The cereal market is facing stagnation as consumer habits change and people eat breakfast on the go more. Cereal companies have tried various marketing strategies like new flavors, promotions, and partnerships but sales are still declining for most brands. Experts suggest rethinking cereal packaging to make it more portable and convenient for modern lifestyles, with ideas like resealable bags, canisters that allow mixing flavors, or combining cereal and milk in single-serve packages. Reinventing the cereal container may be needed to revive interest in the category.

1. SUBJECT: Marketing Management
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Case-1 Siebel and Sun Microsystems Keep Their Customers Satisfied
It’s one thing to talk about customer satisfaction; it is another thing to achieve it. To achieve superior
satisfaction among its business customers, marketers at two software companies, Siebel Systems and Sun
Microsystems, have come up with an old-fashioned method: Let them talk with each other.
Both companies have instituted reference programs for their B2B customers, in which designated
customers who are already satisfied with the services they receive are willing to communicate with potential
or new customers. At both Sun and Siebel, suitable customers are nominated-usually by the salespeople
who know them best. Then these customers are contacted and asked whether they would like to participate
in a reference program. If they decline, that’s fine. If they accept, the have a number of potion with regard
to calls or accept, they want to participate. They might be willing to take calls or accept visits from
prospective customers of Sun or Siebel; they might participate a customer roundtable or breakfast; they
could do speaking engagements or media tours, In addition, they are likely to meet with Sun or Siebel
executives on a regular basis for updates. EMI Industries recently hosted calls and granted interviews to
trade publications about its experiences with Siebel. Target participated in an ad campaign for Sun. How
does this help get Sun’s message across? “An ad that says ‘Target saves a certain amount per year’ means
more than just saying. ‘Retailers save,” explains Sun’s Aaron Cohen, senior program manager.
The reference relationship benefits everyone. “A reference program is a great way to manage and
monitor the health of your customers.” notes Pamela Evans, senior director of customer programs and
corporate marketing at Siebel. “You’re able to track your reference activity, and recognize and reward the
customers who are making a significant contribution for you.” Customers benefit from greater exposure,
such as appearing in ad companies. And potential customers get the information they need in a credible
manner. However, Michael Reagan, president of the National Association of Sales Professionals, warms that
companies should not wear out their welcome with customers that have volunteered for the reference
program. “If they say they’re doing too many [references], find out if that’s burnout from the number of
references… or if there’s a problem with the relationship. You need to have other means of measuring, such
as customer satisfaction questionnaires. “Pamela Evans also advises against enrolling too many customers
too soon in the program, suggesting that it’s better to establish a long-term relationship first.
In the end, the reference program is all about relationship. With a reference program, “you
understand your users. It increases their satisfaction, and your revenues, when you’re keeping in close
contact with the customers in your reference program,” says Evans.
Questions:-
1. In what ways do the reference programs create added value for Siebel’s and Sun Microsystems’
B2B customers?
2. How might the reference programs help Siebel and Sun Microsystems predict demand for their
products?

2. Case-2 MTV Updates Its Global Strategy
Everyone thinks we have a great job [at MTV] but we spend all of our time thinking, thinking. All the
time trying to reinvent ourselves. We have to stay in touch with our audience without getting older.” Those
are the words of MTV Network International’s creative director, Cristian Jofre. They reflect MTV’s marketing
commitment to understanding its environment by keeping ahead of the trends, continually “reinventing” its
popular cable music programming and extended product lines. MTV, a unit of Via-com, is extremely good at
reinvented its international marketing strategy, as well.
