An Analysis of Kellogg's Advertising and Promotion Strategies Report

This report provides a comprehensive analysis of Kellogg's advertising and promotion strategies. It begins with an introduction to advertising and promotion, highlighting the role of advertising as a one-way communication tool. The report then delves into Kellogg's specific strategies, including integrated promotional approaches, the importance of branding, and the creative aspects of advertising. It examines how Kellogg's works with advertising agencies, exploring both the selection process and payment structures. Furthermore, the report discusses below-the-line promotion techniques, evaluating their effectiveness and providing examples such as direct mail marketing and loyalty programs. The final section outlines a promotional plan for Kellogg's Cornflakes, detailing the product's features, objectives, target market, pricing strategy, and distribution methods, including the use of integrated promotional strategies to promote the product.

ADVERTISING
AND
PROMOTION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................6
TASK 3..........................................................................................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Advertising is a one-way communication and its main purpose is to communicate about
the products and services to the potential consumers. Promotion involves dissemination of the
information about a product, product line, company or brand. It is one of the P of marketing mix
and advertising is one type of promotion mix. Further, advertisement is a paid form of
communication and it covers mass market. This report is focused on advertising and promotion
of Kellogg's cereal. This is an American based firm. The organization has a true global market as
it has 4 main divisions which covers almost whole world. It uses several media such as press,
posters, radio, cinema, majorly television to communicate about its products.
Furthermore, this report also describes the scope of marketing communication and the
role and importance of advertising. Moreover, discussion has been made on below-the-line
techniques and planning about the integrated promotional strategies for Kellogg's.
TASK 1
COVERED IN PPT
TASK 2
A. Explaining the role of advertising in an integrated promotional strategy
Integrated promotional strategy means that three or four promotional techniques are
integrated together than promotion of a product is done. This is done to achieve the objectives of
the company in an effective manner (Chang, Rizal and Amin, 2013). Further, with the help of
this, company can communicate effectively to their target customers. Kellogg's uses this
technique to increase sales of their various products. For instance, the firm has adopted sales
promotion technique in which company provides Kellogg's coco lip balm with the Kellogg's
cornflakes for free or with minimal extra price. These promotional techniques are advertised by
using print and media ads so that customers can be made aware about sale promotion and also
the arrival of new products in the market. Further, company also uses integrated promotional
activities to maximize its sales. They uses personal selling and advertisement so that consumers
can get the authenticity of the products (Leonidou and et.al., 2011).
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Advertisement plays an important role in integrated promotional activities because the
use of several promotional techniques by the organization will be communicated through
advertisement only. Through this, the company can communicate to the large mass. For instance,
if company has adopted sale promotion techniques than no one will come to until and unless it is
communicated to them and this can be done through advertisement. That is why advertisement
plays a crucial role in the integrated promotional strategies (Shimp and Andrews, 2013).
B. Explaining the term branding and uses of it to strengthen a business
Brand is basically a title, term, sign, symbol, design or a combination of them. It
distinguishes one company from other. Branding is an effective promotional measure that uses
unique name or symbol to create a distinct image in the minds of consumers about the product it
offers (Gailloux, Samson and Shah, 2012). Branding is highly useful to strengthen the businesses
or products because it confirms the credibility of the company which increases the belief of the
customer that the product they are buying is of good quality. Furthermore, branding also aids the
target market of the firm to connect psychologically so that customer can get emotionally attach
towards organization and their products. This in turn will benefit the firm because the loyalty of
the customers towards the organization will get maximized and branding in turn will motivate
customers towards the products and services which will eventually aids in boosting sales of the
company. With this aspect, a firm can sustain the competition by using its brand image and can
improve customer base by attracting more buyers and retaining loyal consumers (McEwan,
2015).
