Marketing Opportunity Analysis for Kellogg's Nutri-Grain, 2020

This report presents a marketing plan analysis focused on Kellogg's Nutri-Grain, examining the company's background, situational analyses (including market and macro-environmental factors analyzed via PESTEL), and micro-environmental considerations. It delves into competitor and consumer analyses, culminating in a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. The report outlines marketing objectives, defines the target market (children aged 5-18), and proposes a differentiation positioning strategy. It also covers product mix strategies, defining product attributes and offering recommendations for Kellogg's. The analysis aims to understand and improve the marketing approach for the Nutri-Grain product.

Business Plan
Contents

INTRODUCTION.......................................................................................................................................3
Company’s background...........................................................................................................................3
Situational Analyses....................................................................................................................................3
Market Analyses......................................................................................................................................3
Macro Environment Analyses.....................................................................................................................4
Pestel Analysis........................................................................................................................................4
Political Analysis.................................................................................................................................4
Social Analysis....................................................................................................................................5
Technological Analysis.......................................................................................................................5
Legal Analysis.....................................................................................................................................5
Environmental Analysis.......................................................................................................................5
Micro Environmental Analysis....................................................................................................................6
Company Analysis...................................................................................................................................6
Competitor Analysis................................................................................................................................6
Consumer Analysis..................................................................................................................................7
SWOT Analysis.......................................................................................................................................7
Marketing Objectives..............................................................................................................................8
Target Market and Positioning....................................................................................................................8
Selection of Target Market......................................................................................................................8
Positioning Strategy.................................................................................................................................8
Positioning Attributes..............................................................................................................................8
Positioning Map......................................................................................................................................9
Product Mix Strategies................................................................................................................................9
Defining the Product Attributes...............................................................................................................9
Recommendations/Conclusion..................................................................................................................10
REFERENCES..........................................................................................................................................10
INTRODUCTION
Business plan works as a layout for the businesses through which they forms all the plans
and activities that they will carry. Marketing plan refers to be a plan in which an organization

performs planning about their marketing activities, organize all the resources according to the
plans, executes the strategies and then also control the marketing activities if they are not running
according to the plan. It is said to be an overview about the company’s marketing and advertising
goals. Marketing plan is futuristic as the plans made here are decided after analyzing all the
future possibilities and market scenario. For reference purpose this report has taken an example
of a company, Kellogg Company (Hansen, 2017). The company is a food processing company
which was establish in the year 1906. Kellogg is an Australian company which serves its
products worldwide. The company engages its business in manufacturing of cereals, food
supplements, and light and healthy breakfast foods for people and so on. It was founded by Will
Keith Kellogg. The company has a product called Kellogg Nutri gain which is a liquid breakfast.
This food is full of healthy ingredients which are full of protein.
This report discusses about the marketing plan for Kellogg Nutri gain Food product. In that
company’s background, its micro and macro environmental factors, competitor’s analyses and
the methods which the company has used to position its products in market has been mentioned.
Company’s background
Kellogg Company is a multinational Australian company which serves its product
throughout the world. It is founded by 2 brothers who have successfully opened around 20 plus
other brands under this company, for example, Corn falks, coco cops, Froot loops and much
more. The company also is supplying healthy cereals breakfast in Australia, New Zealand and
parts of other countries. Kellogg company has through the years from its establishment has taken
care about their values. They have successfully created awareness among the local people and
other communities about the importance of healthy and safe food (Iyer, 2019). The company is
very particular about the necessity and importance for eating a healthy breakfast in one’s life.
Kellogg for this also has joined various other companies and organization like ANZ and Clontraf
Foundation. It has started various campaigns about with a motive of “the breakfast for better
day” highlighting the importance of taking breakfast for a good day.
Situational Analyses
Market Analyses
The market analysis refers to the process in which a research performs an investigation
about the situation prevailing in the market at current. It states all the current and previous trends
so that the company can make the futuristic trends and situation out of it. Through the proper
market analyses an organization can forms its further marketing plans and strategies in a much
effective manner. As per the market analysis for Kellogg Company, it was found out that from
past many years the eating habits of people are becoming healthier as they now prefer to take the
foods which is unadulterated. From a research it has been observed that 42 % of people who
consumes the breakfast drinks have very little time for doing the breakfast. 41 % of people who
are in practice if consume breakfast drinks frequently purchases the food from takeaways for

