Case study: Kellogg's New Breakfast Idea!! RICE KRISPIES A successful marketing campaign by Kellogg's more than...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Case study: Kellogg's New Breakfast Idea!! RICE KRISPIES A successful marketing campaign by Kellogg's more than a century ago has locked breakfast in position as the most important meal of the day. Even nutritionists now recommend that people of a healthy weight make sure they have breakfast to maintain this healthy weight. It is also important that breakfast delivers the right vitamins (such as vitamins A, B, and C), iron, calcium, and other minerals. Despite the social importance of breakfast, studies show that many people do not eat breakfast for various reasons. Mainly due to a lack of time to prepare the meal. With changing lifestyles and time pressures in many households, breakfast cereals can provide a healthy start to the day, saving time yet providing the necessary nutritional requirements. One of the leading companies in this market is Kellogg's, that describes itself as a company "making breakfast cereal loved and enjoyed by the whole family." Rice Krispies (known as Rice Bubbles in Australia) was invented and went on sale in 1928 in the United States (US). The original formula was made from a mixture of rice and sugar made into a paste. This paste was then toasted, resulting in the "snap, crackle and pop" effect when milk was poured over it. The ingredients included rice, sugar, malt extract (barley), vitamins A, C, B1, B2, niacin, folic acid, B12 and pantothenic acid (B5), and iron, which was considered a healthy breakfast cereal. For many consumers, Rice Krispies is not just the product itself - it represents the memories associated with the product, recollections of their childhood and the three cartoon-like characters in the form of the elves (see Rice Krispies package above). The elves are named Snap, Crackle and Pop. Snap is the oldest, brainiest (smartest) brother; Crackle is the clown; while PopTM is the youngest and most adventurous. These mascots or characters have been associated with the brand since 1938. The use of brand mascots is aimed at increasing product liking and brand loyalty, as they are positively perceived by consumers. Rice Krispies traditional heritage and the association with a healthy breakfast time has been positively perceived by children, but not necessarily by their parents. Increased health awareness among consumers, especially amongst parents (such as the call for reduced sugar and gluten-free options) has led to the introduction of new products in the marketplace. This includes an increase in the popularity of ready-made-meals, particularly aimed at those consumers who have time pressures in the morning and who are often unable to prepare breakfast for the family. In addition, some retailers produced their own private label cereals as a way of attracting customers via offering cheaper competitive products. In Australia there are versions of Rice Bubbles offered by Aldi, Woolworths, and Coles in private label formats. World-wide, Kellogg's growth has traditionally come from the development of innovative products as part of their growth strategy. This growth strategy involves developing new products or acquiring (buying) other brands to meet the needs and expectations of its current and potential target markets. As part of this ongoing growth strategy, Kellogg's has chosen to develop a new product line. Kellogg's have turned to nutritionists for advice on how to develop a quick and easy healthy product that appeals to singles, to children but also meets parents' expectations of healthier eating. The nutritionists Kellogg's have consulted have agreed on a number of recommendations for a healthier lifestyle: Fat intake should be reduced, particularly saturated fatty acids. The intake of polyunsaturated fatty acids should be increased. Fibre intake should be increased. Sugar intake should be reduced. Salt intake should be reduced. Picture Sourced from Catering SoulOrigin.com.au ducts breakfa-pota Many of Kellogg's stakeholders (current consumers, social media feedback, company employees) have provided the company with some good ideas for a new breakfast meal, especially from Australia. After much deliberation, Kellogg's has decided to develop a fresh breakfast pot, named Kellogg's Brekkie ('Brekkie' is slang in Australia for "breakfast"). Kellogg's are considering a move away from packaged breakfast cereals to a fresh food alternative. Preliminary findings from a written proposal to introduce the 'Brekkie' pot into the Australian market have recommended the following: 'Brekkie' be made only with the freshest and highest quality ingredients. Introduce a plant based version of the product with no animal products used at all for people who are vegan, vegetarian, or just trying to cut down on their animal product consumption for environmental reasons. Kellogg's provide a guarantee that all food is same-day fresh, and the food shelf life (use by date) is only 24 hours from time of production. 'Brekkie'/Kellogg's food partners consist of local organic farmers as well as fresh food distributors who provide daily produce to Kellogg's kitchens. 