Kellogg's Green Tea Biscuits: Comprehensive Marketing Plan for Launch

This marketing plan outlines the launch strategy for Kellogg's Green Tea Biscuits, targeting health-conscious consumers aged 20-40. It begins with an executive summary and a detailed situation analysis using Porter's Five Forces. The plan includes a SWOT analysis, PESTLE analysis, and market segmentation focusing on women. It covers product details, pricing, distribution, promotion strategies, and financial projections, including projected costs. The plan considers competitors like General Mills, Quaker Oats, Nestle, and Conagra Foods. It highlights the first-mover advantage and the increasing market demand for healthy snacks. The plan addresses potential threats like competition and government regulations. Overall, the plan aims to provide a comprehensive marketing strategy for a successful product launch.

Running Head: MARKETING PLAN
Marketing Plan

MARKETING PLAN 1
Executive Summary
This marketing plan focuses on the launch on Green Tea Biscuits by Kellogg Company. With the
passage of time, the preferences of the customers have changes and they have started adopting a
healthy lifestyle. Kellogg’s will launch its Green Tea Biscuits which will be tasty and healthy
and will target the age group of 20- 40 years. The main target of the product will be women who
are more health conscious as compared to men.
This marketing plan provides the situation analysis, SWOT analysis, PESTLE analysis, market
segmentation along with the budget projections of the product which should be kept in mind
during the launch of the product in the market.

MARKETING PLAN 2
Contents
Introduction.................................................................................................................................................3
Situation Analysis........................................................................................................................................3
Customer.....................................................................................................................................................4
Competition.................................................................................................................................................5
Strengths, weaknesses, opportunities and threats (SWOT)..........................................................................5
Macro Environmental Analysis...................................................................................................................7
Market Segmentation...................................................................................................................................8
Product........................................................................................................................................................8
Price............................................................................................................................................................8
Distribution.................................................................................................................................................9
Promotion....................................................................................................................................................9
Projections...................................................................................................................................................9
Projected Costs............................................................................................................................................9
Conclusion.................................................................................................................................................10
Appendix...................................................................................................................................................11
References.................................................................................................................................................13

MARKETING PLAN 3
Introduction
The Kellogg Company, also known as Kellogg’s, is a multinational food- manufacturing
company from America having its headquarters situated in Michigan, United States. Kellogg’s is
involved in the production of convenience and cereal foods such as crackers, cookies and toaster
pastries and markets its products through a number of well- known brands like Keebler, Corn
Flakes and Cheez- it. The mission of Kellogg’s is to nourish families so that they can thrive and
flourish. The manufacturing of the products of Kellogg’s take place in 18 countries and are
marketed in more than 180 countries of the world (Kellogg’s, 2018).
Kellogg’s is entering into a new business of producing green tea biscuits for its customers in
order to provide them a healthier experience. Green tea has small amounts of minerals that
contribute towards the health of the individual. Furthermore, it improves physical performance
and increases fat burning. The risk of various diseases such as Alzheimer’s, Parkinson’s and
Cancer is also minimized to a great extent (Khan & Mukhtar, 2016). The compounds contained
in the green tea perform the function of improving the brain functions and makes an individual
smarter (Arendt, Rahamat, Xu & Jeong, 2018). On the other hand, every individual eats biscuits
which make them obese and unhealthy. The company wants to launch a green tea biscuits which
will support the health of the customers. This marketing plan is addressed to the board members,
executive committee and the investors of the company to be taken into consideration for the
reaching the target market.
Situation Analysis
Porter’s five forces model is selected for the purpose of conducting the situation analysis for the
new business launch of Kellogg’s.
Threats of New Entrants- Further innovation will be brought by processed and packed goods by
the new entrants which, in turn, will pressurize the Kellogg Company for lowering their prices.
All these challenges will require to be managed by Kellogg’s along with safeguarding its
competitive edge in the market (Hess & Slavin, 2017).

MARKETING PLAN 4
Bargaining Power of Suppliers- there are a number of suppliers in the processed and packaged
goods industry. The dominant position of the suppliers has the capability of reducing the profit
margins of Kellogg’s. In other words, there is high supplier bargaining power that impacts the
profitability of the entire industry.
Bargaining Power of Buyers- the customers have become very demanding over a period of time.
They want to obtain the best quality product at the minimum possible price. The bargaining
power of the customers is very high due to which the Kellogg’s will have to increase the offers
and discounts on the product.
Threats of Substitute Products or Services- There is high threat of the substitute products in the
industry which can meet the customer needs in different ways. This will also affect the
profitability of the industry. Kellogg’s needs to focus on increasing the switching costs of the
customers in order to tackle the threat of substitute products.
Rivalry among the Existing Competitors- the processed and packaged goods industry is very
competitive, which is the operating area of Kellogg Company. The intense competition between
the existing players in the industry will result in driving down the prices and decreasing the
overall profitability of the industry (Labonté, Noorhosseini, Bernstein, Ahmed & L’Abbé, 2016).
Customer
Target customers or target market can be defined as the market segment to which the specific
product of the company is aimed at. The customers of the green tea biscuits are the customers
that are conscious regarding their health. It will target the customers who have the habit of eating
biscuits from time to time which, in turn, is making them obese and unhealthy. With the help of
such biscuits, the customers will be able to carry on their habit of eating biscuits in the morning
and evening breakfast and will be able to stay fit and healthy without gaining any excessive
weight. Therefore, the main aim of this business of the company is to identify the health
conscious customers who will become their target market (DiPietro, Remar & Parsa, 2016).

