Kellogg company is a strong market leader

Kellogg union is a strong commercialise leaderKellogg corporation is a strong mart leader in the production of texture and convenience foods. With 2009 reported earnings of $1.3 billion. The company maintains a leading position in the production of caryopsis and convenience foods, including cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and veggie foods. The Companys brands include Kelloggs, Keebler, Pop tarts, Eggo,Cheez-it,Nutri-Grain,Rice Krispies,BearNaked,Morningstar Farms,Famous Amos, sp are K,All-Brain,Frosted Mini-Wheats,Club and kasha. Kellogg products are manufactured in 18 countries and marketed in to a greater extent than 180 countries around the world. Its global headquarters are in Battle Creek,Michigan,USA. Kellogg trades under the ticker symbol NYSE.KThis marketing plan is aimed at extending peculiar(prenominal) K product line, unmatched of the many Kellogg Company brands. supererogatory K Brand under Kelloggs parent company cereal has recorded huge amount of sales since lunch, hence the extension, to maintain the product at a Growth cycle.The Analysis of this report was presented in a SOSTAC framework developed by PR Smith, which precise why, how, when and where, the product line was to be extended with the view to expand market share and compete favorably in the UK convenience food industry.2.0 Situational Analysis securities industry SummaryThe value of the UK cereals market is around 1.1 billion per year. Kellogg has a 42% market share of the value of the UKs breakfast cereal market. Reported earnings for mount year 2009 were $1.2 billion, or $3.16 per diluted share, an increase 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, targeted at all age groups oer three years old. As a market leader, it maintains a distinct premium position within the market. This means that it has confidence of its consumers and a large market share.Special K, under the shape way market segment, was introduced in UK, October 1999, it is marketed 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 UK, Special K presently comes in ten varietiesSpecial KSpecial K Red BerriesSpecial K Purple BerriesSpecial K Peaches ApricotsSpecial K enjoyment Creamy Berry CrunchSpecial K Bliss Strawberry ChocolateSpecial K Oats HoneySpecial K YoghurtSpecial K SustainSpecial K MedleySpecial K has been a successful Product brand of Kellogg. Applying the product life cycle, it is possible take in the different stages of the Special K brand. The product life cycle demonstrates the change of product sales over time.Customer AnalysisSpecial K cereal and bars is for everyone and is being consumed by clients aged 3 and above. The increasing varied customers demand s lead to the successful line extensions of the brand. Further to this, are the need for shape heed products and the need for these products to instituteress the weight and healthy living issue in UK.Being that Kelloggs company enjoys brand loyalty and economics of scale, Special K No Added Sugar leave alone be added to buying options of existing brand and prospective customers, as a healthy product positioned to satisfy this Shape Managementuphill market segment. It is strategically targeted at the weight conscious consumers. This includes the Obese, overweight, diabetic, athletes and generally for everyone as an aid to keep fit.Competitor AnalysisKelloggs is the market leader and enjoys a strong position. However, Special K has as its major competitors-ALpen, a product brand of Weetamix Company and Weight Watchers, on the shape management and healthy living cereal and bars market.Applying the porters five forces model, it is possible to analyze Special Ks competitive positionE XISTING RIVALRYAlpen No Added Sugar cereal a product of Weetamix CompanyWeight amniotic fluid no sugar cerealNestle Whole grain-low fatGeneral Mills Green Giant-no added sugar.New product developmentmerchandising prowess nemesis OF NEW ENTRANTSAll existing cereal manufacturers or companiesStart up costsCost advantagesAccess to distri just nowion channelsTHREAT OF SUBSTITUESLow faulting costsAvailable substitutesProduct differentiationIndustry profitsSUPPLIERSSupplier monopolyHigh switching costsUnique productImportance of supplier to vendeeFor struggled integration threatCUSTOMERSPrice sensitivityAdvanced knowledge and independence of choiceDrives demandOwn profit potentialAssociated savings half-witted integration threatMarketing EnvironmentApplying a PESTLE analysis, main points are the socio-cultural, environmental and technological factors.Socio-Cultural FactorsConsumer Orientation/perception There exists the perception that cereal products and meals are for kids and younger children. This perception has been historically erupted by a social culture that associates babies with cereals.Life Style The rushed and busy lifestyle of consumers in the Uk, would rival on the consumption of Special K no added sugar cereal. People, especially the students and working class, hardly eat at home, but behavetle for On-the-go junks foods, coffee and fatty drinks.Shifts to behaviorPopulation demographicsenvironmental FactorsThe need for Environmentally Sustainable business processes from start to finish, which to some extent has cost implication to organizationsGreen Issues.Technological Environmental FactorsEmergence of new-made communication channels to reach customersImproved production processesAutomationInternal Market Environment AuditSTRENTHSStrong brand/ kenMarket LeaderEconomics of scaleBrand presence and acceptabilityPremium productCapitalCustomer loyaltyDerived learning curve number -competitive advantageProduct differentiationQuality processes and proc eduresWEAKNESSSales driven by promo and pricingOPPORTUNITYEmergent shape management product customer needs.Special K brand, achieved awareness as an advantageOpportunity to re-enforce the growth life cycle of the Special K brandNew customers/marketsTHREATSCompetitorsPrice war with competitorsNew innovative products3.0 Objectives SMARTSimpleExtending and expanding of Kellogg Special K product line, with the introduction of Special K No Added Sugar Cereal in UK. measuredTo increase market share by 10%, compete favorably in the fast moving cereal and convenient food industry, and ultimately add value to customers