The document outlines a marketing plan for a new cereal product called Elergy. Key points include:
- The target market is teens, young adults, and morning coffee drinkers who want an energy boost.
- Distribution will start locally and use intensive distribution through wholesalers and retailers.
- Promotional strategies include coupons, a loyalty points program, emphasizing the "Made in America" quality, and donations to wildlife charities.
- Advertising will use websites, social media, videos, sponsorships, and TV/radio to establish the brand and position Elergy as a healthier energy option.
5. - “Made in America”
- Shows customer it is a quality product produced in their own
country
- Familiarity
- Helping the economy
6. - Rhyming Slogan
“One bowl of Elergy equals 8a to 5p”
- Helps customers remember the product
7. - Packaging is consistent with a plastic back and a
cardboard box
- Total costs for the supplies to package equal out to
be about one dollar ($1)
- The actual Energy Cereal contains six servings per
box, and each serving costs about 25 cents
Packaging Costs
8. - Overall, each box of Energy cereal costs us the
producer, nearly $2.50, leaving us with an
unestablished price point.
- The price point is the price of (product) sold on the
retail market, in relation to a range of competitive
prices.
- In comparison to the competitive rival (Wheaties
Fuel) we have decided to price our Energy Cereal at
a price point of ($4.50)
Packaging Costs
9. - Breakfast cereals are a product that is not specifically
searched for
- One stop shop to the retailer or wholesaler is the
most common means of buying cereal.
- This leads to the type of distribution channel that
best fits; intensive distribution: selling a product
through all responsible and suitable wholesalers and
retailers who will stock and sell the product
Distribution Strategy
10. - As an upcoming new product, we are starting with local
distribution and marketing to create a demand
- Initially we will flood the retailers and wholesalers with
our product and compare to our rivals with nutrition
facts
- Lastly, the movement from A to B is resolved through
vehicle transportation
- Starting with vans/trucks shipping around the
state, ideally to large wholesalers who in return
are the intermediaries for the retailers
Distribution Strategy
11. Identifying The Target Market
- Teens
- Teens who already drink energy drinks
- Young Adults
- College Students
- Adults who eat breakfast
- Possibly just morning coffee drinkers
12. Examining Market Potential
- The “energy” trend is a large market
- There is an unknown aspect of projecting sales,
as there really is no product similar enough to
Elergy to make an analysis based off past sales
behaviors
- This is an advantage and disadvantage
13. Examining Market Potential
- Other than Wheaties Fuel, there are no
competitors to energy cereals
- Energy Drink companies and 5 Hour energy are
our direct competitors, however they don’t offer a
nutritional product
15. Promotional Strategy
- Include a coupon in the box for a limited time
that gives the customer half-off their next
purchase of Elergy
- Cereal box “point” system
- 1 point per box, points can be exchanged for
gear, including t-shirts, bandanas, etc. with
the Elergy logo on them
16. Promotional Strategy
- “Made in America”
- People may be more inclined to purchase a
domestic product
- $.01 of every dollar profited goes to help wild life
perseverations
- Gives parents and environmentalists a
reason to purchase the cereal
17. Promotional Strategy
- Establish an image
- Advertisements detailing the reasons why
Elergy is the breakfast cereal to eat
- Healthier than a cup of coffee or an
energy drink, but still provides that “boost”
- Daily vitamins and minerals, good source
of fiber
18. Media
- Create a website that
- Displays our mission statement “We promise to
give you the best cereal for your dollar, while
helping to support good health habits and wild
life.”
- Provides a forum for customers to comment or
complain about the product
- Has a place for stores to inquire about stocking
our product
19. Media
- Create Facebook, Twitter, Myspace, and YouTube
profiles
- Through these offer promotions and coupons
- Create a “shocking” and “informative” video
detailing the unique characteristics and positive
effects of Elergy
- “Elergy gives me the energy to…”
- Create online competitions with cash/product
prizes for user submitted videos on Elergy
20. Push/Pull
- Push
- Talk to all grocery stores in Lane County,
offering free product to stock on their shelves
and test sales with
- Offer to set up a free sample stand to gain
customer attention
21. Push/Pull
- Pull
- Try to gain sponsorship of a well known
energy drink company
- Television Advertisements
- Radio Advertisements
- Detailing product’s superior ingredients
22. Retail Development Strategy
- Use surveys to gain insight into the opinions of
our target market
- Example: Do they like the idea of a variety of
flavors being offered?
- Use new coupons in the box every quarter to
attract customers back to your product
- Use television ads on sports channels
23. Retail Development Strategy
- Sponsor local and extreme sporting events
- Create T-shirts, jerseys, tank tops, posters,
hats etc. with our logo on them to give away
at events
- Donate cereal to a reality television show such
as Rob’s Fantasy Factory, or Tosh.0 in hopes
that they will use it in an episode
24. Retail Development Strategy
- Contact Dairy Mart and offer them lower costs on
product in exchange for them serving our cereal
in the mornings next to their biscuits and gravy
- Contact Monster, or Red Bull, or other well
known energy supplement providers to provide a
dual promotion deal
- We’ll promote you if you promote us
25. SWOT Analysis of General Mills
Strength – Steady Revenue Growth
Strength – Multiple Brands with Strong
Potential
Strength – Strong Growth Prospects
Strength – Efficient Use of Resources
Opportunity – Ongoing Joint Ventures
Opportunity – Growing Market for
Cereals
Opportunity – Growing Organic Foods
Market
Weakness – Rising Debt Burden
Weakness – Limited Geographical Presence
Weakness – Narrow Customer Base
Weakness – Limited Liquidity Position
Weakness – Declining Market Share in
Sector
Threat – Highly Competitive Market
Threat – Rise in Input Costs
Threat – Shift in Eating Preference of
Consumers