{"id":20037,"date":"2024-05-18T14:04:46","date_gmt":"2024-05-18T14:04:46","guid":{"rendered":"https:\/\/essays.homeworkacetutors.com\/2024\/05\/implementation-of-new-product-service-or-process-purpose-marketing-essay\/"},"modified":"2024-05-18T14:04:46","modified_gmt":"2024-05-18T14:04:46","slug":"implementation-of-new-product-service-or-process-purpose-marketing-essay","status":"publish","type":"post","link":"https:\/\/www.colapapers.com\/us\/implementation-of-new-product-service-or-process-purpose-marketing-essay\/","title":{"rendered":"Implementation Of New Product Service Or Process Purpose Marketing Essay"},"content":{"rendered":"
\n

KELLOGG is the world\u2019s leading producer of cereal products with total sales volume of nearly $13 billion during 2008. Kellogg products are manufactured in 19 countries and marketed in more than 180 countries around the world. Major Kellogg\u2019s products include crackers, Toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles and vegetarian foods (http:\/\/www.kelloggs.co.uk\/ Accessed on March 03, 2011). The company famous brands include all- bran, corn flakes, keebler, pop-tarts, eggo, cheez-it, nutri-grain, rice krispies, bearnaked, morningstar farms, famous amos, special K, and frosted mini-wheats.<\/p>\n

Mission statement: \u201cKellogg is a global company committed to building long-term growth in volume and profit and to enhancing its worldwide leadership position by providing nutritious food products of superior value\u201d http:\/\/www.kelloggs.co.uk\/ Accessed on March 03, 2011)<\/h2>\n

In a rapidly changing and competitive business environment, it is not easy to predict:<\/p>\n

future trends in consumer tastes and preferences<\/p>\n

competitors\u2019 actions<\/p>\n

market conditions.<\/p>\n

Creating new products or making changes to existing brands involves making investment decisions, in the hope of making a return. Weighing up future returns against an investment is crucial and involves an element of risk, because the future is never certain. Previous experience, together with market research information helps to predict future events and outcomes. However, all business activities involve some element of risk. There is often a link between risk and return. More the risk, the higher the likely returns (or profits); however, a balance needs to be struck.<\/p>\n

In making a decision to develop a new brand, it needs to decide how much investment to make and to forecast the likelihood of a successful outcome. Decision makers aim to develop a long-term strategy to meet a range of objectives such as:<\/p>\n

growing market share<\/p>\n

developing a unique market position<\/p>\n

creating consumer or brand loyalty<\/p>\n

generating a targeted level of profit.<\/p>\n

This case study describes a major investment in Kellogg\u2019s \u2018All-Bran\u2019. It illustrates business case for the new product and identifies how the company\u2019s investment in new product development serves to strengthen a global brand. Later part of the essay will reflect an outline plan which identifies resources required for the project that is materials, equipment, labour, and training and development of staff<\/p>\n

2. LAUNCHING OF KELLOGG\u2019s ALL-BRAN<\/h2>\n

2.1) NEED IDENTIFICATION AND ANALYSIS:<\/h2>\n

In an uncertain world where the organisation\u2019s strategy is to focus on products and brands that are either the market leader or in a strong position the company believes that this focus upon core and successful products enables it to provide consistent and reliable returns and rewards for its stakeholders.<\/h2>\n

Before proceeding with the change, Kellogg carried out some detailed market research with consumers to discover their thoughts and feelings. There are two main approaches to market research i.e.: qualitative and quantitative.<\/p>\n

Qualitative research involves working in detail with a relatively small number of consumers e.g. observing and listening to them talking in small groups in which they discuss the brand, products, packaging, advertising ideas, etc. The qualitative research helped Kellogg to develop the concept of a family of fibre brands. The advertising and promotional materials with which the consumer groups worked were very similar to the end promotions that Kellogg wished to communicate.<\/p>\n

Quantitative research involved using questionnaire and survey approaches with a much larger sample of targeted consumers to estimate the impact on sales if these changes were put into market. Kellogg\u2019s undertook market research by answering the questions as per questionaire-1 in Appendix.<\/p>\n

