Kellogg’s Marketing Essay Example
Kellogg’s Marketing Essay Example

Kellogg’s Marketing Essay Example

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  • Pages: 5 (1299 words)
  • Published: January 5, 2017
  • Type: Analysis
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Thousands of companies, including those in the breakfast cereal industry, commonly engage in creating value for customers and building strong customer relationships to receive value in return. The Kellogg's Company is the chosen manufacturer of a lightly toasted breakfast cereal for this assignment.

The United States was introduced to the cereal in 1956, which was primarily made from rice and wheat. However, now the cereal offers various different flavors. The name "Special-K" was created by combining the K from Kellogg's with the word "special" for marketing purposes. According to Gokhan (2008) [Online], we are referring to Kellogg's Special-K. Although it initially started as a breakfast cereal, the Special-K brand now includes 15 different types of products, including cereals, bars, and snacks. All companies strive for customer satisfaction.

To effectively cater to th

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eir target market segment, companies must satisfy their customers. Understanding the concept of segmentation is crucial in this regard. According to Jobber (2004), market segmentation forms the basis for selecting target markets. Jobber further explains that a target market is a specific segment that a company chooses to serve. Considering this perspective, we must determine what segmentation approach Special-K uses. I believe it primarily adopts a profile segmentation approach, specifically a demographic one, as its advertising concentrates on targeting a particular age group, gender, and life cycle.

When considering Special-K, we typically associate it with females between the ages of 25 and early 40s. This assumption arises from the advertisements that depict attractive women consuming the cereal, accompanied by slogans on the boxes such as "spoil yourself... not your figure!" Their newest cereal box reinforces this perception with a

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image of a woman in a bikini and a slim waistline promoting the Special-K 'Two Week Challenge.' Kellogg's has skillfully targeted this particular demographic with their product.

The increasing number of young women who are fixated on their image and weight has led to a desperate pursuit for quick weight loss solutions. Consequently, different diet trends have been adopted and there is a willingness to try anything in order to achieve a desired appearance and boost self-esteem. To address these evolving trends, it is crucial to consider the psychographic segments when targeting potential customers. Lifestyle choices play a significant role in the product's target market. Nowadays, individuals carefully assess packaging and examine nutritional information, such as calorie and fat content, opting for healthier products. A 2007 report by The Times highlighted the growing consumer demand for products with health claims.

Special-K takes advantage of this trend to target their market and increase sales. By featuring slogans like "less than 3% fat" on their cereal boxes, Special-K persuades more consumers to buy their product. Recently, they launched the "Special-K- Two Week Challenge" advertising campaign during the summer. This campaign promotes the idea that individuals can achieve a "slimmer waist line" in just two weeks by eating the cereal twice a day along with another meal. On their website, they even reference a study conducted by a prestigious university which demonstrates that the Special-K Challenge was effective for up to 75% of participants.

This marketing campaign greatly increased sales for Kellogg's. The company now capitalizes on the appeal of a healthier lifestyle. Additionally, the promotion of healthier eating habits and weight loss is a

prevalent theme throughout their Special-K line. Therefore, customers who are specifically looking to lose weight find the cereal particularly beneficial. In fact, some customers may solely purchase the cereal for this reason. Finally, let's examine the geographical aspects of targeting segments. Cultural differences significantly influence the success of selling a product.

Different geographical regions have varying wants and needs, leading Special-K to adapt its original formula accordingly. In Canada, the Special-K cereal has been adjusted to match the "Canadian taste preference," while in the US, it is similar to related products but excludes nuts or dried fruits (Anon, 2008) [Online]. Kellogg's has noticed a change in consumer preferences over time towards sweeter cereals. In 1978, Special-K contained 9.6g of sugar per 100g, but this amount has nearly doubled to 17g (Thomas and Kahn, 2007).

When considering the target market and positioning strategies for the product, Doyle (1983) states that positioning strategy involves selecting a target market segment and determining a differential advantage to compete with rivals in that segment. Figure 7.10 in Jobber (2004) illustrates the key factors for successful positioning: clarity, consistency, credibility, and competitiveness. In regard to Special-K, supermarkets are identified as the primary target market. Therefore, it can be concluded that any reputable supermarket will carry Special-K.

The sales of their products rely on being sold in these stores, including 'Special-K mini bites' and bars, which target the snack industry. These items can be found at the snack/confectionary stand. Although initially aimed at health-conscious women, the product has expanded its target market to include men. Men also desire to maintain a good appearance and stay fit, so it is

not solely women who are interested. Special-K cereal presents itself as a healthy choice that can assist with weight loss.

The concept of differentiation, also known as positioning, is closely related to the process of distinguishing one product from another. According to Cannon (1998), differentiation refers to the establishment of a clear distinction between different offerings. Christopher and McDonald (1995) argue that customers perceive added value in differentiated products. So what makes Special-K unique compared to other products? Its advantage lies in combining a cereal and a snack into a single product.

People nowadays replace meals with a bowl of Special-K, as it is a cereal that promotes a healthy lifestyle and contains scientific facts to support its benefits. Special-K is proud of its low fat content, with only 3% fat, as stated on their product boxes. In addition to this, they offer over 15 different varieties of the cereal, adding further uniqueness to their brand. According to Michman and Mazze (1998), Special-K has the potential to be sold in vending machines, which could potentially enhance their differentiation from other similar products.

According to Hooley et al (1998), repositioning refers to targeting current products at new customer segments or new markets. In terms of repositioning the cereal, one possibility is to lower its price since it is perceived by some as one of the high priced cereals. Another repositioning strategy could involve expanding the customer base image by including males in the advertisements. This could potentially attract more male customers to buy the cereal. Lastly, let's discuss the overall marketing strategy.

When defining a market strategy, some companies claimed

that their marketing strategy was a long-term activity, aiming to achieve overall objectives through a broad plan of action (Greenly, 1989). In 2007, Kellogg's collaborated with Starcom USA and Tyra Banks for their 'loose six pounds in two weeks' campaign, which was recognized as the "Media Plan of the Year in the $10 million to $25 million category". The plan involved Tyra promoting the product on her show, while Starcom USA promoted the campaign through billboards and dieting videos to complement the TV advertisements for the cereal.

The marketing strategy exceeded expectations with a 21 percent increase in base sales, surpassing the initial benchmark of 10 percent (Richard Brunelli 2007). This achievement demonstrates the success of the plan. Despite criticisms, such as claims that advertisements featuring Cindy Crawford for Special K are unrealistic and do not accurately represent the average modern woman, I disagree with this perspective.

Kellogg’s cleverly utilized the fact that the average female does not resemble the beautiful people featured in their advertisements. They recognized that using individuals we aspire to be like would be advantageous, and the results undeniably support this strategy. Although some may question the accuracy of their claims, there is no denying that this campaign boosted sales. Moreover, people now consume the cereal at any time of day, shifting its focus away from purely weight loss goals and adding to its successful marketing approach.

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