Kellogg's Advertising and Promotion Strategies

This report analyzes the advertising and promotion strategies employed by Kellogg's, focusing on the role of advertisement in integrated marketing, branding importance, creative aspects, and below-the-line promotion techniques. It outlines the development of a promotional plan, integration of promotional techniques, and methods for measuring campaign effectiveness, concluding with budget formulation strategies for promotional campaigns.

Advertisement and Promotion

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Role of advertisement in an integrated promotional strategy...............................................1
2.2 Branding and its importance to organization........................................................................2
2.3 Creative aspect of advertisement..........................................................................................3
2.4 Ways of working with advertising agency............................................................................4
3.1 Primary techniques of below-the-line promotion.................................................................5
3.2 Other techniques used in Below the line promotion.............................................................5
TASK 3............................................................................................................................................6
4.1 Developing a promotional plan.............................................................................................6
4.2 Integration of promotional technique for promoting a product............................................7
4.3 Techniques for measuring campaign effectiveness...............................................................8
4.4 Appropriate process for formulation of a budget for promotional campaign.......................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Advertisement can be determined as a process through which organizations provide
information regarding the product or services delivered to the customers. On the other hand,
promotion is a way through which customers are attracted. Both are essential for delivering
goods and facilities effectively to services users (Ward, Hancock and Macrae, 2014). In order to
grow and gain profit, both advertisement and promotion are very important. It is the
responsibility of marketing manager to make use of all promotional tools so-as-to attracts
customers (Knapp and Vanderhook, 2014). Present report is about Kellogg's which is a food
manufacturing firm. It has established its business around 18 countries and has been marketed to
around 180 countries. This report covers the importance and role of advertisement in the
organization. Further, it includes use of below-the-line techniques and its importance by the cited
organization. Lastly, it also includes integrated promotional strategies which can be used by the
firm in order to promote its products or services.
TASK 2
2.1 Role of advertisement in an integrated promotional strategy
There are many tools which are used by organizations in order to attract customers. In
this context, tools include direct marketing, public relation, personal selling, etc. (Freitas,
Conneely, and Oakes, 2013). All these techniques are very essential for gaining profits and
growth of the organization. Following are the roles of advertisement in an integrated promotional
strategy:
Providing information: This is one of the main reasons because of which advertisement are
planned for particular goods or services. When a product is developed, it is very important for
the firm to provide adequate information regarding the same. In accordance with the case,
Kellogg's displays their advertisements through posters, cinema, radio, etc. (Aaker and
Joachimsthaler, 2012). In addition to this, one of the main tools used by this firm is
advertisement on television. With the use of these types of tools, firm deliver all the associated
information about their products and services. As a result, customers’ get to know about the
services or products delivered by the firm. Further, features and benefits are also conveyed which
helps in developing curiosity among customers towards the product (Gilani and Leon, 2013).
With this respect, there are firms which develop attractive advertisements before the product is
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even released in the market. This is very helpful in developing curiosity among customers and in
gaining huge profit (Rezaei and Muntz, 2013). Similarly, whenever Kellogg's develop new
product, they should make advertisement before the product is actually released in the market.
Through this strategy, firm will be able to gain huge profit. Moreover, advertisements will help
in attaining competitive advantage as well.
Thus, it can be stated that, it is essential for all the organizations to develop their
advertisements with the help of which they will be able to attract customers and gain profits
(Okazaki, Li and Hirose, 2012). With this respect, it is important for the firm to develop an
attractive advertisement which will convey information regarding the product or services.
2.2 Branding and its importance to organization
Branding can be determined as a process which is involved in creating unique identity of
product or service by the organization which makes it different from its competitors. There are
many things like logo, name, image, etc. through which branding is done. Through branding,
firm aims at developing an exclusive uniqueness of the firm (Ramer, Soroca and Doughty,
2013). Further, with the help of same, people get to recognize about the firm easily. Thus, it can
be stated that organization should focus on developing their brand image so that people know
about the product.
In this context, following are the importance to organization through branding: Loyalty and recognition: One of the main benefits of branding is that people will be able
recognizing the product in more effective manner. In addition to this, with strong brand
logo or image, it will help the firm as it would develop an image among potential
customers. There are many ways like shape, packaging, logo, etc. through which people
identify the product (Shaw, Howell and Genskow, 2014). Further, people can also know
through the name of the company, when they get to hear it on radio, advertisement or
when other people talk about the firm. On the other hand, customers who buy the product
of particular brand frequently are more likely to be brand loyal. Develops brand equity: When firm has strong brand, then it has high financial advantage
with the help of brand equity (Importance of Branding, 2011). Product positioning: When a company comes up with a new product, then it becomes
easy for the organization to promote it due to existence of its brand image. As customers
have good perception regarding the product so they trust the new product as well
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(Chandra and Yadav, 2015). This way, it becomes easy for the firm to develop product
positioning for a new product.