In September 2004, Kellogg planned to introduce a new product i.e. \u2018All-Bran\u2019 to make the benefits more relevant to consumers. Promotion of \u2018feel great\u2019 message was featured on 8 million packs and on the \u2018All-Bran\u2019 website. It focused on the fact that high-fibre diets may help people to feel lighter and more energetic as well as aiding the digestive system. Bran which is high in fiber is needed in a human\u2019s diet. It is best to be used in moderation to gain the positive health it promotes. The high bran, high fibre cereal has been designed to aid a healthy digestive system and to help people control their morning eating habits; without compromising on taste! Research showed that consumers see cereals as a \u2018natural product\u2019. This is a strong selling point. It makes it vital to feature the ingredients on the packaging. This is because All-Bran range can be seen as part of a daily healthy diet (http:\/\/www.thetimes100.co.uk\/case-study\u2013building-brand-order-to-sustain-its-life-cycle Accessed on March 03, 2011).<\/h2>\n

2.2) OBJECTIVES:<\/h2>\n

By setting up SMART (specific, measurable, achievable or agreed, realistic and time-related) objectives Kellogg would know whether each objective for launching \u2018All-Bran\u2019 had been achieved. The objectives were clear and were communicated to all staff. This made sure that all staff agreed to follow certain actions to achieve the stated aims. By setting these objectives Kellogg set a direction that would take the business to where it wanted to be three years into the future.<\/p>\n

Major objectives include;<\/p>\n

encourage and support physical activity among all sections of the population<\/p>\n

use resources to sponsor activities and run physical activity focused community programmes for its consumers and the public in general<\/p>\n

increase the association between Kellogg and physical activity<\/p>\n

use the cereal packs to communicate the \u2018balance\u2019 message to consumers<\/p>\n

introduce food labeling that would enable consumers to make decisions about the right balance of food<\/p>\n

2.3) TARGET MARKET:<\/h2>\n

It is the process of evaluating each market segment and select one or more segments to enter. Premiums and gifts are outstanding tools for call to mind initial trial, brand switching, and repeat purchase. Now and then company is able to target because they are financially strong and they can arrange a vast product line. People aged 55 and over are the target markets of Kellogg\u2019s ALL BRAN .Kellogg\u2019s ALL BRAN are easily available in urban and rural areas all over the country. It has been targeted every segment and we can say that Kellogg has a \u2018fragmented market\u2019.<\/p>\n

Market attractiveness factors for \u201cAll-bran\u201d include market, size, differentiation possibilities, bargaining power of customers, seasonality, distribution, product growth and stage in product life cycle<\/p>\n

Main factors influencing marketing of a product are;<\/p>\n

a) Economic and technological factors i.e. Investment intensity, Industry capacity, Technology, Barriers to entry and exit and Access to supplies<\/p>\n

b) Competitive i.e. competitive structure, competitive groupings, substitute products, price, and Individual competitor analysis<\/p>\n

3. PRODUCT LIFE CYCLE<\/h2>\n

The product life cycle is the period over which it appeals to customers and can be illustrated in a series of stages showing how consumer interest, and hence sales, has altered over time. Kellogg\u2019s All-Bran has a long and distinguished history. Like many other famous products, however, it is important from time to time to re-energize its life cycle. To prolong the life cycle of a brand or product an organisation needs to use skilful marketing techniques to inject new life into the product.<\/p>\n

The traditional product life-cycle shows how a product goes through 4 stages during its life in the market place. At each stage in the product life-cycle, there is a close relationship between sales and profit so when a product goes into decline, profit decreases. When a product is introduced to the market, growth is slow due to limited awareness. As the product is establishing itself, sales will start to increase during the period of growth. As the product reaches maturity, the company needs to inject new life into the product; either by creating brand extensions or variants otherwise the product will reach maturity and start to decline. All-Bran is standing on the maturity stage with 65% of total market share. To stay spirited in the market it needs to introduce time to time new offers and flavors and different promotional schemes. Manufacturing capability is another key issue. If launches of new products are successful in global markets, Kellogg\u2019s must have the manufacturing capacity to meet consumer demand as well as the supply chain necessary to reach those consumers.<\/p>\n

When a company like Kellogg\u2019s is investigating a change in its marketing it can consider four elements (http:\/\/www.thetimes100.co.uk\/case-study\u2013using-new-product-development-to-grow-a-brand Accessed on May 03, 2011) of marketing mix or 4Ps:<\/h2>\n

3.1) PRODUCT:<\/h2>\n

This is about meeting changing needs and wants of customers through offers. The growth in healthier lifestyles creates opportunities for Kellogg\u2019s to increase the number of products for this segment. In case of ALL BRAN, the product is the cereal production by the company. Core Product is cereal, for breakfast and as a snack. Actual product is high quality level; different tastes, flavors, packaging and the symbol K. Augmented product provides tastes and energy as well as nutritional ingredients.<\/p>\n

