MKT4001: Developing a Marketing Plan for a New Breakfast Cereal

This report outlines a comprehensive marketing plan for a new breakfast cereal product. It begins by defining the components of the marketing planning process, including situation analysis, objective setting, strategy formation, action program development, implementation, and evaluation, linking each step to the cereal product's marketing objectives. A PESTEL analysis identifies key political, economic, social, technological, environmental, and legal factors affecting the cereal market. The report emphasizes the importance of market orientation for fostering product innovation and continuous improvement through customer feedback. It details the 7Ps of the marketing mix (product, price, place, promotion, people, process, and physical evidence) and explains how their development contributes to effective marketing planning. The report also covers STP (segmentation, targeting, and positioning), segmenting the market by customer and business, and discussing various targeting strategies such as mass marketing, segmented marketing, concentrated marketing, and micromarketing. Finally, it highlights the importance of positioning the product effectively to reach the target market and maximize profitability.

PRINCIPLES
OF
MARKETING

Table of Contents
INTRODUCTION.........................................................................................................................3
Section 1- Marketing Environment And Planning Process.......................................................3
Define the components of marketing planning process and their link to marketing for new
breakfast cereal product...............................................................................................................3
PESTEL Analysis for breakfast cereal product...........................................................................6
Outline of marketing mix 7Ps and how development of marketing mix can contribute to
effective marketing planning for breakfast cereal product..........................................................7
Section 2- Segmentation, Targeting and Positioning..................................................................7
Section 3- Marketing Mix Analysis..............................................................................................9
CONCLUSION............................................................................................................................12
REFERENCES............................................................................................................................13

INTRODUCTION
Marketing is process of an organization which is undertaken to promote the products
offered by a business in order to target audience, to create strong relationship with customers to
create value in order to capture value in return. Marketing is also a primary component of
business management and commerce. Market environment is the composition of internal and
external factors which directly or indirectly create an impact on decisions formed by a business
which are related to marketing activities (Porral and Stanton, 2017). Planning is the process of
thinking about activities which are required to achieve desired goal. Marketing mix model is the
set of actions which are followed by an organization to promote their product and brand in the
marketplace. Therefore, the principles of marketing involve various elements which are used to
meet desired marketing objectives set by a business. This report is based on different sections
which will define various segments of marketing and how these sections can be helpful in
meeting desired marketing objectives for breakfast cereal product. In first sections, the study will
define marketing environment and planning process. In the second section, the report will outline
STP approach which will be followed in order to segment and target the market, sand the
positioning strategy which will be followed by the organization. Lastly, the project will highlight
the extended marketing mix analysis to target the market.
Section 1- Marketing Environment And Planning Process
Define the components of marketing planning process and their link to marketing for new
breakfast cereal product
Marketing planning process
Marketing planning process is a systematic approach followed by an organization to
achieve their marketing objectives. There are various steps which are involved in marketing
planning process, these steps are- situation analysis, defining objectives, formation of strategy,
development of action program, execution of strategy and evaluation (Ajagbe and et.al, 2015). In
terms of new breakfast cereal product, the marketing planning process will be created with the
objective of achieving the marketing objectives.
The components of marketing planning process and their link with new breakfast cereal
product are explained below:

