The Role of Marketing in Today's Global Marketplace

The assignment content appears to be a collection of academic articles and books related to marketing management, international marketing, and sustainability. The texts discuss various topics such as developing semiglobal marketing strategies, relationship learning for suppliers, cost reduction performance, and the role of communication culture in cross-border customer-supplier relationships. Additionally, there are studies on green marketing, sustainable supply chain management, product preference, interorganizational relationships, managerial use of marketing metrics, and reforming marketing practices. The content also includes online sources from Scientific Advertising and Kellogg's.

Marketing Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
2

INTRODUCTION
Marketing management is concerned with the review and evaluation of resources
employed by the firm. Such process provides deeper insight to the business organization about
the changes required in the existing marketing practices. In this way, by making suitable changes
in the strategies and policies business organization can make remarkable contribution in the
attainment of goals. The present report is based on Kellogg's which is one of the leading
breakfast brand of UK. In London, customers prefer to take cornflakes in the breakfast for the
purpose of good health. Hence, report will describe the branding and packaging issues which are
facing by Kellogg's. Further, it will also shed light on the way through which new product can be
developed and introduced to gain competitive edge over others.
MAIN BODY
In the present era, marketing manager of the firm is facing several issues due to the
changing needs, preferences and taste of the customers. From the Mintel report it has been
assessed that sales volume of breakfast cereals declined by 6% during the period of 2012 to
2015. Now, customers prefer to take ready to eat (RTE) products which contain high level of
nutritional aspects. In the recent times, customer awareness towards the healthy living is
increased significantly. Meanwhile, profit margin of RTE declined by 2.5%. The main reason
behind this is to quick changes which take place in the customer's preferences and expectation
(Chan, He and Wang, 2012). People prefer to make use of sugar free products which place
positive impact on their health aspects. It also has been identified from the report presented by
Mintel that customer's preference towards the hot cereals increased significantly. Moreover,
nutrition is one of the major aspects due to which customers prefer to take cornflakes.
Report also reveals that during the period of 2016-2021 sales revenue of ready to eat will
grow by 17%. Sales of RTE cereals decreased due to the increasing trend towards the sugar free
products. Along with this, price war which takes place between the super markets have also
placed negative impact on the growth and success of the firm involved in offering such kind of
breakfast products (Hollensen, 2015). Besides this, high level of competition takes place in the
cereal market that have high level of impact on both productivity and profitability. Moreover,
business unit can attain success and develop brand loyalty only when it offers breakfast cereals
3

according to the customers' taste and preferences. Investigation report of Mintel clearly presents
that Kellog's is one of the leading brand of UK and attained third position in breakfast cereals.
However, in the declining market both Kellogg's and Krave bucked suffered from the issue of
declining sales and profit margin (Leonidou, Katsikeas and Morgan, 2013). At this time,
Weetabix is the major brand succeed in getting the desired level of sales and profit margin in the
falling market trend. On the basis of this aspect, it is highly required for Kellogg's to make all the
necessary changes in the existing product, packaging etc.
In order to get leading position in the market Kellogg's launches highly nutritional
products related to breakfast. Products which are highly nutritional includes granolas, mueslis
and other cereals which are made with grains. Along with this, oats are also introduced by
Kellogg's in the market with the aim to meet the expectation level of customers to the large
extent. Hence, product is developed by Kellogg's with the aim to create or develop more sugar
free options for the customers. By considering all such aspects it can be said that breakfast
cereals products offered by Kellogg's contains nutrition, protein and less sugar (Sheth and
Sisodia, 2015). However, on the critical note it can be said that there are several companies
which offer sugar free cornflakes and oats that having more fibre, low fat as well protein. In this
regard, Kellogg's can gain competitive edge over Weetabix only when it offers highly unique or
innovative products to the customers.
At marketplace, strong brand identity and image can be developed only when it offers
something unique or different to others. In this context, for developing awareness among the
customers regarding the breakfast cereal Kellogg's is required to lay more emphasis on the
nutritional aspect in the advertisement. Moreover, company is facing issue in relation to
distinguishing its product from others. The rationale behind this, there are several firms or brand
in the market which make focus on highlighting the features of product such as nutrition, protein
etc (Mintz and Currim, 2013.). Hence, Kellog's is required to create promotional plan by
considering all such factors which are undertaken by the customers at the time of decision
making.
Along with this, to strengthen the brand Kellogg's need to make focus on making
modifications in the existing manufacturing strategies or framework. Moreover, making use of
sugar free products is the major concern of customers while making selection of the products for
4