Its U.S. market is nearly saturated, but internationally, there is still room for growth. In fact,
Viacom’s management believes that MTV’s foreign operation can provide up to 40 percent of its revenue over
the next several years. MTVNI, the parent network of MTV, already reaches more than 380 million
subscribers in 166 countries. MTV alone consists of 37 channels broadcast in 17 different languages. In the
past, its international programming focused specifically on local markets, which helped its global operation
grow so rapidly that 80 percent of all MTV viewers are outside the U.S. MTV Russia, for instance, developed a
show called 12 Angry Viewers, in which intellectuals discuss music videos, and a Brazilian backpack travel
show is hosted by a popular Brazilian model. For its cricket-crazy viewers, MTV India features a comedy
show called silly point, in which characters demonstrate the use of cricket gar in everyday life.
But while it has been successful, MTV’s strategy of customizing programming for individual markets
was also expensive. The average production costs between $20,000 and @350,000 for each half-hour
episode. As the MTV program director in Germany says, “Almost every month we’d come up with an idea
and say, “Wow, this is a great idea but we can’t afford it.” The shift in strategy will allow the international
operation, MTVNI, to develop shows that can play in more than one overseas market and thus to create
programming with wide international appeal that crosses borders easily.
Among the pilot shows under development are a UK program called Heroes, which features pop
stars interviewing their personal idols. Kelly Osbourne chats with Deborah Harry (lead singer of the 1980s
band Blondie), for instance. Another pilot is called TimeZone and will host music performances and
interviews in five locations around the world. Mash will blend two videos together once copyright issues
have been cleared, and it has the baking of a $75 million sponsorship deal with Motorola Inc
Under the new strategy, MTVNI’s national managers will still make local programming decisions. But
program developers in various international markets will be able to cooperate in developing shows that
readily appeal to more than one audience, and they will have a centralized pool of money (increased by
“tens of millions “ of dollars) with which to work. Although such cooperation isn’t entirely new-many of
MTV’s U.S. shows have been adapted for foreign audiences, for instance-the strategy is excepted to allow
for more animated programming, which is normally very expensive to develop. Famous Last Minute, an
animated show about the imagined last moments in the lives of famous rock stars, is in the pilot stage.
To complement its new global programming strategy, MTVNI will also expand into other operations
aimed at the youth audience. It has acquired a 50 percent share in a French video game cable channel ad
hopes to add more such deals.
Question:-
1. How do you think the global reach of the Internet has affected the youth market at which MTV is
aimed? Does this make it more or less difficult to devise programming that crosses borders? Why?
2. What should MTVNI do to ensure that cultural traditions and varying styles of humor don’t
negatively affect any of its new international programming?

3. Case-3 Marketing Research Goes to the Movies
It was bound to happen-Hollywood has discovered the power of the Internet. In the past, studios
would test-screen films with random audiences a few months before release, showing them free at malls,
says, and then gathering reactions from viewers. Afterward that information would sometimes send writers,
directors, and actors back to work to film revised scenes, new scenes, alternative ending, and even
dramatic plot changes. Test screenings have fallen out of favor lately, sometimes because of fear of
negative word of month about an unfinished picture and sometimes because tight schedules don’t allow
time for making any changes. And test screening cost money that studios sometimes don’t want to spend
on films that are already over budget. But this doesn’t mean that writers, directors, and backers don’t want
audience feedback.
Some films are screened privately, as Spider-Man was. But the reaction of friend and colleagues
might not reflect unbiased opinion. Aside from industry efforts, movie fans have colonized the Internet,
setting up fan sites and message boards for popular films well before they opened. Lord of the Rings fans
opened multiple sites to trade information, rumors, and opinions for more than five years, stating during the
production phase and including the three years over which the trilogy of movies was released. Dozens of
other films spawned similar sites, though perhaps none as long-lived.
At first, much of the information on sites like SuperHero-Hype.com, Aintitcool.com, and
DarkHorizons.com came from people in the industry who had access to film sets and inside information. Film
companies soon realized they couldn’t easily control what reached the public from these sources and put
nondisclosure clauses in all their employment contracts. Now, despite their lingering fears that Web sits will
become nothing more than portals to stolen copies of new films, studio are realizing that an important new
opportunity exists for give-and-take on the Interne. For instance, when fans of the popular comic-book
superhero The Hulk learned that his movie incarnation might not be wearing the character’s trademark
purple pants in the Ang Lee film, they took to the Internet to vent their frustration and protest. Marvel
Studies chief Avi Arad ad Lee listened, and The Hulk was properly costumed.
