MG412 Marketing Report: Analyzing Weetabix Brand Extension Strategy

This report analyzes Weetabix's brand extension strategy, focusing on the introduction of a new product, Weetabix Mango Cookie. It employs marketing principles, including STP (Segmentation, Targeting, Positioning), Ansoff Matrix, and PESTLE analysis, to assess the feasibility and potential success of the brand extension. The report covers Weetabix's existing brand value, target market description, new market analysis, and a comparative analysis with a competitor, Kellogg's Coco Pops. The study uses competitor research and secondary sources to provide insights into Weetabix's marketing strategies and the external factors influencing its expansion. The conclusion highlights the importance of marketing principles and strategic tools in promoting products and achieving growth in a competitive market.

The 4Ps/ Marketing Mix

EXECUTIVE SUMMARY
The report summarises that principles of marketing help companies to promote their
goods and services in the market effectively. For this report selected company is Weetabix, it
expands its brand in the target market. For its expansion it uses STP model, Ansoff analysis and
PESTLE analysis which help it in order to expand their brand in effective manner. This report is
carried out with the help of comparative research and secondary sources.

Contents
EXECUTIVE SUMMARY.............................................................................................................2
Contents...........................................................................................................................................3
INTRODUCTION...........................................................................................................................1
METHODOLOGY..........................................................................................................................1
FINDINGS.......................................................................................................................................1
Existing Brand and Brand Value.................................................................................................1
Description of Target Market......................................................................................................1
Analysis of the New market, Including trends............................................................................2
An Explanation of the New Product............................................................................................3
Comparative Analysis..................................................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Marketing principles is plan or strategy which is used by the company in order to get idea
for the promotion and sell their offerings in effective manner. For this project selected brand is
Weetabix, which is a food processing company of UK. The Report covers brand value of
Weetabix, description of target market, Analysis of the New Market, including Trends and
explanation of the new product, Comparative Analysis.
METHODOLOGY
For this report, research is carried out with the help of Competitors research and
secondary sources. Competitors research refers to the evaluation and identification of competitor
as well as their products and services (BARTEKOVA, 2021). Secondary source refers to the
study of primary source information.
FINDINGS
Existing Brand and Brand Value
Brand is an intangible asset of the company this helps company by making people aware
about company's name, product and services and many other features of it. Brand value refers to
the worth of the company in the market. According to the Kapferer Brand Identity Prism model,
strong brands are that much resourceful in order to analyse its aspects in effective manner for
making its brand identity clear and concise (Eti, 2020). In context of Weetabix, by analysing
elements of this model, mangers plan brand extension that helps them to make its brand strong in
order to help it to interact easily as well as easily recognised and remembered for long time. This
will help them to expand their business with the help of its new product Weetabix Mango
Cookie.
Description of Target Market
Target market refers to that area where company analyse and identify its possible
customers of their products and services (Fraser-Arnott, 2020). For the extension of Weetabix in
target market, managers are planning to introduce a new product, Weetabix Mango Cookie. STP
analysis in context of Weetabix Mango Cookie are discussed below:
Market segmentation: Market segmentation is the process in which market is divided
according to people common and different factors in order to help companies. In respect of
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Weetabix, managers of it divide its target market for their new product expansion, Weetabix
Mango Cookie are follow:
 In demographic market Segmentation, managers of Weetabix divide this market
according to age, gender, occupation and income of their potential customer of target
market.
 In Psycho graphic market segmentation, Weetabix managers divide its target market on
the basis of customer personality, taste, interest, opinion and behaviour.
Targeting: It refers to identifying best opportunity by analysing data of market
segmentation (Wacker and Samson, 2021). In context to Weetabix, managers target people that
belong to customer taste, preferences and interest in order to introduce Weetabix Mango cookie
in Target Market.
Positioning: It is used to determine the position for the product in each target segment
(Hisrich and Ramadani, 2017). In respect of Weetabix, managers positioning its new product,
Weetabix Mango Cookie by advertising in TV and in social media.
Analysis of the New market, Including trends
Ansoff Matrix
Weetabix Mango Cookie is a newly launched product by Weetabix. Management of
Weetabix uses Ansoff matrix, which is a model used to develop its business growth by analysing
its position in competitive market. Growth strategies of Ansoff Matrix in relation to Weetabix
Mango Cookie are as follows: Market Penetration: Weetabix can use this strategy to promote its existing product in
current market by proper advertisement activities. Product Development: Weetabix can use this tool to encourage its newly introduced
Mango Cookie in existing market by attracting current customers as well as new
customers. Market Development: Weetabix can use this strategy by expanding its business in other
states of UK as well as in outside the country.
 Diversification: Weetabix can use this by entering into a new location with its newly
launched Mango Cookie.
From the above statement, it is determined that Product Development is beneficial for
Weetabix as to introduce its new product that is Weetabix Mango Cookie in its existing market.
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PESTLE Analysis
PESTLE analysis is a strategic tool which is used in companies in order to analyse their
