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Sales and Merchandising in Kellogg : Report

   

Added on  2020-01-21

27 Pages8730 Words336 Views
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ContentsIntroduction......................................................................................................................................31.1A discussion about the key components of the product.......................................................31.2How the product mix contributes to sales and profit............................................................41.3 An assessment on how market segmentation contributes to maximize sales............................62.1 Discussion about the factors affecting buyer behavior..............................................................72.2 An assessment of the advertising media that could be used for sales development situations..82.3 An evaluation of the use of external merchandising to maximize customer volumes..............93.1 An assessment of the influence of design and layout on customer spending..........................103.2 A review and evaluation of the effectiveness of internal merchandising materials................113.3 An evaluation of different promotional activities according to different scenarios................124.1 An evaluation of personal selling techniques..........................................................................144.2 A discussion about the influence of operational design on sales revenue...............................154.3 Key principles that should be included in a sales training program me..................................16Conclusion.....................................................................................................................................17References......................................................................................................................................18Feyisayo Shayekanmi#21965Page 2

Introduction Sales development and merchandising is the activity through which a company builds upstrategies for effective selling. A company’s first and foremost duty is to sell their product to theultimate customers. And for this effective selling process and merchandising knowledge is veryimportant (Bradley, 2014). The current report has been done on sales and merchandising activities of Kellogg Companywhich is an American multinational firm that is headquarter in United States. The companyproduces cereal and convenience foods, snacks, cereal bars, flakes as well as vegetarian foods(Our Brands, 2016). The company has made its purpose as providing nourishment to families sothat they can flourish and thrive. From this report different aspects of selling techniques and merchandising activities are shown.First of all key ideas of product and product mix components are highlighted. Then external salesdevelopment techniques are shown through buying behavior and related issues. In the later partthe internal process of sales promotion and development is highlighted which is an importanttask of selling. Finally the role of employees in maximizing sales is shown with different aspects.From the overall analysis a clear understanding of sales development can be archived. 1.1A discussion about the key components of the product Product is the marketing offering whether it is tangible or intangible that consumer wants topurchase for their consumption. For this one might believe that product decisions are basicallymade up exclusively on designing and building the consumable elements of goods, services andideas (Brennan, 2012). For example when one thinks about a floor cleaner product he mightthink that it is all about how effectively it cleanses the floor. But it reality product elements aremore than just one feature rather t is the combination of total products which is more what isconsumed. This total product can be classified into three categories. They are-Feyisayo Shayekanmi#21965Page 3

Figure- product key elementsSource- Brennan, (2013)Core product- when it comes about the benefit of a product sometimes it is not only aboutconsumption. There are some other benefits that are also related with this product. For instancecustomers may need to be perceived highly by other members of their group or need a productthat is easy to use or have risk free (Burk, 2013). In terms of product elements not only the actualoutcome matters but other subsidiary benefits also related to it. Core benefit of a product is thebenefit that will actually satisfy the need of the customers. In terms of Kellogg’s cereal brand thecore benefit is having a healthy meal at breakfast. Consumers buy this product to satisfy theirbreakfast need (Bruhn, 2011). Consequently, at the very heart of all decisions about a product isbased on this core benefit of a product. Actual product- actual product means the components that make up the actual product thecustomer purchase. For example, when a customer purchase something from the grocery shopand return home by purchasing an item out of her shopping bag the actual item is the item sheholds in her hand (Cravens, 2012). Actual product benefit is the benefit a consumer perceivesrather than just consuming the product. In terms of Kellogg’s cereal brand the actual benefitcould its health issue, easy to make, ready mix etc. So it is ultimately saves time of theconsumers (Cravens, 2013). Augmented product- marketers often surround their actual product that provides additionalvalue to the customer’s purchase. It is not the key reason consumers buy product but it isadditional benefits that customers enjoy after purchasing the product (Burnaz, 2014). Forexample after purchasing Kellogg’s cereal people enjoy the different flavor of cereal, itsFeyisayo Shayekanmi#21965Page 4

complementary products, customer service issue etc. These are all related with the benefit ofaugmented product. 1.2How the product mix contributes to sales and profit Product mix refers to the total number of product lines that is offered by a company to its targetcustomers (Clow, 2011). For example a company may sell different types of product under onebrand name. The Unilever Company has thousands of product line with different brand name.The total offering offered by this company is called product mix. Sometimes product lines aresimilar like dish washing and liquid bar soap which is used for cleaning and for similar purpose.Other times, product line can be vastly different from one another. For example a companyoffers chocolate as well as ketchup. There are basically four dimension of product mix. They are-WidthDepthLength and Consistency (Cohen, William, 2013)Product mix of Kellogg’s Cereals – the cereals offered by Kellogg’s are inclusive of special K, rice krispies, fruitloops, corn flakes as well as apple jacks. Bars - these include Chewy Nuts, Chewy Snack, Protein Granola, Protein Meal as well ascereal bars. These further include different variants. Beverages – this includes Kellogg’s to go and special K. other than that the companyfurther offers breakfast and protein shakes. Treats – Kellogg’s has further offered varied treat items that include brownies, PoppedDelights, snacks, Pastry Crisps among others (Treats, 2016)Contributions to sales and profit of elements in the product mixThe provided product mix leads to increased sales and profit of the company. For example, otherthan just cereals, Kellogg Company has 22 different product lines. The more the product line themore customers know about the company’s product offerings. It ultimately increases the sales ofa brand or company. In term of Kellogg they have cornflakes, crunchy nut, corn pops, rice food,Feyisayo Shayekanmi#21965Page 5

wheat food, chips etc. through this way a company gains importance of the customers and canget more recall and recognition. It maximizes profit. In terms of Kellogg’s cereal brand, there areseveral flavors under one product line (Jensen, 2011). So it can be said that this flavor will behelpful for achieving market share and profit maximization. More flavors add more customerattention. 1.3An assessment on how market segmentation contributes to maximize salesBenefits of segmentation Market segmentation is one of the most important activities done by an organization fordeveloping its strategic marketing plan. In terms of market segmentation a company mustdevelop research for understanding the marketing environment (Keegan, 2012). Marketsegmentation is the activity of dividing a large market into some small portions so that acompany can understand which segment it can serve in the beginning. Market segmentationdivides large market into some small parts according to the consumers demand and company’sresource allocation. To lessen the risk of choosing and deciding where, how and when brand will be marketed. Thenit should be developed how the product will be targeted. If company does not know whom theyshould sell their product then no successful outcome can be brought. So understandingsegmentation means understanding market demand and customer selection that will increasesells (Gilligan, 2010). Segmentation will also increase the efficiency by directing effort towards the designed segmentin a manner consistent with those segments characteristics. Effective segmentation bringseffective target audience. And it helps to develop positioning strategy very quickly. As it is thebase of all strategic marketing efforts a wrong decision in the segmentation can make it a failure.Right decision about segmentation brings up right audience and right communication strategy(Lawer, 2012). As a result it will increase sales and market share (Kleinbeck, 2012). Market segmentation used by Kellogg Feyisayo Shayekanmi#21965Page 6

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