Implementation Of New Product Service Or Process Purpose Marketing Essay

Implementation Of New growth Service Or run Purpose Marketing EssayKELLOGG is the grounds leading producer of cereal grass grass results with list sales volume of nearly $13 billion during 2008. Kellogg overlaps ar construct in 19 countries and commercialize placeed in more than 180 countries around the world. major(ip) Kelloggs crossways include crackers, Toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles and vegetarian foods (http//www.kelloggs.co.uk/ Accessed on March 03, 2011). The keep company famous rats include either- bran, corn flakes, keebler, pop-tarts, eggo, cheez-it, nutri-grain, rice krispies, bearnaked, morningstar farms, famous amos, special K, and ice mini-wh cancel outs.Mission statement Kellogg is a global company committed to edifice commodious growth in volume and realise and to enhancing its worldwide leading invest by providing nutritious food outputs of superior value http//www.kelloggs.co.uk/ Accessed on March 03, 20 11)In a rapidly changing and competitive backing environment, it is not easy to predictfuture tr remnants in consumer tastes and preferencescompetitors actions commercializeplace conditions.Creating impudent products or devising changes to existing betrays involves making investment finiss, in the trust of making a return. Weighing up future returns against an investment is authoritative and involves an element of take hold a chance, because the future is never certain. Previous experience, together with market look information helps to predict future events and outcomes. However, all business activities involve well-nigh element of risk. there is lots a link between risk and return. More the risk, the spiriteder the worryly returns (or profits) however, a rest needs to be struck.In making a decision to overhaul a current brand, it needs to decide how overmuch investment to catch and to forecast the corresponding dragss of a successful outcome. Decision makers aim to take on a long-term strategy to meet a locate of accusatives much(prenominal) as outgrowth market sh ardeveloping a unique market positioncreating consumer or brand loyaltygenerating a targeted level of profit.This drive schooling describes a major investment in Kelloggs All-Bran. It illustrates business case for the in pizzazzated product and identifies how the companys investment in new product development serves to arm a global brand. Later part of the essay allow for glitter an outline plan which identifies resources required for the project that is materials, equipment, labour, and training and development of cater2. LAUNCHING OF KELLOGGs all told-BRAN2.1) NEED IDENTIFICATION AND ANALYSISIn an uncertain world where the organisations strategy is to commission on products and brands that be either the market loss leader or in a strong position the company believes that this focus upon core and successful products enables it to provide consistent and reliabl e returns and rewards for its stakeholders.Before effect with the change, Kellogg carried out nearly detailed market research with consumers to discover their thoughts and feelings. There ar two primary(prenominal) approaches to market research i.e. qualitative and quantitative. soft research involves working in detail with a relatively tiny number of consumers e.g. observing and listening to them talking in small groups in which they discuss the brand, products, packaging, advertising ideas, etc. The qualitative research helped Kellogg to develop the apprehension of a family of fibre brands. The advertising and promotional materials with which the consumer groups worked were very similar to the end promotions that Kellogg wished to communicate.Quantitative research involved using questionnaire and survey approaches with a much larger sample of targeted consumers to estimate the impact on sales if these changes were cast into market. Kelloggs undertook market research by answ ering the questions as per questionaire-1 in vermiform process.In September 2004, Kellogg planned to accede a new product i.e. All-Bran to make the benefits more relevant to consumers. Promotion of feel great message was feature on 8 million packs and on the All-Bran website. It foc apply on the point that in high spirits-fibre diets may help people to feel lighter and more officious as well as aiding the digestive system. Bran which is high in persona is needed in a humans diet. It is best to be utilise in moderation to gain the positive health it promotes. The high bran, high fibre cereal has been designed to aid a rosy-cheeked digestive system and to help people control their morning eating habits without agree on taste Research showed that consumers make cereals as a natural product. This is a strong cheating point. It makes it vital to feature the ingredients on the packaging. This is because All-Bran range buns be seen as part of a daily healthy diet (http//www.t he judgment of convictions100.co.uk/case-studybuilding-brand-order-to-sustain-its- demeanor- circle Accessed on March 03, 2011).2.2) OBJECTIVESBy locatedting up injure (specific, measurable, achievable or