MBA404 Consumer Behaviour and Marketing Psychology: Kellogg's Analysis

This report provides an analysis of consumer behavior and marketing psychology, focusing on Kellogg's brand value. It examines consumer attitudes, personal buying decision-making, and environmental influences using the Engel-Blackwell-Kollat model. The report also delves into Kellogg's marketing mix (4Ps) and offers strategic recommendations for improving the company's marketing efforts, including leveraging digital marketing, addressing a global audience, and enhancing product offerings. The analysis also includes a primary research assessing the durability of Kellogg’s product among the customers.

Running Head: Consumer Behaviour & Marketing 0
Consumer Behavior and Marketing
Study about Marketing Psychology
(Student Details:)
9/21/2018

Consumer behaviour and Marketing 1
Executive Summary
In this report of Consumer behaviour and Marketing psychology, the company Kellogg’s has
been chosen for the analysis of the consumer attitudes towards brand value. Kellogg’s is one
of the topmost ten breakfast cereal brands all over the world producing consistently the best
breakfast diet foods since 100 years. Kellogg is one of the best quality and delicious cereal
brands was recognized in the year of 1906 by Will Keith Kellogg at Michigan, US and is one
of the biggest industrialists of quality breakfast cereal presently. According to the reports, this
best-selling company had yearly revenue of more than $15 billion with a total profit of nearly
$2 billion in the year of 2017.
Moreover, this top breakfast cereals brand also produce delicious cereals for diabetics’
patients and having more than 30,000 employees working efficiently. Moreover, after
evaluating everything appropriately in the directions, if the business acquires its own set
profit goals and place in the market then following actions are needed: Companies should
introduce new products according to the market demands that those must be well financed in
order to get commercial success over fluctuating supply demand base of marketplace. It is
vital to please initial consumers, since it will create strong mouth publicity, as they will
further influence many successive customers’ brand selections.

Consumer behaviour and Marketing 2
Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Critical Analysis.........................................................................................................................3
Theories related to consumer behaviour................................................................................3
................................................................................................................................................4
Marketing issues concerning consumer behaviour................................................................4
Personal buying decision-making......................................................................................5
Individual differences:.......................................................................................................5
Environmental influences...................................................................................................5
Marketing strategies...............................................................................................................7
Product: Marketing mix of Kellogg’s................................................................................7
Place: Marketing mix of Kellogg’s....................................................................................8
Price: in the Marketing mix of Kellogg’s.........................................................................8
Promotions: in the Marketing mix of Kellogg’s...............................................................8
Strategic Recommendations.......................................................................................................8
I-Marketing strategy of using digital path all-over................................................................9
II-To improve marketing-mix recommendations to sustain at first place globally................9
III- Addressing a Global Audience......................................................................................10
Conclusion................................................................................................................................10
References................................................................................................................................11

Consumer behaviour and Marketing 3
Introduction
An FMCG product stands for Fast-moving consumer goods (referred as FMCG). These
products are generally sold speedily and at comparatively low price. Illustrations include
home and personal care, tobacco, many non-durable products such as food, beverages,
household items, toiletries, over-the-counter drugs, alcoholic drinks and other consumables
(The economist, 2018).
In this report, FMCG product “Kellogg’s Special K” is one of the best breakfast cereal is
being selected, as this brand is an emerging company of Australia market since 2015.
Kellogg’s Special K (here in after referred as K-Product) is a tasty as well as crunchy ready-
to-have breakfast cereal made with wheat and rice. It is a good source of fibre, certainly low
fat product, and contains high B-group vitamins. This product is usually consumed with
either skimmed milk or whipped yoghurt along with fruits and dry-fruits.
It gives a fresh feel to begin every day with delicious breakfast cereal and full of energy.
Although it was established in the year of 1898, yet after achieving benchmarks in Australian
market, it became the first company, which was providing many choices about breakfast
foods and cereals in 2006. Finally, in 2015 it created a never ending rising growth in FMCG
market of Australia. Kellogg’s Pty Ltd. acquired the place of the topmost dealer of breakfast
cereals in 2015. Their retail value sale was 32 per cent in the year of 2015 (Marketing91,
2018).
Critical Analysis
Theories related to consumer behaviour
Consumer’s behaviour regarding K-Product can be observed easily by effective marketing
and sales model application as it is a decision-making procedure of consumer while
assessing, purchasing, utilizing, or disposing some products or services. This decision-
making is mostly depending upon two main aspects that are as follows:
 The customers expected amounts of consummation.
 The capitals those are available with the consumer to spend on the product (Perner,
2018).

