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Khaled Hamadmadon 28 April 2013
Transcript of Kelloggs
-External growth strategy (strategic alliance, joint venture, acquisition)
Internal growth -Product line extension
-R&D expenses – 5% increase
-CRM program implementation
Effective business units management -Communication plan
-Intranet portal development
-Financial department reorganization
Medium Business Extension of current business operations -Earning potential increase
-Partnerships with companies operating in the same industry
Increase in market share -Cutting prices by 5%
-Positive cash flow in 2013
-Launch of a promotional program
Reputation improvement -Company’s web-page modernization
-Cooperation with charity organizations
-Participation in social projects
-Hiring a PR specialist
Small Business Profit opportunities identification -Benchmarking
-Increase of a customer base by 10%
-Aggressive social media marketing Survival -Data optimization software
-Increase advertising expenses by 10%
-Breakthrough competencies development
-Detailed business plan Kelloggs Company Aim: maintenance of a leading position in the market (breakfast cereals and convenience foods production). Objectives:
-Healthy lifestyle promotion
-Re-position the brand through the use of the marketing mix
-Return the brand to growth stage
-Introduce new customers to the brand
Definition Product Oriented product oriented Market Oriented Market oriented Ansoff’s matrix Tool used by marketers in order to decide about the company’s growth strategy. The growth depends on whether a company markets new or existing products in new or existing markets. Two routes: Market oriented and product oriented Product Oriented firm Focus on quality, safety and investment in new technology. Includes two strategies: Product development Diversification & Product Development: New products for existing market segments.
R&D and market research
Medium Risk Diversification: New products for new markets
Very risky (entering new markets)
Marketing strategy of diversification
Customer focus approach. Focus on the wants, needs and preferences pf customers. Market research to understand customers’ needs. Includes two strategies: market penetration market development. & Market Penetration: Existing products for existing markets
Make the market unattractive for competitors
Competitive pricing strategies, advertising and sales promotion.
Low Risk Market Development: Development of new markets for current products
Creation of new market segments
Decision taken by Kelloggs to opt for product development Market and competitors market share had grown Nutri-Grain had reached the declining stage Product development strategy : mix marketing and unique selling point improvement Results = Nutri-Grain life cycle extension, via: Repositioning the brand Attracting new customers Improving the frequency of purchase Suggested Solution Three kind of diversification: Horizontal diversification strategy: Acquisition
Economies of scale
Expand product offerings or new geographical areas Concentric
Horizontal Strategic Marketing Students:
Salma Katerina Desiree Pooja Khaled