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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.

Diesel

tranasctional marketing:

Diesel use three different marketing techniques; Branding, relationships and growth. Diesel are not a household name like Kelloggs but are well known to there target audience.

Diesel are not really known for thier branding in the UK as you probably wouldn't find it unless you looked for it. Diesel do most of there branding in fashion magizines/shows and little adds on social networking sites but that about as big as it gets. This is in complete contrast to many other business's as some would spend millions of pounds on making there brand known worldwide whereas diesel focus on keeping there customers and making themselves bigger through them.

Diesel use transactional marketing which focuses on single point of sale transactions. This maximizies sales and they don't nessaserly focus on devloping a relatiosnhip with the customer.

Diesel's main aim as it is for many other businesses is to grow. Diesel are already well known all around the world and are much bigger in countries other than the UK and have currently got stores in over 30 differnt countries. Diesel wants to grow and there are many ways in which they can: Open more stores and one which they have done recently is target a new market. Diesel have recently targeted women aswell to try and grow and become a big name and by targeting a new market this attarcts more customers this gets the brand advertised by word of mouth espically now women are involved and also more reconised within different target markets.        

Advertising Legislation

The role of the ASA (Advertising standars authority): They are too investigate all complaints made about ads, sales promotions or direct marketing and decide wheather or not it fits in with the advertising standard codes
and if not then it will be heavily investigated.

The ASA investigate many types of ads but not all. The ads they do investigate are :
Magazine and newspaper advertisements 
Radio and TV commercials  
Television Shopping Channels 
Posters on legitimate poster sites
Leaflets and brochures 
Cinema commercials 
These are just a few of the ads that they investigate. If you would like more information then go to : http://www.asa.org.uk/Regulation-Explained/What-we-cover.aspx

Advertising that the ASA do not investigate:
Credit advertising
Discrimination- Race, sex age or disability
Fundraising-
Political advertising
Shop window displays.

These ads are not investigated by the ASA because they are not included in the codes that they investigating therefore they do not carry out an investigation but they will refer you to a different sector where they will deal with your complaint.
If you would like any more information go to-
http://www.asa.org.uk/Regulation-Explained/What-we-cover/Complaints-outside-remit.aspx

A voluntary code- All brands that could be dangerous they agree to the voluntary code: Example we don't have adverts for cigarettes or alcohol.

The drink aware campaign highlights the dangers of alcohol when being misused. The drink aware campaign works with a range of partners to help get key messages across and inform the effects that alcohol can have on you. The campaign is funded by voluntary donations across the alcohol industry which include pub companies and retailors. The charity was set up to help change public behaviour and the national drinking culture. They believe by setting up a charity and providing people with information about the short term and long term effects this will help fight the misuse of alcohol and encourage the streets to be a much safer environment.



The article relates to Kelloggs in a few different ways. Firstly the article states a ban on cartoon characters which will affect Kelloggs as that is how they connect catch the attention of the children and they instantly know the cereal by the cartoon on the front of the box; for example monkey is the symbol for coco pops. Secondly they state that they are going to ban advertising from 6am 9am; these are the hours children are awake therefore again can't connect with them and for example when advertising a new product it's not going to get recognition as it normally would.

The article relates to diesel as they also target the same audience and usally follow the advertising of presenting there models half naked and now a law could come into place and affect diesel's advertising methods. This also might benefit diesel as people/parents might start saying to there children they do not want them using Jack Wills after this and Diesel may gain customers from this.

The sales of goods act: Rules and regulations a business has to abide by if they are going to sell products.
The consumer protection was introduce so that they do not trade unfairly and all traders are honest about the products being sold to consumers.
 A consumer credit consists of a debt that someone takes from purchasing a product of service using a credit card or loan.
Consumer Protection is the truth flowing through the workplace with the consumers. The law was designed to help consumers become victim of fraud.

Kellogss

Kelloggs are a well known household name especially in the UK. Today Kelloggs are a well respected and influential brand and has push forward 40 different cereals which have all been put on the shelves at top retailers.


Kellogg's target market is families and they successfully achieve this by the brand and type of cereal's they put on the shelves. They also keep their customers from a young age; for example parents feeding their children coco pops encourages parents to keep buying it which then leads their children to buy the same cereal for there children when they are older this is called value of a lime time customer.

Kellogg's also use market penetration this is one of four growth strategies designed by ansoft.  Kellogg's use this strategy to become a well known brand they do this by entering/ penetrate a market with existing products. The biggest advantage of doing this is gaining competitors customers and also becoming a bigger well known brand.

Market development targets new customers and also expands the product for better use. Kelloggs use market development to enter new segments of the market; for example developing products for the better into new products to try and gain customers they didn't have.