Other filmmaker and studies are responding also. New Line Cinema, for instance, set up its own
Lord of the Rings Web site and cooperated with major fan site theonering.net, offering exclusive
information and news in exchange for a promise that the site would not host any unauthorized material.
The partnership has been a success for fans and studio alike, and Rings director Peter Jackson even
participated in online chats on the site, which drew 20 million visits a month at its peak.
Of course, some filmmakers’ fears about the Internet are well founded. Sometimes copies of films
are leaked and downloaded. Negative reviews of new films have appeared on the Internet before release,
but whether they alone are lesson for Hollywood is just to make better movies.
In the meantime, the internet fan base is thriving. One film. The Yank, sported a fan site before a
foot of film had even been shot. Could there be a better way to build an audience?
Questions :-
1. Find an upcoming film that has an official Web site. What feature does the site have? Which ones
are designed to deliver information to the public and which are designed to capture information?
How successful do you think this site will prove to be as a marketing research tool? Why?
2. How can filmmakers control the information that appears on the internet? Should they take these
steps why or why not?

4. Case-4 Scion: Toyota’s Next Generation
The new generation of drivers doesn’t want to look like their parents tooling down the road. They
wouldn’t be caught dead in a wagon or a minivan, and even an SUV brings up images of carting the entire
soccer team around town. They want something new and different, something a little edgy, a car that
represents who they are. But the steep price tag of a Hummer is out of reach for those who are just joining
the workface. So Toyota has come up with a new car for the Gen Y driver – and a marketing campaign to go
with it.
It’s called the Scion. It comes in two models, xA and xB. The xA is “tough, sleek, and ready to roll,”
according to the colorful marketing brochure that also uses phrases such as “ a serious sound system” and
“What moves you.” The xB looks like a shoebox on wheels. In fact, it is so wired looking it’s almost cute-at
the very least, you’ll cross the street to take a second look at one parked along the curb. Scions arrive in the
U.S. as bare bones and go through customization that includes funky side panel decorations and flared
fenders once they are ordered. The idea is to make each car as unique as the buyer who purchases it. Both
scion models are affordable- starting around $14,000- which is key for the 65 million Americans who were
born between 1977 and 1955 are just getting their licenses or entering the workforce. Because about 3.5
million Gen Y consumers get their driver’s licenses each year, automakers are swarming around them in an
effort to grab their attention and develop a relationship that will turn into brand loyalty over time.
Toyota doesn’t want Gen Y’s parents-the aging baby boomers-to buy this car. They have positioned
the Scion so it is practically hidden from the older generation. That’s because Toyota marketers have already
had a bit of bad lick with building and marketing cars to younger drivers-their parents bought the ars
instead. That was the case with the Echo, a small sedan with excellent reliability and fuel efficiency, topped
off by a low sticker price-about $11,000. The more recent Matrix- a small wagon starting at around $15,000-
has appealed more to baby boomers and young families than the Gen Y crowd it was intended for , So
Toyota marketers have stayed away from mainstream advertising Instead, they have concentrated on
nontraditional ways of getting their message to their intended consumers.
The Scion’s brochure, which focuses on youth and lifestyle, looks like a music-industry magazine-it is
filled with urban graffiti art; profiles of Scion salespeople, artists and hip-hop stars; advertisement for other
product like URB magazine; listings for Scion promotional events such as the Scion screening Series; and an
invitation to check out the Scion Web site. The brochure even comes with a CD t5hat has a mix, movie
trailers, Scion event footage-and some information about the cars. Instead of inviting Gen Y consumers
directly into the showroom, Toyota marketers have taken the Scion to locations where younger drivers hang
out. They have parked it outside coffee shops near college campuses and in parking lost at the beach. They
have invited staffers at hip-hop fashion magazines like Yellow Rat Bastard to test-drive Scion and talk about
the experience.
