Kellogg: Marketing Strategy
Kellogg’s was founded in 1906 and is the first company to create breakfast cereals. Kellogg’s today is a multinational manufacturing food company. For hundred of years the company expanded growth through produce cereal and convenience food. The company’s purpose to provide consumers with high-quality, great taste food to help promote health. (2019 KELLOGG Company).
Variables for Identifying Target Market for Kellogg’s
Geographic – company divides potential customers by country, region, city, islands, climate enable to reached more effectively with products.
Applied on Kellogg’s products depending on country and region provide localizing products to fit the needs of individual regions, cities. In the UK, the company has a certain share of the market., so positioning healthy foods and relatively high prices. Kellogg’s development market in new country as china, the company sells products of the same quality level but using localized products offer different products to meet regional and city needs. (2019 KELLOGG Company).
Demographic – company divide consumers by gender, race, age, education, occupation, income or family enable business better to target its products to the relevant people.
Provide Kellogg’s products based on age, some of the products targeted to children, the company attracts children by offering a variety of packaging and food shapes. And offers some interesting product portfolios sell together to attract children’s curiosity and interest, to purchase it through a box of products, and this marketing product is exclusive. (2019 The ODM Group)
Psychographic – divide customers by personality, values, opinions, lifestyle and interests that better match their needs.
Applied Kellogg’s by the lifestyle. The products aim to people who care about healthy, committed to helping people improve their health. Kellogg’s provides a wide range of products, including vitamin B, vitamin D and iron nutritious foods, products containing wheat bran fiber, and reduced salt content in the product to meet those who want to improve their health by changing their eating habits. Kellogg established itself as a healthy and nutritious food manufacturer in the market. (2019 KELLOGG Company).
Behavioral – divide people based on their attitudes, uses, loyalty status and occasion to retain more customers and achieve competitive production.
According to occasions, In the supermarket, Kellogg’s takes a limited time to sell a certain taste of the product, or through offer discounts and special offers for organizing products, bringing additional benefits to consumers, makes the consumer feel value for money to increase the customer’s desire to purchase.
Based on Loyalty status, the company through provide a new W.K Kellogg’s plant-based cereals enter the organic and vegan food market. And reduce the sugar content of existing products to provide consumers with better choices. Make the brand more recognized by the public and retain existing and develop new customers to increase customer loyalty.
Market mix for Kellogg’s
- Price – Company sells product in right price through considered factors as target market affordability, production costs, and changes in consumer behavior in the target market etc. influence pricing strategy.
In order to consider production costs and budget, for similar products, Kellogg’s adopts a marketing strategy that does not exceed the price of other competitors but maintains high quality. use discount schemes and keeps flexible price to compete with other company.
Kellogg has enabled consumers to buy more products by lowering prices in a short period of time to keep customer interested in its products. (2011-2019 MBASkool.com)
- Place – Company choose the right location, through market coverage to meet customers wants and needs.
Kellogg’s has different distribution channels as sales member of products, direct distribution system to supermarket sales, brokers and distributors system. Kellogg’s also through ecommerce sale product to make its product easily available. (2011-2019 MBASkool.com)
- Product – Company should have right product range, through branding and packaging display to sell products attract customers.
Kellogg’s has wild range of product to meet the customer’s needs and wants. Kellogg’s products in the marketing mix cover breakfast cereal like Kellogg’s Coco-pops, Kellogg’s Frosties, Kellogg’s Choco, Kellogg’s Cornflakes, Special-K and part of snacks like cereal bar, fruit flavored snacks. The company is constantly adjusting products and launching new products to satisfy customer. To provide healthier food and benefit to consumer. (2019 KELLOGG Company).
- Promotion – Company through right promotion channel to make consumer more aware of business and its products. Encourage consumers to buy.
Kellogg’s through sponsorship increase brand awareness and advertising on television, internet building brand profile. To target children, Kellogg’s uses prize in cereal boxes to attract them as a promotional tool. Persuade customers to buy the products. (2011-2019 MBASkool.com)
Main Methods of Market Research
- Online Survey /Questionnaire for Customer satisfaction
Company asked specific questions carefully and clearly for its purpose, gather the respondent opinions on product satisfaction or market, through collected feedback and then analyse for use on product range, price value and cost product pricing.
From the ratings and satisfaction rates of these consumers, it can also be used to assess the effectiveness of marketing strategies and how to market the product. it helps businesses improve product and service.
- Product tests to reaction to a new product
Company provides samples to people to testing new products. Through consumer feeling of products and opinions, predicting consumer acceptance of new products, helping company to continuously improve product performance and customer satisfaction, help new product development and maintain product advantages.
- Online Survey /Questionnaire Advantages and disadvantages
Company can easily collect and analyse the results from online software.
The respondent can be accessed through large geographical areas and countries.
The survey should design carefully.
The company may have a limited number of questions that can be asked online.
Product tests Advantages and disadvantages
The company through customer feedback effectively improves product quality.
The company knows people how receptive to its product before launching the market.
Different groups of people may have different opinions about the product test.
It may cost long time.
Kellogg’s through analyses market segmentation and market mix to help it reached marketing purposes. Kellogg’s continued improve products to satisfied customers and remain competitive with others.