Kellogg company is a strong market leader

Kellogg participation is a strong commercialise attractorKellogg Company is a strong securities industry leader in the yield of cereal and convenience foods. With 2009 reported compensation of $1.3 billion. The company gets a starring(p) position in the harvestingion of cereal 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, specific K,All-Brain,Frosted Mini-Wheats,Club and kasha. Kellogg merchandises argon manufactured in 18 countries and marketed in more than 180 countries around the world. Its global central office ar in Battle Creek,Michigan,USA. Kellogg trades under the ticker symbol NYSE.KThis merchandise plan is aimed at ex decenniumding appendixal K product line, mavin of the many an(prenominal) Kellogg Company brands. circumscribed K Brand under Kelloggs p bent company cereal has recorded huge amount of sales since lunch, hence the propagation, to maintain the product at a Growth calendar method of birth control.The outline of this report was presented in a SOSTAC framework trained by PR Smith, which detailed why, how, when and where, the product line was to be extended with the view to expand market component and compete favourably in the UK convenience food industry.2.0 Situational Analysis commercialize SummaryThe rate of the UK cereals market is around 1.1 billion per year. Kellogg has a 42% market sh be of the value of the UKs breakfast cereal market. Reported earnings for full year 2009 were $1.2 billion, or $3.16 per diluted share, an increase of 6 share from full-year 2008 of $1.1 billion. The company has developed a range of products for the segments within this market, targeted at totally age groups over three years old. As a market leader, it maintains a distinct premium position within t he market. This means that it has impudence of its consumers and a large market share. special(a) K, under the shape caution market segment, was introduced in UK, October 1999, it is marketed primarily as a diet help oneself that can be eaten to help one lose fish and roost 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 currently comes in ten varietiesSpecial KSpecial K Red BerriesSpecial K Purple BerriesSpecial K Peaches ApricotsSpecial K Bliss chromatic Berry CrunchSpecial K Bliss Strawberry coffee bean beanSpecial K Oats HoneySpecial K YoghurtSpecial K SustainSpecial K MedleySpecial K has been a successful overlap brand of Kellogg. Applying the product life rhythm method of birth control, it is viable visualize the different stages of the Special K brand. The product life cycle demonstrates the change of product sales over time. node AnalysisSpecial K cerea l and bars is for everyone and is being consumed by customers aged 3 and above. The increasing varied customers makes lead to the successful line extensions of the brand. Further to this, are the need for shape management products and the need for these products to address the weight and respectable living issue in UK.Being that Kelloggs company enjoys brand devotion and economics of outstrip, Special K No Added Sugar result be added to buying options of existent brand and prospective customers, as a ample product positioned to satisfy this Shape Managementemerging market segment. It is strategicalally 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 Weeta intermingle Company and weight down 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 positionEXISTING contentionAlpen No Added Sugar cereal a product of Weetamix CompanyWeight Waters no dirty money cerealNestle Whole grain- poor fecundGeneral Mills one thousand Giant-no added sugar. impertinently product development merchandise prowessTHREAT OF NEW ENTRANTSAll existing cereal manufacturers or companiesStart up costsCost advantagesAccess to distribution transmitTHREAT OF SUBSTITUESLow switching costsAvailable substitutesProduct distinctionIndustry profitsSUPPLIERSSupplier monopolyHigh switching costs funny productImportance of supplier to buyerForward integration holy terrorCUSTOMERSPrice sensitivityAdvanced intimacy and independence of choiceDrives demandOwn profit potentialAssociated savingsBackward integration curse selling EnvironmentApplying a PESTLE analysis, main points are the socio-cultural, environmental and technolog ical 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 last that associates babies with cereals.Life Style The rushed and busy lifestyle of consumers in the Uk, would seismic disturbance on the consumption of Special K no added sugar cereal. People, in particular the students and working class, hardly eat at home, but settle 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 communication channels to stretching customersImproved production processesAutomationInternal frustrateket Environment scrutinizeSTRENTHSStrong brand/AwarenessMarket LeaderEconomics of scaleBrand presence and acceptabilityPremium productCapitalCustomer loyaltyDerived learning curve effect -competitive advantageProduct specialty tone of voice processes and proceduresWEAKNESSgross revenue driven by promo and pricing prospectEmergent shape management product customer needs.Special K brand, achieved sentiency 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 founding of Special K No Added Sugar Cereal in UK. mensuralTo increase market share by 10%, compete favorably in the fast moving cereal and convenient food industry, and in the end 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 c urrently 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 the Special K line is a accomplishable goal, owing to the fact that the Product Brand has been very successful since sub missionary post and following the up surge trendy consumption of healthy low calorie, low fat and No sugar food items. This extension is overly an innovative plan, in line with Kelloggs corporate company vision and 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 heighten upon sustainable growth, our broadened definition of social responsibility and the true strength o f our company our population 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 phylogenesis 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 delectable5.0. TACTICS The marketing mix exists as a set of controllable tactical tools employ to implement the strategy. The 7 Ps marketing mix catalyses the implementation of our strategy.Product Our extension of Special K range and the addition 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 computer software go away 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 throw out motivate our value channels to get Special k no added Sugar at the market show up. 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 smudge is a sensitive one.Promotion These promotional methods will be espouse to communicate effectively to the consumers- Advertising,sales promotions,direct marketing,ditital marketing and personal sellingPeople The knowledge marketing team, the IT and computer 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 PLANTASKSJanFebMarAprMayJunJulAugSepOctNovDecBUDGETRESPONSIBILITYSTEP 1 PRE LAUNCH22,000Research40,000Research TeamSelect Advert operation30,000 trade DeptBrief Web Designer30,000IT DeptSet Up Database50,000Software Dev.STEP 2 LAUNCHTV Advertising300,000 trade DeptBillboards100,000Marketing DeptMagazine Inserts50,000Marketing DeptPR/Sales Promotion200,000Marketing Deptdigital Marketing250,000Marketing DeptStep 2Control Balance make water 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 international communications and monitor organizational performance against strategic goals.7.1 KPIs-Key Performance IndicatorsQuality controlFinancial resultsMarker researchManaging information systemSales analysisService levelsMarket share analysisFinancial resultsCRM-New customers acquired, holdProduct awarenessCompetitor performanceBenchmarkingProfitabilityROIPerformance 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 Etc comminuted Reflective WritingLearning OutcomeThe truth is, I neer had an idea of the enormous tasks or amount of work involved in marketing planning, from start to finish.Haven worked in banking trading 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 totally value adding workforce.The module marketing planning and its matrix, of which I am brainsick to be able to produce a marketing plan, have not only opened my eyes and mind to wider conceptual, theoretical and practical cycloramas of marketing. I now appreciate the essence of the existence 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 maximize 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 facilitate 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.