 Reliability: With branding, customers fully rely on the product. Mostly people prefer to
buy the goods which are of high quality. However, when a firm has a brand name, then
customers rely more on the product as they know that the same with its uniqueness.
2.3 Creative aspect of advertisement
There are different ways through which organizations focus on delivering different types
of creative aspect with the help of which they attract customers. With this respect, following are
the creative strategies for advertisement: Attractive title: It is very important in advertisement to develop a title which the help of
which firm can grab their customer’s attention. When there will be catchy titles, then
customers will remember it and would think about it (Bauman and Nutbeam, 2013). This
will be helpful in developing curiosity among service users and hence, they will buy the
product. Creative team: A team of young people should be selected who would be helpful in
developing advertisement which would attract customers (Rasool, Rafique and Hannan,
2012). Different people have different way of thinking and possess creative ideas. When
these types of people are put together, then they will be able to coordinate and develop
something creative. Designing: Customers get attracted to things which are unique or which have different
packaging style (Edelman, Mandle and Kudzma, 2013). This one is the best way to
increase sales by attracting services users. Different types of colours and shapes should
be used and advertisement should be developed in such a way that customer’s tend to buy
product.
 Attractive offers: In order to grab customer's attention, it is important for the organization
to provide additional services through which they will be able to increase their sales
(Angelici, Velthoen and Bruijnincx, 2014). When services users get to know that they
will be provided with free gifts with the purchase of single product, then customers will
get to buy the product.
ICT (Information and communication technology) plays an important role in
advertisement as it includes all the promotional tools like television, radio, mobile phones,
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computer, etc. which help the organization to display their advertisement and in attracting
customers. It is very helpful for market expansion as firm easily convey the information which
they went to deliver to their customers (Durand, 2013). This is cost effective method by which
firm can made advertisement within the decided cost.
2.4 Ways of working with advertising agency
In order to develop an attractive advertisement, there are many advertising agencies
which help the firm to do it effectively. Advertising agencies are the one which develop or create
them according to the needs and requirement of its client. In order to work with them, there are
various ways, among which few are as follows:
Selecting person: Organizations should select capable persona who is eligible to present
requirements to the ad agency. This will be helpful in reducing confusion and agency will be
able to understand about the product easily (Street, Gold and Manning, 2013). Selected person
will have direct contact with the ad agency and they will provide all the required information to
the organization. In simple words, they will act as a mediator between organization and ad
agency.
Face to interaction: Face to face interactions are very essential as there will be issues in
understanding the idea or description regarding the product easily (Goodall and Ashworth,
2013). Through mailing or telephonic communication, there are chances that firm could miss any
kind of information.
Sharing information: It is very important for the client that is the organization should provide
all necessary information regarding the product for which advertisement has to be made
(O’Guinn, Allen, Semenik and Scheinbaum, 2014). In addition to this, feature, benefits, etc.
should be conveyed so that advertising agency would develop ad accordingly. All type of
information like provided cost, things to be covered in the advertisement, etc. should be
presented so that advertisement could be communicated effectively.
Patience: Firms| takes time to develop an attractive advertisement. In this context, organization
should have patience so that attractive advertisement could be developed.
Maintaining relationship: When the relationship will be good only then better result will come
out of it (Shimp and Andrews, 2013). In this context, it is important for the organization to
develop healthy relationship with customers so that attractive advertisement could be developed.
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3.1 Primary techniques of below-the-line promotion
Below the line promotion can be defined as a promotional technique through which
promotion is done other than using radio, television, newspapers, etc. In this context, there many
strategies which can be adopted by organization in order to promote their products (Korda and
Itani, 2013). Among which few of the techniques which fall under below the line promotion and
can be used by Kellogg's are as follows:
DDS(Door to Door Selling): According to this strategy, organization selects different salesmen
for different geographical are and they visit each and every house which fall under their region
and promote the product. This is very helpful in attracting customers as they get to know about
the product and they can also clarify all the doubts which come in their mind.
Coupons: In this strategy, firm provides coupons with the help of which customers get discounts
for the product (Goodall and Ashworth, 2013). This is very helpful in attracting customers and
they get the product at discounted rates.
Rebates: This is a type of strategy in which the customer get have to pay less on the final bill.
This type of benefit is given to those customers who buy the products in bulk.
