Marketing and Danone
In addition to that, Deanne has weapon discounts and agreements with shops which push new clients to buy and current clients to buy more. Finally, Daemon’s advertising represents an important strength for the company because they have strong marketing campaigns. This way, the brand catches all customer’s attention depending on the target endorsed. Advertising variants depending on the product line and the main target market. For example, many of the brand’s advertising are focused on kids and their needs, which is making the products for kids very attractive. At the same time Deanne is giving valuable attributes for parents to make the final decision to actually buy the product especially when it comes to the healthiness or a daily need of certain vitamins and calcium.
Moreover, their advertisements are brilliant to attract new clients for their different product lines. High pricing strategy can be considered as a weakness for Deanne when considering the economical situation. As a premium brand Deanne has a “label” of a better and ore expensive product that can drive customers to consume generic brand products. Moreover, Deanne has permanent competition from big competitors, like Kraft Foods or Nestle, in every segment, and Daemon’s sales decline compared to those competitors. Finally, the presence of many competitors means high brand Deanne is a well known brand with a great reputation worldwide that implies plenty of opportunities in the Spanish market.
People are more health concerned than ever, and this trend is making its way to the Spanish culture as well. As mentioned before, Deanne has a large product line where healthy products such as Actively and Pro cohorts with added protein. Especially in Spain where the weather is good and the so called bikini season is longer because of the warm weather, people tend to take more care of their body shape and healthiness, which enables Deanne to promote and sell its innovative and health concerned products to Spanish people. In addition as shown in the graft below, the demand of yoghurt is increasing year by year meaning that customers are willing to consume such products.
One of the main weaknesses of Deanne is the high pricing strategy that can make customers turn away to consume generic brand products. Thereby Deanne could start using discount coupons temporarily. The coupons would be placed as part of the packaging with a 10% discount. Discounts will not be able to be combined with other discounts and it could be used in the next purchase of any Deanne products. The main idea is to give a small discount to lower the threshold for purchase without actually decreasing the real price. At the same time this kind of discount coupons creates a continuous circle of purchase and creates stronger customer relation for the products.
The real difference of the price would not be significant regarding to the loss of venues of Deanne but would give added value for the customer to consume Deanne products. Since Deanne would not lower the real prices but use this kind of discount, it would not harm Daemon’s premium brand status. Spanish culture is used to the street marketing and handing out flyers especially in the bigger cities as Madrid. Instead of giving tasting of the Deanne products in the supermarkets, it could be a great opportunity for Deanne to place a stand into a centric place of a big city, give tasting and share information especially about the healthy products. Thereby Deanne can make its most innovative and special products milliamp to the new customers.
In addition, Deanne could advertise its loyalty club that offers plenty of discounts. Catchy that people would be able to make viral. It could be a small competition, flash mob or a game where customers can be active and be part of Deanne. In addition, it is often forgotten or unknown that Deanne is paying high attention to environmental issues and acts socially responsible. Therefore street marketing gives Deanne an opportunity to communicate with customers and show the great work behind its products. This kind of positive information is likely to leave a mark to the customers and make them consume Daemon’s products in the future. Deanne offers healthy products and concentrates its promotion on that aspect.
This is why we decided to gather some healthy products in specific places, on the first hand. For example, we want to place healthy products, especially products with extra protein, in sport clubs, to familiarize sport-people who like having a snack after their training, with the brand, and to convince them to eat healthy products. On the second hand we want to establish special machines in private universities to spread Daemon’s products. In this way, we distribute healthy product to young people, who are more concerned by the “healthy trend” than people of the older generations. It is true that recyclable packaging may be seen as a new concept.
Nevertheless, it is a necessary one. Materials such as plastic, glass, metal, cardboard or paper may be reduced. To replace this, some alternative products may be used but still maintaining stability and quality. It is an economic benefit, every stage of the recyclable packaging offers potential savings that can make a great contribution to the environmental protection. Besides the economic factor, it also encourages low energy production technologies, reduced transportations and waste minimization. After this analysis we may ask ourselves, what about Deanne? We recommend a packaging in green color, which will have a resemblance with the environment.