3.2) PRICE:<\/h2>\n

Pricing decision is very important because the survival of a company in the market depends upon pricing decision. Pricing strategy depends on pricing objectives. The amount a company charges for its product is important in determining sales. Super brands like Kellogg\u2019s can charge a premium because of the strength of the brand and product quality.<\/p>\n

3.3) PLACE:<\/h2>\n

Where customers can purchase the product is also an important factor in determining sales. If a brand like All-Bran is not stocked in supermarkets where most purchases are made, sales will be lost.<\/p>\n

3.4) PROMOTION:<\/h2>\n

The marketing mix activities of a product planning, pricing, and distribution are performed mainly within the organization or between the organization and its marketing \u201cpartners\u201d. However, with promotional activities, the firm communicates directly with potential customers. Kellogg\u2019s uses above the line promotion like TV advertising as well as below the line promotion like on-pack promotions and sampling. The market research revealed several matters that Kellogg needed to address when alerting the public to changes in the brand family.<\/p>\n

1. Some consumers might find the act of placing a range of separate products under the All-Bran brand confusing. The solution was to ensure that packs clearly display both the power brand name (All-Bran) and also the product name (e.g. Bran Flakes).<\/p>\n

2. Research showed that consumers see cereals as a \u2018natural product\u2019. This is a strong selling point. It makes it vital to feature the ingredients on the packaging.<\/p>\n

3. To give the campaign maximum impact, Kellogg carefully co-ordinated television and radio advertising, PR and in-store promotions. These encouraged consumers to try out and reappraise the revamped products.<\/p>\n

A product\u2019s life cycle may last only a few months (e.g. with a fad, or craze) or, as with Special K, for many years. Although it was a successful product, Kellogg\u2019s recognised the opportunity to stretch the brand by investments that would:<\/p>\n

revitalize it<\/p>\n

extend and further develop its growth phase and<\/p>\n

Help to delay the onset of the maturity phase.<\/p>\n

4. CHARACTERISTICS OF THE MARKET<\/h2>\n

4.1) MARKETING ENVIRONMENT:<\/h2>\n

This can be divided into two broad categories;<\/p>\n

a) Micro Environment:<\/h2>\n

The Micro Environment of the Kellog consists off;<\/p>\n

The Company: has to take other groups or departments of company into account. Such as finance, research and development, purchasing, operation, accounting department.<\/p>\n

Suppliers: Kellogg\u2019s obtains its raw materials of wheat, corn, cocoa, rice and sugar from primary suppliers around the world. It is a large-scale manufacturer and stores sufficient stocks to meet customer orders.<\/p>\n

Marketing Intermediaries Kellogg\u2019s does not sell its breakfast cereals directly to consumers. It uses intermediaries like wholesalers, supermarkets, high street stores and hotels. Kellogg\u2019s has major relationships in the tertiary sector. These include the major retail supermarkets such as Tesco and ASDA and some of the wholesale sector such as Makro.<\/p>\n

Customers: The Kellogg\u2019s Company mainly focuses on customer market that consists of people aged 55 and over and weight conscious people.<\/p>\n

Competitors: Nestle is the only competitor of Kellogg.<\/p>\n

b. Macro Environment:<\/h2>\n

The external factors which affect a company\u2019s planning and performance, and are beyond its control: for example, socio-economic, legal and technological change<\/p>\n

(http:\/\/wiki.answers.com\/Q\/What_is_the_macro_environment_of_Kellogg)<\/p>\n

There are many environmental issues which should be looked at to get the broader picture of Kellogg\u2019s Company. These issues can be grouped into six categories: political, economical, social-demographic, technological, legal and ethical. The acronym for this is a Pestle analysis.<\/h2>\n

Political \/Legal Environment: UK has a stable political environment hence, private enterprise is encouraged, which gives Kellogg an opportunity to introduce new products and improve the existing ones.<\/h2>\n

Economic Environment: Economic factors are those that affect consumer buying behavior. As this is an era of great depression, there is a change in the income of the consumer so the sales of Kellogg are affected by this.<\/h2>\n

Natural Environment: The natural environment of Kellogg\u2019s involves all the natural resources that are needed as inputs by the company and are affected by market activities. They\u2019ve set themselves a number of targets to meet by 2015, and are constantly checking their progress along the way so they can see how they\u2019re doing. By 2015 they aim to have reduced all of the following by 15-20% per metric tonne of food produced since 2005.<\/h2>\n