Promotional pricing: This is one of the best strategy which firm can adapt. According to this
technique, prices of the products are reduced for a particular period of time (Nyhan, Reifler and
Freed, 2014). This has an immediate increase in the sales as customers get to purchase the
product at lower price.
Trade-In: In this technique, customer get lower price by exchanging product which he/she
possesses. This is mainly done on products which are old and could be exchanged with new one.
Loyalty programs: These are done to make the customers loyal towards the product. In this
strategy customers would be rewarded by discounted rates, free products, etc. (Nyhan, Reifler
and Freed, 2014). This type of techniques encourages the customers to buy product of same
brand. Further, it also helps in increasing the sales and growth of the organization.
3.2 Other techniques used in Below the line promotion
Some other techniques which can be adopted by Kellogg's with the help of below-the-line
promotion are as follows:
Providing scholarships: This is a helpful technique through which firm will be able to increase
their sales. Customers will buy the product in the hope to get scholarships. This way organization
will be able to grow (Dapito, Mencin and Lefkowitch, 2012). The advertising team will display
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the advertisement on which the name of the organization and the offer which has been developed
will be shown. This way firm will convey the information and will attract services users.
Designing and packaging: Kellogg's should develop unique design and packaging (kellogg's,
2015). This will be helpful in attracting customers attention. There are many competitors for
Kellogg's and it is very important for the firm to develop unique identity so that it could achieve
competitive advantage (Xiao, Yang and Chen, 2015). Customers recognize the product only
when the firm focus on their packaging and designing.
Product placement: In this technique, firm, television, etc. and show regarding the product
through story. This is very helpful in developing brand image among customers and in attracting
them. This way Kellogg's will be able to develop make regular customers to loyal once.
Sales promotion: This types of strategy is mainly adopted for new products. It is very important
for the organization to make the product reach customers easily and this possible only when they
will have a proper distribution channel in which they can deliver their products easily (Yin,
Zhang and Zong, 2012). Kellogg's will be able to increase their, if they make sure that the
products delivered by them reaches their customers easily.
Free samples: Customers do not prefer to buy the product because they have fear that the
product tastes good or not. In this context, Kellogg's should provide samples through which
customers will be able to taste it and develop confidence in it (Dapito, Mencin and Lefkowitch,
2012).
TASK 3
4.1 Developing a promotional plan
In order to develop a product, it is very essential for the organization to develop a
promotional plan with the help of which firm will be able to make their product promote. In this
context, following are the promotional plan for Kellogg's:
Analysing the situation: It is very important for the organization to analyse the factors which
may be favourable for the firm. In context with Kellogg's, there are many competitors which
provide similar product to customers (Gilani and Leon, 2013). With the help of analysis firm will
be able to identify the situation for which they will be able to effectively develop the promotional
plan.
Developing objectives: This is the second step, in which firm have to develop objective through
which organization will be able to develop path with the help of which they will be able to
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achieve their targets (Okazaki, Li and Hirose, 2012). For example, if Kellogg's wishes to deliver
new product to customers, then they have to set up objective like covering the region, identifying
potential customers, etc.
Selection of target audience: Firm should state the customers who will be targeted. This will
help in developing product through which customers will be attracted (Xiao, Yang and Chen,
2015). Proper analysis should be done so that needs and preference of the customers could be
determined and accordingly product could be easily promoted.
Media selection: There are many promotional tools like television, radio, newspapers, social
sites, etc. Among these tools, organization should be able to select the best one which would help
in attracting customers (Rasool, Rafique and Hannan, 2012). Before selecting the tools it is
important to have cost estimate which would be spend for promotional activities.
Providing special offers: As it was discussed above, there are many below the line promotional
technique which can be used by the organization. The best strategy which could be adopted by
the firm will be DDS(Door to Door Selling), promotional pricing and loyalty programs
(Angelici, Velthoen and Bruijnincx, 2014). With the help of these techniques, firm will be able
to promote their product effectively.
4.2 Integration of promotional technique for promoting a product
The promotional plan will be developed for Kellogg's Fiber Plus. This is type of cereals
which is rich in vitamins E and Zinc. Following are the promotional plan for this particular
product:
Analysing situation: As it was discussed above, there are many other organizations which
provides similar product like Kellogg's. However, this product will have many benefits as it is
rich in antioxidants vitamin E and zinc. This will be helpful to garb the attention. In addition to
this, Kellogg's has a brand name and this will be help in gaining profit.
Selecting objectives: Before selling the product, it is important to develop objective as this will
help in achieving the desired goals effectively (Ward, Hancock and Macrae, 2014). In
accordance with the case, main objective will be gain maximum profit by attracting customers.
In addition to this, firm has to cover the market and make products available to customers.
