This document provides a marketing plan for Kellogg's to introduce a new yogurt-covered granola snack called Yogra Bits. It analyzes the growing market for on-the-go breakfast products and granola snacks. The plan targets families and health-conscious consumers by positioning Yogra Bits as a convenient, tasty, and nutritious snack. It recommends a multi-segment marketing strategy to appeal to various customer groups, such as families with busy lifestyles, kids in activities, and people focused on healthy eating. A SWOT analysis is also included, noting Kellogg's strengths in marketing and worldwide availability while outlining threats from competitors.

1. Running head: Holy Grails’ Marketing Plan for Kellogg’s Yogra Bits
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Holy Grails’ Marketing Plan for Kellogg’s Yogra Bits
Tashone Brooks, Alexis Frescas, Luke Holmes, Adrian Rosas, Juan Valiente
West Texas A&M University

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Abstract
In continuation of marketing profitable breakfast on-the-go products, Group Holy Grail is
proposing the sale of yogurt covered granola bites, named Yogra Bites. The combined market
for cereal/granola bars and energy/nutrition bars was projected to approach $8.3 billion in 2016,
for a compound annual growth rate (CAGR) of 7.5% over the five-year, 2012 to 2016 period.
Yogra Bites being a yogurt covered granola product, we are mindful of the families purchasing
this product to assist them in obtaining a healthy lifestyle and keeping with the values of Kellogg
Company to "nourish families so they can flourish and thrive." Yogra Bites will be sold in
convenient pouches in a twelve-count box to better suit families. With the initial variety of six
different flavors of yogurt to choose from, each member of the family is sure to find their
favorite flavor of Yogra Bites. Sales of Yogra Bites, although expected to be embraced by all,
will generally be aimed toward families, will also be aimed at people seeking a healthy lifestyle.
We believe that with this product, we will be able to reposition fairly easily if needed to boost
sales. With the popularity of granola growing more than eighty percent of households using it
between 2004 and 2014, now is the time for Kellogg to embrace a granola product that dares to
be bold and different, yet attractive and flavorful.
Keywords: Yogra Bits, Kellogg, granola snack.

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Holy Grails’ Marketing Plan for Kellogg’s Yogra Bits
Most of the time customers select their products by their quality as well as how the
product they just bought will benefit them. Consumers search for different types of products
depending on their needs as well as the types of products they are looking to buy. The types of
products that they search for are: convenience products, shopping products, specialty products,
and unsought products. Before those products are released, companies create a product concept,
which consists on analyzing what the product will be and how will it be structured so it gives the
best quality to the consumers with its features. Our product concept consists on a type of small
granola bites snacks that will be covered with different yogurt flavors (Yogra Bites) that will be
organized in packages of their respective flavor with. The packaging of the product will have a
decoration style of Disney characters based on coming soon movies and some just released
movies. Our product will create a great attention to our customers due to the fact that it’s not a
specific product that has to be consumed at a certain time so our customers can eat it in the
morning if they are in a rush and need something to eat while getting to work or as a lunch snack
during lunch break at work. Our product will present a lot of benefits to our customers as well as
it will have an appropriate price so our customers are satisfied with the price as well as the
quality of our product which will have our customers happy with our product. The product would
create a social value as well as a functional value to our customers. Our product would have
customers that range from young kids up to older people. The customers would be consisting on
a great age range; however, the customer that will probably be the top customer will be low age
kids. Kellogg’s company mission is to satisfy as well as delight the world through their products
and create nutrition to people. Kellogg’s wants people to be healthy and be satisfied with their
products results in a way to show that with Kellogg’s products their health can get better as well

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as how their products will help them maintain a healthy diet. Our product fits in with Kellogg’s
mission due to the fact that we want our product to achieve and overpass product borders so we
can delight more our customers with our quality and values that our product would give to
customers.
Market Objective
Holy Grail sells breakfast on-the-go yogurt covered granola bits which can be found in
supermarkets and convenience stores. Our market is health conscious consumers and their
children. Families want to buy our yogurt granola snacks because they look for products that can
meet the health needs and are particular about the types of nutrition they consume.
On average people spend $6 billion per year on snack bars. A little over $2 billion of
these people are in granola snacks. Over the past decade, the trend of eating sugary, unhealthy
snacks for breakfast has increased only 4% but granola snacks have increased by 33% leaving
80% of households eating granola.
Holy Grail’s granola bits appeals to three market segments
Demographic Family Life Cycle. Parents may be too busy to insure their families,
especially the kids, are getting all the nutrition they need. A lot of parents end up giving their
kids whatever is easy, fast and usually unhealthy. This is a product that can help busy parents
give kids a better snack that they will enjoy without having to worry if it has any nutritional
value.
Psychographic Lifestyles. Many people spend their time on improving their health. So
with lifestyles we are segmenting people who are more health conscious.