external environment in effective manner (Jedin and Balachandran, 2021). The influence of
PESTLE analysis in Weetabix brand extension idea are discussed below:
Political Factors- For the expansion of Weetabix brand by launching its new product
that is Weetabix Mango cookie, it faces many difficulties because presence of factors affected by
European Union. By accepting each and every guidelines of European Union can help Weetabix
to introduce Mango Cookie in market.
Economic Factors- Interest rates of the United Kingdom has a great impact on Weetabix
company in order to create problem for the expansion of its business by introducing its new
product. By using own capital instead of loan can help Weetabix in order to introduce its new
product in target market (Kucuk, 2017).
Social Factors- In accordance with it, People those are Health Conscious are not
consuming sugary products can also impact greatly on Weetabix in its expansion in order to
introduce Mango Cookie for mango lover people in the market. By providing Sugar free or Diet
mango cookie, Weetabix attract more and more customer as well.
Technological Factors- Changing in Technology can lead to great impact on Weetabix
expansion plan, Because of this cost of their products are also increases which causes difficulty
in order to launch its new product in its target Market. By innovating Quality and technology
Weetabix can introduce its product in easy manner.
Legal Factors- Health and safety law as well as consumer law can affect Weetabix in
order to expand its brand by launching Weetabix Mango Cookie in the market. By following
proper guidelines of government, Weetabix easily expand their business in its target market
(Quispe and del Pilar, 2018).
Environmental Factors- Changing Weather and climate of a country affects greatly on
Weetabix in order to launch its new product that is Weetabix Mango Cookie in the market. By
the proper management of its raw material can help Weetabix in its survival as well as their
expansion in the market (Sharma and Sharma, 2017).
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An Explanation of the New Product
Tauber's brand extension model refers to the strategy of seven factors which are used by
company in order to expand their business (Saji, 2020). In Context of Weetabix it expands their
business by the use of product form in which it expand its business by launching new product
that is Weetabix Mango cookie in target market in order to attract mango lover customers.
Kellogg's Coco Pops Marketing mix
 Product - Kelloggs is related with the food process industry and manufactures several
sort of cereals and food items. Awareness in realistic world with healthier lifestyle that
has consequences in various items. Some of its valued goods such as Cereal Bars,
Cookies, vegetarian food.
 Place - Kelloggs is a worldwide business that present global term of the facilities that
involves creating of plants in 18 nations like Canada, UK, Australia, Asia and so on. The
marketing and selling of their goods is attained in varied nations.
 Price - The management always identify the actual selling cost of the goods after
presenting the market research that also include the customers. The management also
follows their own production costs, the advertisement cost and the profitability cost.
 Promotions - Kelloggs have an effective marketing tactics. In respect to make the
consumer aware of their brand and their goods they have taken the support of multi
media platforms. The advertisements are also shown in the case of print media such as
newspapers and the magazines.
Comparative Analysis
In context of Weetabix new product, Weetabix Mango Cookie, its strong competitor is
Kellogg's Coco Pops. In accordance with it, its comparative analysis are follows:
Basis Weetabix Mango Cookie Kellogg's Coco Pops
Target Customer Its target customers are usually
those customers Who like to
consume product which is
made from Mango.
Its target customer is children,
because it provide product to
the children which is healthy
as well as tasty also.
Promotion strategy Advertising in social media
and TV ads, using banner and
For the promotion of its
product in the market are
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also sponsor health related
events are its promotion
strategy.
sponsorship in events related
to children and social media.
Value Proposition In its value proposition it is a
new product of Weetabix,
which is also a reputed brand,
provide healthy breakfast
product and uses diverse
supply chain.
Its value proposition of it is
that it is a reputed industry
product, extensive brand
portfolio, global reach, and
different sales channel.
CURRENT VALUATIONS
Weetabix
Mango Cookie
Kellogg's Coco
Pops
Weetabix
Mango Cookie/
Kellogg's Coco
Pops
P/E (TTM) x 54.6 82.6 66.1%
P/BV x 24.5 91.7 26.7%
Dividend Yield % 4.7 1.0 455.6%
CONCLUSION
From the above mentioned report, it is concluded that principle of marketing help
company to promote its products in market by providing different strategy for their promotion.
Ansoff matrix is strategic tool which is used by the company in order to improve their growth in
competitive market. STP analysis is a technique which helps in order to analyse its product
segments, targeting market and position where they introduce their offerings. PESTLE analysis
helps companies in order to analyse their external environment which has a great impact on it in
order to make strong position in the market.
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REFERENCES
Books and Journals
BARTEKOVA, M. K., 2021. CREATIVE INDUSTRIES IN SLOVAKIA AND THEIR
PRICING STRATEGIES AS THE PART OF THEIR MARKETING MIX. Marketing
Science & Inspirations. 16(3).
Eti, I. A., 2020. Theoretical Inspection And Rethink of Marketing Mix. Available at SSRN
3685642.
Fraser-Arnott, M., 2020. The Marketing Mix in Parliamentary Library Websites. Journal of
Library Administration. 60(8). pp.875-888.
Hisrich, R. D. and Ramadani, V., 2017. Entrepreneurial marketing mix. In Effective
Entrepreneurial Management (pp. 75-99). Springer, Cham.
Jedin, M. H. B. and Balachandran, I. A. P., 2021. Marketing Mix Elements and Customer
Service Satisfaction: Empirical Evidence in the Malaysia Edutainment Theme Park
Industry. Services Marketing Quarterly. 42(1-2). pp.93-107.
Kucuk, S. U., 2017. Marketing and Marketing Mix. In Visualizing Marketing (pp. 3-7). Palgrave
Macmillan, Cham.
Quispe, Q. and del Pilar, R., 2018. El marketing mix y la decisión de compra en el centro
comercial plaza Echenique Chosica 2018.
Saji, T.G., 2020. Testing marketing-mix effects on consumer ratings of Swadeshi brand: the case
of Patanjali Ayurved. International Journal of Indian Culture and Business
Management. 20(4). pp.550-567.
Sharma, S. and Sharma, P., 2017. Marketing Mix Strategies for FMCG Companies in
India. Journal of Commerce and Management Thought. 8(4). pp.760-771.
Wacker, J. G. and Samson, D., 2021. Beyond supply chain management: jointly optimising
operations/supply and the marketing mix. Operations Management Research, pp.1-16.
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