Bbm104 Principles Of Marketing - Assessment Answer

Answer

Marketing Management

Introduction 

The report helps in the overall analysis of the segmentation, targeting along with positioning of the respective product named Kellogg’s Corn Flakes in the entire market. The evaluation of the market segment and the target market segments are required to be analysed effectively which will be inclusive of characteristics and contrast with the other segment. Furthermore, the analysis along with identification of the value differences and positioning strategy is required to be done effectively. Proper designing of the positioning statement of Kellogg’s Corn Flakes is required to be done appropriately.

a) Proper segmentation is required to be analysed in an efficient manner which will be done on the basis of demographic, psychographic and behavioural aspects.

Demographics- This segment is based on age which is essential in selling goods to the below mentioned segments such as:

• Older Segments:Kellogg’s has started in targeting the older people by providing them with the pression of healthy products which will be helpful in increasing their business in an effective manner (Andrews and Terence 2017).
• Kids and Adults:The Kellogg’s frosties corn flakes are targeted to the children and the nut corn flakes are targeted to the different individuals.  
• Income-All the income groups individuals are being targeted and the prices are reasonable in nature (Paker and Vural 2016)

Psychographic- In this segment, the main target is the health-conscious individuals wherein they maintain the healthy and nutritious food makers in the entire food industry. In order to keep the same brand image in the entire market, the company started to demonstrate the different ingredients along with nutritional values upon the packaging of the different goods.

Behavioural- The rate of the usage is the behavioural aspect in which the Kellogg’s Corn Flakes can target the individuals who frequently buy such products. This is the major reason wherein the firm for the regular utilisation uses the same at different times along with organizes the different occasions and provides the different customers with discounts and offers (De Mooij 2018).

b) Evaluation of Market Segment

Segment Size

The major market segment which is being targeted by Kellogg’s Corn Flakes are the young generations individuals in the entire market. In Malaysia, the young generation and kids are the maximum number of individuals who are health conscious and this will improve the overall profitability of the product as well (Kelloggcompany.Com 2018).

Cultural Attractiveness

The major competitors of Kellogg’s are Quaker Oats and Mondetez International which offers the similar kinds of products such as health drinks, oats, cereals and corn flakes which will be a challenge for the Kellogg’s company in the entire competitive market (Gengler, and  Mulvey 2017).

Bargaining Power of Suppliers

Kellogg’s can build efficient supply chain with multiple suppliers who will be providing similar and substitutes of Corn Flakes which will be the regular type of suppliers of Kellogg’s (Venter, Wright and Dibb 2015). The different and diverse channels of distribution will help in creating long term positive impact on the entire entity which will add to the value. Kellogg’s try to make the different products available to customers with various channels which is inclusive of distributors, e-commerce stores along with supermarkets such as Tesco and other supermarkets which will be helpful for them to increase profitability.

c) Target Market Segment

Characteristic of segment

The marketing strategy which has been adopted by Kellogg’s is undifferentiated marketing strategy which focuses on the entire market rather than focusing only on one single segment. The respective strategy helps in employing single marketing mix which is one price, one product, single kind of promotional event and one placement (Lovelock and Patterson 2015).

This has helped the entire company in reaching to the maximum customers in the entire target market. With the help of the same, this is cost effective and there is low marketing complexity which helps them in reaching to the large number of customers efficiently. Kellogg’s uses the undifferentiated marketing strategy as the products has mass appeal and this helped them in increasing the market share and profitability effectively.

                                                                               Figure 1: Positioning of Kellogg’s

                                                                                   (Source: Bruwer and Li 2017)

Contrast another segment

Undifferentiated marketing strategy is better than the differentiated marketing strategy as the major target population is inclusive from the young generation to the different old generation individuals which will be cost effective for Kellogg’s in targeting the entire market without much complexity (Bruwer and Li 2017).

d) Value Differences and Positioning Strategy

Kellogg’s has their presence in the different parts of the world which has helped them in increasing their profitability and market share in the entire market which is effective in nature. The respective product Kellogg’s follows the competitive pricing wherein price skimming strategy is being adopted by them in attracting large number of customers in the entire market.

The main competitive advantage of Kellogg’s in comparison of the other competitors in the market is relating to the strong portfolio of product as this is the world’s largest cereal maker and the Kellogg’s spend more than 8% of the revenue in building of the brand image which will be helpful in managing the competition in the entire market as well.

The other competitive advantage is gained by Kellogg’s in comparison to the other competitors in the market is relating to the manufacturing facility in more than 20 countries which helps them in making their products available in all the countries and this helps them in increasing their sales as well.

The major positioning strategy which is being used by Kellogg’s is that they have differentiated pricing strategy in different countries. This has been seen that Kellogg’s positioned themselves as premium brand in United States, however in India they have kept their pricing reasonable and affordable in nature which helps them in managing the overall effectiveness.

e) Positioning Statement

The major positioning statement of Kellogg’s is to delight along with enrich the entire world through different foods and brands which will help in meeting the different demands of the customers effectively. The purpose of Kellogg’s is to nourish the families which will be helpful in flourishing and thriving and Kellogg’s is the company of promise along with possibilities.

Conclusion 

Therefore, this can be concluded that proper segmentation, positioning and targeting is essential as this helped in managing the different kinds of aspects which can be gained by Kellogg’s in comparison to the other competitors.

References

Andrews, J. Craig, and Terence A. Shimp. Advertising, promotion, and other aspects of integrated marketing communications. Nelson Education, 2017.

Bruwer, Johan, and Elton Li. "Domain-specific market segmentation using a latent class mixture modelling approach and wine-related lifestyle (WRL) algorithm." European Journal of Marketing 51, no. 9/10 (2017): 1552-1576.

De Mooij, Marieke. Global marketing and advertising: Understanding cultural paradoxes. SAGE Publications Limited, 2018.

Gengler, Charles E., and Michael S. Mulvey. "Planning pre-launch positioning: Segmentation via willingness-to-pay and means-end brand differentiators." Journal of Brand Management 24, no. 3 (2017): 230-249.

Kelloggcompany.Com (2018). https://www.kelloggcompany.com/en_US/home.html.

Lovelock, Christopher, and Paul Patterson. Services marketing. Pearson Australia, 2015.

Paker, Neslihan, and Ceren Altunta? Vural. "Customer segmentation for marinas: Evaluating marinas as destinations." Tourism management 56 (2016): 156-171.

Venter, Peet, Alex Wright, and Sally Dibb. "Performing market segmentation: a performative perspective." Journal of Marketing Management 31, no. 1-2 (2015): 62-83.