Customer-Driven Marketing: Kellogg's Corn Flakes - Segmentation Report

This report provides a comprehensive analysis of Kellogg's Corn Flakes' segmentation, targeting, and positioning strategies within the market. It examines demographic, psychographic, and behavioral segmentation, evaluating the attractiveness of different market segments based on size, growth, and competitive forces. The report identifies Kellogg's target market segment and contrasts it with alternative segments, highlighting the undifferentiated marketing strategy employed. It explores value differences, competitive advantages, and the positioning strategy utilized by Kellogg's, including competitive pricing and brand building. Finally, the report presents a positioning statement for Kellogg's, emphasizing its commitment to enriching the world through its foods and brands. Desklib offers a wealth of similar solved assignments and study resources for students.

Running head: MARKETING MANAGEMENT
Marketing Management
Name of the Student
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Executive Summary
The report has helped in the overall analysis of targeting segmentation and positioning of the
Kellogg’s cornflakes in the entire market. With the help of the positioning statement and
map, the entire analysis has been performed effectively as well.

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Table of Contents
Introduction................................................................................................................................3
Answer to Question a)................................................................................................................3
Answer to Question b)...............................................................................................................4
Answer to Question c)................................................................................................................5
Answer to Question d)...............................................................................................................6
Answer to Question e)................................................................................................................7
Conclusion..................................................................................................................................7
References..................................................................................................................................8

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Introduction
The report helps in the overall analysis of the segmentation, targeting along with
positioning of the respective product named Kellogg’s Corn Flakes in the entire market. The
evaluation of the market segment and the target market segments are required to be analysed
effectively which will be inclusive of characteristics and contrast with the other segment.
Furthermore, the analysis along with identification of the value differences and positioning
strategy is required to be done effectively. Proper designing of the positioning statement of
Kellogg’s Corn Flakes is required to be done appropriately.
Answer to Question a)
Proper segmentation is required to be analysed in an efficient manner which will be
done on the basis of demographic, psychographic and behavioural aspects.
Demographics- This segment is based on age which is essential in selling goods to the
below mentioned segments such as:
 Older Segments: Kellogg’s has started in targeting the older people by providing
them with the pression of healthy products which will be helpful in increasing their
business in an effective manner (Andrews and Terence 2017).
 Kids and Adults: The Kellogg’s frosties corn flakes are targeted to the children and
the nut corn flakes are targeted to the different individuals.
 Income- All the income groups individuals are being targeted and the prices are
reasonable in nature (Paker and Vural 2016)
Psychographic- In this segment, the main target is the health-conscious individuals
wherein they maintain the healthy and nutritious food makers in the entire food industry. In

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order to keep the same brand image in the entire market, the company started to demonstrate
the different ingredients along with nutritional values upon the packaging of the different
goods.
Behavioural- The rate of the usage is the behavioural aspect in which the Kellogg’s
Corn Flakes can target the individuals who frequently buy such products. This is the major
reason wherein the firm for the regular utilisation uses the same at different times along with
organizes the different occasions and provides the different customers with discounts and
offers (De Mooij 2018).
Answer to Question b)
Evaluation of Market Segment
Segment Size
The major market segment which is being targeted by Kellogg’s Corn Flakes are the
young generations individuals in the entire market. In Malaysia, the young generation and
kids are the maximum number of individuals who are health conscious and this will
improve the overall profitability of the product as well (Kelloggcompany.Com 2018).
Cultural Attractiveness
The major competitors of Kellogg’s are Quaker Oats and Mondetez International
which offers the similar kinds of products such as health drinks, oats, cereals and corn flakes
which will be a challenge for the Kellogg’s company in the entire competitive market
(Gengler, and Mulvey 2017).
Bargaining Power of Suppliers