their home. It also has observed that the populations of people who are drinking the breakfast
drinks are twice from the population who seldom drinks the energy booster drinks. At last it was
also found out that the people who consumes the breakfast drinks do not have ample time for
cooking or preparing their breakfast.
Therefore, from the observation which has been found from the research above it can be
concluding that people now in need for that food product which they can eat in a breakfast. The
food must be easy to prepare, consumes zero or little time of consumers in preparation. It must
be such that the consumers can drink it at while in their commute. And more over it must be
healthy in its nature. Hence, to solve all these problems of these busy people, Kellogg has
presented Kellogg Nutrigain liquid breakfast (Parikh, 2019). The product has the ability to
satisfying all the problems of customers. It is a ready to use product especially manufactures for
consumption in breakfast. The product is full of protein and fiber ingredients which would give
healthy nutrition to the people.
Macro Environment Analyses
Pestel Analysis
Political Analysis  The production activity cost may get
affected by the rise in price of ingredients
which are needed for manufacturing the
product (Deshpande, and et. al., 2017).
 As the government of Australia is stable,
the operational activity of company can
be stable as the company does not have
to change their policies according to
new unstable government.
Economic Analysis  The economic condition and situation of
Australia is very stable, that means there
the people can afford the price offered by
the company. The people have the ability
to buy Kellogg product with their offer
price.

Social Analysis  In the market analyses the company
has found out the recent trend that the
people have now become more conscious
about their health and for that they eat
healthy food. To grab this opportunity,
Kellogg provides their entire product which
give nutrition food to its customers.
Technological Analysis  The company sells its product both
at online and offline platform. The
company makes the effective use of digital
and social media marketing for building
string relationship with customers.
Legal Analysis The company successfully meets the entire
legal obligation which they have to
complete if they want to operate in the
regions. This has helped them in gaining the
trust of both the government and customers
(Sirkiä, T., 2019).
Environmental Analysis The Kellogg company is contributing its
best to environment by following all the
environmental related laws. They also has
adopt eco friendly production practices
which causes no or less carbon in the
environment. Apart from that the company
is also a big supporter of sustainability
development and also performs their
activities in accordance with that.

Micro Environmental Analysis
Company Analysis
What are 3 major positives regarding the company/brand
 Kellogg’s is a widely known company and is preferred greatly among kids between the
age groups of 6 to 18 years.
 Also, the company has presence across different geographical locations with a wide
variety of products.
 Kellogg’s has positioned itself as a brand that is an alternative for breakfast and has taken
part in many initiatives with companies such as Walmart and Master brand.
What are 3 major negatives regarding the company/brand
 Kellogg’s Nutri-grain Smash is extremely high in added sugar and contains only limited
amounts of protein and fiber.
 The new formula taste is not liked by many customers and they have regarded it as an
unhealthy protein substitute.
 The brand lacks popularity and there is a need for rebranding.
Summary of the Company
Kellogg’s is a widely known company that offers a variety of products and services to the
customers. It has a loyal base of customers as the company is able to serve their needs in an
effective manner.
Competitor Analysis
The Food Processing industry is among the largest industries and has various
organizations operating within the same. The industry is very competitive and dynamic as
companies are coming up with various innovative and unique product options. The major
competitors of Kellogg’s are Nestle Australia Ltd., General Mills and Sanitarium. The major
points of similarity between Nestle Australia Ltd. and the respective company is that both of
them are focused on offering the best breakfast options for the customers of different age groups
(McKenzie, 2017). But the percentage of salt and sugar in their products differ from each other.
On the other hand, General Mills and Kellogg’s try to introduce new options in regard to flavor
in the market to gain a competitive advantage. But, their marketing strategies different from each

other. Sanitarium and Kellogg’s have almost similar range of cereal offerings but the ingredients
of the products are different from each other.
Competito
r
Target
Market
Produc
t
Price Promotio
n
Distributio
n
Strength/
Weakness
Nestle
Australia
Ltd.
11-18
years of
people
Honey,
Wheat
Moderat
e to high
Marketing
campaign
Supermarke
ts and retail
stores
Brand Reputation
and higher prices
than others
Sanitarium Younger
generatio
n,
Athletic
boys
High
Protein
Diet
Foods
Moderat
e
Social
Media
Marketing
Convenient
stores and
supermarket
s
Brand recognition
and ineffective
marketing
strategies
General
Mills
Millennial
s and
Boomers
Differe
nt types
of
cereals
Moderat
e
Advertisin
g
Grocery
shops and
Supermarke
ts
Ineffective
distribution
strategy
Consumer Analysis
The primary customers of the respective company are young children as well as adults
belonging to the age groups of 5-18 years of age. They usually prefer breakfast cereals and the
purchase is most likely made from ither supermarkets or convenience stores (McKenzie and
Sansone, 2017). One of the reasons why customers make purchase from the brand is due to the
quality as well as taste of its cereals. The purchase is generally made through cash and even
honey is one of the primary products that is purchased.
SWOT Analysis
Strengths – Kellogg’s is a widely known brand that has a strong brand recognition and
reach within different locations.
Weaknesses – The taste as well as quality of Kellogg’s Nutri-grain is not very good and
the customers are not liking it.
Opportunities – The company has an opportunity to rebrand itself and come up with
innovative products to attract a greater number of customers.