agree, realistic and time-related) objectives Kellogg would know whether to each one objective for found All-Bran had been achieved. The objectives were clear and were communicated to all staff. This made sure that all staff agreed to follow certain actions to achieve the stated aims. By setting these objectives Kellogg set a direction that would take the business to where it wanted to be third years into the future.Major objectives includeencourage and support physical action mechanism among all sections of the populationuse resources to sponsor activities and run physical ratified action focused community programmes for its consumers and the public in generalincrease the standoff between Kellogg and physical activityuse the cereal packs to communicate the balance message to consumersintroduce food labeling that would enable consumers to make decisions about the regenerate balance of food2.3) TARGET commercialiseIt is the process of evaluating each market segment and select one or more segments to enter. Premiums and gifts are undischarged tools for call to mind initial trial, brand switching, and repeat purchase. Now and indeed company is able to target because they are financially strong and they can arrange a vast product line. People aged 55 and over are the target markets of Kelloggs every last(predicate) BRAN .Kelloggs ALL BRAN are soft available in urban and rural areas all over the country. It has been targeted all segment and we can say that Kellogg has a fragmented market.Market attractive force constituents for All-bran include market, size, antitheticaliation possibilities, bargaining power of customers, seasonality, distribution, product growth and show in product life cycleMain factors influencing market of a product area) E conomic and technological factors i.e. Investment intensity, Industry capacity, Technology, Barriers to admission and exit and Access to suppliesb) Competitive i.e. competitive structure, competitive groupings, substitute products, price, and one-on-one competitor analysis3. PRODUCT LIFE CYCLEThe product life cycle is the period over which it appeals to customers and can be illustrated in a series of plays showing how consumer interest, and hence sales, has altered over time. Kelloggs All-Bran has a long and distinguished history. Like many other famous products, however, it is important from time to time to re-energize its life cycle. To prolong the life cycle of a brand or product an organisation needs to use skilful marketing techniques to inject new life into the product.The traditional product life-cycle shows how a product goes through with(predicate) and through 4 stages during its life in the market place. At each stage in the product life-cycle, there is a close desce nt between sales and profit so when a product goes into decline, profit decreases. When a product is introduced to the market, growth is slow due to limited awareness. As the product is establishing itself, sales will start to increase during the period of growth. As the product reaches maturity, the company needs to inject new life into the product either by creating brand extensions or variants otherwise the product will reach maturity and start to decline. All-Bran is standing on the maturity stage with 65% of total market share. To stay spirited in the market it needs to introduce time to time new offers and flavors and different promotional schemes. Manufacturing capability is another key issue. If launches of new products are successful in global markets, Kelloggs must have the manufacturing capacity to meet consumer demand as well as the supply chain necessary to reach those consumers.When a company like Kelloggs is investigating a change in its marketing it can consider four elements (http//www.the generation100.co.uk/case-studyusing-new-product-development-to-grow-a-brand Accessed on May 03, 2011) of marketing jumble or 4Ps3.1) PRODUCTThis is about meeting changing needs and wants of customers through offers. The growth in healthier lifestyles creates opportunities for Kelloggs to increase the number of products for this segment. In case of ALL BRAN, the product is the cereal production by the company. Core Product is cereal, for breakfast and as a snack. Actual product is high tone of voice level different tastes, flavors, packaging and the symbol K. Augmented product provides tastes and nothing as well as nutritional ingredients.3.2) PRICEPricing decision is very important because the survival of a company in the market depends upon pricing decision. Pricing strategy depends on pricing objectives. The amount a company charges for its product is important in determining sales. Super brands like Kelloggs can charge a premium because of the strength of the brand and product quality.3.3) PLACEWhere customers can purchase the product is also an important factor in determining sales. If a brand like All-Bran is not stocked with in supermarkets where closely purchases are made, sales will be lost.3.4) publicityThe marketing mix activities of a product planning, pricing, and distribution are performed in the setoff place within the organization or between the organization and