Kellogg’s Case Assignment
Question and Answer
Product代写 Each of these stages has own characteristics the guide the business in managing the life cycle of the target product.
The product life cycle has four distinct stages (Miguel & Higinio, 2018). Each of these stages has own characteristics the guide the business in managing the life cycle of the target product. These stages include introduction, growth, maturity and decline stages.
a. Introduction stage
This is the stage the company introduces a new product to the market. It’s the most expensive because it involves creating awareness and breaking through the market barriers such as competition. The market size of a new product is usually small but increases with time and effort by the company. The most notable activities at this stage include research and development, consumer testing, and marketing.
b. Growth stage
If the product survives the introduction stage it advances to growth stage. At this stage, the product is characterized by increase in market share and hence sales and profits. The company takes advantage of high-profit margins to increase sales and profits. The high profits attract competitors who imitate the product sell at lower prices. The can company employment new promotions strategy for aggressive brand advertisement and communication of brand differentiation. The company invests in product promotion to maximize the potential of the product’s growth.
Prices begin to fall toward the end of growth stage while profits peaks. Companies result in price wars due to intensified competition as well as trying to produce large quantities to maximize profits. The priority is to retain the market and sustain profitability rather than trying recovering product development costs.
c. Maturity stage Product代写
The company is already established in the market and aims to maintain and build its share. At this stage businesses need to put more effort because there are new entrants in the market. As the competition increases, the company is required to revitalize its market strategies. A company needs to also come up with product diversification and improvements to create a competitive advantage.
d. Decline stage
The product does not stay in maturity forever. Eventually, the market starts to shrink. Some reasons attributed to market shrinkage include saturation or customers switching to other products. Although this stage is inevitable, a company can turn to less expensive methods and cheaper markets or even redesign the product and reintroduce it to the market.
Companies use product life cycle to plan. If marketers understand the cycle they are better positioned to respond appropriately to the changes in the market (Sharma, 2013). Thus, the company changes its marketing strategies from one stage to the other. As such, the decline in the sales of a product should not be mistaken as the death of the product in the market. In such scenarios, the company needs to pull up marketing support with the aim of bringing back the sales.
Question 2 Product代写
At this growth stage the product is already accepted in the market its sales are rising. However, there are new entrants into the market and who might duplicate the product to share in the profits. The new products from sellers might be of low price or of better quality. Kellogg’s noted this and has developed and diversified Nutri-Grain to a range of products The company focuses on improving the quality of the product regarding the customer feedbacks. The company is also considering adding new product features or support features to grow its market share.
Since the product has been accepted and is selling, the company has the opportunity to charge relatively higher prices to make as many profits as possible. The company is making regular skimming of the prices if profits fall short. However, pricing should be based on competition in the market. It sometimes lowering prices is a strategy of adapting to the competition.
Kellogg’s ensured that customers chose Nutri-Grain over other competing products. I should engage in aggressive advertising campaigns. The company is using the profits made to create awareness of product preferences. Promotion strategies are directed to gaining grounds in new markets. At this stage its easier to get acceptance. Promotional materials focused on the broader and more expanded market.
distribution becomes a critical success factor at the growth stage. Kellogg’s should scramble to acquire dealers and distributors and build and long-term relationships. The company should increase its distribution channels to cope with growing demand. It can give franchises, use distributers and retailers or sell directly in the market. A mix of channels should be used depending on the situations and conditions likely to reach more markets. Failure to have adequate distribution, it becomes impossible for the company to establish a strong market position.
Question 3 Product代写
Kellogg’s should pursue market penetration. In this case, it refers to re-initiate the product as the strategies to gain more grounds in the market. Market penetration involves selling current products to the existing market (Ranasinghe & Mallika, 2018). The strategy is the most efficient in this case, cheapest and less risky of all. The company identified three key issues that have contributed to decline Nutri-Grain market. The lack of strong brand message was the first to be identified. Some products like Minis were not strategically positioned in the market.
Also, some Nutri-Grain ranges like Elevenses were not receiving enough promotion resources to make them stronger in the market. Informed by these market findings the company re-launched the product in the market. The strategy was successful. Market penetration strategy is more of a product re-launching to the market. Since consumers already know about the product, the company rebrand it, invest in new promotion techniques, and use competitive prices.
Overall, market penetration requires a strong execution of pricing, promotion and distribution strategies. Although Kellogg’s to re-launch the products, the company should persistently aim to create a brand personality that consumers can feel and identify. Kellogg’s need to invest in aggressive but right advertising. On top of these, the company should always work to offer something different into the market by re-branding the existing product to the preference and in consideration of consumer.
Question 4 Product代写
Kellogg’s decided to redefine its 4Ps of marketing in the bid to relaunch Nutri-Grain. The company embarked on product improvements, promotions, better offers to distributors and revised its pricing strategy. These four strategies are perfectly aligned with the Ansoff”s market penetration strategy. There are five reasons why both strategies match including product differentiation, distribution channel expansion, and support, expansion of the market, reduction in price and terms improvements.
Price reduction is the most commonly used penetration strategy. Customers are price sensitive at the decline stage due to the presence of many substitutes. Thus, if the price is reduced, they respond by buying more of the product. Kellogg’s introduced new price levels that did not rely on marketing pricing. The use of this strategy works only if the product has better quality compared to other competing products.
Kellogg’s intended to introduce better terms for its distributors.
Some of the terms that the company can initiate include longer terms of payments and friendly product return policy. The moves will allow more distributers even those financially unstable but have a market. However, this approach is believed to cause bad debts and losses.
Besides, Kellogg’s aim to invest more in expanding the market. Its targets have a new and clear brand image that covers all range of products. In so doing, the company will engage in extensive marketing and point-of-sale materials. However, to take hold of the market, Kellogg’s required product improvements by adding new recipes, flavors, and repositioning. It takes time for competitors to respond and hence gives the company time to garner more markets.
More importantly, Kellogg’s has focused on building its distribution channels. The company intends to use offers and materials to stores that store its products. The strategy gives distributors easy time in marketing for their products.
Question 5 Product代写
The company got it right in all 4Ps except for “place.” The place is the process of moving products from the company to the customers. The strategy that requires the company to facilitate this process to make it efficient and cheaper for distributors. Kellogg’s opted to give offers materials which are the role of promotion.
Instead, Kellogg’s would have reviewed the movement of Nutri-Grain to include a combination of distributors, wholesalers, and retailers. Perhaps, it could have considered introducing its own online store. The use of the right channel increases the company’s opportunity to increase sales by reaching out to a larger market.
Besides, choosing the current place is another strategy of reaching the target audience at the right time. The place considers where the company is located, where prospective and existing customers are, the best way to connect customers with the company, how to store goods in the interim and how to eventually transport them.
Miguel, L. C., & Higinio, M. M. (2018). Product Life Cycle: Coverage and Invariability. Co-creating Responsible Futures In The Digital Age: Exploring new paths towards economic, 149.
Ranasinghe, S., & Mallika, M. C. K. H. (2018). Relationship between Market Penetration and SME Performance in Sri Lanka. International Journal of Innovative Knowledge Concepts, 6(1), 112-115.
Sharma, N. (2013). Marketing strategy on different stages PLC and its marketing implications on FMCG products. International Journal of Marketing, Financial Services & Management Research, 2(3), 121-136.