breakfast. In this regard, integrated marketing mix is highly required for Kellogg's which in turn
helps them in achieving success in the competitive business environment. Further, packaging is
another issue which is facing by Kellogg's. Moreover, now customers give more preference to
the brand which perform activities in an Eco-friendly manner. Activities which are associated
with packaging have high level of impact on the green environment. In this condition, business
unit can attract the customers only when it focuses on the recycling aspect (Hopkins, 2003).
Along with this, company also needs to make focus on offering product in the container which
can be reused by them for other activities and purpose (Kotler and et.al., 2015). In this way,
attracting packaging and feature of re-usage will assist Kellogg's in attracting the large number of
customers. Besides this, such aspect also provides assistance to the firm in making contribution
in the sustainable environment. However, on the critical note, if business unit invests money in
the latest technological aspects then it may result into rise in the cost of product and services.
This in turn also impose difficulty in front of the marketer. Moreover, customer are highly priced
conscious in nature and seeks for the value of money. There are several choices which are
available to the customers in relation to breakfast cereals. Thus, Kellog's need to make focus on
R&D activity which in turn helps in assessing the highly effectual alternative options regarding
packaging. Further, for enhancing the brand image and market share marketing manager needs to
make more focus on social media marketing. In this regard, by placing advertisement on social
sites such as Facebook, Twitter etc. company can build distinct image in the mind of customers.
In this way, by employing all such strategies and polices Kellog's can improve its both financial
and non-financial position.
Different brands of Kellogg's and threats faced by chosen brand :- Kellogg's is a leading cereal
breakfast provider company and different variety of products are offered by it. Category of
brands includes Special K, Frosted Mini-wheats, Pot-tarts, Eggo, Krave and Frosted chocolaty
caramel (Kellogg's. 2016). Kellogg's Krave is a breakfast option in which smooth crunchy
chocolates are offered. This brand is facing many challenges in market and due to it overall
profitability and financial revenues of the company are also getting affected (Wagner and Eggert,
2016). Consumers who give preferences for choosing healthy breakfast options are avoiding to
purchase this product. Moreover this brand is also facing challenges due to high sugar content of
it. It is not considered as nutritional and healthy option for taking in breakfast and own label
5

products of Kellogg's are also creating threat for this particular product. Other breakfast options
offered by cited firm are healthy in good in fibre and protein intake.
Advice for new product development, management, branding and packaging products :-
It is assertive that Kellogg's Marketing department should formulates effective strategies
ensuring growth and success of the business. Breakfast cereal market in UK is facing intense
competition and it is assertive that effective action plans should be formed for gaining
competitive advantage (Gopalakrishnan and et.al., 2015).
There are many issues that are being faced in this industry and it includes negative media focus
on sugar and competition from other products for the breakfast. New products in Kellogg's can
be developed while concentrating on nutritional values and it will aid in enhancing consumer
base of the firm. Breakfast cereal market has observed a sharp decline rate from year 2012 to
year 2016. As per the data it has been observed that RTE cereals have observed a sharp decline
trend in last five years and it has become vital to make action plans for gaining growth and
success in this sector (Hollensen, 2015).
Negative media coverage on the dangers of high sugar diets have gained a sharp
momentum since year 2014. people are becoming more health conscious and healthy options can
be provided to consumers. Sugar is major issue that is being faced by breakfast cereal market and
it is assertive that Kellogg's should take significant initiative for offer low sugar breakfast
options (Czinkota and Ronkainen, 2012). Research and development department of the company
can take significant steps for making significant changes in existing product range and launching
new nutritional options for consumers. Breakfast is most prioritized occasion where breakfast
cereal products of enterprise are used and intense competition is faced in this industry due to
large number of competitors present in the market (Wagner and Eggert, 2016). Initially market
survey can be conducted for assessing requirements and preferences of consumers. It will aid in
developing and adding attributes in products as per the needs of the consumers. Kellogg's is a
leading company in RTE cereal and existing position of the enterprise can be maintained by
making appropriate and effective marketing strategies (Ghauri and Cateora, 2010). New
innovations and new concepts can be used in the enterprise for launching superior quality
nutritional breakfast options for consumers.
6

