Unit 3: introduction to marketing
Market Research in action
Introduction
The market research team have given us some research about a product Kellogg’s have designed called Brain Food and would like us to create a market plan for the next year.
What is the overall goal of Kellogg’s?
The overall goal for Kellogg’s is to be the leading manufacturing company for cereal around the world the ways they can achieve their goal would be keeping up with the trends e.g. cereal bars and shakes for consumers on the go. They can also become the leading manufacture for cereal by expanding their market by using market development which is introducing their product into a new market to gain new customers they could also do this by using product development to make a new product in an existing market which could encourage customers to buy new products.
Situation Analysis
Kellogg’s was invented in 1906 by William Keith Kellogg; this was when he first invented the toasted corn flakes company.
Popular Kellogg’s brand corn Flakes was discovered in 1876 by accident this encouraged William to set up and run the company Kellogg’s in 1906 which is the now world’s biggest manufacturer of cereal.
Customer & Consumer Analysis
The new cereal bar Brain Food would be aimed at teenage boys aged 14-19 who would be most probably be facing exams such as GCSE’s, a levels or even driving tests so they would be the ideal target market for brain food.
The customer for Brain food would be a parent buying it for the child who would be the consumer.
Competitor analysis
The strengths of Kellogg’s would be that it is the largest leading manufacture of cereal in the world which have over 400 different successful breakfast products which means that they are experienced when introducing a new breakfast product in new and old markets. Another strength that Kellogg’s have is that it is ambient stable which means that the shelf life of the product is a lot longer where as if it was a fridge based product then it would have an expiry date of 3-5 days.
Whereas the weaknesses that Kellogg’s could face could be things such as the inexperience of entering this sort of market which is based on giving people more energy on the go.
Climate
The political climate wouldn’t affect Kellogg’s at the moment because they have a stable government we have a coalition government which is made up of the conservative party and the labour party.
The economic climate is in trouble at the moment because we are facing a recession because of the euro zone. This is because of places such as Greece, Italy and Spain who have not been paying of their debt which has created a recession.
The social climate could affect Kellogg’s because not a lot of people are eating cereal anymore because there are now things such as McDonald’s breakfasts, subway or even things like cheese on toast something easy and on the go. Kellogg’s will suffer because of this some ways that could help them maybe make a new product such as brain food which is quick, simple and on the go they could also try and reconnect with the public which could encourage them to eat cereal.
Market Segmentation
Primary
· 17-21 year old male, student, single and lives at home.
· They want something quick, simple and high in energy this could be because they may have stopped off at a garage and grab a snack also it is aimed at sporty males so it would give them more energy.
· Ways you could connect with a 17-21 year old male who plays football ad watches television e.g. match of the day, inbetweeners and misfit which they could advertise in the advert time between these programmes.
Secondary
· 14-16 year old male, single, lives at home income £2k a year, parents control purchasing.
· This cereal bar would need to make sure that their product appealed to parents because they will be the customer for people of this age this would encourage teenagers to eat brain food bars because it’s just in the kitchen and would be an easy option to making a bowl of cereal.
· Kellogg’s would have to make their packaging appropriate and appealing to parents so that they buy it for their kids.
· Price sensitivity wouldn’t really matter to a 14-16 year old male because the parents will be buying this and it is the healthy option so most parents would choose it over sugary cereal.
Alternative Marketing Strategies
Alternative was of advertising could be different things as doing different deals for the cinema like orange Wednesdays, sponsoring concerts and festivals like o2 or sponsoring races or motor cross like red bull.
Selected Marketing Strategy - o2 Concerts/ Festivals
This marketing strategy is used to get people familiar with the brand, this could help promote sales because young people would like to get involved with things such as o2 moments which gives people the chance to win free concert tickets or cheaper tickets this may encourage teenagers to go with o2.
Product
The brand name for the product is brain food; I think that they came up with this name to encourage parents to buy this because it increases your concentration throughout the day so a parent may think that by their child eating these bars that it could increase their success at school/college. For this product the packaging will be a plain and simple design which would contain 5 brain food bars inside. The box will have a bright and attractive design but not to over done that a parent would not by it. The product would be of high quality and would be high in fibre and contains little chocolate drops but this does not make it any less healthy. It also contains wholegrain and natural occurring sugars as well as delivering an instant zing followed by a long release of energy throughout the day.
Price
The price of a single Brain Food is £1.29 and for a box of 5 it would cost £5.16 this means that the customer will only be paying for 4 bars which would encourage them to buy Brain Food because the get and extra bar free. In average over a month Brain Food would cost £20.64 this may cost a lot but a parent will defiantly consider buying these bars because it enhances their child’s concentration which could further their education.
Distribution (Place)
With the new product Brain Food we would need to advertise where a mother or father will see because the parents will be the customers and the children will be the consumers. The types of channels we would advertise on would be things like itv, channel 4 and reality channels this is because most parents will watch because of the soap’s and many parents like the reality channels. Also we would advertise on the radio because many adults listen to the radio in the car on the way to work so I also think this may be an effective way to advertise.
When the product is made we will have it sent to all large and small stores around the country, our product has a long shelf life so this may encourage a store to buy it because they can buy more at once for less which is economy of scale.
Promotion
When we are advertising Brain Food we will spend a reasonable amount of money on it we will be advertising with posters, television and through the radio we will also promote our product in schools/college’s canteens to get the teenagers interested as well as their parents.
The public will hopefully connect well with Brain Food because the advantages it has for teenagers in school/ college’s giving them longer concentration through the day and gives the boosts throughout the day.
Conclusion
In conclusion we are promoting the product Brain Food to teenage males aged 14/16 years old our product is aimed at this age because it enhances concentration and gives boosts of energy throughout the day so it is great for any teenagers facing GCSE’s, A levels or any other exam. It is also for everyday use to give you the chance to get more use out of the day with all the extra energy you will be gaining.