Energy use<\/p>\n

Greenhouse gas emissions<\/p>\n

Water use<\/p>\n

Waste sent to landfill (For waste to landfill, they achieved a 41.5% reduction by 2009 and have set themselves a new target of a further 20% reduction by 2015 against a 2009 baseline.)<\/p>\n

Socio-cultural Environment: UK has a tradition of eating cereal as a breakfast so Kellogg has got high market.<\/p>\n

Technological Environment:: UK has good infrastructure and distribution channel which again is highly favorable for Kellogg to grow further.<\/p>\n

Responding to the Marketing Environment:<\/h2>\n

\u201cKellogg\u2019s has utilized integrated business units and compensation incentive systems to increase the accountability of the cash expenditure and improve the functionality of the organization. Products sales have been increasing in the UK as well as in other countries. The pricing and availability of the product determines the profitability of a product. Streamlining many of the operations in recent times has helped the Kellogg increase the profit margin. More resources could therefore be spent on the marketing and advertisement of products. In addition, Kellogg\u2019s also increased the number and frequency of promotional offers more toys and DVD\u2019s in cereal boxes, tie-ins with movies and charitable donations to local schools and charities. In 2002, a new strategy of \u201cVolume to Value\u201d was introduced throughout the company.\u201d<\/p>\n

4.2) MARKET SEGMENTATION PROCESS<\/h2>\n

The process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment.<\/p>\n

Today Kellogg\u2019s is doing its business in United states, China, India, Indonesia, Jordan, Lebanon, Malaysia, Maldives, United Kingdom, Qatar, Saudi Arabia, Singapore, Sri Lanka, Thailand, United Arab Emirates and Vietnam. In this project we are only discussing its market segmentation in United Kingdom. They are segmenting the market in the form of geographic, demographic, psychographic, and behavioral.<\/p>\n

All-Bran Original is available in Australia, Somalia, USA, Canada, Colombia, UK, Italy, Mexico, France, Japan, Latin America, and South Africa<\/p>\n

4.3) MARKET TARGETTING PROCESS<\/h2>\n

After dividing the market into various segments, the Kellogg Company has to decide which segment it can serve better. So first they evaluated each segments. They want the sets of buyers who share common needs and characteristics to serve. Kellogg mainly used undifferentiated (mass) marketing strategy because cereal will always be mass marketed. They have to do business on large scale so Kellogg Company is using mass marketing.<\/p>\n

4.4) PRODUCT DEVELOPMENT PROCESS<\/h2>\n

New product development process of product starts with idea generation.<\/p>\n

Commercialization<\/p>\n

Product Development<\/p>\n

Marketing Strategy Development<\/p>\n

Idea<\/p>\n

Generation<\/p>\n

Test Marketing<\/p>\n

Business Analysis<\/p>\n

Concept Development &Testing<\/p>\n

Idea<\/p>\n

Screening<\/p>\n

5. USE OF INTERNAL AND EXTERNAL RESOURCES<\/h2>\n

Use of internal and external resources is crucial in the launch of a new product.<\/p>\n

5.1) INTERNAL RESOURCES:<\/h2>\n

Idea of Kellogg\u2019s came from;<\/h2>\n

Product development teams<\/p>\n

Formal research and development (asked consumers through questionnaires )<\/p>\n

Brains of its executives, scientists, engineers, manufacturing staff and salespeople<\/p>\n

Companies successful entrepreneurial programs (encourages employee to think about new cereal product )<\/p>\n

Value innovation program<\/p>\n

5.2) EXTERNAL RESOURCES:<\/h2>\n

Customers (through questionnaires)<\/p>\n

Competitors (Kellogg\u2019s get clue about their new product by watching competitor\u2019s ads, analyze the sales, and then decide).<\/p>\n

Distributors<\/p>\n

Suppliers (tell company about new concepts, techniques and materials that can be used to develop new products).<\/p>\n

6. SWOT ANALYSIS<\/h2>\n

STRENGTHS:<\/h2>\n

a) Kellogg \u2018All Bran\u2019 is the only large, very high fibre brand in the market place. Private label provides the main competition.<\/p>\n

b) The general public remains highly aware of ALL BRAN<\/p>\n

c) The ALL BRAN brand is strong; consumers associate it with healthy activity.<\/p>\n