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To understand behaviour of consumers towards this product, theory model of Engel –
Blackwell – Kollat Nicosia is being applied for the analysis and improved performance.
Therefore, the total sum of how consumers identify and define their requirements and the
way to select desired products to purchase and experience to fulfil those needs is the “Theory
of Consumer behaviour.” Here, it includes the what-where-when and how about the purchase
and post purchase experience procedure. The concepts of consumer behaviour examines and
improves approaches of enumerate, estimate and influence the actions of customers.
Numerous other consumer behaviour models can also help in better understanding of
consumer behaviour for this product. They are listed as follows:
 Economic Model
 Pavlovian Model
 Psychological Model
 Sociological Model (University of Missouri, 2009)
 Model of Howarth Sheth
 Learning Model
 Model of Engel – Blackwell – Kollat Nicosia
 The psycho analytical model
 Model of family decision-making (Perner, 2018)

Consumer behaviour and Marketing 5
Source: (Kollat, Engel and Blackwell, 1970)
Marketing issues concerning consumer behaviour
Consumer behaviour is the most important aspect in the marketing challenges of this product,
and in this discussion application of The Engel, Blackwell, and Miniard model (referred as
EBM) will be utilized to describe all marketing issues lying in consumer behaviour model.
Personal buying decision-making
According to the EBM model, the consumer decision-making procedure for purchasing K-
Product is shaped by various determinants and factors, divided into three wide categories:
 Individual differences
 Environmental influences
 Psychological processes (Keegan and Rowley, 2017).
Further, five steps of psychological process in decision-making model helps consumers of K-
Product to execute his or her buying decision:
Step-I Need Recognition:
Need recognition is therefore a state of desire, initiating a decision process that occurs
throughout the interaction of individual differences and environmental influences.

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Individual differences:
Attitudes of the consumer
Attitudes are important in assessing consumer behaviour, as the behaviour is mostly affected
by his or her attitude towards the product brand. This attitude being an essential marketing
tool can be made positive or negative by number of ways and it affects long-term choice.
Group influences on consumer
Majority of viewpoints can influence the consumer’s thinking and his or her attitude towards
the brand.
Consumer learning processes & resources
Consumer’s time, financial resource and most importantly information processing abilities,
these are the key factors of consumer learning process.
Environmental influences
Culture factor
Culture factor implies the ideas, values, and other meaningful symbols helping persons to
evaluate, interpret and communicate being a member of the society.
Social class
Social class is an environmental influence, which depict consumer behaviour differences
grounded on socio-economic level differences.
Step-II Information Search
This search is subdivided into four kinds of search: internal search, non-marketing controlled
information, marketing controlled information and external search. Internal search can be
done through several ways of gathering information from friends, families and consumer
memory. Marketing controlled search contain sources like advertisements on TV, frequent
email, Google, promotion adds and radio. Non-marketing controlled search contain past
experiences based knowledge. External info search can be defined as Kellogg’s brand
cereals can be found in various markets like Woolworths and Wal-Mart (Kollat, Engel and
Blackwell, 1970).
Step-III Evaluation search for alternatives
The Step-III, is mainly contains awareness set of four types, through which a consumer of K-
Product can get alternatives evaluation done. They can be explained as follows:

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Evoked set: it is a group of alternative brands acquired from a process of information search.
Inept set: this set containing avoided alternative options; those have no chance to be utilized.
Inert set: this set of information contains particular alternatives, which consumers always
have in his or her mind.
Unawareness set: this set contains those alternatives, about which the consumer is not aware
at all (Perner, 2018).
Step-IV: Purchase
This procedure contains the ways by which products and goods can be purchased. There are
following possible ways of purchasing K-Product:
 Grocery shops
 Super markets
 Shopping centres
 Famous gyms
Step-V: Post buying behaviour
This step is critical for the company, as it deals with the decision about whether to continue
utilizing the product in future or not by the customer. In this context, Kellogg’s is one of the
top most brands for breakfast cereals as it gives high quality satisfaction to its customers.
Source: (Marketing91, 2018)