MARKETING PLAN 5
Competition
Since Kellogg’s is an international brand, its competitors are also the brands that operate in the
global market. The major competitors of Kellogg’s are General mills, Quaker Oats Company,
Nestle and Conagra foods. All these brands are also coming up with the innovative strategies
from time to time in order to attract the target customers. However, these companies have still
not been able to launch such an innovative idea in the market related to the use of green tea in
their products.
General Mills- General Mills was established in the year 1856 and have its headquarters situated
in Minnesota, United States. The company is regarded as one of the top competitors of Kellogg’s
as it is a global producer of branded consumer goods. Various range of nutritious products are
offered by the company which may pose a threat for the success of the green Tea biscuits in the
market.
Quaker Oats Company- the main target of the Quaker Oats Company is also those consumers
who want to consume healthy food. The company has a strong brand image in the marketplace
and is regarded as the trust brand of the United States. The innovative healthy products of the
company make it one of the biggest competitors of Kellogg’s.
Nestle- The headquarters of Nestle are situated in Vaud, Switzerland and it was established in the
year 1866. Nestle is often regarded as the largest food company in the world and also has a
diverse product range. With the passage of time, the company has also entered into the healthy
food range market and therefore has become a big competitor of Kellogg’s.
Conagra Foods- Conagra foods was established in the year 1919 and have its headquarters
situated in Chicago, Illinois. The company is engaged in the production and sales of customized
branded food products. The main segments of the company can be classified as consumer foods
and commercial foods. Due to the reason of their great availability and productivity, Conagra
Foods is regarded as one of the competitors of Kellogg’s.
Strengths, weaknesses, opportunities and threats (SWOT)
Strengths-

MARKETING PLAN 6
First Mover Advantage- Kellogg’s will be the first company to lunch Green Tea Biscuits in the
marketplace which will provide them the first mover advantage. The company will be always
known for taking this initiative even when other companies will steal this idea with the passage
of time.
Brand Values- Kellogg’s stands for a variety of values such as balanced nutrition, taste and is
portrayed by low fat and high carb which makes its products an ideal breakfast for the health
conscious customers. These values will be reflected in the Green Tea Biscuits of the company
which will have a great taste and will be known for its health benefits.
Weaknesses-
R & D Centres- R&D centres of the company are located in specific regions only which will
create difficulties in introducing the Green Tea Biscuits in different markets of the world. This is
due to the fact that the companies are required to add the tastes of the specific regions in order to
make it popular in the market (Pharis, Colby, Wagner & Mallya, 2018).
Known Majorly for Breakfast Cereal- Kellogg’s is majorly known for the popular cornflakes
produced by it. This is due to the fact that such product is tried and tested by the target audience
over a period of time. However, this may prove to be a weakness of the company and the target
audience may not like the new product introduced in the market.
Opportunities-
Changing Preferences- with the passage of time, the customers are increasingly becoming health
conscious which, in turn, increases the market for the Green Tea Biscuits by Kellogg’s.
Moreover, those who prefer biscuits whenever they feel hungry will also be able to maintain
their health along with giving preference to their choices (Phongnarisorn, Orfila, Holmes &
Marshall, 2018).
Targeting the age group 20- 40- The group of people between the age 20- 40 years are
increasingly becoming health conscious and want to stay fit by consuming healthy food in their
day to day life. The company should target this particular set of people as they appears to be the
biggest opportunity for increasing their sales.

MARKETING PLAN 7
Threats-
Competition- Competition is increasing with a rapid pace in the healthy food industry as well.
The major competitors of Kellogg’s are Quaker Oats Company, Nestle, General Mills, Conagra
Foods, etc. All these companies are coming up with innovative products and strategies from time
to time and are increasing their share in the healthy food market as well (Hayakawa, 2017).
Government Regulations- the policies of the government are becoming stricter especially in
respect of the ingredients and contents used in the products by big companies like Kellogg’s.
Such regulations can create hurdle in the growth of the company through this innovation.
Macro Environmental Analysis
Political- USA have a stable political environment due to which Kellogg’s is able to effectively
make the use of advanced technology and infrastructure. The political stability further allows the
company to carry on their operations in a smooth manner (Juergensen & Demaree, 2015).
Economic- the unemployment rates in USA has reduced and labor has also become expensive
which may require Kellogg’s to outsource its activities for the purpose of operating in a cost
effective manner. USA is also facing the challenge of hanging global economic landscape. The
purchasing power of the people in USA is also increasing which will further contribute towards
the benefit of the company (Van Doorn & Verhoef, 2015).
Social- with the passage of time, the people in USA have started becoming health conscious due
to the fact that the fast food culture have contributed towards illness and obesity in the country.
This will act in the benefit of The Kellogg Company (Kroese, Marchiori & de Ridder, 2015).
Technological- USA is considered as the global leader in terms of technology and science. Such
technological innovation will assist Kellogg’s in the cost effective production of the Green Tea
Biscuits (Rocha, Bolin, Cardoso & Otton, 2016).
Legal- There are own legal scheme and government structure of every state in USA. The
regulatory environment of the state governs the businesses. The Intellectual Property Rights of
the Kellogg’s will be protected by the legal system of USA (Carreno & Dolle, 2017).