'Brekkie' will be sold through independent grocery stores e.g., IGA supermarkets, organic cafes, school canteens and university cafes, and integrated into food programs. There is the potential to start a 'Brekkie' franchise or retail store in the future. The same iconic elves will appear on the packaging to ensure there is strong brand awareness and recognition for the 'Brekkie' pot and still appeal to children. The Kellogg's team would purchase its organic products from local producers/farmers and adapt their meals according to the season and climate. Kellogg's intends to support local employment and ensure a low ecological footprint (low energy consumption and reduced pollution) in the production of its healthy 'Brekkie' pot. These factors will be emphasised in their integrated marketing communication program and at the point of sale. Other initiatives that are being considered include: All food not sold during the day will be donated to local charities (e.g., Foodbank Victoria, Secondbite, Salvation Army) to ensure that people requesting help from these charities have an opportunity to eat a healthy breakfast. Develop a Food Program to create an environment where people learn healthy eating habits. Include healthy eating messages in their IMC program. Assess the potential to fund a "grow your own food' program in the schools, other education institutions (e.g., Universities) and in the community through further expansion of community gardens. Part 2: Segmentation, Targeting, Differentiation and Positioning (6+4= 10 Marks) Question 2. a. Kellogg's have identified young (15 to 35), single and also those married with young children, health-conscious females as their main target markets for 'Brekkie' pots. Kellogg's operate in the Breakfast Food category. Develop two (2) differentiation strategies for Kellogg's 'Brekkie' pot, with justification, as to how they can potentially differentiate themselves from other ready to eat breakfasts (including those purchased for take-away from cafes, those purchased from supermarkets, and those made at home), but still be in the breakfast food category in the Australian market. Differentiation strategies must come from the 5 bases of differentiation. (6 Marks) b. Based on your chosen differentiation strategy(s) in question 2a, develop a positioning statement for Kellogg's Brekkie pot. (4 Marks) Part 3: Marketing Mix (12+8+12=32 Marks) Question 3. a. Develop three product strategies in the context of your proposed Kellogg's new 'Brekkie' pot as identified in Question 1b, to ensure the proposed new product will be a success in the Australian market. Be clear, how it applies specifically to the target market of young, health-conscious females (singles and those married with young children) and your differentiation strategies. (12 marks) b. Thinking about distribution and logistics, develop a multi-channel recommendation to Kellogg's management for the potential distribution of the 'Brekkie' pot in the Australian market. Draw a multi-channel distribution diagram to support your recommended placement (distribution/logistics) strategy. Be sure to take into account the nature of the product. It is fresh and must be consumed within one day. Note. You can hand draw the diagram and upload a photo image to the answer sheet (8 marks) c. Thinking about the promotion element of the marketing mix, develop an integrated marketing communication (IMC) program for the Kellogg's 'Brekkie' pot. Recommend three (3) different promotion tool strategies (with justification) Kellogg's could consider in promoting their 'Brekkie' pot to the target market to create awareness and entice trial of the Kellogg's "Brekkie' brand. (4 x 3 = 12 marks) Case study: Kellogg's New Breakfast Idea!! RICE KRISPIES A successful marketing campaign by Kellogg's more than a century ago has locked breakfast in position as the most important meal of the day. Even nutritionists now recommend that people of a healthy weight make sure they have breakfast to maintain this healthy weight. It is also important that breakfast delivers the right vitamins (such as vitamins A, B, and C), iron, calcium, and other minerals. Despite the social importance of breakfast, studies show that many people do not eat breakfast for various reasons. Mainly due to a lack of time to prepare the meal. With changing lifestyles and time pressures in many households, breakfast cereals can provide a healthy start to the day, saving time yet providing the necessary nutritional requirements. One of the leading companies in this market is Kellogg's, that describes itself as a company "making breakfast cereal loved and enjoyed by the whole family." Rice Krispies (known as Rice Bubbles in Australia) was invented and went on sale in 1928 in the United States (US). The original formula was made from a mixture of rice and sugar made into a paste. This paste was then toasted, resulting in the "snap, crackle and pop" effect when milk was poured over it. The ingredients included rice, sugar, malt extract (barley), vitamins A, C, B1, B2, niacin, folic acid, B12 and pantothenic acid (B5), and iron, which was considered a healthy breakfast cereal. For many consumers, Rice Krispies is not just the product itself - it represents the memories associated with the product, recollections of their childhood and the three cartoon-like characters in the form of the elves (see Rice Krispies package above). The elves are named Snap, Crackle