Frosted flakes marketing strategy

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Tables of Contents
Ⅰ. Executive Summary………………………………………………………………...……3
Ⅱ. Objective…………………………………………………………………………….…....4
Ⅲ. Background………………………………………………………………………………4
Situation Analysis…………………………………………………………………

Current Marketing Strategy………………………………………………………..

Marketing Challenges/Issues ……………………………………………………..

Current Positioning………………………………………………………………….

Ⅳ. Market Analysis……………………………………………………………………….XX
Demographics ……………………………………………………………………..

Psychographics…………………………………………………………………….

Motivations………………………………………………………………………….

Personal, Social, and Cultural……………………………………………………... Influences…………………………………………………………………………..

Situational Influence……………………………………………………………….

Purchase Process…………………………………………………………………….

Post-purchase Experience……………………………………………………………...

Ⅴ. Recommendation………………………………………………………………………XX
Ⅵ. Bibliography & Footnotes…………………………….……………………………...XX
Ⅶ. Appendix………………………………………………………………………………XX
Executive Summary (Do this one)
Objective
Our objective is to be able to provide helpful suggestions in which the Kellogg’s team can then implement in order to better their current marketing strategy. Kellogg’s company is currently facing a marketing issue in that their cereal sales have been decreasing over the years. The decrease in sales has been forcing Kellogg’s to come up with new products while also “pairing their operating costs in order to increase sales and profits” (Peltz, 2016). Another marketing issue the company is facing is that they are having trouble convincing consumers to eat cereal, and more specifically, why they should eat Kellogg brand cereal instead of a competitors such as General Mills.

Our team suggests that an objective that Kellogg should do is increase their media presence like that of competitors General Mills. In where they produce ads and tv commercials aimed at tugging on consumers feeling of nostalgia of having cereal as well as highlighting the nutritious benefits of their cereal. We would suggest that Kellogg perhaps pay merchandisers for premium eye level spots in their shelves, and end caps where their cereal will most likely get a consumer's attention. Kellogg’s could also benefit from making their different variations of their cereal in order for it to be friendly for all diets such as gluten free, whole grains, and fiber. Lastly, our other suggestion would be for Kellogg’s to join the breakfast on the go movement and make products that can be easily consumed while on the run. Some ways that they can do this is by making breakfast bars, and investing in hot cereal in to-go cups where the consumer can just add hot water and instantly have a hearty and filling breakfast wherever they may be. Our goal is that by implementing some or all of these suggestions Kellogg Company will be able to see an increase on their brand cereal consumption, as well as in increase in sales, and overall brand awareness.

Background
Kellogg’s is an American multinational food manufacturing company that sells cereal, cookies, crackers, waffles and other snack varieties. Kellogg’s first began in 1898 when the W.K Kellogg and his brother Dr. John Harvey Kellogg failed their attempts to create granola bars. The brothers accidently flaked wheat berry during their experiments. WK. Kellogg kept experimenting until he flaked corn thus creating the infamous Kellogg’s corn flakes. (Kelloggs, 2017)

With Kellogg’s new creation of flake corn, W.K Kellogg launched a company name as Battle Creek Toasted Corn Flakes. He realized that for his product to expand, he would need advertising and promotion. The company spent a third of its working capital on an ad in Ladies Home Journal. From this early ad, Kellogg’s corn flakes sales skyrocketed. In 1907, outputs had reach 2,900 cases day with a net profit for about a dollar a case. However, in June of 1907, a fire destroyed the main production building of corn flakes. According to Reference for Business, after the fire, W.K Kellogg bought out his brother’s share of the company. Battle Creek Toasted Corn Flakes had been renamed to Kellogg’s Toasted corn flakes. In 1922, Kellogg’s Toasted corn flakes lost the trademark of toasted corn flakes as it no longer accurately described the company, thus becoming Kellogg’s.

Kellogg’s has been strategic of their marketing strategies. Kellogg’s used television advertising in 1950 to attract the postwar baby boomers. To appeal to the younger audience, Kellogg’s introduced sugar into their breakfast cereal. This was when Tony the Tiger was introduced. With the introduction of Tony the Tiger, sales and profits doubled over the decade. The previous marketing strategy used by Kellogg has been shown to be very effective.

Situation Analysis

External Situation

Industry, Competition, and Marketing Boundaries

The Kellogg Company is a global business. Kellogg’s products are manufactured in 21 countries and marketed in more than 180 countries worldwide. The company is best known for its cereal brands Corn Flakes, Rice Krispies, Mini Wheats, Fruit Loops and Frosted Flakes. (Kellogg Company, 2016) As Kellogg first discovered how to make corn flakes, they excelled in the cereal business for some time. Today, Kellogg competes with General Mills for the title of the biggest vendor in the United States. These two companies have been long-term rivals. For years Kellogg was the leading seller of breakfast cereals. In recent years, with shares dropping, General Mills has become the market leader. Kellogg’s fell slightly behind them with a market share of 25%. (Statista, 2015) Other competitors of Kellogg company, although not as threatening, are Kraft, Nestle, Cadbury, and Quaker Oats.