Consumer Awareness And Skepticism Of The Special K Is Not The Healthiest Cereal Out Essay

The ready-to-eat (RTE) sector has increased sales and therefore have given the Breakfast cereals market an advantage to have a higher market share of 4.2% in 2013. The emphasis is more to the value and the convenience of cereals rather than the quality. However people are starting to be more heath conscious and are going to the higher nutritional brands which tend to be the well-known ones such as Kellogg 's, Weetabix and Nestle.

External Environmental Analysis We chose Kellogg’s cereal category because Kellogg’s has over 100 years history and we have14 kinds of breakfast cereal products. Our products sell to 180 countries across the world. Our mission is still to provide you and your family with better breakfasts that lead to better days, and now you eat flake corn is the same way W.K. did back in 1898. It just tastes better that way. Kellogg’s cereal provides a variety of nutrition’s cereals that deliver the benefits of grains, and provide important nutrients like iron, B vitamins, zinc and fibre.

The cereal industry has only really worked on one pricing strategy, price discrimination. They have used price discrimination by giving out tons of coupons to potential customers. Coupons are designed so that customers can use them to buy the cereal of their desire for a lower price.

The threat of customers finding substitute products from other manufacturers in the food industry is high. In the ready-to-eat breakfast cereals segment, General Mills’ primary business focus, there are a variety of similar products being

Special K is a successful brand, with a good level of innovation and communication. It has reached many consumers; especially women aged 20 to 40 yearsold, focusing on key elements such as beauty, shape, and weight loss. People are ready to pay more for Special K cereals, positioned as high quality products, with higher prices as competitors’. As the

This initial cost of the startup of this program will be a minimal impact on Kudler Fine Foods. The initial advertisement effort will be done via social media; the companies Facebook page and Twitter account, email and word of mouth. Allowing for a reward system for costumer referrals can be used for current and new customers as the programs is employed and continues to grow. Rajiv and bell argue “customer retention costs are generally lower than customer acquisition costs, companies are better of focusing attention on their more loyal customers especially since the top 20% of customers account for 80% of revenues and often more than 100% of profits” (p. 180, 2003). Kudler Foods could reduce their marketing expenses by using a customer loyalty system through the use of rewards. The sales increase from this program should be reflected by the increase of new customers and the increased returning customers increased spending. The use of seasonal promotions only available to costumers enrolled into the frequent buyers program could also help in increased sales profits.

Kudler is planning to have an annual revenue increase by 5% within 12 months breaking it down to four categories. A quarter percent gain is anticipated in the projects launch as well as the training of employees’. Profits will increase by a half of a percent during the assessment and alteration of the project with the promotion of the Frequent Shopper Program taking place at this time as well. In each phase of the development customer satisfaction will increase so will revenue, which will lead to an overall increase of 4.75% (Kudler Fine Foods. (2004). Apollo.).

Kellogg’s seeks to concentrate on nutrition and physical fitness through product donation for the hungry, as well as programs that educate families about nutrition that nourishing families so they can have a healthy living’(Kelloggcompany, 2011).

In the RTE cereal industry, there were three large manufacturers, General Mills, Kellogg and Philip Morris that had a strong presence in the market. They were extremely profitable with pricing power and dominated the whole market with great market share; all this made it unattractive

Mission: Kellogg is a worldwide business dedicated to construct Long-Term expansion in their bottom-line and to ornament its universal Leadership Position by supplying healthful Food Products of better-quality worth.

Competition: * A big emphasis on reducing consumer price with discount offers.We have another 20 competitor cereal company cross Canada as well. Such as: Weetabix of Canada, Kraft

General Mills competes in a dynamic environment. Some of their competitors are Kellogg’s in the cereal segment. Cereal was a product that used to be the number one election for breakfast in American. As time and new knowledge evolved, consciousness about products with less sugar or gluten free arose making the cereal industry tumble. Products like protein bars, Greek yogurts, and even fast food are the new options to start the date, gaining market share over the cereal industry.

The purpose of bringing in Special K Red Berries was to extend the existing brand rather than to replace it. If for example half of the consumers of Special K had switched over to Special K Red Berries and there had been little overall growth in consumption, Kellogg’s would simply be competing in its own market. It was important to test that this would not happen.

The threat of substitutes is low. Buyers are unlikely to substitute Corning’s product because few substitutes exist. Additionally, switching costs would also be high for business buyers to substitute Corning’s with another manufacturer’s

This strategic plan has been developed by the Sixers Consultant Agency group in order to provide a road map for supports, services and organization development to the management of Grace Kennedy Foods over the next Five (5) years (Hansen, 2008). The Board of Directors, Managers and staff will meet quarterly as it relates to the progress of the relevant divisions and provide reviews and update the plan annually (Ecdus.org, n.d.).