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Marketing Plan |
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This research developed a marketing plan for the "Apple Jacks" breakfast cereal product produced by the Kellogg Company. "Apple Jacks" is an apple flavored cereal grain product, which is presugared. In fact, "Apple Jacks" has one of the highest concentrations of sugar of any breakfast cereal product marketed in the United States. The differential advantages of the product are relative. First, the product has a fruit flavor apple. For the consumer desiring a fruit flavor without actual fruit, this advantage is real. Second, the product has a high sugar content coating. Presugared cereal products are no longer unique; however, the level of sugar in the coating of this product is higher than that for almost any cereal. This differential advantage can also be a disadvantage with some consumers. "Apple Jacks" is an existing product (it has been on the market for approximately 10 years, and is but one of many of the cereal brands produced by the Kellogg Company). Thus, additional investment with respect to product development and production is not required. Renewed emphasis on the promotion of the product, however, will require an increased investment in marketing approximating $500,000 dollars for the next product year. It is anticipated that this investment in marketing will produce a sales increase of $10 million, and an operating profit increase of one million dollars in the next product year.
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By contrast, Kellogg's two leading competitors in the ready to eat cereal industry General Mills and General Foods rely on cereal sales for only about 10 percent of their total company sales and for an equivalent profit contribution.
In addition to its approximately 30 brands of ready to eat cereals, the Kellogg Company produces tea, dessert mixes, and other food products. All of the company's products are marketed in both the United States and in most western and third world foreign countries. Additionally, the company maintains production facilities in North America, Britain, western Europe, South America, Africa, Australia, Japan, and the Caribbean.
Internally, in a non financial context, the most significant factor for the company is the position of its management towards the major issues facing the company. The company's senior management strongly defends both its addition of sugar to its cereal products and the direction of its advertising towards children. With these positions, Kellogg management often finds itself in a confrontational stance.
THE TARGET MARKET
Target marketing is a part of marketing process analysis. Marketing process analysis is concerned with the steps required to permit a marketi
Category: Business - M
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Apple Jacks, DeLozier Woodside, Situational Environment, Neutral Environment, Strategies Pricing, Kellogg Company, MARKET Target, Battle Creek, Jacks Kellogg, Caribbean Internally, apple jacks, sugar content, kellogg company, cereal products, ready to eat cereals, ready to eat cereal, market segmentation, marketing process, target market, marketing organization, delozier woodside 1988, breakfast cereal product, value line investment, marketing process analysis, apple jacks presweetened,
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 = 12 (250 words per page)
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