In this packaging the consumer will be able to visualize written facts about the ecosystem, as well as quotes about nature. To increase the interest in the product an extra souvenir will be provided, a disposable spoon in the shape of a leave, this will be attractive to our customers’ eyes. In this way we can differentiate ourselves from the market and mostly, from our direct competitors. Parent Company : Kellogg Category : Food processing Tagging/ Slogan : Bring out best to you USPS : First company to enter into redeemed cereal breakfast segment Segment : Food- cereal breakfast and beverages Target Group : Family and children looking for healthy tasty breakfast Positioning : Healthy and tasty breakfast Product Portfolio – Brands : 1.
Corn Flakes 2. Coco Pops 3. Chose 4. All-Bran 5. Grave 6. Frosted Flakes 7. Front Loops 8. Special K 9. Ego 10. Fiber Plus 1 1 . Crispin Kellogg main competitors 1. Quaker 2. Post 3. General mills 4. Tort 5. Till 6. Uncle Sam 7. Nestle 8. Actuary 9. Familial 5. 5. 2 Kellogg SOOT Analysts Strengths: 1 . Geographic Diversity: The company’s products are marketed and sold in more than 180 countries around the world; the company will not be seriously hurt by economic problems exclusive to one market or country 2. Great marketing initiative through various campaigns 3. “Kellogg small changes big differences” earth day celebration 4. “Fighting hunger” 5.
Kellogg “heart healthy selection” 6. Has a global workforce of over 30,000 . High brand awareness and top of the mind breakfast cereal brand globally 9. Solid Revenue Growth: Kellogg reported revenue representing year over year annual growth of 3. 89%, a stable and secure rate that is projected to sustain into the future 10. Brand Loyalty: Kellogg iconic red logo can be found on the majority of the cereal boxes in your local supermarket, and drives customers back again and again Weaknesses: 1 . Saturation of Market: Kellogg products are already in nearly every market around the world, so there is little room left for geographical expansion 2.
Some products are gig in sugar content Opportunities: 1 . Development of distribution channels in other countries with help of other company 2. Change in lifestyle of consumers , lack of time increase consumption of ready-made-food 3. Tie-up with restaurants and hotels 4. Product Innovation: Kellogg has for years innovated and created new brands and products, and further product innovation is probable and should fuel sales growth Threats: 1 . Increasing competition in redeemed breakfast segment 2. Food regulations by government 3. Due to the increase of white labels and store brands, consumers have a lot more hoicks and a lower price segment to choose from. 4. Strong competitors 5. 5. Description of the strategy consisting in associating with Kellogg After this wide market research of Kellogg company, we came to a conclusion that an association with Kellogg to launch a new product would be a great enrichment for both Deanne and Kellogg. Indeed, Kellogg believes that with every morning comes a new beginning. The company believes that when we start with a great breakfast, great things can happen. That’s why they make more of the foods that we and our family know, trust and enjoy. A variety of great-tasting, good for our favorites that get us going so that we can make the most of every moment. That is how Kellogg will bring additional quality, taste and power to our brand. 5. 5. Marketing mix of the new product Product: 4-pack Deanne yoghurt with Kellogg cereals attached to the yoghurt. On one side, Deanne yogurt, on the other, Kellogg cereals. It offers cereal lovers an alternative to milk. This product is directed towards health-conscious consumers, family and children looking for healthy, tasty and quality breakfast. Price: -?2,30в? / 4-pack yoghurt Place: Daemon’s distribution strategy is to always be available to everyone. This means the products are distributed widely, in a variety of stores and locations so that it’s easy for customers to purchase it, everywhere. Deanne guarantees easy accessibility thanks to a great network of distributors.
Their products are available in numerous supermarkets all over Spain such as Mercado, Did, Careful, Errors, Super core, Promotion: For the promotion of this new product, Deanne (and Kellogg) will penetrate the consumer’s mind using the following means: 1) Television Commercials ) Social Media (Backbone and Youths) 3) Discount coupons 4) Radio Daemon’s promotion strategy is also known for using strategic ways to expose their products in supermarkets, so this strategy will of course be used as well for the new product. With this strategy, the launching of a new yoghurt/cereal product, Deanne wants to contribute to the development of the consumption of ultra-fresh products at breakfast. This product will be introduced as a trial in the first place.