Fruit Loops Essay Example For Students

Fruit Loops Essay Froot loops History : Froot Loops is a  brand  of  breakfast cereal  produced by  Kelloggs  and sold in  Austria,  India,  Australia,  Canada,  New Zealand, the  United States,  Germany,  The Middle East,  The Caribbean  and  Latin America. The  cereal  pieces  are  torus-shaped (hence loops) and come in a variety of bright colors and a blend of artificial fruit flavors. Kelloggs  introduced Froot Loops in 1963. Originally, there were  red,  orange, andyellow  loops, but  green, then  purple, and, finally,  blue  were added by the 1990s.. Kelloggs  has made many ventures for Froot Loopso, including snack bags called  Snack Ums. Snack Ums  were just like the cereal, only bigger. Their slogan was Super sized bites with deliciously intense natural fruit flavors Mission statement of kellogg’s : â€Å"Kellogg is a Global Company Committed to Building Long-Term Growth In Volume and Profit and to Enhancing its Worldwide Leadership Position by Providing Nutritious Food Products of Superior Value. † A) Situation analysis: Internal factors: Current data: With 2010 sales of nearly $12. 6 billion, Kellogg is the world’s leading producer of cereal and one of the largest producers of convenience food]. With sales in more than 180 countries, Kelloggs produces some of the worlds most iconic and easily recognizable brands including:  Keebler  ,  Pop-Tarts,  Eggo  and  Rice Krispies. As of FY 2009, the company generated 67% percent of its revenues in North America, 19% in Europe, 8% in Latin America, and the remainder in the Asia Pacific region. In June 2010, Kellogs voluntarily recalled 28 million boxes of cereal (Apple Jacks, Corn Pops, Froot Loops, and Honey Smacks) that may have a strong waxy smell or taste. In the first quarter of 2010, Kellogg posted revenues of $3. 17 billion, a decrease of 2. % from Q1 2008 figures; net income remained nearly unchanged at $321 million. The decrease in revenues is predominantly due to unfavorable foreign exchange fluctuations which had a negative 7. 7% impact on the company during the quarter. This was partially mitigated by net pricing increases which raised revenues by 4. 2%. The increase in net income is a result of Kelloggs abili ty to maintain costs and operating expenses as prices increased, contributing to a higher margin. In the second quarter of 2010, Kellogg posted revenues of $3. 23 billion, a 3. 5% decrease from Q2 2009 figures; net income grew 13. 5% to $354 million. In terms of volume, the company fared relatively well, losing only . 5% across its operating divisions. A net pricing increase of 3. 1%, however, was negated by a 6. 4% adverse shift in foreign currency translation. % Change Q2 2009 vs. Q2 2008| Volume| (. 5%)| Net Pricing| 3. 1%| Acquisitions| . 4%| Foreign Currency Impact| (6. 4%)| http://www. wikinvest. com/stock/Kellogg_Company_(K) http://en. wikipedia. org/wiki/Froot_Loops Positioning map expensive Bread and toast instant breakfast Butter and eggs Tea Muffins , biscuits cold mik Instant breakfast slow quick inexpensive Promotional strategies of Kellogg’s fruitloops: Tv ads -Strong brand logos -packaging -magazine ads Some slogans used by Kellogg’s fruitloops: * Central heating for kids * Everyone loves my Cocoa Krispies * Gotta have my loops! * Theyre grrreat! Kellogg’s Kelloggs distribution channels Kellogg’s Kellogg’s fruit loops Computer system Retailers Wholesaler Coles ,woolworths, distr ib. centers Retailer Distrib. In stores External micro environment: Market analysis: In its report on the Australian breakfast cereal market, Mintel International Group (Melbourne) finds a category with increasing competition and a consumer base abandoning breakfast entirely. With those notable hurdles, the market for breakfast cereal has managed to post growth over the past several years, albeit slow. In current dollars, sales grew from $8. 5 billion in 2002 to $13 billion in 2009, representing a 2% annual increase. Customer analysis: Being an organization of global stature, Kellogg’s uses multiple methods to communicate with its customers. Cartoon characters like Jack ; Aimee are used to communicate the plus points of physical exercise to parents and children. Competitive analysis Types of Competitors Our product offers a culmination of two different breakfast items: cereal and nutrition bars. ? Main cereal competitors would be Kellogg and General Mills. (direct competitors) In the past 60 months Kellogg has had a revenue growth of 6. 5% and an earnings per share growth of 13. 1%. Marketing strategies: * The management at Kellogg’s anticipated that the dynamism of times and trends would require them to adopt change and so, it directed its elf to be more than just a â€Å"fair weather† believer i. e. planned for contingency and flexibility. * Keeping in pace with the health consciousness trend of today’s times, the new philosophy of targeting and satisfying the health vigilant consumer was adopt. Macro environment Breakfast trends Nutrition : In recent years, doctors have encouraged adults to eat cereal for its high doses of fiber, vitamins, and minerals. Working husbands approaching middle age are more likely to be concerned about proper nutrition at breakfast than young, unmarried working males without children. Time Pressure : The convenience of ready to eat meals are essential for time pressured individuals such as working mothers who are torn between work, household chores, and looking after children. Balanced breakfasts that can be quickly prepared are in high demand for those with busy work schedules. Economic trends: As world is undergoing from a recession periods people want to spend money only on inexpensive things because they are struggling from tough conditions. They want quality by spending less money which is a big challenge for Kellogg’s frootloops. Social cultural trends: Product will be marketed as an adult cereal. Main target market would include the more than 58. 