Pop-Tarts Brand Analysis Project - Research Paper Example

Pop-Tarts Recommendations Pop-Tart has been in the market for a very long time. However, the brand has not done enough in order to attract the interests of Hispanic people living in the United States. Government’s statistics indicate that Hispanic population in United States forms a significant segment of the total US population. In order to attract the loyalty of this market, Kellogg Company should increase its advertising budget. This is to enable the marketing department to use the visual, audio, and print media in order to reach the target market. This would play a significant role in increasing the overall sales of the company. In addition, the intervention would improve the presence of the product in the market. In addition, the Company should shift its attention to the social media. In the meantime, people are shifting to social media is order to look for information concerning their products of choice. Furthermore, they are using the platform to assess the reviews of the people who have already used the products (Natow and Jo-Ann 109). This would enable the company to reach a mass market. On the other hand, the marketing department can use the platform to chat with the customers and understand various aspects that affect their consumption behavior. This would make it possible for the business to make changes on the product in order to satisfy the interests of the target market. In the past few years, there has a stiff price war between Pop-Tart and competitors products such as Toastettes, Toastables, and Toaster Strudels. This aspect is threatening the market share of the business and competitive advantage of the product. As a result, The Company should invest in the latest technology in order to lower the breakeven price. Furthermore, the company should invest heavily on improving operation efficiency, an aspect that will play a significant role in reducing unnecessary costs. This will make it possible to reduce the price of Pop-Tart in the market. Market Analysis of Product Category Pop-Tart recorded sales have been in an increasing trend over the years However, if the company focuses more on the Spanish speaking community, it is likely to gain ground and recover its lost market share. The product has dominated the US, Canada, and UK market (Natow and Jo-Ann 76). However, in Canada and UK, the product is facing stiff competition from the local firms. This is because the firms are taking advantage of the local cultures which advocate for the consumption of locally produced goods. In addition, people in this region want to be associated with a company that participates in corporate social responsibility with the aim of improving the lives of the local population. Consumer Trends Over the years the family roles have changed tremendously. Initially, women were preparing meals for their family. However, with more women entering the corporate sector, the consumption behavior of the local population has increased tremendously. In addition, the increasing demand for human labor is making it hard for the people to prepare their meals. As a result, more people are shifting towards packed meals. This aspect has played a significant role in increasing the market share of the product. Political Issue Last year, the performance of the product was greatly affected by the internal political struggles. The top management had some hidden interests, an aspect that caused conflicts. However, the board of directors was able to intervene and resolve the issue before it got out of hand. This enabled the product to regain its lost ground in the market. Technological Changes Currently, e-commerce has taken the market with storm. People have shifted from their traditional purchasing behavior to online market. However, in order for the product to integrate the new systems, the company requires to invest heavily on technology. This is to prevent any fraudulent cases associated with online business (Natow and Jo-Ann 29). In addition, people have turned to social media in order to look for information concerning the products. This has forced the company to set up a separate department mandated with social media marketing. Competitive Landscape Initially, there were only few companies that were dealing with fast foods. However, in the past one decade, the numbers of international firms have invested heavily in the American market. For instance, McDonalds and KFC have changed the perception of the people towards fast food industry by focusing more on the quality of the food being offered to the target market. As a result, customers can be able to easily get access to a cheap breakfast in these restaurants. In addition, in order for the firms to become more reliable and accessible, they have opened stores and distribution centers in different towns and cities across United States. This has been a major setback to Pop-Tart which was initially the dominating product in the market. In addition, the fact that the restaurants are able to offer an array of products at a single stand makes more people towards their products (Hanson 45). Moreover, they have diversified their menu and integrated traditional foods that are very important in the health of the local people. Therefore, in case the company does not change its marketing tactics and keep on implementing changes on this brand, it might lose its market share immensely. The level of competition in the US market has increased tremendously. With the increasing levels of globalization resulting from liberalization of markets, efficient flow of information, and integration of economies, the level of competition in the local market has increased tremendously. This has resulted from the entry of multinational companies which have a huge financial base to segment the market, position their products strategically in the market, and attract customer loyalty towards their products and services. Therefore, in order for Pop-Tart to remain competitive in the market, it should target external markets which have not been exploited. For instance, the product should enter the Asian market which has a high population and a large number of young people who are have a disposable income. Furthermore, people in these countries have become busier with toughening economic conditions. As a result, the entry of the products would act as a relief to many families who have no time to prepare breakfast. This would expand the source of revenue for the business. In addition, it would reduce the risks and uncertainties associated with concentrated in a single market. In addition, the high competition in the American market has increased the bargaining power of suppliers. As a result, the costs of raw materials used to make the product have doubled over the past one year (Cruise 93). This is because the suppliers have many options and the demand for their services has increased tremendously. On the other hand, the customers have more bargaining power because of the influx of substitutes in the market. Therefore, they have become highly sensitive to any price changes. The move to invest in the upcoming market will relieve pressure and enable the company to maximize its returns through the utilizing cheap raw materials and labor. Changes in Consumer Behavior In the meantime, the market has become so dynamic. The market behavior keeps on changing. Companies keep on rebranding in order to keep up with the changes in the market. Therefore, in order for this brand to remain competitive, the company should keep on conducting frequent market researches (Boyer and Rohit 67). This will be significant in enabling the business to note any changes in the tastes and preferences of the target market. Works Cited Boyer, Kenneth K, and Rohit Verma. Operations & Supply Chain Management for the 21st Century. Mason: South-Western, 2010. Print. Cruise, Jorge. The Belly Fat Cure Sugar & Carb Counter: Discover Which Foods Will Melt Up to 9 Lbs. This Week. Carlsbad: Hay House, 2010. Print. Hanson, Lori. It Started with Pop-Tarts®: An Alternative Approach to Winning the Battle of Bulimia. Valencia: Shewolf Press, 2008. Print. Natow, Annette B, and Jo-Ann Heslin. The Fat Counter. New York: Pocket Books, 2009. Print. Natow, Annette B, and Jo-Ann Heslin. The Protein Counter. New York: Pocket Books, 2003. Print. Natow, Annette B, Jo-Ann Heslin, and Karen J. Nolan. The Most Complete Food Counter. New York: Pocket Books, 2006. Print. Read More