I. Executive Summary
Brain Food is a wholegrain, naturally sugar occurring cereal bar aimed at the teenage males. It is a product created to help give a mental boost in the mornings; ‘learning begins at 9am’. Over the course of this plan, we shall be describing the marketing strategy for Brain Food, we will show the planned promotions, prices, distributions and talk more about the product.
II. The Challenge
We have been given research from Kellogg’s carried out about their new fictional product, Brain Food. Brain Food is targeted towards teenage students. Our task is, using the outcome of the market research, to create a marketing plan for Brain Food that would be carried out over the next year.
III. Situation Analysis
Company Analysis
Kellogg’s main goal is to bring the best to their consumers all around the world. They focus on sustainable growth, which involves constantly looking for ways to meet the needs of the consumer by expanding its product portfolio and growing in the cereal business. The culture of Kellogg’s is corporate in that it promotes good and fair treatment to both employees and customers. Kellogg’s are one of the most influential and innovative brands in the world, they produce more than 40 different cereals with plants in 19 countries, marketing its products in more than 160 countries and employing 26,000 people in its worldwide organisation. To improve, Kellogg’s could expand their product range into producing for example an Energy Drink, as Red Bull is one of their direct competitors.
Customer Analysis
Our target audience is male teenage student, aged between 17-21, but we need to make sure that it is appealing to parents as they will most probably be buying the product. We can do this by promoting the fact that it will ‘deliver a mental boost in the morning to ensure learning begins at 9am.’
Competitor Analysis
Direct competition within this product would be cereal bars from Nestle and energy drinks such as Red Bull. Kellogg’s need to make sure they are able to compete with these existing products by, for example, having a lower price or a new unique selling point.
Indirect competition would be companies such as McDonalds as they provide a breakfast service which teenagers tend to enjoy, Kellogg’s need to compete with McDonalds to also provide a breakfast service teenagers will want to eat.
Climate
In the current economic climate, with us heading a second recession, parents will be less eager to spend money on a product that might not be enjoyed as much as they already buy, this could also link to the legal environment in that the coalition government isn’t stable proving to parents it’s a risky move to buy unnecessary products. With the current social environment, teenagers are watching less television, resulting in a television advert campaign being more likely to be un successful. In these times, people are replacing sitting down for family meals with quick, ‘on the go’ ready meals. A bar like Brain Food would be perfect to fit into the latest social environment.
SWOT Analysis
Strengths
It fits in with the current social ‘on the go’ trend, a bar is perfect for Teenagers to eat while on their way to school or college. By making it cheaper than a popular teenage choice, Red Bull, it will suggest that they will choose to buy Brain Food over Red Bull. By doing this they will also make their parents happy because of the ‘healthy’ side it promotes. Kellogg’s already know how to attract to children because of the cereals they have already created, so this experience and knowledge will provide trust between them and the customer.
Weaknesses
A new product isn’t always something that parents want to buy, because their money could be wasted if their children do not like it. By just aiming it at teenagers, they might find a loss in the market because adults tend to be ‘on the go’ on their journey to work every morning.
Opportunities
There will be opportunities for Kellogg’s to develop Brain Food because they could in the end turn it into a cereal, which could lead to different flavours etc.
Threats
The legal and economic environment at the moment could be a threat to Kellogg’s because customers will be reluctant to buy a new product that they haven’t tried or know that they like.
IV. Market Segmentation
Segment 1
For our primary target group we’ve got 17 to 21 year old males, who are students single and still live at home. They drive and are heavy games console users. Their income average out at £6-8000 a year in which they spend on car insurance, mobile phones and clothes. They like football (playing and watching on TV) tier favourite programmes on TV being, Math of The Day, Inbetweeners and Misfits/. They like going to the cinema, pub and clubs and their favourite drink is WKD. Due to their low commitments to things they have a higher disposable income.