8 million younger adults between the ages of 18-35. College students would be heavily targeted as 52. 3% of students consume cereal in oversized proportions. Technological changes : In this moderen world technology is the important part of businesses. Fahrenheit 451 Essay CensorshipFrom the TQM perspective, Kellogg’s centered their strategic planning towards its customer base – â€Å"The Family Focus†. It took into consideration what the consumer’s perception of quality would be of a cereal manufacturer. Considering the health safety of consumers, care was taken to ensure total quality of the nutrients and checks for allergic components from the onset of procurement to packaging and distribution. To satisfy the need of the weight conscious consumer to know about the calorie values of the cereal, the labeling of the boxes was made perfect to detail. ttp://www. coffeecrunch. net/coffee_cereal_analysis. pdf Target Market Consideration Strategy Resources were allocated towards wisely selected consumer segments of the market that had potential for profit. Children, weight watchers, athletes, and families were focused on and brands were developed to suit the mind frame of each. Previously, limited products were mass-marketed such as the typical box of frootloops. Marketing mix strategy It is always mainly focus on 4 p’s i. e Product , place , price, promotion Product : Kelloggs fruit loops Flavour – banana Ingredients SUGAR; WHOLE GRAIN CORN FLOUR; WHEAT FLOUR; WHOLE GRAIN OAT FLOUR; OAT FIBER; SOLUBLE CORN FIBER; PARTIALLY HYDROGENATED VEGETABLE OIL (ONE OR MORE OF: COCONUT, SOYBEAN AND/OR COTTONSEED OILS)† ; SALT; SODIUM ASCORBATE AND ASCORBIC ACID (VITAMIN C); NIACINAMIDE; REDUCED IRON   LESS THAN 0. 5g TRANS FAT PER SERVING Nutrition value Serving size 1cup Amount per serving Nutrition Facts| Serving Size 1 cup (30. 0 g)| | Amount Per Serving| Calories  118Calories from Fat  5| % Daily Value*| Total Fat  0. 6g1%| Saturated Fat  0. 4g2%| Trans  Fat  0. 0g| Polyunsaturated Fat  0. 1g| Monounsaturated Fat  0. 1g| Cholesterol  0mg0%| Sodium  141mg6%| Total Carbohydrates  26. 7g9%| Dietary Fiber  0. 6g2%| Sugars  12. 5g| Protein  1. 4g| | Packaging designs Froot Loops Cereal, 0. 95-Ounce Individual Boxes (Pack of 70) Features : easily recyclable box Innovative ideas To produce different type of flavours for children of age 6 to 18 . To give free toys with the purchase of the box of different sizes will help to increase sales. Place : Distribution will be in supermarkets * Coles * Woolworths * Aldi Intermediaries are wholesalers and retailers and managed by store supervisors and management staff. Channel network used is * Kellogg’s computer system Coles, Woolworths and Aldi Price Kelloggs Froot Loops 340g| $5. 96| Kelloggs Cereal Froot Loops 340g| $6. 04| Kelloggs Cereal Froot Loops 550g| $8. 59| Kelloggs Cereal Froot Loops 550g| $6. 00| Kelloggs Froot Loops 585g| $8. 64| Kelloggs Froot Loops 550g| $8. 30| Kelloggs Cereal Froot Loops 585g| $8. 72| Promotion Tv advertisement : By giving advertisements on tv of different offers such as buy one get one free, 20 % discount on two packs etc Newspapers : providing new offers to children for exp free toys inside the boxes, free cartoon books with purchase of box Internet : By launching special offers on internet websites, sponsor sports activities and events BUDGET Marketing budget template (annual) Research firm fees = $ 60,000 Web research = $ 70,000 Public relations: Press kit materilals =$52,000 Analysis fee = $20,000 Press release development = $27,000 Total public relations = $99,000 Advertising : Creative development = $44,000 Newspaper advertisement = $56,000 Radio advertising = $12,000 Magazine advertisement= $29,000 Television advertising = $95,000 Total advertising =$ 236,000 Promotion: Free samples (15 days @ $ 2 each) Coupons = $ 3600 frequent purchase book = $2500 total promotion = $59,000 Implementation and action plan Timeline to implementation is 3 months according to new marketing strategy. Implementation steps: * Development of marketing and advertising functions by promoting ads in magazines. * Achievement of product diversity, market leadership and competitive edge by advertisement on television. By comparing the sales in the past to the present sale, benchmark new financial figures we can measure that objectives are achieved. If the objectives would not be achieved by strategy the contingency plans can be put in place which is to attract young kids by giving them free toys and carton books with each and every purchase. Conclusions and recommendation Kellogg is a Global Company Committed to Building Long-Term Growth In Volume and Profit and to Enhancing its Worldwide Leadership Position by Providing Nutritious Food Products of Superior Value. Frootloops are the main product sold in the Australia by kelloggs. It is the attraction of young kids specially children under age of 18. Ultimate marketing strategy is to increase the sale of kellogg’s by 15 % in Australia until 2015 by adopting new action plans and strategies by the company and to target main customers i. young kids and universities students and people who are under the time pressure from the other activities in the life. Refrences http://www. wikinvest. com/stock/Kellogg_Company_(K) http://en. wikipedia. org/wiki/Froot_Loops http://www. scribd. com/doc/17571315/Managing-Organizations-and-People-Kelloggs-Case-Study http://answers. yahoo. com/question/index? qid=20080225125957AAEns2F http://answers. yahoo. com/question/index? qid=200802 25125957AAEns2F http://www. marketingteacher. com/lesson-store/lesson-marketing-mix. html