Abstract
This paper is a marketing report on the launch of a new product for Kellogg’s: Ready fit for 2016/2017. Any new diversification of the product requires a thorough information selection and analyzing, this report is aimed at describing types of marketing research and define target market strategy for Ready fit and distinguish its positioning strategy. The paper takes into consideration different characteristics of the consumers, such as demographic factor, age, gender, work status, social class. This research defines primary and secondary methods of marketing research that help Kellogg’s company to identify proper strategies for the line of new product and to make it successful and welcomed on the existing market. It includes advice for advertisement, allocation in the supermarkets and how to represent the concept of the new line to the potential audiences. Further, the assignment reveals possible surveys that make it possible to undercover the strength and drawbacks of the products.
Target Market Strategies
In order to draw up the market strategy for the new products, it is vital to understand the characteristics such as demographic factor, age, gender, work status, social class etc. The main consumers of Kellogg’s product are children from 10 years that means that the target market for this group is their parents who buy the products for their kids. Kellogg manufacturers are located in 17 countries and products sold in more than 180 countries. The age of consumers fluctuates between 25 and 45 years old, both men and women. In general, they belong to working class and do not want to waste time for cooking early in the morning. Therefore, it is essential to create new product line so to positioned it as a healthy and delicious as it will come in four different flavors: Nutty Crunch, Chocolate, Natural Oats and Strawberry.
Taking into consideration the fact, that it is busy parents who are the main buyers of the product, it is essential not to overload the product with an abundance of flavors not to perplex consumers who and not to get lost on the shelves in supermarkets. The product contains milk powder, flakes, oats, and porridge. As per the Kellogg’s standards, all the ingredients used in the product are natural and contains the same nutrition level as of the other products. This time, however, Ready fit product is ready to consume without any preparation. It does not have to be water in milk and it is not necessary to pour it in a plate to consume. The aim of the new product is to become not only a breakfast food but also to get a snack status that can be eaten on the go. The new line is aimed to compete in a segment for teenagers, youth and young people who just started their business career.
Positioning strategy
Product positioning is firmly related to the perception of the brand. It is not so easy to switch from breakfast sector to snack sector, as Kellogg’s is a renowned manufacturer of breakfast cereals and fast food nutrition. With the name “Ready fit”, however, the product should be perceived as a unique and a brand-new package should add a distinctive image of the new product. New packages do not have to remind about a standard rectangular pack that is used to be associated with breakfast cereals that are put in a bowl. On the contrary, it should be smaller in order to make it easy to carry in a bag, for example, and it should be easy to close the package if a portion is not finished yet.
Despite the catchy name and well-designed package that will highlight the purpose of the new product, there are a number of positioning strategies. They include a device of advertisement that will emphasize the uniqueness of the new product and will show usage occasions as they differ completely from the usual perception of the brand. Moreover, it is important to include a new type of consumers in the advertisement and show to the audience that it comes to youth audience. For instance, ads makers can star a young man having Ready fit during his break at work.
As it comes to placing an advertisement, it is worth mentioning that nowadays, young people do not watch TV much and it is more effective advertise the product on the Internet, in business magazines and phone ads. This type of a new product should be classified as a convenient, healthy and fast to get. It should not be overpriced. The best place for location in supermarkets is any visible place, for instance, the best option would be a stand near counters, so a hungry person will be able to find it quickly.
Market research methodology
Market research methodology includes systematic gathering and analyzing information about existing and potential customers. Moreover, this research encompasses evaluation of competitors on the market. Kellogg’s is aimed at determining the proportion of the population that will be purchasing Ready fit. It is important to include such factors as age, gender, income level and social status of the potential customers.
Kellogg’s might use one or several methods of market research:
Market research;
Competitor analysis;
Product testing;
Satisfaction and loyalty analysis.
Market research suggests taking into consideration the concept of Ready fit production and explore how much percent of the population is eager to consume this type of snack. There is a wide variety of cereals and flavors available in the supermarket, however, according to survey results, only about 44% of New Zealanders have a habit to start their morning with cereals because they consider that Kellogg’s portion of cereals does not have enough nutritional value (Canstar Blue, 2012). As Ready Fit contains the same nutrition level as of the other products of Kellogg’s, it is vital to designate it as a snack that is sufficient for lunch.
Competitor analysis implies conducting a research and defining how big is a share of the market with a brand. There are many rivals on the market that constitute around 42% of the rest breakfast cereal market, such as Hubbards, J R Fields, Uncle Tobys, Nestle etc. (Countdown, 2012).
Product tasting is the one of the most revealing analysis that helps to determine the qualities of the products that potential consumers will like. Satisfaction and loyalty analysis reveals, that apparently saving a dollar is not enough to tempt people to buy a brand that is cheaper.
Secondary research
Secondary research is based on the existing information and does not include questionnaires, product tasting, and customer surveys. For secondary research, managers uses outside information that can be gathered from public sources, commercial sources or educational institutions.
Several years prior to the launching of Ready Fit, Kellogg’s released an accomplishment of Special K cereals and expanded its product line with similar low-fat snack bars. Researchers showed that women, who were the main auditory of this line found its complementary snack highly healthy and satisfying. This time, however, Ready Fit will be aimed at youth people that need energy and nevertheless, surveys show that the majority of people care about health and ingredients the brand offers. “26 Kellogg’s products achieved a rating between 4 and 5 health stars” (Han, 2015). Commercial or public database is a helpful source to grasp data for analyzing rivals. For instance, Canstar blue helps to Compare brands in this industry and share feedback of consumers and customer satisfaction, and thus, can be regarded as a good secondary research.
References
Blue, Canstar (2012). Breakfast Cereals. Customer Satisfaction Rating. Canstar Blue. Retrieved from http://www.canstarblue.co.nz/food-drink/breakfast-cereals/
Countdown. (2012). Countdown shop smarter. from http://www.countdown.co.nz/
Han Eisther (2015). Kellogg's reveals its cereal that gets just 1.5 health stars. Stuff.co.nz. Retrieved from http://www.stuff.co.nz/life-style/well-good/teach-me/67908537/kelloggs- reveals-its-cereal-that-gets-just-15-health-stars