Ultimately, for the Scion to be a success, Gen T drivers will have to get behind the wheel
themselves and plunk down their hand-earned cash, Initial sales figures show that the median age of an
xB purchase is 33-which is 14 years younger than the average Toyota owner. Meanwhile, if a few baby
boomers wander in to the showroom and flip through the brochure, the Toyota salesperson won’t chase
them away.
Questions :-
1. If Toyota was to broaden its target market for Scion, which segment or segments might the film
include?
2. How would you describe Toyota’s positioning strategy for the Scion?

5. Case-5 What Will Become of the Box?
Did you eat breakfast this morning? If you’re like many consumers today, you probably answered
no. Or even if you ate breakfast, it’s less and less likely that you sat down at your kitchen table and ate a
leisurely bowl of cereal. About half of all Americana now either skip the day’s first meal or eat it on the run,
opting for yogurt, pastry, a nutrition bar, or a prepared or frozen meal or sandwich consumed on the work
or school.
Nutritionists may cringe, but it’s cereal manufactures who are really worried. The $6.9 billion market
for cold cereal is in a state of near stagnation, and efforts to revive the category have to overcome not just a
simple preference for plain or frosted flakes but an enormous shift in lifestyles and eating habits that seems
to have passed this mature food category by.
Cereal makers have already tried price cuts, price promotion, and even price wars. They’ve
introduction new product and new flavors, added fruit, promoted cereal as a weight-loss option, and
launched multimillion-dollar ad campaigns. They’ve created partnership with stores like Target to tie well-
known brands like Trick, Cheerios, and Lucky Charms to kid’s clothing and with companies like Revlon to
create promotion linking Special K to lip-care product. They’ve entered licensing agreements with?
Nickelodeon, the WB. DreamWorks SKG, Disney, and the Cartoon Network, teaming up with the Grinch,
Spider Man, the Flintstones, and the Simpsons. Adult cereal brands have forged partnership with high-tech
films and now give away CDs, DVDs, and frequent flier miles. Still, 10 of the top 15 cereal brands are losing
money, and overall sales growth has stalled for at least five years. There’s no question that quicker and
more convenient substitutes are growing faster than traditional dry cereals.
Many industry experts offer ideas for reviving interest in a bowl of cereal and milk. They suggest
promoting cereal as a healthy meal or snack for any time of the day, not just breakfast. (That might even
include a vegetable-based product to serve with tomato juice instead of milk.) They propose cobranding
cereal with fruit brands like Del Monte or Chiquita and producing packages of cereal makers to reconsider a
“Got Milk?” type of Campaign. But perhaps the most interesting suggestion is to simply reinvent the whole
concept of cereal by repackaging it.
Suggestions for thinking outside the cereal box range from bagging individual serving in zippered
plastic bags to using metalized bag linings, as potato chip makers have long done. Other packaging options
include cereals in sleeves like the kid crackers come in, a milk-and-cereal combination with a long shelf life,
vacuum-packed cereal in containers like coffee can, and transparent easy-to-pour containers like the ones
that some juice brands use. Currently being tested is a canister with a three-way spout that allows
consumers to mix and match different option, such as three different brands or three different flavors or
textures of the same brand.
Of course, cereal bars are already growing in popularity and, ironically, are among the many
breakfast options com-peting with the 150-plus current varieties of traditional cereal products. Realistically,
says one Kellogg’s executive, there is no “single silver bullet that will solve the issues we face today.” So.
What are you having for breakfast tomorrow?