and stakeholders. Currently the demand for no sugar added products are on the increase and competition have already launched into this concept. To lunch Special K into the UK market, which is currently Europes largest Kellogg consuming country.Achievable- (Mission)To Lunch Special K No added Sugar cereal in July 2010, in a projected one year period.RealisticThe Extending of t he Special K line is a realizable goal, owing to the fact that the Product Brand has been very successful since introduction and following the up surge voguish consumption of healthy low calorie, low fat and No sugar food items. This extension is also an innovative plan, in line with Kelloggs corporate company hallucination and military mission of sustainable growth.Targeted Customers Consumers aged 5 and above. These include individuals-families, Students, Professionals. Especially, dieticians, diabetic, Obese, athletes and young mothers. The Special K No Added Sugar line is a response to emerging customer demand.3.1 Vision and missionKellogg Companys Vision and Mission statements define their focus upon sustainable growth, our broadened definition of social responsibility and the true strength of our company our hoi polloi and our brands.Vision_Mission_Full4.0 StrategyThe first strategy in line with the product extension is to create customer awareness to this product offer and then develop more customer base.Market Penetration strategy To penetrate the existing market and gain greater market share, increased brand awareness and boost the Special K product life cycle.Market Development Strategy To develop the shape management market segment, using the product extension to attract new customer base. E.g customers who do not, consume sugar.Product Development strategy By the improved recipe,flavor,taste. (No sugar flavor or taste)STPSegmentation shape management segments Consumers who want healthy, low fat, sugar free cereals. The value proposition here is the healthy meal offer.Targeting we are targeting all healthy meal seeking consumers, but with special focus to shape management segments.Positioning Healthy and Good Healthy and tasty5.0. TACTICS The marketing mix exists as a set of controllable tactical tools used to implement the strategy. The 7 Ps marketing mix catalyses the implementation of our strategy.Product Our extension of Special K range and the summing up of the No Sugar flavor is a tactical strategy in line with our mission to capture more markets segments and consolidate our consumer networks. New package will be introduced.Place We will continue with existing value supply and distribution networks to make this product available to our cherished customers. Special offers will be given the stores that record large distribution. This will further motivate our value channels to get Special k no added Sugar at the market place. Supermarkets, retail stores, convenience stores and Online.Price Market penetration pricing will be deployed to gain rapid market share, this is because there exists an extensive competition in the market. And the cereal market place is a sensitive one.Promotion These promotional methods will be adopted to communicate effectively to the consumers- Advertising,sales promotions,direct marketing,ditital marketing and personal changePeople The knowledge marketing team, the IT and Software team, RD team are all involved in co-creating this product. Every member of the organization is a part of this mission in different perspective. They have been updated with product knowledge to impact the customers.ACTIONS PLANTASKSJanFebMarAprMayJunJulAugSepOctNovDecBUDGETRESPONSIBILITY flavour 1 PRE LAUNCH22,000Research40,000Research TeamSelect Advert Agency30,000Marketing DeptBrief Web Designer30,000IT DeptSet Up Database50,000Software Dev.STEP 2 LAUNCHTV Advertising300,000Marketing DeptBillboards100,000Marketing DeptMagazine Inserts50,000Marketing DeptPR/Sales Promotion200,000Marketing DeptDigital Marketing250,000Marketing DeptStep 2Control Balance Score Card.The Balanced Scorecard is a strategic planning and management system, used to align business activities to the vision and strategy of the organization, improve internal and external communications and monitor organizational performance against strategic goals.7.1 KPIs-Key Performance IndicatorsQuality controlFinancial resultsMark er look intoManaging information systemSales analysisService levelsMarket share analysisFinancial resultsCRM-New customers acquired, retainedProduct awarenessCompetitor performanceBenchmarking advantageousnessROIPerformance appraisal of employeesFinancial AnalysisContingency Planning50,000 set aside as financial reserve.Productive capacity reserveSafety measures in place should there be any disaster at promotion sites EtcCritical Reflective WritingLearning OutcomeThe truth is, I never had an idea of the enormous tasks or amount of work involved in marketing planning, from start to finish.Haven worked in banking operations for 4 years I never saw marketing departmental roles as a challenging one. I will usually think they pretend to be busy when they are actually not, while the operations staffs are the only value adding workforce.The module marketing planning and its matrix, of which I am excited to be able to baffle a marketing plan, have not only opened my eyes and mind to wider conceptual, theoretical and practical aspects of marketing. I now appreciate the essence of the beingness of different roles and departments in an organization, marketing planning and why it is essential in business-to effectively identify customer needs, create products/market offerings accordingly, in order to maximise revenue, profit, ROI and minimize costs.Marketing planning I now understand, is a multi faceted, cross-functional activity that touches every aspect of the organizational life. I have gained an understanding of how the marketing- mix interact, to accelerate a rational business decision and reduce the complexity of business operations which ultimately adds a dimension of realism to a companys hopes for the future.I will go back into work, with an understanding of the real significance of a strategic planning. I will evidence learning, and make valued revolutionary impacts as a manager and maybe A marketing ManagerIt will never be business as usual.