Marketing Principles - Coursework Example

?Marketing Principles and Applications Table of Contents What Is The Current Target Market For Special K And Its Special K Crunch Bars? Should TheTarget Market For Special K Be Expanded? If So, Describe The Profile Of The New Target Market. 3 2. What Consumer Behavior Influences Play A Role Or Will Play A Role In The Marketing Strategy For Special K? 4 3. How Are The Cereals Being Positioned In The Target Market Segment? 5 4. What Elements Of The Marketing Mix Need To Be Given Priority In Order To Protect Kellogg’s Special K’s Market Share And To Expand Sales? Provide The Rationale. 6 5. What Specific Recommendations Can You Make To Build Special K’s Market Share and Sales Volume? 7 References 9 1. What Is The Current Target Market For Special K And Its Special K Crunch Bars? Should The Target Market For Special K Be Expanded? If So, Describe The Profile Of The New Target Market. Kellogg Company is a well-reputed name in the global food industry. It specializes in nutritious food section perpetually focusing on the low fat cereal based food items. As a leading brand, the company has many sub-brands under its umbrella, such as Special K and Special K Chocolatey Crunch Bars. Similar to other brands marketed by the company, Special K and Special K Chocolatey Crunch Bars are also based on the cereals and intend to serve the customers with a low fat breakfast item. For instance, Special K cereal is produced from the rice cereal and contains only 110 calories without any fat (Kellogg Company, “Special K Cereal”). Special K Chocolatey Crunch Bars are also manufactured from cereals and contains merely 90 calories (Kellogg Company, “Special K Chocolatey Crunch Bars”). Considering the characteristics of these products, it is quite apparent that these products are mainly targeted to the young adults who also tend to be health conscious. Health consciousness is a growing factor among the adolescents and the young adults. With this concern, it can be stated that the marketing prospects for these sub-brands are quite significant and thus the company should aim at expanding its target market. With the purpose of expansion, the company can focus on both adolescents and young adults in the economy. However, this will require more aggressive promotional strategies along with few modifications in the products with due consideration to the nutrition required for the adolescents. 2. What Consumer Behavior Influences Play A Role Or Will Play A Role In The Marketing Strategy For Special K? Consumer behavior is referred to as the process undertaken by an individual or a group of customers in order to decide their consumption of a product at a particular quantity. The process involves the attitude of the customers, their income level, their spending power and also their lifestyles. As revealed from various empirical studies, favorable consumer behavior effectively enhances the growth of the product, whereas, consumer behavior opposing the product marketed shall lead to the abolition of the product within a short span of time. Thus, consumer behavior is termed to be quite significant in the modern day marketing (Sjoberg & Engelberg, “Lifestyles, and Risk Perception Consumer Behavior”). In relation to the Kellogg’s Special K and Special K Chocolatey Crunch Bar brands, it can be stated that the factors of consumer behavior such as the income level and spending power are less effective than the attitude and lifestyle choices of the targeted customers. It is due to the fact that the company offers its products at a competitive price with due consideration to the aspect of affordability of the targeted customers. In this regard, most of the marketing strategies adopted by the company in Canada are observed to be focused on the healthy living choices of the customers. In this regard, it intends to generate awareness among the targeted customers through various promotional activities. The company also focuses on its pricing and other promotional strategies, such as discounts, coupons and special services for the customers of these products. This signifies that the spending power and the attitude of customers also influence the marketing strategies for Special K brands (Smart Canucks Inc., “Tag Archive for 'Kellogg’s Canada'”). 3. How Are The Cereals Being Positioned In The Target Market Segment? Product positioning is over and over again defined as the process to market the products in a manner which is evidently different from that of the customers. According to professionals, product positioning is “the art and science of fitting the product or service to one or segments of the broad market in such a way as to set it meaningfully apart from competition” (Lee, M. & Johnson, C., “Principles of Advertising: A Global Perspective”). As can be apparently witnessed from the above definition of product positioning, targeted market segment of the company plays a crucial role in defining the strategies of the marketer in this regard. Notably, the target market segment of Kellogg Company can be identified as the market comprising of middle and high level income customers who