 Situation analysis- This is the first type of marketing planning process which is a
collection of approaches that are used by an organization to understand business
capabilities, customers and business environment (Benzo, Mohsen and Fourali, 2017). In
terms of new breakfast cereal product, situation analysis will be used to develop an
understanding of internal and external environment in which a plan will be executed. This
will help in setting price of raw material understand customer buying habits gain
knowledge about competitors.
 Setting objectives- In the second stage of marketing planning process, an organization
focus on defining the objectives which needs to be accomplished by them. In terms of
new breakfast cereal and product, the company will define the objective by which they
can generate leads, create brand awareness, increase their sale and strengthen their
relationship with customers in order to increase customer loyalty and retention.
 Formation of strategy- Strategy formulation is the process of most appropriate course of
action for meeting the organization objectives and the achievement of organization
vision. In this stage, an organization create vision and mission of business and understand
the external environment. This involves selecting mediums through which the strategy
will be executed. In terms of new breakfast cereal product, the company will form their
strategies which will be helpful in meeting their desired objective.
 Development of action programs- In the stage of planning program, a detailed plan is
created which highlights marketing task that needs to be managed, implemented and
executed within the organization for achieving marketing objectives (Eyvrigh, 2016).
Therefore, the company will create a blueprint of planned series which are used to
achieve the organizational objectives. In terms of new breakfast cereal product, the
company will create an action plan which is a layout of activities that needs to be
followed for reaching the objectives.
 Implementation- In this stage, an organization will implement or execute the action plan
as per the desired plan and layout through which whole organization can work towards
the accomplishment of marketing objectives. In relation to the new breakfast cereal
product, the company will follow the planned procedure by defining their objectives and
following all strategies and actions as per the action plan.

 Evaluation- This is the last stage of marketing planning process where organization will
review the whole process which has been followed and analyze the actual performance
standards through which corrective measures can be taken (Gbadamosi, 2020). In terms
of new breakfast cereal products, the company will analyze the whole process which has
been executed for manufacturing the product and will check the performance gap through
which they can form new innovative strategies which will be used in order to make
improvements for enhancing performance and increase of the products.
Role of adopting market orientation and implementation to business
Market orientation is the approach of resources of the company are directed towards
meeting the demands of customers. The role of marketing orientation and its implementation in
business has been explained below:
 To foster product innovation- Market orientation helps in gaining valuable information
through which products can be developed and this can be helpful in bringing additional
value to the products (McDONALD, 2016). By driving innovation and bringing
development to the product, it will help the cereal company to attract higher number of
customer and maintain tehri competitive position in the industry.
 Customer feedback can be helpful for continuous improvement- With the help of
customer feedback, this will be helpful in understanding the area of improvement through
which the breakfast cereal company can manage to face competition within the industry.
Importance of adopting market orientation and implementation to business
Market orientation holds significance in business, the importance of market orientation
for an organization has been explained below:
 Increases market share- This marketing approach will be helpful in leading the
customers towards the brand through which they can generate higher revenues, increase
the sale of products, attract new customers and this will result in incline in market share
of the company.

PESTEL Analysis for breakfast cereal product
Pestel analysis is a tool which helps in understanding the external business environment
factor. The detailed PESTEL analysis of breakfast cereal product has been explained underneath:
Political factors- The political factors such as reforms for the problem of obesity has
been a problem whereas around 17% of the market has been covered by the cereal industry
which will be an opportunity for business to generate higher revenues by bringing innovative
product range (Spivakovskyy, S and et.al., 2018).
Economic factors- Due to incline in inflation rate and high competition, these are some
of the economic factors which can create an impact on the operations of the organization.
Social factors- The incline in health options has been a factor which is responsible for
creating an adverse impact on the organization.
Technological factors- Due to innovation in cereal market such as packaging and other
factors have possessed high competition within the industry which can hinder the growth of the
organization.
Environmental factors- The development of natural food and development of ecologic
and recyclable packaging helps the cereal industry to avoid wastage (Zhang and Xu, 2018).
Legal factors- Globalization has been a driver for standardization and this increases the
competition in cereal industry and leads to price war which can create positive as well as
negative impact on the sale and profitability of organization.
The competition in the breakfast cereal market is rapidly increasing as there are
diversified range of products which are available for customers through which customers can
select the product according to their taste, preference and price. There are many companies
which are offering breakfast products, such as Kellogg’s, Nestle and many others which possess
high competition for new entrants to establish their position within the industry (Thomas, R. K.,
2021). As due to incline in demand of healthy food range, many breakfast companies are
offering healthy food range through which they can meet the demands of health-conscious
customers.