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Kellogg’s can build efficient supply chain with multiple suppliers who will be
providing similar and substitutes of Corn Flakes which will be the regular type of suppliers of
Kellogg’s (Venter, Wright and Dibb 2015). The different and diverse channels of distribution
will help in creating long term positive impact on the entire entity which will add to the
value. Kellogg’s try to make the different products available to customers with various
channels which is inclusive of distributors, e-commerce stores along with supermarkets such
as Tesco and other supermarkets which will be helpful for them to increase profitability.
Answer to Question c)
Target Market Segment
Characteristic of segment
The marketing strategy which has been adopted by Kellogg’s is undifferentiated
marketing strategy which focuses on the entire market rather than focusing only on one
single segment. The respective strategy helps in employing single marketing mix which is
one price, one product, single kind of promotional event and one placement (Lovelock and
Patterson 2015).
This has helped the entire company in reaching to the maximum customers in the
entire target market. With the help of the same, this is cost effective and there is low
marketing complexity which helps them in reaching to the large number of customers
efficiently. Kellogg’s uses the undifferentiated marketing strategy as the products has mass
appeal and this helped them in increasing the market share and profitability effectively.

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Figure 1: Positioning of Kellogg’s
(Source: Bruwer and Li 2017)
Contrast another segment
Undifferentiated marketing strategy is better than the differentiated marketing
strategy as the major target population is inclusive from the young generation to the different
old generation individuals which will be cost effective for Kellogg’s in targeting the entire
market without much complexity (Bruwer and Li 2017).
Answer to Question d)
Value Differences and Positioning Strategy
Kellogg’s has their presence in the different parts of the world which has helped them
in increasing their profitability and market share in the entire market which is effective in
nature. The respective product Kellogg’s follows the competitive pricing wherein price

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skimming strategy is being adopted by them in attracting large number of customers in the
entire market.
The main competitive advantage of Kellogg’s in comparison of the other competitors
in the market is relating to the strong portfolio of product as this is the world’s largest cereal
maker and the Kellogg’s spend more than 8% of the revenue in building of the brand image
which will be helpful in managing the competition in the entire market as well.
The other competitive advantage is gained by Kellogg’s in comparison to the other
competitors in the market is relating to the manufacturing facility in more than 20 countries
which helps them in making their products available in all the countries and this helps them
in increasing their sales as well.
The major positioning strategy which is being used by Kellogg’s is that they have
differentiated pricing strategy in different countries. This has been seen that Kellogg’s
positioned themselves as premium brand in United States, however in India they have kept
their pricing reasonable and affordable in nature which helps them in managing the overall
effectiveness.
Answer to Question e)
Positioning Statement
The major positioning statement of Kellogg’s is to delight along with enrich the entire
world through different foods and brands which will help in meeting the different demands of
the customers effectively. The purpose of Kellogg’s is to nourish the families which will be
helpful in flourishing and thriving and Kellogg’s is the company of promise along with
possibilities.

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Conclusion
Therefore, this can be concluded that proper segmentation, positioning and targeting
is essential as this helped in managing the different kinds of aspects which can be gained by
Kellogg’s in comparison to the other competitors.

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References
Andrews, J. Craig, and Terence A. Shimp. Advertising, promotion, and other aspects of
integrated marketing communications. Nelson Education, 2017.
Bruwer, Johan, and Elton Li. "Domain-specific market segmentation using a latent class
mixture modelling approach and wine-related lifestyle (WRL) algorithm." European Journal
of Marketing 51, no. 9/10 (2017): 1552-1576.
De Mooij, Marieke. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited, 2018.
Gengler, Charles E., and Michael S. Mulvey. "Planning pre-launch positioning: Segmentation
via willingness-to-pay and means-end brand differentiators." Journal of Brand
Management 24, no. 3 (2017): 230-249.
Kelloggcompany.Com (2018). https://www.kelloggcompany.com/en_US/home.html.
Lovelock, Christopher, and Paul Patterson. Services marketing. Pearson Australia, 2015.
Paker, Neslihan, and Ceren Altuntaş Vural. "Customer segmentation for marinas: Evaluating
marinas as destinations." Tourism management 56 (2016): 156-171.
Venter, Peet, Alex Wright, and Sally Dibb. "Performing market segmentation: a performative
perspective." Journal of Marketing Management 31, no. 1-2 (2015): 62-83.