The Secondary target group that the research team came up with is 14 to 16 year old males, who are also single and living at home. They’re heavy game console players with an income of £2000 a year because they are still school students. This person is very highly brand driven with a high awareness of what is “cool”. In their spare time they like going to the cinema and hanging out with their friends. They still live at home so it’s they’re parents would be controlling the purchase of the foods, with their favourite drink being coke. When watching TV they like to watch programmes like skins and Hollyoaks.
V. Alternative Marketing Strategies
To market Brian Food, we wouldn’t just have to work out with advertising via television and radio because in this day and age our target market is spending less time watching it. So they are less likely to see an advert that was on there. Sponsorships could be a better idea because if they sponsor another teenage aimed product or event then the product is more likely to be seen by them, for example music or sport events. Web adverts are also most likely to be seen by teenagers as they spend more time on websites such as Facebook and Twitter, than watching TV or listening to the radio. If a side advert is to be put up and catches the eye of a teenager then they are likely to consider buying it. Xbox or PlayStation could also help in the advertising for Brain Food as teenage boys spend most of their spare time playing so Kellogg’s could put in an advert for example in the instruction manual or on the start-up video.
VI. Selected Marketing Strategies
The strategy we have selected is the sponsorship of a music or sporting event. We feel that this is what teenagers are enjoying at the moment; therefore they are most likely to respond to it.
Product
The brand name is Brain Food; it is catchy and gets across the positive ideas about the product. It has a certain quality to it as it will appeal to both customers and consumers in different ways. The customer, probably the parent, will like this product as it is healthy for their children as it advertises that ‘learning begins at 9am’ and it is made from wholegrain and naturally occurring sugars. It will appeal to the consumer as it has bright packaging and could be seen as the ‘new cool thing to eat’. It has a lot of scope as it could be made into an actual cereal instead of just a bar, or an energy drink to compete against popular choices such as Red Bull and Lucozade.
Price
A single bar will cost £1.29 a price that can compete with other rivals in the ‘on the go’ market. In popular supermarkets such as Tesco or The co-op, Brain Food could be launched into a meal deal offer which could persuade teenagers to eat it, once they have tried it in the meal deal, they might enjoy it and want to buy it separately in the future. Also, it could be offered in packs of 5 so it can become a regular morning snack for teenagers.
Place
We plan to sell Brain Food in large supermarkets such as Tesco, The Co-operative and Waitrose, but also in small corner shops and newsagents in local high streets. With locations like Tesco which is where most parents do their weekly shop it is more likely to be purchased as a multipack instead of the single bars, whereas at local corner shops, they are most likely to be bought as single bars. Like other Kellogg’s products, they would be stored in their warehouses, which is in Trafford Business Park. The supply chain would start off with the primary sector with the raw materials suppliers, this leads onto the manufacturers and the producers where the boxes and cereals are made, these are then transported onto the tertiary sector – supermarkets and local shops. The customer then buys the product and consumes it.
Promotion
For advertising, we are going to use media such as Internet and Television with the majority being via the internet. Our selected marketing strategy was to sponsor events such as festivals or football matches. With this strategy it’s more likely that the brand name will be heard, thus resulting in potential sales. We plan to spend approximately £200,000 on promoting Brain Food, this will include advertising and the sponsorships.
VII. Short and Long Term Projections
Within the next year we want to launch and market Brain Food, resulting in hopefully breaking even. The next year we plan to produce a profit from the sales of Brain Food, as the name will have hopefully become known and liked be teenagers, this will be through our different promotion schemes. The next five years we will have hopefully expanded the product line into different flavours, or perhaps a cereal or energy drink.
VIII. Conclusion
To conclude, Brain Food is marketed to be a healthy breakfast cereal bar for the teenage market. The customers are parents and the consumers will be the teenagers, it appeals to both in different ways. Our plan for the next 5 years is to breakeven and possible break into a new alternative market. We feel our product is large competition to rivals such as Red Bull and other similar popular products.
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