Outline of marketing mix 7Ps and how development of marketing mix can contribute to effective
marketing planning for breakfast cereal product
Marketing mix is an approach of marketing which helps in achieving marketing
objectives by analyzing various factors such as price, place, product, promotion, physical
evidence, process and people. Marketing mix is helpful in forming an effective marketing
strategy by analyzing the components of marketing mix through which innovation can be driven
and in order to attract higher number of customers for generating higher revenues by increasing
the sale of the products (Zhang and Xu, 2018). The place component of marketing mix will be
helpful in understanding the value of prime location which will support in generating bleads and
create strong brand awareness. The other factor such as price component helps in planning the
price through which organization can set affordable prices which will be helpful in meeting
customer demands. Similarly, the other components of marketing mix help in understanding and
choosing the right strategy through which the organization can position their product
appropriately through which higher number of customers can be attracted.
Section 2- Segmentation, Targeting and Positioning
STP (Segmentation, targeting and positioning) is their stage marketing approach which
helps in classifying the market inti different groups and helps organization in selecting the most
desirable target market through which they can generate higher revenues and maximize business
profitability. This framework is also helpful in positioning the products to every segment through
which an organization can sell their products to targeted customers and meet their demands in
timely manner.
The STP of breakfast cereal product has been explained below:
Segmentation: The breakfast cereal market has been segmented on various factors, such
as type, distribution channel and geographical area. The company will segment their market on
the basis of customers and business through which they can target higher number of customers
and maintain their competitive position within the industry (Abratt and Bendixen, 2018).
Segmenting can be defined as a process of dividing the product of organization is smaller
segments in order to bring effectiveness within product implementation process. In context of the
new product there are two types of market segment and which organization can target. This
includes business to customer and business to business segments.

Business to customer (B2C): within the segmentation process of product if the
organization follow business to customer channel when company required to segment the
customer on the basis of age, gender, income level, occupation and psychological behaviours.
Business to business (B2B): if organization is targeting the customer on the basis of
business-to-business channel then the segmentation must include the existing behaviours of
businesses, retailer, wholesaler and retailer. This will help in segmenting the business product in
an appropriate way and achieving the results in a positive manner appropriate segmentation.
Targeting: Targeting strategy involves evaluating each segment and establish potential
customer base which will be helpful in maintaining brand success and longevity. There are
various methods which helps in targeting customers, some of the targeting methods which will
be used by the organization are mass marketing, segmented marketing, concentrated marketing
and micromarketing. These four generic marketing strategies are followed by company to target
customer for their breakfast cereal products (Kennedy and Hartnett, 2018). By following the
focus/concentrated targeting approach, this will help the organization in personalizing their
message to their desired target market which is based on health-conscious customers, male and
female segments ad children trough which they can spread awareness regarding the benefits of
their products. By following the concentrated targeting strategy, it supports the marketing team
to customize their message and deliver it to attract customer attention in a focused manner
through which organization can create a strong customer base. This targeting approach will also
support the organization in targeting customers by offering right and appropriate offer and
marketing approach for selected target segment.
Positioning: The organization will position their products to customers who are health
conscious and for children through which they can maintain healthy lifestyle an create balance in
their daily routines. The organization will position their breakfast cereal products by
understanding the competition within the industry and will spread awareness regarding the
healthy eating habits through which they can maintain the standards of the products and attract
greater number of health-conscious customers (López-Lomelí, Alarcón-del-Amo and Llonch-
Andreu, 2019). The company will majorly focus on promoting healthy lifestyle and healthy
eating habits through making customers understand the value of nutrition rich food which will
help them in understanding the value of quality food products for a better livelihood. The

company will position their products by promoting their quality standards, taste, natural
ingredients and price which has set by the organization through which customer trust on brand
can be established and this will be helpful in creating strong customer base and retain higher
number of customers which will lead to creation of positive image of product in the industry
(Simi Simon, 2021).
Section 3- Marketing Mix Analysis
Elements of marketing mix New Breakfast Cereal Product
Product To gain sustainable competitive advantage is the primary
focus of a strategy formed by organization for their new
breakfast cereal product. This has been an advantage for
business which will be helpful in gaining competitive
advantage through offering consumer greater value
which will be providing greater benefits and services at
higher prices (Berning and Rabinowitz, 2017). When the
organization will be able to sustain profit that exceeds the
average for the cereal industry, it will be helpful in
generating higher revenues and gain competitive
advantage. The major focus of product offered by the
company is to achieve sustainable competitive
advantage.