and Pop. Snap is the oldest, brainiest (smartest) brother; Crackle is the clown; while PopTM is the youngest and most adventurous. These mascots or characters have been associated with the brand since 1938. The use of brand mascots is aimed at increasing product liking and brand loyalty, as they are positively perceived by consumers. Rice Krispies traditional heritage and the association with a healthy breakfast time has been positively perceived by children, but not necessarily by their parents. Increased health awareness among consumers, especially amongst parents (such as the call for reduced sugar and gluten-free options) has led to the introduction of new products in the marketplace. This includes an increase in the popularity of ready-made-meals, particularly aimed at those consumers who have time pressures in the morning and who are often unable to prepare breakfast for the family. In addition, some retailers produced their own private label cereals as a way of attracting customers via offering cheaper competitive products. In Australia there are versions of Rice Bubbles offered by Aldi, Woolworths, and Coles in private label formats. World-wide, Kellogg's growth has traditionally come from the development of innovative products as part of their growth strategy. This growth strategy involves developing new products or acquiring (buying) other brands to meet the needs and expectations of its current and potential target markets. As part of this ongoing growth strategy, Kellogg's has chosen to develop a new product line. Kellogg's have turned to nutritionists for advice on how to develop a quick and easy healthy product that appeals to singles, to children but also meets parents' expectations of healthier eating. The nutritionists Kellogg's have consulted have agreed on a number of recommendations for a healthier lifestyle: Fat intake should be reduced, particularly saturated fatty acids. The intake of polyunsaturated fatty acids should be increased. Fibre intake should be increased. Sugar intake should be reduced. Salt intake should be reduced. Picture Sourced from Catering SoulOrigin.com.au ducts breakfa-pota Many of Kellogg's stakeholders (current consumers, social media feedback, company employees) have provided the company with some good ideas for a new breakfast meal, especially from Australia. After much deliberation, Kellogg's has decided to develop a fresh breakfast pot, named Kellogg's Brekkie ('Brekkie' is slang in Australia for "breakfast"). Kellogg's are considering a move away from packaged breakfast cereals to a fresh food alternative. Preliminary findings from a written proposal to introduce the 'Brekkie' pot into the Australian market have recommended the following: 'Brekkie' be made only with the freshest and highest quality ingredients. Introduce a plant based version of the product with no animal products used at all for people who are vegan, vegetarian, or just trying to cut down on their animal product consumption for environmental reasons. Kellogg's provide a guarantee that all food is same-day fresh, and the food shelf life (use by date) is only 24 hours from time of production. 'Brekkie'/Kellogg's food partners consist of local organic farmers as well as fresh food distributors who provide daily produce to Kellogg's kitchens. 'Brekkie' will be sold through independent grocery stores e.g., IGA supermarkets, organic cafes, school canteens and university cafes, and integrated into food programs. There is the potential to start a 'Brekkie' franchise or retail store in the future. The same iconic elves will appear on the packaging to ensure there is strong brand awareness and recognition for the 'Brekkie' pot and still appeal to children. The Kellogg's team would purchase its organic products from local producers/farmers and adapt their meals according to the season and climate. Kellogg's intends to support local employment and ensure a low ecological footprint (low energy consumption and reduced pollution) in the production of its healthy 'Brekkie' pot. These factors will be emphasised in their integrated marketing communication program and at the point of sale. Other initiatives that are being considered include: All food not sold during the day will be donated to local charities (e.g., Foodbank Victoria, Secondbite, Salvation Army) to ensure that people requesting help from these charities have an opportunity to eat a healthy breakfast. Develop a Food Program to create an environment where people learn healthy eating habits. Include healthy eating messages in their IMC program. Assess the potential to fund a "grow your own food' program in the schools, other education institutions (e.g., Universities) and in the community through further expansion of community gardens. Part 2: Segmentation, Targeting, Differentiation and Positioning (6+4= 10 Marks) Question 2. a. Kellogg's have identified young (15 to 35), single and also those married with young children, health-conscious females as their main target markets for 'Brekkie' pots. Kellogg's operate in the Breakfast Food category. Develop two (2) differentiation strategies for Kellogg's 'Brekkie' pot, with justification, as to how they can potentially differentiate themselves from other ready to eat breakfasts (including those purchased for take-away from cafes, those purchased