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Benefits Sought. We satisfy the needs and wants of our customer by providing them with
a snack food that is tasty, easy, fast, and healthy by providing fiber or protein.
43.5 million Women between the ages of 15 and 50 years old have their own families.
The life styles of their families are considered unhealthy due to their eating habits, more
specifically their snack consumption. 68% of a typical American family is overweight or obese
due to unhealthy eating. The average American eats only three servings of fruit and vegetables a
day and 42% eat fewer than two servings a day, which is the main source of their vitamins and
minerals, when it is recommended to eat 2-5 cups a day. Holy Grails yogurt covered granola bits
will provide our consumer with dietary fibers, sodium, potassium, zinc, phosphorus, magnesium,
calcium, vitamin-E, vitamin-C, niacin, vitamin E, iron, and thiamin. Our granola can help replace
or even just place vitamins and minerals that are missing daily.
In addition to being a healthy snack Holy Grails yogurt covered granola bits has teamed
up with Disney to promote a sweepstakes in order to appeal to consumers. Every member of the
family will be able to enjoy the many amenities of a Disney vacation by winning a trip to Disney
World!
Situation Analysis
Kellogg’s backbone has been its cereal products, but in post years have branched out to
convenience store foods as well as healthy snack foods. The company has stayed committed to
making the snack food products as even more profitable part of the company than it’s been.
With other competitors such as nature’s valley and general mills producing competing
products, to stay atop of the industry, Kellogg has launched heavily into the marketing of their

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products. Over the past couple of years one thing that has been trending fairly well is the
mixture of two products, so that’s where our emphasis is at, on our yogurt granola bites product.
While all the companies have targeted the healthy snack production, we hope to take it
one step further and not only do we offer just a health snack, but a sweet, delicious health snack.
Customer profile
The healthy snack food market is loaded with multiple choices to pick from. Kellogg
wanted one that will stand out all on its own. The calorie counting crowd isn’t the only group we
are targeting. With our delicious yogurt granola bar we hope the younger active boys and girls
of the world will love it also. These bites taste so good, the young and old, on the go is going to
buy a bag just for a quick snack getting from point A to point B.
SWOT analysis.
Strengths.
9 billion annual sales.
By 2002, Kellogg had regained the leadership position.
Tied its promotion of All-Bran to better digestion.
Available almost throughout the world.
Dedicated to cereal and its snack bites.
Great marketing initiative through various campaigns.
Promotion through various Mascot developed for each product.
Weaknesses.

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Not a durable product.
Can only be marketed towards specific markets.
Perception that most of snacks are not filling in nature, they act as complimentary to
breakfast but don’t form complete breakfast.
Some products are high in sugar content.
Opportunities.
Kellogg CEO Carlos Gutierrez, has turned to a greater emphasis on snack products
while not ignoring its core cereal products.
Got into licensing recently with SpongeBob Square Pants items.
Ran a joint promotion with David Lloyd health clubs in Britain, supported a special “get-
fit” Web site, and offered Special K Personal Trainer watches.
Changes in customers lifestyles.
Sponsor of international games.
Threats.
Competitors.
Products could be produced by other companies.
Food regulations by government.
Rising food prices.

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Market Strategy
The best target market strategy for Yogra Bits is to take a multi-segment approach.
Kellogg has an enormous variety in their customer pool, and they have several product lines that
reaches different market segments. Yogra Bits should direct their product toward families,
people with busy lifestyles, kids in extracurricular activities, and people who seek a healthy
lifestyles. This product should be seen as something that helps with a family’s day to day
activities, but also is something that adds to a person’s healthy lifestyle.
There are various maneuvers that will be used to display this product at its fullest
potential. There will be some style and quality changes within this product that is unlike any
Kellogg product within the company. There will positioning tactics that show how much of an
asset this product will be in people’s lives. These tactics will deal with attributing how great the
products features are, and these tactics will stress the low price as well as the quality of the
product. The utilization of individualized marketing it will help to personalize this product.
People will see themselves in the magazines ads, commercials, and the ads displayed online.
They will feel like this product is their own.
The Marketing Mix
Product. Yogra Bits will offer the Kellogg's customer pool a product that is fun, healthy,
and convenient. This product will offer stability when everything seems so fast pace in a
person’s day to day life. This is the snack a customer will take on camping trips, sports’ practices
for the kids, and something to eat on that ten minute break. At the same time giving that
customer a healthy product with whole grains and different fun flavors coating this desirous
snack. There are product strategies that will be used to elevate Yogra Bits potential. These