its marketing partners. However, with promotional activities, the firm communicates directly with potential customers. Kelloggs uses in a higher place the line promotion like TV advertising as well as below the line promotion like on-pack promotions and sampling. The market research revealed several matters that Kellogg needed to manner of speaking when alerting the public to changes in the brand family.1. Some consumers might get wind the act of placing a range of separate products under the All-Bran brand confusing. The consequence was to ensure that packs clearly display both the power brand break (All-Bran) and also the product name (e.g. Bran Flakes).2. Research showed that consumers see cereals as a natural product. This is a strong selling point. It makes it vital to feature the ingredients on the packaging.3. To give the campaign maximum impact, Kellogg carefully co-ordinated television and radio advertising, PR and in-store promotions. These encouraged consumers to try out and reappraise the revamped products.A products life cycle may last only a few months (e.g. with a fad, or craze) or, as with Special K, for many years. Although it was a successful product, Kelloggs recognised the probability to stretch the brand by investments that wouldrevitalize itextend and further develop its growth phase andHelp to delay the onset of the maturity phase.4. CHARACTERISTICS OF THE trade4.1) MARKETING ENVIRONMENTThis can be divided into two broad(a) categoriesa) Micro EnvironmentThe Micro Environment of the Kellog consists offThe Company has to take other groups or departments of company into account. Such as finance, research and development, purchasing, operation, be department.Suppliers Kelloggs obtains its raw materials of wheat, corn, cocoa, rice and sugar from primary suppliers around the world. It is a big manufacturer and stores sufficient stocks to meet customer orders.Marketing Intermediaries Kelloggs does not sell its breakfast cereals directly to consumers. It uses intermediaries like wholesalers, supermarkets, high street stores and hotels. Kelloggs has major relationships in the tertiary sector. These include the major retail supermarkets such as Tesco and ASDA and some of the wholesale sector such as Makro.Customers The Kelloggs Company mainly focuses on customer market that consists of people aged 55 and over and load conscious people.Competitors Nestle is the only competitor of Kellogg.b. Macro EnvironmentThe orthogonal factors which consider a companys planning and performance, and ar e beyond its control for example, socio-economic, legal and technological change(http//wiki.answers.com/Q/What_is_the_macro_environment_of_Kellogg)There are many environmental issues which should be looked at to get the broader picture of Kelloggs Company. These issues can be grouped into six-spot categories political, economical, social-demographic, technological, legal and ethical. The acronym for this is a Pestle analysis.Political /Legal Environment UK has a stable political environment hence, private enterprise is encouraged, which gives Kellogg an opportunity to introduce new products and improve the existing ones.Economic Environment Economic factors are those that affect consumer buying behavior. As this is an era of great depression, there is a change in the income of the consumer so the sales of Kellogg are affected by this.Natural Environment The natural environment of Kelloggs involves all the natural resources that are needed as inputs by the company and are affected b y market activities. Theyve set themselves a number of targets to meet by 2015, and are constantly checking their progress along the way so they can see how theyre doing. By 2015 they aim to have reduced all of the following by 15-20% per metric tonne of food produced since 2005.Energy useGreenhouse artillery emissionsWater useWaste sent to landfill (For waste to landfill, they achieved a 41.5% lessening by 2009 and have set themselves a new target of a further 20% reduction by 2015 against a 2009 baseline.)Socio-cultural Environment UK has a tradition of eating cereal as a breakfast so Kellogg has got high market.Technological Environment UK has good infrastructure and distribution give which again is highly favorable for Kellogg to grow further.Responding to the Marketing EnvironmentKelloggs has utilize integrated business units and compensation incentive systems to increase the accountability of the capital expenditure and improve the functionality of the organization. Produ cts sales have been increasing in the UK as well as in other countries. The pricing and availability of the product determines the profitability of a product. Streamlining many of the operations in recent times has helped the Kellogg increase the profit margin. More resources could therefore be spent on the marketing and advertisement of products. In addition, Kelloggs also increased the number and oftenness of promotional offers more toys and DVDs in cereal boxes, tie-ins with movies and charitable donations to local schools and charities. In 2002, a new strategy of Volume to Value was introduced throughout the company.4.2) MARKET