Questions:-
1. One industry consultant argues that cereal companies should be focusing on new-product
innovations instead of on ways to repackage the same old products. Do you agree? Why or why
not? Support your answer with evidence from the case or from your reading of the chapter.
2. How can cereal manufactures reposition their brands in light of today’s hectic lifestyles and even
changes in eating habits (like carb avoidance as advocated by the Atkins diet)? What would it take
for you to perceive dry cereal as a convenient and healthy food? How do you think companies like
Kellogg’s could use your answer to persuade the general public

6. Case-5 What Will Become of the Box?
Did you eat breakfast this morning? If you’re like many consumers today, you probably answered
no. Or even if you ate breakfast, it’s less and less likely that you sat down at your kitchen table and ate a
leisurely bowl of cereal. About half of all Americana now either skip the day’s first meal or eat it on the run,
opting for yogurt, pastry, a nutrition bar, or a prepared or frozen meal or sandwich consumed on the work
or school.
Nutritionists may cringe, but it’s cereal manufactures who are really worried. The $6.9 billion market
for cold cereal is in a state of near stagnation, and efforts to revive the category have to overcome not just a
simple preference for plain or frosted flakes but an enormous shift in lifestyles and eating habits that seems
to have passed this mature food category by.
Cereal makers have already tried price cuts, price promotion, and even price wars. They’ve
introduction new product and new flavors, added fruit, promoted cereal as a weight-loss option, and
launched multimillion-dollar ad campaigns. They’ve created partnership with stores like Target to tie well-
known brands like Trick, Cheerios, and Lucky Charms to kid’s clothing and with companies like Revlon to
create promotion linking Special K to lip-care product. They’ve entered licensing agreements with?
Nickelodeon, the WB. DreamWorks SKG, Disney, and the Cartoon Network, teaming up with the Grinch,
Spider Man, the Flintstones, and the Simpsons. Adult cereal brands have forged partnership with high-tech
films and now give away CDs, DVDs, and frequent flier miles. Still, 10 of the top 15 cereal brands are losing
money, and overall sales growth has stalled for at least five years. There’s no question that quicker and
more convenient substitutes are growing faster than traditional dry cereals.
Many industry experts offer ideas for reviving interest in a bowl of cereal and milk. They suggest
promoting cereal as a healthy meal or snack for any time of the day, not just breakfast. (That might even
include a vegetable-based product to serve with tomato juice instead of milk.) They propose cobranding
cereal with fruit brands like Del Monte or Chiquita and producing packages of cereal makers to reconsider a
“Got Milk?” type of Campaign. But perhaps the most interesting suggestion is to simply reinvent the whole
concept of cereal by repackaging it.
Suggestions for thinking outside the cereal box range from bagging individual serving in zippered
plastic bags to using metalized bag linings, as potato chip makers have long done. Other packaging options
include cereals in sleeves like the kid crackers come in, a milk-and-cereal combination with a long shelf life,
vacuum-packed cereal in containers like coffee can, and transparent easy-to-pour containers like the ones
that some juice brands use. Currently being tested is a canister with a three-way spout that allows
consumers to mix and match different option, such as three different brands or three different flavors or
textures of the same brand.
Of course, cereal bars are already growing in popularity and, ironically, are among the many
breakfast options com-peting with the 150-plus current varieties of traditional cereal products. Realistically,
says one Kellogg’s executive, there is no “single silver bullet that will solve the issues we face today.” So.
What are you having for breakfast tomorrow?
Questions:-
1. One industry consultant argues that cereal companies should be focusing on new-product
innovations instead of on ways to repackage the same old products. Do you agree? Why or why
not? Support your answer with evidence from the case or from your reading of the chapter.
2. How can cereal manufactures reposition their brands in light of today’s hectic lifestyles and even
changes in eating habits (like carb avoidance as advocated by the Atkins diet)? What would it take
for you to perceive dry cereal as a convenient and healthy food? How do you think companies like
Kellogg’s could use your answer to persuade the general public