Threats – High competition can act as threat for the company and can affect its overall
performance in the market.
Marketing Objectives
 To improve the brand loyalty among customers within 6 months to improve overall
profitability.
 To increase market share within the industry by 10% in order to gain a competitive
advantage.
Justification – The respective objectives have been chosen because they will help the company
in reaching out a greater number of customers and also gain a competitive advantage as well as
profitability in the market.
Target Market and Positioning
Selection of Target Market
The target market of the respective company is children among the age group of 5-18
years of age. The target market will be segmented demographically as this way, the company
will be able to understand the needs as well as latest trends within the market. also, the
preferences of children in the specified age group keeps on changing (Jukova. and et.al., 2019).
Therefore, by doing so, Kellogg’s will be able to serve the target market in an effective manner.
Positioning Strategy
The positioning strategy that the company should adopt is differentiation strategy. By
doing so, the company will be able to stand out from the competitors (Hisrich, Peters and
Shepherd, 2017). Differentiation strategy permits a enterprise to compete within the market with
something other than lower prices. For instance, a candy enterprise may additionally differentiate
their candy with the aid of improving the flavor or using healthier elements.
Positioning Attributes
In order to position itself in the minds of customers, the company will improve the
packaging of the products. Apart from this, the taste of the product will also be reviewed and
changes will be made accordingly. This will help in improving the overall purchase decision in

the target market. The price range of the products will also be reviewed in an effective manner.
these are some attributes that the customers consider to be important.
Positioning Map
Product Mix Strategies
Product
Kellogg’s Nutri-grain Smash will offer various benefits to the customers such as the kids
will feel more fuller as the product is high in protein. Also, it is a rich source of protein and fiber
with no added preservatives (Kailer and Weiß, 2018). Also, there are no added flavors or colors
in the product. The product packaging will include proper labelling and branding. But the
modifications will require improving the taste and quality.
Defining the Product Attributes
New Product Attributes Resulting Consumer Benefit
Improved Packaging Instant purchase decision
Enhanced Taste Improved nutritional value

Recommendations/Conclusion
From the above report, it can be concluded that a business plan is a very important
document for a company because it helps a company in conducting its business objectives in an
effective manner. Not only this, the business is also able to gain a competitive advantage in the
market. the respective company is recommended to implement the most appropriate marketing
strategy by analyzing its strengths as well as weakness in order to reach out to a greater number
of customers. It is also recommended to implement the differentiation strategy. This is because it
will allow the company to understand the needs of the customers in an effective manner.
REFERENCES
Books and Journals
Deshpande, T., and et. al., 2017. Marketing Plan for the DJI Phantom 4 Follow-Me Drone
Camera System.
Hansen, J., 2017. A Strategic Marketing Plan for Lube Oil Flushing Services at United Piping,
Inc (Doctoral dissertation, The College of St. Scholastica).
Hisrich, R.D., Peters, M.P. and Shepherd, D.A., 2017. Entrepreneurship. McGraw-Hill
Education.
Iyer, K., 2019. TLP for MARKETING STRATEGY 2018-2019.
Jukova, E.E. and et.al., 2019. Planning a new business: typical mistakes of a business plan in the
service sector. Journal of Environmental Management & Tourism, 10(3 (34)), pp.441-
447.
Kailer, N. and Weiß, G., 2018. Gründungsmanagement kompakt: von der Idee zum
Businessplan. Linde Verlag GmbH.
McKenzie, D. and Sansone, D., 2017. Man vs. machine in predicting successful entrepreneurs:
evidence from a business plan competition in Nigeria. The World Bank.
McKenzie, D., 2017. Identifying and spurring high-growth entrepreneurship: Experimental
evidence from a business plan competition. American Economic Review, 107(8),
pp.2278-2307.
Parikh, J., 2019. Marketing plan and review of overhead costs of a specialty food store.
Sirkiä, T., 2019. Creating an Effective Price Match Email Marketing Plan: Case Company X.