SEGMENTATION extremityThe process of defining and subdividing a large undiversified market into clearly identifiable segments having similar needs, wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment. aright away Kelloggs is doing its business in get together states, China, India, Indonesia, Jordan, Lebanon, Malaysia, Maldives, United Kingdom, Qatar, Saudi Arabia, Singapore, Sri Lanka, Thailand, United Arab Emirates and Vietnam. In this project we are only discussing its market segmentation in United Kingdom. They are segmenting the market in the form of geographic, demographic, psychographic, and behavioral.All-Bran Original is available in Australia, Somalia, USA, Canada, Colombia, UK, Italy, Mexico, France, Japan, Latin America, and South Africa4.3) MARKET TARGETTING PROCESSAfter dividing the market into assorted segments, the Kellogg Company has to decide which segment it can serve better. So first they evaluated each segments. They want the sets of buyers who share common needs and characteristics to serve. Kellogg mainly used undifferentiated (mass) marketing strategy because cereal will always be mass marketed. They have to do business on large scale leaf so Kellogg Company is using mass marketing.4.4) PRODUCT DEVELOPM ENT PROCESSNew product development process of product starts with idea generation.commercializationProduct DevelopmentMarketing Strategy DevelopmentIdea timesTest MarketingBusiness AnalysisConcept Development scrutinyIdeaScreening5. USE OF native AND EXTERNAL RESOURCESUse of infixed and external resources is crucial in the launch of a new product.5.1) INTERNAL RESOURCESIdea of Kelloggs came fromProduct development teamsFormal research and development (asked consumers through questionnaires )Brains of its executives, scientists, engineers, manufacturing staff and salespeopleCompanies successful entrepreneurial programs (encourages employee to think about new cereal product )Value innovation program5.2) EXTERNAL RESOURCESCustomers (through questionnaires)Competitors (Kelloggs get pinch about their new product by watching competitors ads, analyze the sales, and then decide).DistributorsSuppliers (tell company about new concepts, techniques and materials that can be used to develop new products).6. SWOT ANALYSISSTRENGTHSa) Kellogg All Bran is the only large, very high fibre brand in the market place. Private label provides the main competition.b) The general public remains highly aware of ALL BRANc) The ALL BRAN brand is strong consumers associate it with healthy activity.WEAKNESSa) Awareness of the brand had been declining because of little promotional (e.g. advertising) activity in recent years.b) Compared with leading brands such as Kellogg corn flakes, the individual fibre products have limited scale, making it hard to make advertising investment economic.c) The preposition that a fibre cereal keeps you regular is less motivating to consumers than in the past. Consumers now more implicated in products privileged healthOPPORTUNITIESa) People are looking to eat more healthilyb) The rapid growth of non cereal products that meet inner health need (pro biotic drinks and yogurts)c) In the UK the number of people over 55(the products main consumers) continues to increase.THREATSa) The sales of private labels fibre cereal is growing.b) There is a consumers trend towards the tastier cereal7. CONCLUSIONBy creating the power brand All-Bran and providing the right sort of well researched promotional support, Kellogg has been able to inject renewed vigor into a family of related products. Through appropriate promotional activities and more relevant messages, Kellogg has re-awakened consumers interest in products that can play an important part in developing a healthy diet in a health-conscious world. reparation campaigns of promotional activity are helpful in enabling all organizations to sustain their own life cycle and those of their brands and products. It is early days in evaluating the success of the marketing activity supporting All-Bran but the signs are good.Appendix Primary ResearchSurvey questionnaire-1What changes taking place in order of magnitude are likely to affect the product?How might new technologies affect our business?Wha t are likely to be the future market trends?Where are the opportunities within the market place?What new categories would appeal to the target market?How far do consumers think the brand could stretch into the market for different product categories?Survey questionnaire-21. What is age bracket do you belong to?13-16 yrs17-30 yrs31-39 yrs39 yrs or above2. Which income bracket do you belong to?GBP 50-200GBP 200-500GBP 500-1000GBP 1000 above3. What is your marital status?SingleMarried4. What is the brand of the cereal that you unremarkably purchase?NestleKellogg5. Is ALL BRAN your favorite cereal?YesNo6. How often do you purchase cereal?EverydayOnce a hebdomadOnce a month7. Please rank accordingly to the characteristics of ALL BRANSa) Taste b)Price c) Flavor d) Packaging1=least preferred 5=most preferred1 2 3 4 58. Do you like the ads of ALL BRAN?YesNo9. What flavors of Kellogg do you like the most?Corn flakesAll branRice kripsiesSpecial K