Kellogg's Marketing Plan the Ready-To-Eat Book Report

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The weaknesses of the company are first that it relies on just a few top customers for the majority of its revenue growth and its lack of product quality have at times led to recalls. Opportunities include the growing level of health consciousness in globally, higher levels of product demand in Latin America nations that today have relatively low levels of adoption today and the potential to grow through mergers and acquisitions (Kissas, 2007). The threats Kellogg's is facing include stringent regulations and a lack of strategies for managing foreign exchange risk. In addition there is intensive pricing pressure from competitors as well.


The goal of transforming Kellogg's Fruit Loops into a healthy alterative and also spinning off new products for its widespread popularity is the goal of this marketing plan. Specifically concentrating on product line extensions for the product into the ready-to-eat cereal category is the goal.


The target market are men and women in the 18 to 45-year age segment who commute to their jobs and need to have ready-to-eat breakfast cereals they can eat while commuting to their jobs. The secondary market is families with busy moms, dads and kids who need to grab a meal replacement (Thompson, 2006). The well-known Fruit loops brand can be used to launch product line extensions throughout each of the demographic markets shown. A third demographic segment is defined through psychographic analysis, and these are the highly brand-loyal Kellogg's consumers who will consume nothing but products from this manufacturer.


The goal of the marketing mix strategy is to synchronize every aspect of product, price, promotion and distribution or place to ensure the product line extension is successful. Beginning with the product, the focus on making Fruit loops product line extensions in the form breakfast bars flavored with the distinctive taste of the cereal is key. Second, a product line extension of Fruit loops Cookies and other confectionary products would also appeal to the most brand-loyal custoemrs the company has. The product line extensions need to concentrate on being alluring and interesting enough to attract new customers, while also retaining the quality, taste and unique texture of the existing Fruit loops so that brand loyal customers will stay with the product and adopt its extensions as well.

The pricing aspects of the Fruit Loops Breakfast bar needs to be at market parity and comparable to competitive brands. Pricing of the new breakfast bar needs to focus first on market parity and competitive advantage, connoting a price-quality relationship in the process.

For promotion, Kellogg's has continued to excel in the area of sales, channel and distribution-based promotions through the use of co-op and funding programs. For the first year of the launch of the Fruit Loops Breakfast bar the focus needs to be on gaining shelf space and top-of-mind awareness against its dominant competitors. The use of in-store promotions, coupons, free trials and a continual focus on driving up awareness and eventual adoption through the selling process is critically important if the product is going to succeed. All of these factors need to be orchestrated throughout the product introduction process.

Finally the distribution if the proposed product line extension will be through existing Kellogg's distribution channels, first being forecast by sales directors, managers and then by mass merchandisers including Wal-Mart and others. The coordination of demand of these forecasts to production are critical for the success of this product.


To successfully launch this new product it will require approximately $10M AUS, including support for social networking and social media efforts to reach the prime demographic of 18- to 45-year-olds who are the primary customers for the new Fruit Loops Ready-to-Eat Breakfast bar.

Table 2: Proposed Launch Budget


Website and Facebook Application Development for Fruit Loops Ready-to-Eat Cereal Bar


Series of advertisements in target market publications


Production of a series of testimonial videos for YouTube and regional TV spot


Sponsorship Strategy for Healthy Events Promoting Fruit Loops Ready-to-Eat Cereal Bar


Event Marketing Strategies and Investments including channel programs


Fruit Loops Ready-to-Eat Cereal Bar Launch Events Globally





It is anticipated that the entire product introduction process will take six months to execute. With the focus being on getting a high level of awareness accomplished there is heavy emphasis on online and social networking strategies in addition to event marketing.

Table 3: Launch Strategy Component Definition and Timeline

Website and Facebook Development - Using local web developer create a Facebook page and Web microsite to promote the launch event and breakfast bar in addition to having Twitter, Friendfeed, and e-mail updates. Expected time to produce is 6 months due to content fine-tuning.

Timeframe: Initiate 6 months prior to product launch.

Series of advertisements in target market publications -- Couponing to incent people to take a test drive and informative advertisements on breakfast bar's benefits are shown.

Timeframe: Initiate 2 months prior to product launch.

Production of 60 second commercial for YouTube and regional TV.

Timeframe: Initiate 6 months prior to product launch.

Sponsorship Strategy for Health-Related and Charity Events

Timeframe: Initiate 2 months prior to product launch and continuing through the product lifecycle

Event Marketing Strategies

Timeframe: Initiate 6 months prior to product launch and continuing through the product lifecycle

Fruit Loops Ready-to-Eat Cereal Bar Launch Events Globally

Timeframe: Initiate 2 months prior to product launch


A series of key performance indicators (KPIs) will be created to evaluate the product introduction, concentrating on the level of distribution acceptance and the adoption rate with the primary markets. These metrics include trail rate, success rate of marketing programs and the costs and Return on Investment associated with each.


The launch of the Fruit Loops Ready-to-Eat Breakfast Cereal will concentrate on the needs of those customers in the 18- to 45-year-old age segment who have hectic schedules and often do…[continue]

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