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strategies include the branding, the labeling, and the packaging of the product. The branding that
will be used for this product will be the typical branding of Kellogg. We will use a family brand
so that everyone knows the product is affiliated with Kellogg specifically. The name Yogra Bits
will be on the box and the package itself with Kellogg at the top of the box. The usage of a
family brand for this product will help Kellogg use the brand equity they already have to elevate
this product. People will see this product as healthy and convenient product. The labeling will be
informative and persuasive at the same time. The informative labeling will be shown through
providing detailed nutritional facts about the product and whole wheat will be displayed in the
front of the product. However we will use persuasive labeling by labeling on the box itself a
chance to win a Land Over Sea trip to Disney world. This kind labeling should entice kids to
want their parents to buy the product. Plus by using characters from up in coming movies, which
include Finding Dora, Star Wars, and Captain America, it will make families feel more
connected to the product. Considering the fact that parents our already looking for snacks that are
healthy and quick to conjure up for their kids, no hesitation will be from them.
Place. Yogra bits availability in grocery stores and convenient stores will be made
possible through distribution measures, channel strategies, and elevation within the supply chain
process. The level of obtainability of Yogra bits, needs to be elevated, so anyone can get an
opportunity to devour this product. The utilization of intensive distribution will make this
objective a reality because it will allow this product to be available just about anywhere. People
will not have to shop at exclusive stores and spend an abundant amount money to acquire Yogra
bits. The measures taken within the market channel will help to make the distribution process
smoother. When implementing a channel strategy, considerations will be taken in the customers’
product profiles and the geographic location of where the distribution of the product will

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transpire. A demand percentage will be detailed at every location that the product is being
distributed to in order for Kellogg to reduce waste of product resources. Since the complexity of
the product is minimum and the delicacy of the product is moderate. Storing the product will not
be as expensive because the storage process would consist of the product being warehoused in
boxes in a cool environment. The fine-tuning of the supply chain will help to elevate the
product’s place availability. With the inventory control system, Kellogg will always know how
much when need to produce for any location. Perfecting the customer relationship management
system will help Kellogg to supply products for both families and people who seek healthy
lifestyles. Kellogg will make Yogra Bits available in locations that families and health seeking
people will shop out. A combination of these element will to help achieve the best product
availability for Yogra Bits.
Promotion. A combination of the different promotional strategies that will help to paint a
vision of Yogra Bits’ most tasty, vigorous, and accommodating attributes of this product. The
promotional strategies will be economical, but they will create an atmosphere that allows the
customer to visualize themselves with this product. Creating ads for magazines that families and
health seeking people read it will allow this product to be targeted by customers that would
possibly obtain this product. The usage of Facebook, YouTube, and Twitter will directly target
Kellogg’s followers, thus increasing our projection on our customer pool. Furthermore we want
people to be able try the product without any real commit immediately. We will setup samples of
the product in stores that sanction this privilege, and mail coupons to our customer pool. It a new
product so we have given people a chance to try it, but we also have to put the product in action.
The creation of commercials that portray this product in an atmosphere that shows families
interacting with each other in a busy setting, parents interacting with kids during practice, people

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interacting at gym devouring a quick snack, coworkers savoring a speedy snack while on their
ten minute break. Imagine this atmosphere lingering through the commercial. People will see
themselves in this product and be able to relate to what this product offers. They will see the
benefits and satisfactions of this product. The packaging will be recyclable, and it will be in a
box containing small bags of the Yogra bits. The bags will be re-sealable so that the person can
close the bag and come back to it later. The colors of the packaging will be very flamboyant and
vibrant. There will be a written warranty on the package.
Price. Yogra Bits is a new unique product that is being presented by Kellogg, because of
this particular quality, customers are going be eager to try this product. Which means that in
order for Kellogg to make an enormous profit, there are certain pricing strategies that need to be
in place to accomplish this. The usage of penetration pricing will achieve customer satisfaction
because customers will be able to obtain a healthy tasty product, but they do not have spent an
abundant amount to obtain it. By pricing the product low, Kellogg will make a huge profit from
Yogra Bits in beginning. They will also be able to determine the level elasticity of demand
regarding the product. Furthermore, by starting the prices low Kellogg will achieve predatory
pricing, thus Kellogg will be able to gain a competitive advantage. Once Kellogg becomes aware
of the demand of this product and the purchasing power of their customer pool. We will be able
to adjust the Yogra Bits’ price to a reasonable price, achieving a status quo pricing technique.
Summary
Yogra Bites is a brand looking toward the future. Yogra Bites is an ever evolving
potential brand for Kellogg Company. With possibilities for flavoring of yogurt and granola
being exponential, not to mention the huge demand for granola products in today's fast-paced

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society, Yogra Bites is a perfect fit for families on-the-go. Market segmentation for this product
is expected to grow and be easily repositioned to meet financial goals. Additionally, sales are
expected to gain momentum after sales promotions are enacted including TV advertisements and
offering a Disney package vacation available to register after purchase of the product. The
definitive goal for Yogra Bites is to generate a sufficient income and to ultimately expand off of
the Yogra Bites brand.

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Appendix A
Table 1

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Appendix B
Figure 1

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Appendix C
Table 2

18. Holy Grails’ Marketing Plan for Kellogg’s Yogra Bits
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Appendix D
Table 3

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Appendix E
Table 4