WEAKNESS:<\/h2>\n

a) Awareness of the brand had been declining because of little promotional (e.g. advertising) activity in recent years.<\/p>\n

b) Compared with leading brands such as Kellogg corn flakes, the individual fibre products have limited scale, making it hard to make advertising investment economic.<\/p>\n

c) The preposition that a fibre cereal keeps you regular is less motivating to consumers than in the past. Consumers now more interested in products inner health<\/p>\n

OPPORTUNITIES<\/h2>\n

a) People are looking to eat more healthily<\/p>\n

b) The rapid growth of non cereal products that meet inner health need (pro biotic drinks and yogurts)<\/p>\n

c) In the UK the number of people over 55(the products main consumers) continues to increase.<\/p>\n

THREATS:<\/h2>\n

a) The sales of private labels fibre cereal is growing.<\/p>\n

b) There is a consumer\u2019s trend towards the tastier cereal<\/p>\n

7. CONCLUSION<\/h2>\n

By creating the power brand \u2018All-Bran\u2019 and providing the right sort of well researched promotional support, Kellogg has been able to inject renewed vigor into a family of related products. Through appropriate promotional activities and more relevant messages, Kellogg has re-awakened consumers\u2019 interest in products that can play an important part in developing a healthy diet in a health-conscious world. Regular campaigns of promotional activity are helpful in enabling all organizations to sustain their own life cycle and those of their brands and products. It is early days in evaluating the success of the marketing activity supporting All-Bran but the signs are good.<\/p>\n

Appendix: Primary Research:<\/h2>\n

Survey questionnaire-1<\/h2>\n

What changes taking place in society are likely to affect the product?<\/p>\n

How might new technologies affect our business?<\/p>\n

What are likely to be the future market trends?<\/p>\n

Where are the opportunities within the market place?<\/p>\n

What new categories would appeal to the target market?<\/p>\n

How far do consumers think the brand could stretch into the market for different product categories?<\/p>\n

Survey questionnaire-2<\/h2>\n

1. What is age bracket do you belong to?<\/h2>\n

13-16 yrs<\/p>\n

17-30 yrs<\/p>\n

31-39 yrs<\/p>\n

39 yrs or above<\/p>\n

2. Which income bracket do you belong to?<\/p>\n

GBP 50-200<\/p>\n

GBP 200-500<\/p>\n

GBP 500-1000<\/p>\n

GBP 1000 & above<\/p>\n

3. What is your marital status?<\/p>\n

Single<\/p>\n

Married<\/p>\n

4. What is the brand of the cereal that you usually purchase?<\/p>\n

Nestle<\/p>\n

Kellogg<\/p>\n

5. Is ALL BRAN your favorite cereal?<\/p>\n

Yes<\/p>\n

No<\/p>\n

6. How often do you purchase cereal?<\/p>\n

Everyday<\/p>\n

Once a week<\/p>\n

Once a month<\/p>\n

7. Please rank accordingly to the characteristics of ALL BRANS:<\/p>\n

a) Taste b)Price c) Flavor d) Packaging<\/p>\n

1=least preferred 5=most preferred<\/p>\n

1 2 3 4 5<\/p>\n

8. Do you like the ads of ALL BRAN?<\/p>\n

Yes<\/p>\n

No<\/p>\n

9. What flavors of Kellogg do you like the most?<\/p>\n

Corn flakes<\/p>\n

All bran<\/p>\n

Rice kripsies<\/p>\n

Special K<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

KELLOGG is the world\u2019s leading producer of cereal products with total sales volume of nearly $13 billion during 2008. Kellogg products are manufactured in 19 countries and marketed in more than 180 countries around the world. Major Kellogg\u2019s products include crackers, Toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles and vegetarian foods (http:\/\/www.kelloggs.co.uk\/ Accessed on […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6617,5820],"tags":[6619,6620,6621,6314,6618,6311],"class_list":["post-20037","post","type-post","status-publish","format-standard","hentry","category-do-my-homework","category-marketing","tag-acemyhomework","tag-affordable-online-college-homework-and-assignment-help-from-professional-tutors","tag-do-my-homework-market","tag-native-assignment-help-online-homework-writing-helper","tag-write-my-paper-masterra-essay-writing-service","tag-write-pages-in-a-page-paper"],"_links":{"self":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/posts\/20037","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/comments?post=20037"}],"version-history":[{"count":0,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/posts\/20037\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/media?parent=20037"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/categories?post=20037"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.colapapers.com\/us\/wp-json\/wp\/v2\/tags?post=20037"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}