Product packaging :- Products that are packaged in attractive and impelling manner aids in
gaining attention of consumers towards the products that are being offered by Kellogg's. There
are various product design features that can be considered and it includes using natural and
delicate designs for existing brand and using contrasting design for doing packaging of the
products (Douglas and Craig, 2011). It is assertive that right packaging decisions should be taken
for all the products that are being offered by enterprise. Packaging manufacturing suppliers
should be given proper instructions for doing packaging of products in impelling and attractive
manner. Assistance from a marketing expert can be taken for taking packaging decisions for the
enterprise. There are some features which are included under the packaging and it involves color,
shape, size, facing and trade units. It is vital that all this elements should be considered while
taking packaging related decision for the enterprise. Environmental issues also impact on growth
of problem in packaging because Kellogg's is not using biodegradable bags they are using zip
pouches which are made of plastic. Thus it results in losing of customer and moreover they also
need to make some standards which help in reducing of wastage and results in go green concept
(Leonidou, Katsikeas. and Morgan, 2013). Moreover marketing manager of Kellogg's need to
consider Eco-friendly packaging such as paper bags and clothes bags.
New product development :- Consumers are giving preference for adopting nutritional and low
sugar products in their breakfast. Research and development department can take significant
steps for developing a new product that will provide healthy breakfast options for consumers.
Cereal products with high protein can be launched and it will support in gaining attention of
health conscious consumers. In addition to that products can be developed with high fibre
content (Luchs and et. al., 2010). It will support in adding nutritional factor that is being
launched by the enterprise. In addition to this cereal products that contains low sugar content can
also be offered and it will aid in gaining competitive advantage for the enterprise. Research and
development department can consider some options while developing new product. Features
such as high fibre, low sugar, added mineral and vitamins, all natural ingredients and wholegrain
can be added in the new product. SWOT analysis can be conducted for assessing strength,
weaknesses, opportunities and threats that are faced by a particular product in market. It will
support in providing options of offering healthy breakfast options for consumers. While
developing the product step be step procedures will be used and initially idea generations will be
7

done by doing market research. It will support in identifying needs and choice of consumers and
products can be developed as per the requirement shown by consumers. Moreover suggestions
can be taken from stakeholders of the business and it includes suppliers, consumers, shareholders
and staff members (Czinkota and Ronkainen, 2012).
Moreover it is required that screening of ideas should be done from all the ideas that
have been selected. Informal testing can be done for choosing a option from available
alternatives. Concept development is next stage in which work will start on chosen ideas and
proper action plans will be formed for developing the new product concept (Kotler and et.al.,
2015). In addition to that business evaluation can be done for checking feasibility of new product
in target market areas. Product development will be done be adding necessary attributes and
features in the cereal product offered by the enterprise. Last stage is product launch and media
coverage needs to be ensured so that large number of consumers can be made aware about the
breakfast products launched by the enterprise. Elements of marketing mix can be used for
successfully developing and launching new products in market (Gopalakrishnan and et.al.,
2015). Various elements that are included under marketing-mix are product, place, price,
promotions, physical evidences, process and people. Use of marketing mix will support in taking
effective marketing decisions for business and new breakfast products can be launched in
successful and appropriate manner.
Branding concept :- Branding is defined as procedure of giving a unique name, size, symbol and
identity so that it can be differentiated in market from other available products. It can be done by
defining the brand and in this review of product and services will be done for doing systematic
branding of the products that are being offered by the enterprise (Chan He and Wang, 2012).
Logo is created under branding and brand message is also designed which aids in creating image
of product in minds of consumers. Moreover tag-line is also designed which will describe about
attributes and features of new products of Kellogg's. Design, logo and message are most
significant element of branding and it is vital that effective product branding strategies should be
adopted for doing branding of products that are being offered by Kellogg's.
CONCLUSION
From the above report, it has been concluded that demand of the customers shifted
towards the healthy and nutritional breakfast cereals. It can be inferred that approximately 83%
8