MARKETING PLAN 8
Environmental- Kellogg’s is also impacted by environmental standards of USA. The weather
conditions of USA are toughest in the world which leads to disasters and cause financial
damages to the businesses (Grech, Hebden, Roy & Allman‐ Farinelli, 2017).
Market Segmentation
The Kellogg Company has segmented the market for the health conscious consumers that come
under the age group of 20- 40 years. This group of customers has different needs and wants as
they want to stay fit while carrying on their busy daily routine. Specifically, women will be the
main target of the product. Moreover, it also covers the older segment which covers the older
people by providing them the healthy Green Tea biscuits that will make them feel healthy and
energetic. The image of Kellogg’s is that of the company which provides nutritious and healthy
products of food to the customers. Therefore, such segments are targeted by Kellogg’s with the
help of its special segmentation procedure (Gineikiene, Kiudyte & Degutis, 2017).
Product
Though a number of healthy products are offered by Kellogg’s to the target customers, the Green
Tea Biscuits will be the most innovative product in the marketplace. The most important
ingredient of this product will be green tea which will help the customers in overcoming a
number of health concerns for the customers. Till now there is no such product in the market,
therefore, the company will get the first mover advantage and is expected to obtain a big market
share as well. The product focuses on the fitness of the customers and is a great breakfast option
(Niculescu, Leonhardt, Payne & Barney, 2018).
Price
Proper market research will required to be done for the purpose of fixing the price of the Green
Tea Biscuits. The research will look into various factors such as the demand for the product and
the capability of the target customers. However, the actual selling price will take into account the
production costs of the company along with profit and advertisement costs. After this, all the
aspects of the market research are analyzed and then the selling prices are determined. The price
of the Green Tea biscuit will be a bit higher than the prices of the normal biscuits as these will be
the only product of this type in the market (Namkung & Jang, 2017).

MARKETING PLAN 9
Distribution
Since Kellogg’s is a global company, it serves different parts of the world. Along with this it has
manufacturing plants in a number of countries such as UK, Australia, Canada, Latin America,
Asia, etc. The company also owns a distribution channel that handles the entire network in an
efficient manner. For the purpose of reaching the customers at proper place and time, the
company maintains open warehouses in order to maintain the required stock (Siawsolit, Seepun,
Choi, Do & Kao, 2017).
Promotion
Kellogg’s is said to have an excellent marketing strategy and usually take the help of media for
the promotion of its products. The promotional campaigns for Green Tea Biscuits will be telecast
on television during the prime time slot. Print media such as magazines and newspapers will also
be used for showing the ads (Appendix 1). Initially, the company will offer the free samples of
the biscuits for creating awareness of the product among the target customers (Davari & Strutton,
2014).
Projections
The projections for the company provide that there is a great future of the product among the
target audience. This is due to the fact that the customers are increasing the use of green tea in
their day to day life in order to stay healthy. However, along with increasing the consumption of
green tea they also increase the unhealthy practices such as eating unhealthy biscuits during tea
time and in the morning breakfast. Therefore, the product is expected to perform extremely well
in the market for a longer period of time.
Projected Costs
Following is the budget for executing the entire marketing plan: (Appendix 1)
Expenses Amount
Cost of Materials $ 50,000

MARKETING PLAN 10
Electricity $ 20,000
Salary to employees $ 50,000
Newspaper and Magazine Advertisement $ 40,000
Advertisement on Television $ 50,000
Latest Technology $ 80,000
Warehousing $ 50,000
Distribution Expenses $ 80,000
Miscellaneous Expenses $ 30,000
Total Expenses $ 450,000
Conclusion
This marketing plan for the new business of Kellogg’s addresses all the important aspects for
entering into the market. The benefits of green tea will be offered by Kellogg Company in the
form of biscuits which, in turn, will be advantageous for the health conscious customers.
Situation analysis has been conducted by using the Porter’s five forces model along with making
the use of SWOT analysis for analyzing the internal and external environment of Kellogg
Company. Furthermore, the use of PESTLE Analysis model has been made for analyzing the
macro environment of the company. Various aspects such as product, prices, distribution and
promotion have also been discussed in this plan. At the end of this plan, the budget projections
have been provided for carrying on the entire marketing plan.

MARKETING PLAN 11
Appendix
1)
Flow Chart for the Entire Process of the Green Tea Biscuits
Green Tea Biscuits
Reasonable Price for
Consumers
Age Group of 20- 40 years
(especially women)
Promotion through Print
Media and Television
Budget = $ 450,000
Distribution to Different
Parts of the World through
Efficient Network