from supermarkets, and those made at home), but still be in the breakfast food category in the Australian market. Differentiation strategies must come from the 5 bases of differentiation. (6 Marks) b. Based on your chosen differentiation strategy(s) in question 2a, develop a positioning statement for Kellogg's Brekkie pot. (4 Marks) Part 3: Marketing Mix (12+8+12=32 Marks) Question 3. a. Develop three product strategies in the context of your proposed Kellogg's new 'Brekkie' pot as identified in Question 1b, to ensure the proposed new product will be a success in the Australian market. Be clear, how it applies specifically to the target market of young, health-conscious females (singles and those married with young children) and your differentiation strategies. (12 marks) b. Thinking about distribution and logistics, develop a multi-channel recommendation to Kellogg's management for the potential distribution of the 'Brekkie' pot in the Australian market. Draw a multi-channel distribution diagram to support your recommended placement (distribution/logistics) strategy. Be sure to take into account the nature of the product. It is fresh and must be consumed within one day. Note. You can hand draw the diagram and upload a photo image to the answer sheet (8 marks) c. Thinking about the promotion element of the marketing mix, develop an integrated marketing communication (IMC) program for the Kellogg's 'Brekkie' pot. Recommend three (3) different promotion tool strategies (with justification) Kellogg's could consider in promoting their 'Brekkie' pot to the target market to create awareness and entice trial of the Kellogg's "Brekkie' brand. (4 x 3 = 12 marks)
Expert Answer:
Related Book For
Posted Date:
Students also viewed these marketing questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Case Study: Quick Fix Dental Practice Technology requirements Application must be built using Visual Studio 2019 or Visual Studio 2017, professional or enterprise. The community edition is not...
-
The controller of Northwest Hardware has just received two forecasts for sales in the Montana District for the coming year. Based on an econometric analysis of consumer spending and economic trends,...
-
Eagle Inc., a U.S. corporation intends to create a limitada in Brazil in 2014 to manufacture pitching machines. The company expects the operation to generate losses of US$2,500,000 during its first...
-
How would you solve the moral dilemma of Janet Moore? Try to put yourself in her place. What would you decide and why? Explain the reasons for your decision carefully. In your explanation you should...
-
Does Fairmont have any contactor personnel whose have terminated but are being paid through payroll after termination (e.g., ghost employees)?
-
Lindstrom Company produces two fountain pen models. Information about its products follows: Lindstroms fixed costs total $78,500. Required: 1. Determine Lindstroms weighted-average unit contribution...
-
Pioneer Inc. wants to invest $557,302 today. The expected returns in years 1, 2, and 3 are $247,615, $180,383, and $335,481, respectively. If the rate of return on investment must be at least 14%,...
-
Three-year government bonds are issued with a principal amount of $1,000 and an annual coupon rate of 7%. Thus, the owner will receive three coupon payments at the end of each year. one year prior to...
-
How infuential was early industrial psychology in increasing our knowledge of the behaviour of people in organizations?
-
What is the diference between behaviourism and psychoanalysis?
-
Discuss the difference between reinforcement and socialization in the context of a behavioural perspective on personality.
-
Discuss the difference between personality and intelligence.
-
Define the following terms: (a) compliant strategy; (b) internalexternal locus of control; (c) selfefcacy; (d) self-monitoring; (e) sensation-seeking; and (f) field dependencyindependency.
-
Steam power plants (Rankine cycle) are commonly used to generate mechanical power through a turbine to produce electricity (see Fig.1). You are working in a fuel-based power plant in the design and...
-
A statistical study shows that the fraction of television sets of a certain brand that are still in service after x years is given by f (x) = e-0.15x. (a) What fraction of the sets are still in...
-
Market opening throughout emerging economies often means the arrival of multinational enterprises (MNEs) from developed economies. Although MNEs put enormous pressure on local firms, MNEs also serve...
-
You are CEO of Apple, whose smartphones are all assembled in China (although designed in California). The average retail price of an iPhone in the United States is about $800, and China only...
-
Founded in 2003 and based in Abu Dhabi, Etihad Airways is both inspired by Emirates Airlines and a direct competitor of Emirates, which is based in Dubai, a fellow emirate in the United Arab Emirates...
-
What is overdraft protection? Are all checking account holders automatically enrolled?
-
Although the basic principles of personal finance are the same for men and women, what are the social and demographic factors that make these decisions especially important for women?
-
Define net asset value. When is the net asset value of a mutual fund calculated?
Study smarter with the SolutionInn App