Place Distribution in marketing is one of the important factors
to attract customers. Moreover, the system of distribution
of an organization defines the competency of an
organization to meet customer demand. Distribution
within the group of place supports in accurate
distribution method which is helpful to target higher
number of customers as this will be an opportunity for
ensuring the products are easily accessible to customers
which will lead to incline in sale of products offered by
organization. Moreover, distribution system can be
strength as well as weakness for an organization as they
can effectively manage to deliver the goods which will
meet demands of customer in timely manner. Due to
poor distribution system, it can affect continuity of
operations and lead to inability in providing products at
all distribution centers or at places which are easily
accessible for customers.
Price The company will follow value-based pricing method
through which they can effectively position their product
to larger number of customers and understand the value
of customers (Boehner and Gold, 2015). Through setting
appropriate pricing strategies, it will help the
organization to attract higher number of customers
through which the company can reach higher number of
customers and meet their short-term objectives. The
reason behind setting the value-based pricing is to ensure
maximum number of customers are satisfied form the
products which are offered and are delivered at
reasonable and affordable prices. This decision of
organization enables marketers to achieve their targets
and supports in long term profitability.

Promotion Promotion is one of the components of marketing mix
which relies on communication among the customers and
suppliers of the product. This factor can also be
understood as marketing communications. These
activities also help organization to choose appropriate
strategies for promoting the products and share details
about them with customers through which customers can
be acknowledged (Momany and Alshboul, 2016).
Whereas, promotional activities are important in which
organization can share details regarding their products
from different regions and this becomes a challenge in
selling products with the help different promotional
activities.
Additional elements of marketing mix:
People This element of marketing mix focuses on delivering
friendly and prompt services to their customers from
their employees. The employees will have their uniform
which will be helpful in creating a difference between the
other competitors and this will be helpful in setting the
employees different from other companies (Perdon,
Poutanen and Schonauer, 2020). The staff will also have
their ID which will define their details and this will be
helpful in creating a point of contact with customers and
increase the sale of products and services.
Physical evidence This factor of marketing mix focuses on presentation and
appearance through which an organization can creates an
image among their customers which will be helpful in
attracting greater number of customers. The company
will make sure they use recyclable packaging for their
cereal products through which they can effectively
contribute towards environmental development and

sustainability (Sulaiman and et.al, 2017). The company
will create a logo which will be a source of
differentiation among other competitors and will also be
helpful in creating a strong web presence on their website
an ither online mediums. Such physical evidence will be
helpful in setting separate identity of the company
through which the audience can differentiate their
products among competitors from their attractive logo
and packaging.
Process The whole process followed by the organization to
manufacture the new breakfast cereal products will be
strategically followed to ensure that all safety and
hygiene measures are executed while implementing the
process. Whereas, the process followed by organization
to manufacture the new breakfast cereal products is
hidden. The company will make sure that they will
regularly take feedback from customers through which
they can make further improvements and make sure that
customer satisfaction must be met (Calvo-Porral, Stanton
and Lévy-Mangin, 2016). The breakfast cereal company
will take feedbacks from their customers and focus on
brining change which is required to enhance the quality
and ensure effective improvements has been done
through which higher level of customer satisfaction is
met and a greater number of customers can be retained.
CONCLUSION
From the above project report, it can be understood that marketing is an organizational
activity which is performed by an organization through which a business can promote their
products and services which will be helpful in attracting higher number of customers and