C. Reviewing the creative aspect of advertisement
Creative and innovative advertisement will help in attracting and grabbing customer's
attention. This further helps in creating long lasting impact on minds of consumers. Creative ads
create interest in the minds of consumers and people interestingly see them which further help in
building good brand experience (Kotler and Keller, 2011). Creativity in advertisement assist in
achieving the objectives which company has sets out. There are basically three aspects of
creativity out of which one is message appeal in which a persuasive appeal is made to the
consumers which stimulates them to buy the products. Appeals are made in a creative manner
which can be musical appeal, sexual appeal, humor appeal, fear appeal, rational appeal, etc.
through which a buyer gets influenced and buy the products.
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Secondly, ICT is another creative aspect. Nowadays, use of TV, internet websites, etc.
has been done in such an innovative manner that buyers easily get influence to buy the products.
Furthermore, ICT affect the design of ads that is with the use of several types of software, ads are
designed in a creative manner and then they are showed on the TV and internet websites which
create a distinct place in the minds of consumers (Mackert and Love, 2011). Moreover, the last
aspects of creative advertisement are the brand strategy. In this, company makes strategy by
including brand promise, brand position and brand personality. This helps in making
advertisement in a more creative manner.
D. Examining the ways of working with advertising agencies
There are several ways through which Kellogg's can work with the ad agency. As it is
known that ad agency are those who create ads for the other businesses. For this aspect, company
has to wisely choose its ad agency to work with them in a smoother manner. Further, company
should consider these ways while choosing an agency (Mowle and et.al., 2014). First is that total
extent of agency should be known than firm should see that what kinds of services are offered by
them. Along with that, Kellogg's should also see that workforce of the agency must be creative
and talented. In addition to this, location and proximity should also be checked by them. Agency
can give how much ROUI that should also be considered while selecting an agency. When
company identifies all these aspect than firm should appoint the agency for creating ads for them
(White, Parsons and Ceylan, 2014).
Appointment can be done by fixing the amount for particular ad which includes data
research, data analysis, and creation of ads by using innovations, broadcasting on the media,
payment to media. Along with that, company can appoint agency by signing a contract between
them which includes all the services to be rendered by the agency and payment in return made by
the Kellogg's firm. Furthermore, In-house appointment can also be done by them and then
company must provide them with free environment and it should not interfere in their work.
(Belch and Belch, 2012) Therefore, there must be unity of command so that work of agency can
be overlooked by the single individual to avoid confusion.
The payment handling in ad agency is done by account handler, account planner so that
they can generate high amount of profit against generating ads. The basic role of them is to
maintain transparency in the accounts so that both agency and Kellogg's can get the advantage.
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They further, make the estimated budget plan by analyzing several costs to be incurred. This way
they can provide a bare idea to the company so that the firm can calculate the ROI on the given
budget (Hackley and Hackley, 2014). This is one of the ways used by the company while
selecting an ad agency. Further, they also plan out how expense can be reduced so that at
minimal cost ad could be created for the company so that their number of clients gets increases.
E. Explaining primary below-the-line promotion techniques
It is basically one of the promotional strategies used by the company to promote the
products by using several methods other than radio, TV, billboards, print, cinemas and the
internet (Hackley, 2010). For these aspects, ad agencies are not hired and the ads are made by
company itself. Range of below-the-line techniques are used and this includes door-to-door
selling, coupons, rebate, free sampling, loyalty programs, premiums, catalogues, contest, etc.
Such kind of promotions tends to increase the sales and helps in building good image in the
minds of consumers because personal contract is done in this. Further, it is also done by
incurring less cost by the company and focuses more on the customers (Park, Rodgers and
Stemmle, 2011).
These techniques are used by Kellogg's in their integrated promotional strategies to
achieve their objectives in an efficient manner. Moreover, the firm provides coupons, free
sampling along of their products as a sales promotion techniques and these are advertised
through billboards, TV ads and online ads. This will help in effectively promoting their products
and services (Kasza and et.al., 2011). Further, the company provides free samples of their new
product range that is rice bran cereal by using door-to-door services along with the TV
advertisement so that people can happily accept the sample and try them for further purchase.
This has helped the company to maximize the sales and in similar manner objectives of the
company also gets fulfilled.
