a family throughout the globe so that they can lead healthy life ahead (Kellogg Co., “Staying Focused. Going Further”). The various environmental initiatives as well as focusing upon different sustainability aspects ultimately supported the organization to attain success in this competitive marketplace (Michman & Mazze 127). 3. Environmental Analysis Political The production of agricultural products provides certain risks and uncertainties for the organizations intending to sustain in this competitive financial market. . Kellogg’s efficiently performs its business operations in different regions throughout the globe. It has been observed that varied government policies as well as regulations imposed unfavorable impact upon the company that ultimately affected its decision-making procedure by a significant level. The production, marketing and distribution of the food products that are exposed to governmental regulations are increasingly becoming complex day by day. Apart from the dissimilar governmental policies and regulations, certain other factors within the political context such as licensing requirements, trade as well as pricing practices and environmental factors also laid significant impact upon the operations of the company. Moreover, the increment in tariff rates comprising value added taxes also had an immediate effect upon the business operations of the company (Kellogg Company, “Risk Factors”). Economic It has been viewed that McDonald’s performs its operational functions in different regions throughout the globe. The company fixes the prices of its products by taking into concern the economic situation of the countries where it operates. The company strategically fixes the prices of the products in order to increase its sales volume along with profit margins (Kellogg Company, “Risk Factors”). It is worth mentioning that the economic conditions of an organization depends mainly depends upon certain significant factors that include interest rates, conversion of currency and tariff rates among others. It has been observed that due to economic instability as well as disruptions in certain regions, the company is facing considerable problems that are affecting their business at large (Kellogg Company, “Risk Factors”). Socio-Cultural In the social context, McDonald’s focuses upon the approach of performing Corporate Social Responsibility (CSR) activities for promoting its business as well as delivering healthy and nutritional breakfast to millions of people especially the children. By taking into concern the socio-cultural factors, initially, the company targeted the school children for effectively marketing its different products. But due to increased competition, the company now targets entire family members along with the children. Thus, it can be stated that the company has intended to evolve the eating habits by a significant level (The Times 100, “Supply chain from manufacturing to shelf”). Technological In order to compete with the competitors and to enhance operational activities, Kellogg’s introduced highly featured computerized systems as an innovative technology in its several restaurants that ultimately made the company to serve its customers effectively. In this similar context, the company progressively depends upon the technological aspects for processing and storing different business related information that would help them to attain sustainable competitive position over its major business market contenders (Kellogg Company, “Risk Factors”). Competitor Analysis The company faces stern competition across the market that includes readymade cereals and other similar foods that keeps on changing according to the demands of the customers. The immense competition ultimately made the company to decrease the prices of its different products, increase investments and plan as well as organize effective marketing strategies The major competitors of Kellogg’s has been identified to be General Mills and Kraft Foods among others (Kellogg Company, “Risk Factors”). Legal Kellogg’s had to follow certain government regulations as well as guidelines while operating its business functions in different parts of the world. The company had to pay much concentration upon following the government regulations of different countries relating to ingredients, health, storage and most importantly labeling. The company intends to follow the government guidelines concerning the aforementioned factors in order to perform its operational functions efficiently. Thus, it can be stated that the legal factors had made the company to stress more upon developing its business processes relating to heath and ingredients among others (Kellogg Company, “Risk Factors”). 4. SWOT Analysis Strengths One of the major strengths of Kellogg’s is that it possesses greatest brand recognition due to its product uniqueness, attractive price and better quality. From the perspective of market size, the company controls significant portion of market share as compared to its competitors (Scribd Inc., “SWOT Analysis”). Weaknesses One of the major weaknesses of Kellogg’s is that it does not aggressively develop its product lines. Another weakness of the company can be identified as following the pricing strategy instead of making plans for continual product development (Scribd Inc., “SWOT Analysis”). Opportunities From the perspective of market size and stability, internal expansion can be one of the important opportunities of Kellogg’s. Moreover, performing operational functions in the new regions would make the company to comply with various government regulations. Besides, the introduction of innovative technologies such as computerized systems would support the company to enhance its operational effectiveness at large (Scribd Inc., “SWOT Analysis”). Threat The number or the size of the competitors can be considered as one of the major threats for the company by a considerable level. In this regard, General Mills and Kraft foods are performing well in the business markets (Scribd Inc., “SWOT Analysis”). 