The aim of the report is to review the marketing mix strategies such as product, price, place and promotion of two reputable companies i.e. Weetabix and Kellogg’s Coco Pops. The aim is to understand the practical implementation and go through a practical experience of implementation of these trends as studied in the course. The report begins with a brief introduction of the topic under consideration, moves through marketing mix comparison of both the companies and ultimately commences with the conclusions and recommendations of the analysis that has been done
The marketing mix is the collection of tactical controllable marketing methods that an organization uses to provide its target market with a desired response. The product, price, position, and promotion are included. It is also a strategy and implementation mechanism for marketing. The marketing combination of four Ps can be redefined as 4 Cs. For starters, consumer solutions cost rather than price, comfort rather than promotion instead of contact with the consumer. The products chosen for marketing mix analysis are Weetabix and Kellogg’s coco pops. In more than 80 countries, Weetabix exports its breakfast cereals worldwide and every area has different characteristics. Weetabix’s share of total cereal revenue is about 7 per cent in its intensely competitive UK country of origin. In comparison, Kenya accounts for 70% of its grain revenues. Kellogg’s Coco Pops is a cereal made from Kellogg’s breakfast that comes as a boxed cereal, as well as a snack bar, and has a dried milk rim. It is rice Krispy cocoa variant with actual chocolate. It is the biggest cereal corporation in the world with revenues of more than $14 billion. It is the second leading manufacturer of cookies, savoury snacks and crackers. In 1958, cereals were launched in the U.S. This assignment covers a detail analysis of the marketing mix strategy of Weetabix and Kellogg’s Coco Pops. The paper commences with a detailed review and recommendation in light of existing literature (Festa, 2016).
Segmentation Targeting and Positioning Strategic Approach
Marketing segmentation, targeting, and positioning reflects a model that helps marketers create and generate messages that concern segmented target markets and provide them with personalized and appropriate messages. This is a marketing strategy toward the audience and consumers. The purpose is to provide the commercially appealing segments with appropriate messaging. Segmentation is used to identify niches with specific needs and desires that we can articulate clearly. In mature markets we use segmentation to find new customers. Segmentation allows us to focus our messaging and deliver it more effectively. (Arif, 2016)
Figure1. Market Segmentation, Market Targeting and Product Positioning (Goldsmith, 1999)
Comparison of Brand’s Target Market
In marketing mix price refers to the pricing of a commodity. It depends on production costs, the particular sector, business capability, availability, demand, and many other direct and indirect factors (Leigh, 1992). The product applies to the product currently distributed. The place corresponds to the purchase point. In all the markets, it’s easy to catch the attention of the customer. Promotion applies to all actions to educate the customer and exchange for the good or service. They make up a company’s strategic strategy and manage it correctly. It could take years to recover if treated improperly (Borden, 1964).
Figure2. The 4P’s of Marketing (Constantinides E. J., 2007)
The Marketing Mix of Weetabix and Kellogg’s analyses and describes the marketing plan for the brand covering the 4Ps which include Product, Price, Place, and Promotion. By 2020, many marketing initiatives have led to the brand’s success, such as product/service creativity, marketing investments, customer engagement, etc. (Weetabix, 2018)
]Weetabix preserves the principles, qualities and characteristics of nutrition that remain but through microencapsulation, with the inclusion of Omega 3. Weetabix has introduced a new luxurious feeling product to the goal of our target adult market, with a more designer look, in order to demonstrate the product a highly regarded and adult food. Rather than the standard package, which is either cut or torn open, put a zip lock pocket inside the packet to hold the Weetabix refresher and more enticing for a longer time (PHILLIPS, 1974). Kellogg’s has a number of segments depending on the type or geography of goods. Consumer category divisions are American morning food, American snacks. Kellogg’s products include breakfast cereals and other foodstuffs in the marketing mix. Breakfast cereal produces annually worldwide revenue of over $400 billion and forms the bulk of worldwide sales. Snacks generate a total sales volume of $230 billion annually and account for an important share worldwide (Brown, 2010). Therefore, based on the segmentation of the business market, both brands have adopted innovative strategies for their competitive advantages.
- Price of Weetabix £4.80
- Price of Kellogg’s £4.26
Pricing policy of Weetabix is focused on pricing for the market, targeted at attracting more new market purchasers. The reduced prices would be 20 cents higher than standard Weetabix products, which would make them more attractive to existing and future consumers. Weetabix and Weetabix goods of the original size would have the lower prices (Smith, 2019). However, according to consumer price index (CPI) shows that the inflation increased to 1.6 per cent last month, up from 1.2 per cent in November, although higher prices for raw materials and fuels forced up manufacturer prices (Weetabix, 2017). The dynamic pricing of Kellogg’s reflects that it is focused on industry dynamics and analysis. Kellogg uses services like discounts and other systems daily, such as free food coupons. In order to compete and rely on growth in sales, Kellogg’s keeps pricing flexible. That being said, the price policy in Kellogg’s marketing mix is mostly driven by their own brands, considering its market leadership (Nickell, 2018).
Weetabix operates on positioning targets and distributing the most revenue generating product in supermarkets to meet the product goal of getting greater market share. In the US, the location of the Weetabix items is normally not part of US cereals that are generally full of sugar or other garbage in a ‘balanced cereal’ environment. I see that they combine with the American cereals in Canada and they’re not as perceptible as they normally sell, just 1 box row. London Medicines are an anomaly and mostly show in the aisle instead of on the shelves or in a conspicuous position on themselves (PHILLIPS, 1974). Considering Kellogg’s, the four main cereals markets are the United States, Canada and the United Kingdom and Australia. The priority of Kellogg is on emerging markets. The sales networks of Kellogg’s include convenience, retail, mini-supermarkets and high-frequency shops. Kellogg sells its goods for resale through retail stores through its own sales force. For some goods Kellogg also uses a dealer and distributor system. Kellogg markets some of its products to supermarkets with a direct distribution scheme for the store door. Kellogg’s very quickly tries to make their goods affordable. Kellogg’s also provides e-commerce delivery. (Constantinides. E, 2006)
The advertising campaigns of Weetabix concentrate on established target audiences for consumers of children and adults focused to their professions. Because both of these goals are busy, they will require constant exposure in several ways; first of all, they will make the new product conscious, so they will test the product and ultimately keep it wanting to buy Weetabix on an on-going basis. The target demographic is extremely likely to become daily Weetabix customers by continuous marketing and incentive rewards and donations (Goldsmith, 1999). The aim of Kellogg is to create a solid brand to boost its sales. Under its campaign blend, Kellogg supports different sales tactics. Kellogg’s was US gymnastics and children’s series affiliate, featuring dragon storeys. As an advertising tactic for children in cereal boxes Kellogg’s uses gifts. The brands have pets that reflect the brand and draw kids. Motorsports activities were also funded by Kellogg’s. Another sales technique is merchandising. Kellogg has launched several exclusive packets of cereal for a PC game called Project Nutrition. For advertising campaigns social media is included (Dang, 2014).
Conclusion and Recommendations
The established food products brands in the United Kingdom are both Weetabix and Kellogg’s. The firm is experiencing a substantial decline of its market due to the large rivalry or drop in its cereal commodity. The marketing study showed that Weetabix’s revenue decreased to 4.3% and distribution value plummeted to 7.9%. If the organisation is using Ansoff Matrix for the growth of its market, it will be helpful. The most important elements in the Ansoff matrix are: market penetration: The organisation is trying to increase its market positions in this approach. Diversification must also be taken by all businesses. This approach would increase the company’s market share and launch new offerings to the market in combination with its products (Dominici, 2009).
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