F. Evaluation of other below-the-line techniques used by Kellogg's
It was discussed in earlier questions about the below-the-line techniques used for the
promotion of products by Kellogg's. There are some other techniques which are used by the
company to create awareness of the products so that sales and profits of the company can be
maximized (Cheong, Kim and Kim, 2013). These techniques thus aid the firm to build strong
brand recognition in the minds of consumers. Some of the techniques used by them are direct
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mail marketing in which the firm maintains the public relation by regularly mailing to those who
are following a customized diet plan made on the websites of Kellogg's. Through this, customers
are motivated and personal touch is also created. Furthermore, company also conducts loyalty
programs where loyalty card is given to the loyal customers and this way those people are given
discounts at the time of purchasing goods of Kellogg's by showing the loyalty card. Therefore,
these techniques help in attracting potential customers towards the company (Percy and
Rosenbaum-Elliott, 2012).
TASK 3
A. Developing a promotional plan
A promotional plan of Kellogg’s Cornflakes has been made in which company has
described the main features of these products. This is a cereal product which is basically
consumed in breakfast. It is a nourishing, wholesome cereal which is best for the breakfast
(Leonidou and et.al., 2011). These flakes are made from real and natural corn, iron and 8
essential vitamins which includes Vitamin A, C and B-Group. Further, it offers balanced
combination of nourishment and a great taste. Intake of this product is done with the bowl of
milk.
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(Source: Kellogg's Corn Flakes® cereal, 2016)
The objective of the company behind this product is to provide a nutrient cereal to the
people so that healthiness can be created in the world. Along with that, the firm aims to earn a
maximum profit by providing healthy products to the consumers. Thus, it wants to create a win-
win situation. Moreover, company's target market is all age group people because every people
require iron, vitamins and a healthy breakfast to start their day. Along with that, pricing strategy
adopted for these products is skimming strategy so that lower middle class, upper middle class
and high class people could afford to buy this product (Kotler and Keller, 2011). Furthermore,
the company has planned to distribute these products in a whole world because this is a basic
cereal which any country can afford to buy and through this the firm can change their breakfast
habit. Further, it also requires little time for preparing and to eat so people could easily adopt this
as their breakfast. Furthermore, company will promote their product by using integrated
promotional strategies in which below-the-line and above-the-line techniques will be used such
as sales promotion, advertisement through TV, print and online sites will be done. Further, free
sampling will be given at those houses where children and old age people live. Thus, reviewing
of this plan will be done by taking feedback from the consumers and this will be matched with
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Illustration 1: Kellogg's Product

the set objectives so as to ensure the effectiveness of the plan could be acknowledged. If, there is
any variations then modifications will be done accordingly (Belch and Belch, 2012).
B. Planning the integration of promotional strategies
There are various promotional strategies planned for the promotion of Kellogg's
Cornflakes. In this, company can use the integrated promotional strategies such as integration of
below-the-line and above-the-line techniques so that in a most effective manner, company can
communicate the message to the target market (Hackley, 2010). Along with the print and media
advertisement, company can do its marketing through direct mailing where all the loyal
customers can be communicated and their feedback can be taken on the regular basis. Further,
company will provide information about the launch of new product to the regular customers
through direct mailing and management can provide discount voucher so that they can avail such
product in a discounted rate. Further, company can also promote this product in an event and that
event can be broadcasted on TV so that the whole market can be covered. This way company can
use integrated promotional strategies to reach its target market (Kasza and et.al., 2011).
C. Using the techniques to measure the effectiveness of the campaign
There are several techniques used to measure the effectiveness of promotional campaign
which has been led by Kellogg's to promote their product that is Cornflakes. The first aspect is
profit. By reviewing the profit & loss and balance sheet of the company, this can be determined
that profit have been increased or not after the effective promotion of the product (Percy and
Rosenbaum-Elliott, 2012). Secondly, through sales turnover, effectiveness of the campaign can
be checked. If there is high sales turnover of Kellogg's Cornflakes then company has a good
promotional plan and if sales does not grow then modification is required by the firm. After that,
feedback can be taken by the experts, critics and a group of customers about the promotional
plan so that effectiveness can be known in a better manner. This way, company can know that
plan laid down for the Cornflakes is effective or not. Some other methods are attention,
communication and attention (Leonidou and et.al., 2011).