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Marketing strategies
Specifically, marketing strategies of Kellogg’s company contains the identification of
targeted customer, objectives identification of the products (Kellogg Cornflakes), assessment
of mass media choices and identification of top likely media vehicle and the appropriate
matter of the visual and verbal message (Perner, 2018).
Thus, Kellogg’s company have applied all above strategies and after critical analysis of the
marketing mix of the company, 4Ps marketing mix contains following:
Product: Marketing mix of K-Product
Kellogg’s Pty Ltd. is the food processing industry and produces several types of breakfast
cereals and other good diet products. Some of its valued products are as follows:
 Cereals such as Nut Feast, All-Bran, Cinnabon, and Chocos
 Crackers
 Frozen Waffles
 Toaster Pastries (BizVibe, 2018)
 Cereal Bars
 Cookies
 Snacks having flavours of fruit (Kellogg's, 2018)
Place: Marketing mix of K-Product
The company has well designed distribution hierarchy at all places and manages the system
efficiently. The team consists of distributors, sales members, and brokers (Marketing91,
2018).
Moreover, to reach the customers at correct place and time Kellogg’s company has
established warehouses those hold a healthy-stocked supply of its products. These products
are shipped speedily and efficiently whenever required and for that company deal with the
sellers directly to send the asked products to the consumers at a fast speed (McDONALD and
M.A.L.C.O.L.M., 2016).

Consumer behaviour and Marketing 9
Price: in the Marketing mix of K-Product
The Kellogg’s company always calculate the real selling cost of the product only post
executing an in-depth consumer marketplace research that involves the client’s feedbacks. It
also considers production costs, profit, and the promotion, advertisement costs. Finally, post
analysing each aspect of the marketplace research the company defines the products prices
(Kumar et al., 2009).
Promotions: in the Marketing mix of K-Product
Promotion of the products is one of the excellent marketing strategies of Kellogg’s company.
In order to create consumer awareness of its product and brand value, it has used media
sources. Its advertising and marketing campaigns are broadcast on television particularly on
the children channel and primary time. In this context, Kellogg’s has correctly chosen its
target audience being the women and kids. The company realized the importance potential of
above two sexes because, women are the decision makers, and kids are the influencers of the
products of Kellogg’s (Marketing91, 2018).
Strategic Recommendations
In spite of adopting all-marketing strategies of 4Ps marketing mix by the company to sell K-
Product, still there few areas, those can be covered into following actions:
 Selection of the correct advanced Technologies for the company requirement
 Preparation of targeting content addressing a Global Audience
 Directive and proper training of the team
 Recruitment and hiring of best talent
 Planning of a digital marketing promotion (Hudson, 2018)
Further, some recommendations to the higher management of the company are as follows:
I-Marketing strategy of using digital path all-over
The progress and implementation of marketing strategies digitally takes much less time.
Because by using digital marketing, it becomes very easy to improve strategies and execute
rapid changes when needed in the marketing campaign.
Moreover, digital marketing is cost effective, as it has already proved during universal
financial slowdowns of modern times. A digital-marketing campaign will cost lower than
old-fashioned marketing campaign (Keegan and Rowley, 2017). Approaching effectively to

Consumer behaviour and Marketing 10
the consumer is easy in digital marketing campaign than conventional marketing. Digital
marketing strategy is so easy that it do not take time to give efficient results among target
audience, but it goes faster than any other marketplace strategies on earth.
II-To improve marketing-mix recommendations to sustain at first place
globally
Getting feedbacks from consumers by using social marketing is a marketing mix
recommendation in order to sustain in the market of top breakfast cereals worldwide. It is
about getting ideas and feedbacks from consumers rather than selling products. As a result, if
we are using info regarding consumer attitudes towards company’s brand value and product
quality then efforts will be exactly directed towards fulfilling their needs and providing full
satisfaction by reviewing company’s end processes (Kumar et al., 2009). As we, all know
that, expanding a business requires the correct knowledgeable assets, properly chosen
strategic corporations, and products with solid market demand. Still after achieving success
and top place in market place, sustaining development needs a robust operational groundwork
so that the critical risks to the business can be effectively reduced time to time (Forbes,
2015).
III- Addressing a Global Audience
Addressing global audience can also be a recommended strategy for the Kellogg’s company.
As mentioned above in this report, Kellogg’s company is having great marketing strategies in
promotion area by targeting kids and women for creating better marketing campaigns. Still,
there is a need to address whole audience effectively by creating and writing content, which
actually addresses global whole audience to expand business more (Rudov and Ricket, 2017).
By expanding the area of operation in the market, company can earn more, facilitate people
more, sustain business growth and most importantly can attain never-ending high quality
brand value (Forbes, 2015).
Conclusion
Finally, consumer behaviour critical analysis and implementing marketing psychology report
concluding that there are many units in the marketplace to be analysed but consumer
behaviour model is the base of any well-established business firm. Hence, main area of
discussion in this report is the customer. However, any organization also requires analysing
own strengths and challenges as well as of competing companies. To evaluate a competing