Selecting target audience: According to the product which has to be promoted, the potential
customers will be from the age group of 10 to 35. This is the age group in which zinc and
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vitamins are important to grow and to gain energy (Knapp and Vanderhook, 2014). Product will
be delivered for both male and female for the age group from 10 to 35.
Media selection: In order to promote the product, promotional tools like television, radio,
newspapers and social media will be used so as to provide information about the product (Korda
and Itani, 2013). Among all the promotional tool's television and social media will be focused
more as with the help of these tools firm will be able to attract potential customers.
Special offers: Below the line promotional techniques will be used to promote the product. With
this respect, DDS(Door to Door Selling), promotional pricing and loyalty programs will be used
(Freitas, Conneely, and Oakes, 2013). These tools will be helpful in attracting customers and in
promoting the product effectively.
4.3 Techniques for measuring campaign effectiveness
Measuring campaign effectiveness is very essential in order to whether the promotional is
going on an effective manner or not. There are many tools which can be used in order to measure
the effectiveness of campaign, among which few are as follows:
Sales level: When promotional plan are implemented, if the plan really do work in correct
direction, then automatically the sale of the product will rise. Organization could make note of
monthly sales which could they have done on the product (Aaker and Joachimsthaler, 2012).
This way firm will get to know whether the campaign develop is going on well or not.
Repeat purchase: Customers will buy the product regularly when promotional plan is effective
and the product satisfies customers needs. When customers will buy the product repeatedly, then
firm will be able to know the effectiveness of their campaign (Techniques of measuring
advertisement effectiveness, 2014). When the product delivered by the firm fulfil all the needs
and requirement of the customer, then the customers through word of mouth will help in
promoting the product.
Increase in demand: If the campaign goes on an effective manner, then the demand for the
product will increase (Rezaei and Muntz, 2013). This way the production of the product will also
raise. Form this it could be easily measured the effectiveness of campaign. All stores which
delivers the product will ask for more units of product so that they could meet the demand of the
customers.
Through surveys: In order to know the campaign effectiveness, organization can conduct
surveys. They can get to know the impact of product and can also know weather the product
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fulfils the demand of the customers. Do services users are really satisfied and it is fulfilling all
their requirements (Ramer, Soroca and Doughty, 2013). Through surveys, firm can also make
changes on their campaign plan according to customers needs and wants. This will be helpful in
attracting more and more service users.
4.4 Appropriate process for formulation of a budget for promotional campaign
In all the business activities, it is very important for the firm to develop budget for all
types of business operations. This helps the firm to spend effectively of various other projects
which the organization wishes to conduct. Further, there are various problems or issues which
arises within the organization (Shaw, Howell and Genskow, 2014). In order to solve them, it is
important for the firm to make proper budget so that issues could be easily solved. In budget
determination process firm focus on developing a systematic plan with the help of which they
focus on getting access amount which can be for other purposes. In order to implement a plan
cash is the most important source and by developing a plan organization can easily save cash for
other purposes.
There are different types of budgeting, among which few are as follows:
Zero-Based Budgeting: According to this budgeting strategy, firm do not take any baseline, they
just go with the baseline which was developed or taken previous year (Chandra and Yadav,
2015). Mostly, this types of budgeting strategies is used by government agencies and non profit
organizations.
Top-Down budgeting: In this strategy, top management sets up budget which has to be followed
by lower-level management. Top management guides the lower level to develop budget
calculation. In this context, it is important for the top management to have proper experience so
that budget could be developed effectively (Bauman and Nutbeam, 2013).
Bottom-Up Budgeting: According to this strategy, lower management has the power to make the
decision related to budget. They are the one who have vast knowledge regarding the products
and the budget which they will be required in operating the business effectively.
Among all the above given strategies firm should use bottom-up budgeting as this will be helpful
in spending effectively towards the promotional activities which the organization wants to plan
(Edelman, Mandle and Kudzma, 2013). For promotional activity, cash plays vital role and with
the use of bottom- up budgeting organization will be able to spend on promoting their product to
customers.
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CONCLUSION
From this report, it can be concluded that organization should have a proper way to promote their
product or services. Further, advertisement and promotion play vital roles in increasing the sales
and in gaining huge profit. Moreover, there are many advertising agencies which the help of
which organization can develop attractive advertisement to attract customers. However, it is
important for the firm to provide all the required information through which effective
advertisement could be developed. Further, there are many strategies which are involved in
below-the-line promotion but most effective one is promotional pricing as it increases the sale of
the product intently. Lastly, firm should state the target audience so that firm could develop path
through which they can easily achieve the goals and objectives.
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