also belong to the health conscious young adult group. The segment especially focuses on the female customers, such as housewives and recent mothers (Smart Canucks Inc., “Tag Archive for 'Kellogg’s Canada'”). It is in this context that the company positioned its cereal products as a healthy breakfast item which effectively supports the lifestyle of the customers and their health as well. Moreover, the company also intended to serve the products in a variety of packages with an affordable but competitive price for the middle and higher income level customers. This rewarded the company with greater competitive advantage in terms of brand awareness as well as in terms of sustainable market share (The Times 100, “Kellogg’s”). Therefore, the cereals are being positioned in the target market segment with due consideration to the aspect of competition in the market segment, customer behavior in the targeted segment and the potential of the product to be differentiated. 4. What Elements Of The Marketing Mix Need To Be Given Priority In Order To Protect Kellogg’s Special K’s Market Share And To Expand Sales? Provide The Rationale. The marketing mix concept focuses on the major elements of the marketing process, such as product, price, place as well as promotion. With the purpose of gaining competency and accelerate the growth of the company at large, it is quite essential to market the appropriate product at an effective price in a potential place with efficient promotional strategies. Comprehensively as well as individually, these elements define the successiveness of the product and the company in turn (Stone, P., “Make Marketing Work For You: Boost Your Profits With Proven Marketing Techniques”). With reference to the learning of marketing approaches considered by Kellogg Company, it can be stated that the company provides major emphasis on its promotional and pricing strategies. The company promotes its brands and sub-brands through aggressive marketing by offering the customers with frequent discounts, coupons, free gifts, and others along with the benefit of a low price range. It is due to the reason that the company intends to acquire and retain customers effectively which in turn will enhance its productivity and endow it with competitive advantage in the market (Smart Canucks Inc., “Tag Archive for 'Kellogg’s Canada'”). However, the company somewhat ignores the aspect of product and place in its marketing strategies. Both the attributes play a crucial role in the marketing plan of a company. A product served in an inappropriate place or an inappropriate product is served in a right place can result in failure of the brand and thus is important to be considered by Kellogg Company as significant (Stone, P., “Make Marketing Work For You: Boost Your Profits With Proven Marketing Techniques”). 5. What Specific Recommendations Can You Make To Build Special K’s Market Share and Sales Volume? The role of marketing strategies is termed to be quite significant in rewarding the company with larger market share and accelerated sales volume. In this regard, consideration should be provided to various attributes, such as the factors of consumer behavior, characteristics of the target market, along with the components of marketing mix (Stone, P., “Make Marketing Work For You: Boost Your Profits With Proven Marketing Techniques”). It is worth mentioning that Kellogg Company significantly considers the attitude and lifestyle choices of the targeted customers. It also focuses on the marketing elements in terms of price as well as promotion and thus can be recognized as product-oriented. Therefore, it is suggestive that significant emphasis should be provided to the aspects of place, product and income as well as spending attributes of the target market segment. Rather than offering the products to its targeted customers through aggressive promotion, the company should intend to gain sufficient understanding of the customers’ demand, their preferences and attitude towards consuming a brand such as Kellogg’s. Concurrently, it should be stated that the current marketing strategies adopted by the company are apparently observed to be product-oriented which should be transformed to be customer-oriented in order to gain sustainability in the market. Customer-oriented marketing approach shall also be beneficial in stimulating the overall growth of the company. References Kellogg Company. “Special K Cereal”. June 08, 2011. Product Detail, 2011. Kellogg Company. “Special K Chocolatey Crunch Bars”. June 08, 2011. Product Detail, 2011. Lee, Monle. & Johnson, Carla. Principles of Advertising: A Global Perspective Routledge, 2005. Smart Canucks Inc. “Tag Archive for 'Kellogg’s Canada'”. June 08, 2011. Kellogg’s Canada, 2011. Sjoberg, Lennart & Engelberg, Elisabeth. “Lifestyles, and Risk Perception Consumer Behavior”. International Review of Sociology, Vol. 15 (2005), pp. 327-362. Stone, Phil. Make Marketing Work for You: Boost Your Profits with Proven Marketing Techniques How To Books Ltd, 2001. The Times 100. “Kellogg’s”. June 08, 2011. Using Aims and Objectives to Create a Business Strategy, 2007. Read More