Consumer behaviour and Marketing 11
company’s potential threat, first Kellogg’s Company need to calculate its resources like
desired advanced technologies, market knowledge, patents and brands awareness in front of
the challenges it faces within the market. Finally, we need to measure conditions like the
marketing issues lying the consumer behaviour, attitudes, and environment for sustaining
business growth.
The Kellogg’s company was introduced more than hundred years ago. Presently, Kellogg’s
Pty Ltd is upholding the quality and market values in 180 countries worldwide. It is still
going on providing nutrition rich breakfasts, which create better days of numerous families.
Its flake corn tastes better and better since 1898, as W.K. Kellogg adopting and analysing the
consumer behaviours and requirements regularly (Kellogg's, 2018).

Consumer behaviour and Marketing 12
References
BizVibe (2018) Top 10 Breakfast Cereals Brands in the World, 22 May, [Online], Available:
https://www.bizvibe.com/blog/breakfast-cereal-brands/ [21 Sep 2018].
Forbes (2015) Top 6 Ways To Sustain Business Growth, 29 Sep, [Online], Available:
https://www.forbes.com/sites/glennllopis/2015/09/29/top-6-ways-to-sustain-business-
growth/#7768172567ee [22 Sep 2018].
Hudson, E. (2018) 7 Digital Marketing Strategies That Work: A Complete Guide, [Online],
Available: https://blog.hubspot.com/marketing/digital-strategy-guide [21 Sep 2018].
Keegan, B.J. and Rowley, J. (2017) 'Evaluation and decision making in social media
marketing', Management Decision, vol. 55, no. 1, pp. 15-31.
Kellogg's (2018) Discover our best days, [Online], Available:
https://www.kelloggs.com.au/en_AU/our-story/history.html [21 Sep 2018].
Kollat, D.T., Engel, J.F. and Blackwell, R.D. (1970) 'Current problems in consumer behavior
research', Journal of Marketing Research, pp. 327-332.
Kumar, V., Fan, J., Gulati, R. and Venkat, P. (2009) 'Marketing-Mix Recommendations to
Manage Value Growth at P&G Asia-Pacific', Marketing Science, vol. 28, no. 4, pp. 645-655.
Marketing91 (2018) Marketing mix of Kelloggs – Kelloggs Marketing mix, 10 Mar, [Online],
Available: https://www.marketing91.com/marketing-mix-kelloggs/ [21 Sep 2018].
McDONALD and M.A.L.C.O.L.M. (2016) Strategic marketing planning: theory and
practice, Routledge.
Pearlson, K.E., Saunders, C.S. and Galletta, D.F. (2016) Managing and Using Information
Systems, Binder Ready Version: A Strategic Approach, John Wiley & Sons.
Perner, (2018) CONSUMER BEHAVIOR: THE PSYCHOLOGY OF MARKETING, [Online],
Available: https://www.consumerpsychologist.com/ [21 Sep 2018].

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Rudov, L. and Ricket, M. (2017) '. Evaluation recommendations for nonprofit social
marketing campaigns: An example from the Louisiana Campaign for Tobacco‐Free Living',
International Journal of Nonprofit and Voluntary Sector Marketing, vol. 22, no. 1.
The economist (2018) Australia consumer goods, 06 Aug, [Online], Available:
http://country.eiu.com/Industry.aspx?
Country=Australia&topic=Industry&subtopic=Consumer%20goods [22 Sep 2018].
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http://libraryguides.missouri.edu/c.php?g=28374&p=4304702 [10 Aug 2018].