Kellogg's primary target market is parents with kids or adults who want a healthy breakfast cereal. Their main competitors are Nestle and Cheerios. Kellogg's has a larger market share globally at 42% of the nearly $9.7 billion cereal market. Kellogg's cereal is positioned as a healthy breakfast option that is priced 20% lower than Nestle but 10% higher than Cheerios. Kellogg's promotes their cereal through TV ads, events, experiences, and coupons and distributes globally across 120 countries leveraging their strong brand recognition.

1. The 10 Step Marketing Plan
2012 Edition
LU, QINGJUAN
Ateneo Graduate School of Business

2. 10 STEP
Marketing Plan for
Kellogg’s cereals
LU, QINGJUAN Product
March 01, 2012 Photo here

3. Disclaimer
This 10 Step Marketing Plan is part of the mandatory
requirements of Prof. Remigio Joseph De Ungria’s
AGSB marketing management class.
The data included in this report are based on publicly
available data such as those on internet websites,
news, package declarations, public reports.
When appropriate, data are “masked” so as not to
create unexpected conflicts.
The reports are posted and linked on slideshare, blogs
and facebook so that there is easier sharing among
students from different marketing classes.

4. Steps 1 to 5
Summary headline of the
marketing mix & strategy
1. Kellogg’s cereal PTM are the parent who has
kid or adult.
2. Who want to have Kellogg’s cereal keep you
energized physically.
3. Can choose Nestle & Cheerios.
4. Gap is all other brands are new comer and less
experience than Kellogg major trends in cereal
industry.
5. Market size: sales of nearly $9.7 billion, 42% of
market share global.

5. Steps 6 to 10
Summary headline of the
marketing mix & strategy
6. Kellogg’s cereal is a health diet food.
7. In price 20% less than Nestle, only
10% higher than Cheerios.
8. Promo uses TV add, event,
experiences and coupons.
9. Distributed globally, 120 country.
10. Strongest brand recognition and
advertising recollection

6. 1. Kellogg’s cereal primary
target market (PTM)*
 Parent who has kid or adult, social class
AB and C, single or married.
 Who love the sweet cereal, and who
want to take the most convenience food
for breakfast and also health.

7. 2. My PTM’s NWD
Needs from Maslow’s hierarchy
Wants determine choice
Demands for them to buy the product

8. PTM needs to be survival
and health
Self-Actualization
Needs
(Self-Development
& Realization)
Esteem Needs
(Recognition,
Status)
Social Needs (sense of
belonging, love)
I want health
Safety Needs (security, protection)
I Need food Physiological needs (food, water, shelter)
Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler
8

9. 2. PTM’s needs, wants &
demands
Needs: People need food for survival, and during the
common three meals a day, the breakfast is the most
important.
Wants: People may want the different tastes for the
foods, some of the people like sweet and some of the
people may like the salty.
Demands: With the differentiate for organic
combination or more vegetable for balancing the
bodily functions health.

10. 3a. Kellogg’s cereal Direct
and indirect competitors
 Direct: Nestle, Cheerios
 Indirect: Quaker Oats, Bread talk
 Variables: Age, Price, Packaging,
Specific use

11. 3b. Example of a 2x2
competitive position map for
Cereal
Price vs. Age Matrix
Nestle
Nestle
KoKo Fintness
Krunch
Kellogg’s Cheerios
Rice Mulh grain
Krispies
Kellogg’s
Froshies Cheerios
Fruit cheerios

12. 4. Gap between customers
and competition
International expansion is the biggest area
for growth for Kellogg’s
Kellogg can continue to slowly diversify,
while still remaining in their core business
area, which will increase their profitability.
Develop a better pricing and guarantee
lower prices to increase the market share.

13. 5a. Estimate the market size
using customer data
1. Kellogg’s Cereal Usage per day or per
year
 45 of 90 million Filipino eat Kellogg’s
cereal everyday as breakfast for 50g
which costs around P25 per 50g
 20M X 365 X P20 = P219 billion

14. 5b. Kellogg’s Market analysis
1. Market size: sales of nearly $9.7 billion
in the Ready-To-Eat market
2. Market share: competition is heating
up in this market as flat sales and low-
priced clones have eroded the market
shares of Kellogg and General Mills.

15. 6a. Kellogg’s cereal product
category

16. 6a. Nestle & Cheerios product
category

17. 6a. Kellogg’s supermarket
display vs. Nestle & Cheerios

18. 6b. Product Description
Organics, certified and recognizable by
the green USDA label, are required by
federal law to be produced without
toxic inputs and genetically engineered
ingredients.

19. 7. Kellogg’s cereal Price
 Source form market research and online research

20. 8a. Which of these modes
does your product use?
** Pls. rank most used, 1-highest use

21. 8a. Kellogg’s cereal
Promotions
Let’s consumers know about products and
services.
Tries to encourage consumers to purchase
the product or service, often by telling
them about the benefits they will gain.

22. 8a. Kellogg’s Promo
commercials - Advertising
http://www.youtube.com/watch?v=rNLcFd9kJ
2I

23. Kellogg’s Promo
commercials - Coupons

24. 8b. Nestle & Cheerios
commercial-Advertising
http://www.youtube.com/watch?v=gVWn0dbIjQs http://www.youtube.com/watch?v=rIaVph0JFM4
Compare with Nestle & Cheerios commercial ad, Kellogg’s more funny

25. 9. Kellogg’s cereal is
distributed globally
 Supermarkets, convenience outlets,
drugstores
 Globally, around 120 country
 Pick-up by customers, cash and credit
translation, ordered via internet.

26. 10. Innovating Products is the
generic winning strategy?
The successful introduction of new
products helps reinforce brand
awareness, drive sales, and strengthen
both the product and price/mix,
consistently develop products that are
differentiated in the marketplace and
respond to the changing tastes and
lifestyle needs of consumers around the
goal.

27. SUMMARY
27

28. Steps 1 to 5
Summary headline of the
marketing mix & strategy
1. Kellogg’s cereal PTM are the parent who has
kid or adult.
2. Who want to have Kellogg’s cereal keep you
energized physically.
3. Can choose Nestle & Cheerios.
4. Gap is all other brands are new comer and less
experience than Kellogg major trends in cereal
industry.
5. Market size: sales of nearly $9.7 billion, 42% of
market share.

29. Steps 6 to 10
Summary headline of the
marketing mix & strategy
6. Kellogg’s cereal is a health diet food.
7. In price 20% less than Nestle, only
10% higher than Cheerios.
8. Promo uses TV add, event,
experiences and coupons.
9. Distributed globally, 120 country.
10. Strongest brand recognition and
advertising recollection

30. 10 STEP
Marketing Plan for
Kellogg’s cereals
LU, QINGJUAN
March 01, 2012
30