people prefer to take ready to eat products rather than others. Besides this, it can be revealed
from the report that Kellogg's brand is highly popular among the customers in the category of
RTE. In addition to this, it also has been articulated that by offering highly nutritional breakfast
cereals business unit can get the desired level of outcome or success. It can be stated that by
doing both internal and external analysis Kellogg's can take strategic action. In addition to this, it
can be summarized that by developing competent marketing mix Kellogg's can enhance both
customer base and thereby profitability.
9

REFERENCES
Books and Journals
Chan, H.K., He, H. and Wang, W.Y., 2012. Green marketing and its impact on supply chain
management in industrial markets. Industrial Marketing Management. 41(4). pp. 557-562.
Czinkota, M. and Ronkainen, I., 2012.International marketing. Cengage Learning.
Douglas, S. P. and Craig, C.S., 2011. Convergence and divergence: Developing a semiglobal
marketing strategy.Journal of International Marketing. 19(1). pp.82-101.
Ghauri, P.N. and Cateora, P.R., 2010.International marketing(pp. 15-16). McGraw-Hill Higher
Education.Jean, R.J.B., Sinkovics, R.R. and Kim, D., 2010. Drivers and performance outcomes
of relationship learning for suppliers in cross-border customer-supplier relationships: The role of
communication culture.Journal of International Marketing. 18(1). pp.63-85.
Gopalakrishnan, M. and et.al., 2015. The effect of cost goal specificity and new product
development process on cost reduction performance. Accounting, Organizations and
Society. 42. pp.1-11.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Kotler, P. and et.al., 2015.Marketing management (Vol. 14). Englewood Cliffs, NJ: Prentice
Hall.
Leonidou, C.N., Katsikeas, C.S. and Morgan, N.A., 2013. “Greening” the marketing mix: do
firms do it and does it pay off?. Journal of the Academy of Marketing Science. 41(2). pp.
151-170.
Liu, S., Kasturiratne, D. and Moizer, J., 2012. A hub-and-spoke model for multi-dimensional
integration of green marketing and sustainable supply chain management. Industrial
Marketing Management. 41(4). pp. 581-588.
Luchs, M.G. and et. al., 2010. The sustainability liability: Potential negative effects of ethicality
on product preference.Journal of Marketing. 74(5). pp.18-31.
Marion, T.J. and et.al., 2015. The evolution of interorganizational relationships in emerging
ventures: An ethnographic study within the new product development process. Journal of
Business Venturing. 30(1). pp. 167-184.
10

Mintz, O. and Currim, I.S., 2013. What drives managerial use of marketing and financial metrics
and does metric use affect performance of marketing-mix activities?. Journal of
Marketing. 77(2). pp. 17-40.
Sheth, J.N. and Sisodia, R.S., 2015. Does marketing need reform?: Fresh perspectives on the
future. Routledge.
Wagner, S.M. and Eggert, A., 2016. Co-management of purchasing and marketing: Why, when
and how?. Industrial Marketing Management. 52. pp. 27-36.
Online
Hopkins, C.C.H.C.C., 2003. Scientific Advertising. [Online]. Accessed
Through:<http://www.scientificadvertising.com/ScientificAdvertising.pdf>: [Accessed on
9th December 2016].
Kellogg's. 2016. [Online]. Accessed Through:<https://www.kelloggs.com/en_US/brands/eggo-
consumer-brand.html#num=12>: [Accessed on 9th December 2016].
11