D. Appropriate process for the formulation of a budget
For conducting the promotion of Kellogg's Cornflakes, company has to make a budget so
that expenditure does not get exceeded. Of budget is made than company could calculate the ROI
on the promotion. Further, the process is followed while determining the budget for the
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cornflakes (Percy and Rosenbaum-Elliott, 2012). In this, company firstly determines the main
features of product. Cornflakes is a basic cereal and Kellogg's is a recognized brand so company
will use the print and media advertisement to promote its products. TV ads are costlier so this
way budget should be higher. Further, fees of ad agency will also be determined and after that,
company will determine the workforce used for promoting product through below-the-line
techniques. Further, their salary should also be added in the budget. Company determines the
cost of technologies used for producing an effective and promotional strategy. This is how the
whole process is followed to determine the budget of the promotional campaign of Kellogg's
Cornflakes (Mowle and et.al., 2014).
There are several methods of budget that is capital budget which is comprises of capital
receipts and capital expenditures. Secondarily, there is a master budget which is an aggregate of
a company's individual budgets that describes financial activity. Thereafter, cash budget is
another method where all the cash flows to fro are included (McEwan, 2015).
For the promotional campaign of Kellogg's, cash budget is the best suited because it will
provide the complete expenditure to be conducted by the company. Annual cash budget of
Kellogg's Cornflakes is as follows:
Elements Amount
TV Advertising £250
Online Marketing £50
Below-the-line Promotions £25
Total £325
CONCLUSION
Conclusively, it can be said that above report describes the detail aspect of advertising
and promotion of Kellogg's. It is clear that every company needs advertisement and promotion of
their offerings in order to create awareness in the market and also this way, sales of the company
can be boosted up. Furthermore, integrated promotional strategies are more effective that single
strategy. Through this, company can communicate with its target market in a better manner. The
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Ad agency have been hired by the Kellogg's is In-house promotion so that company can create
ad as per their own requirement.
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REFERENCES
Journals and Books
Belch, E. G. and Belch, A. M., 2012. Advertising and Promotion: An Integrated Marketing
Communications Perspective. McGraw-Hill/Irwin.
Chang, H. H., Rizal, H. and Amin, H., 2013. The determinants of consumer behavior towards
email advertisement. Internet Research, 23(3). pp.316–337.
Cheong, Y., Kim, K. and Kim, H., 2013. Advertising and promotion budgeting during volatile
economic conditions: Factors influencing the level of decentralization in budgeting and
its relations to budget size and allocation. International Journal of Advertising. 32(1).
pp.143-162.
Gailloux, M. A., Samson, K. and Shah, G. M., 2012. Significance of effective communication.
U.S. Patent and Trademark Office.
Hackley, C. and Hackley, A. R., 2014. Advertising and Promotion. SAGE.
Hackley, C., 2010. Advertising and Promotion: An Integrated Marketing Communications
Approach. SAGE.
Kasza, K. A. and et.al., 2011. The effectiveness of tobacco marketing regulations on reducing
smokers’ exposure to advertising and promotion: findings from the International
Tobacco Control (ITC) Four Country Survey. International journal of environmental
research and public health. 8(2). pp.321-340.
Kotler, P and Keller, K., 2011. Marketing Management. Prentice Hall.
Leonidou, C. L. and et.al., 2011. Evaluating the green advertising practices of international
firms: a trend analysis. International Marketing Review. 28(1). pp.6–33.
Mackert, M. and Love, B., 2011. Profits and perspectives: advertising, social marketing, and
public health. Journal of Social Marketing. 1(3). pp. 240–246.
McEwan, B., 2015. Navigating New Media Networks: Understanding and Managing
Communication Challenges in a Networked Society. Lexington Books.
Mowle, N. E. and et.al., 2014. Application of regulatory focus theory to search advertising.
Journal of Consumer Marketing. 31(6/7). pp. 494–502.
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