5. Marketing objectives The vital marketing objective of Kellogg’s is to provide healthy as well as nutritional products to its valuable customers. Moreover, the other significant marketing objectives of Kellogg’s include strengthening its product lines, accelerating the expansion of global businesses, continuing to lessen costs and most importantly accomplishing significant competitive position over its major business market participants (Scribd Inc., “SWOT Analysis”). 6. Marketing Strategy In order to market the product of Kellogg’s Special K, the company would have to focus upon developing effective marketing strategies that include marketing mix and targeting strategies. In this similar context, the strategy of targeting would support the company to identify its potential customers to whom the company desires to sell the product of Kellogg’s Special K. Conversely, the strategy of marketing mix would assist the company to determine the price, product distribution as well as advertisement and the nature of the aforementioned product. Target Markets From the viewpoint of targeting strategy, the company can target especially the women belonging to 25 to 45 years. This is owing to the fact that the product i.e. Kellogg’s Special K contains the ingredients like calcium, rice, Vitamin C, Vitamin E and iron among others that are quite beneficial for women. In order to identify the target markets, the company can executed the strategy of differentiated marketing. This marketing strategy of differentiation would enable the company to take appropriate decisions regarding the offering of the product to each various business market segments. Kellogg’s can make use of differentiation strategy for the purpose of identifying its target markets along with raising sales by a significant level (Scribd Inc., “Kellogg and New Product Innovation”). Marketing Mix The strategy of marketing mix would ultimately help the company to comply with the requirements as well as the preferences of the customers, attain marketing goals or targets and most importantly generate competitive advantage. In general, the aspect of marketing mix comprises 4Ps that include promotion, product, price and place. Product This particular aspect of marketing mix strategy would aid the company to comply with the desires as well as the preferences of the customers by a considerable level. The company needs to develop the product i.e. Kellogg’s Special K in such a way so that the product would align with the healthier lifestyles of its customers. Moreover, the company should substantially invest large amount of money towards developing the product with the intention of increasing more products relating to this segment (The Times 100, “Case Studies”). Price It is quite vital for Kellogg’s to determine its product price that would help the company to evaluate its sales. The company can charge high price for the product that is to be served to the customers as it bears strong brand image, business reputation and product quality. This particular aspect of marketing mix i.e. price would support the company to attain substantial revenues (The Times 100, “Case Studies”). Place Apart from pricing, the place or location is also regarded as another significant factor that would aid the company to assess along with determining its sales at large. The product i.e. Special K is to be launched in various markets at an affordable price, so that the customers can buy the products by a greater extent. It is required for the company to launch the products in different business segments for increasing sales and enhancing profitability (The Times 100, “Case Studies”). Promotion Building communication regarding the accessibility of the product i.e. Special K, effective promotion is required. In this regard, the company can use TV advertising for promoting the aforesaid product (The Times 100, “Case Studies”). 7. Implementation Plan In order to execute the aforementioned marketing strategies, the company needs to make certain effective plans. For instance, the company can indentify its target market by conducting proper market survey. In relation to the marketing mix strategy, the company can design and price the product i.e. Special K in accordance with the preference of its identified customers. Regarding promotion, the company can arrange a meeting amid the different professionals belonging to the company. Moreover, the company can seek for proper distributors and suppliers by whom they can supply the product in the identified target market (The Times 100, “Case Studies”). 8. Evaluation and Control After devising effective plans in implementing the marketing strategies, it is required for the company to assess whether the product that would be marketed has properly maintained all the requisites or not aligning with the company’s objectives. Moreover, it is required for the company to conduct a market survey in order to understand the requirements as well as the desires of its valuable customers. In addition, the company also requires evaluating the satisfaction level of the customers in order to increase its business performance by a considerable level. Besides, the company is required to view and analyze the competitors’ products and devise effective business strategies in order to attain significant competitive position over them. Furthermore, a proper discussion is needed among the members of the company to provide better quality products to the customers that can enhance the productivity as well as the profitability of the company at large. 9. Works Cited Brown, Gerald, Keegan, Joseph, Vigus, Brian, and Wood, Kevin. The Kellogg Company Optimizes Production Inventory, and Distribution. Informs, Dec. 2001. Web. 11 Dec. 2012. Just-Food. Kellogg Company (K) - Financial and Strategic SWOT Analysis Review, 2012. Web. 11 Dec. 2012. Kellogg Co. Staying Focused. Going Further, 2012. Web. 11 Dec. 2012. Kellogg Company. Annual Report, 2009. Web. 11 Dec. 2012. Michman, Ronald D, and Edward, M Mazze. The Food Industry War: Marketing Triumphs and Blunders. United States: Greenwood Publishing Group. Print. SlideShare Inc. SWOT Analysis, 2012. Web. 11 Dec. 2012. Scribd Inc, “SWOT Analysis, 2012. Web. 11 Dec. 2012. Scribd Inc. Kellogg and New Product Innovation, 2012. Web. 11 Dec. 2012. The Times 100. Supply Chain from Manufacturing to Shelf, 2009. Web. 11 Dec. 2012. The Times 100. Case Studies, 2012. Web. 13 Dec. 2012. Read More