Kellogg’s Company: A Proposal For Brand Promotion And Innovation

History of Kellogg's

Question:

Write a proposal on the prospects of introducing a new healthy on the go cereal product to the market.
 

In this article, a proposal will be given for the Kellogg’s company. Kellogg’s is a well-known brand in cereal category. It is situated in Michigan, United States. It is currently running for 110 years. It has various cereal and convenience food products. It includes crackers, cereal bars, toaster pastries, fruit flavored and vegetarian foods. The brand has several iconic products like Corn Flakes, Froot Loops, Honey Loops, Tarts, Nutri-Grain and Choco Flakes. They market their products in various ways. It has made a name for itself. The design of the logo was made in such a way that it could make the customers aware of the product. The logo makes sure that the logo can attract the customers directly. It font they use is quite different from others. Kellogg’s markets their products as a premier food supplement for kids and adults. Kellogg’s has high fructose content in their products. They are the first brand who introduced prizes and gifts in their cereal box (Aronczyk 2013). 

Figure 1: Kellogg’s cereal products

The emergence of cereal market was not long enough. As an employee of Kellogg’s there is a duty to improvise the product on a regular basis. The product should have the proper quality. The breakfast has emerged as a family breakfast for the working people. Consumer awareness plays a key role in shaping the industry. Vitamin fortified, low fat, low calorie and healthy protein content are some of the advantages present in the cereal meals. Kellogg’s also contains dehydrated dry fruits rich in food value.
Kellogg’s hold a market share of 40 percent in US market for the breakfast food industry. They have grown their market capital to $4.35 billion. The average household purchases at least four packets of breakfast cereals for the family (Begum 2015). US consume more than 20 billion bowls of Kellogg’s cereal annually. Kellogg’s operates in a fast growing industry of cereals. In smaller segment like hot cereals, it has garnered sales of $600 million. It has increased up to 20 percents over last few years.

The branding is a smart way to build new products. Social media platforms and various promotional channels can make a product stronger. Cereal Company like Kellogg’s is a multi cereal brand and it has its loyal customers worldwide (Stanciu 2013). The new product of them should be special enough to give stiff competition to the existing products of them and the other products of different cereal companies. Interactive web tools like video, applications, games and photos also help to engage customers to a new product. It can increase the loyalty of the consumers for a certain brand. Therefore, branding is immensely important for any new product to enter.
Figure 3: US Cereal market share

Social Networking-An Influencer of Brand Promotion has been taken as the literature for review. The article has talked about the brand promotion and their influence up on any brand. The article has also opened up about several social networking sites and their impact on the business. The discussion focuses on the branding and marketing strategy of Kellogg’s on cereal market. Creativity is a popular keyword in today’s business planning and economic geography.  Creative economy is a concept that consists of socio-economic activities trading with the knowledge, information and creativity. The governing body around the entire world is raising the concentration upon the generation of jobs, cultural and wealth in the economy. The unifying fact that makes the creativity aspect translating to the economic value, the intellectual property resource is the key concept. Studies say that UK is the biggest hub, which is full of the resources. There are several barriers for developing innovation to find a solution to the problem. The imperative of the study is focused mainly due to the human dimension and in particular the support of the leaders. The study has described the necessities to change and improve working methods. The measures of all constructs are the result of the perception of the surveyed report. It is recommended that to reach a larger number of people the operation would need to explore into different sectors (Kapferer 2012). The market mechanism has to protect innovation and creative contents in the economy. The economic creativity is included managing multiple words by coping with limited income, limited social safety. Effective policy guidance and developing capacity building equipments are required to support convert local talent into crucial mechanism for creative industry and able to augment the sustainable employment; growth of the economy. It plays a crucial role in forming the development strategies, as growth in this industry is resulting into reduction in unemployment rate. The products of the creative industry require new ideas; creation; production and distribution. The micro or small industries are noticeable at the top of the supply chain, i.e. at the stage of creation (Kapferer 2012). Innovation is an important process for the development of an organization. The companies invest in innovation and creativity. Due to emergence of the knowledge economy, frequent innovation has become priority of the creative industries. According to this paper, the creativity is of three types, individual creativity; group creativity and organizational creativity. However, it faced tough competition from local and international brand but these small and medium enterprises led the market through creativity in their innovation. However, the author has also claimed that it is not possible to win the market only through innovation; rather it also requires appropriate culture; leadership style; communication etc. At present, the world is moving from a production based economy to a knowledge based economy that is fueled by the ideas and innovation. This concept of knowledge economy gave rise to the concept of creative economy (Che 2014). There are varieties of ways in which creative industries are defined. There are numbers of countries like Britain; Australia; Scotland, which have implemented policies to promote their products. At present, the world is moving from a production based economy to a knowledge based economy that is fueled by the ideas and innovation. Some authors argued about the developed countries transited in to a knowledge economy. Specialists have agreed that the social networks are vital to the innovation process of any company. The regional networks are easily built by the brand than the large companies. Researcher has given an insight to this topic. They understood the role of this industry as a real source of employment and as a source of generating new creative ideas. Naylor stated that strong performers like Hong Kong and Taiwan significantly depended on the small enterprises (Aronczyk 2013). Converting innovative ideas into productive output requires huge technological resources and professional guidance, which are capital intensive. However, knowledge and innovation were needed to achieve future growth. Sustainable growth can be achieved by exploiting the environmental goals. The policies were undertaken in order to foster the competitiveness in the cereal industry. To develop this industry, training and infrastructures improved; investment increased in this sector.

Market Share and Products

From the above analysis, it can be stated that positive approach of creativity can influence the economic development of the whole nation. The creative economy depends on creative approach of people of elite educational background. The approach of the study can influence the overall development of countries economy. Apart from making growth, it can also add to the total gross domestic product of a country. The impact of creativity can influence positive approach on youths. The successful individuals can attract them. Therefore, it can add to the future benefit of the country (Flick 2015).

However, managers often find it difficult to fulfill every ongoing requirement of the consumers. Traditional approaches to launch products have often been outdated within a modern sector of the competitive industry. Over dependence on creativity can harm the entire GDP of a country. A balanced approach of creativity and launching of new product is helpful for business development and economic built up (Wright and Davis 2014).

H0: Creativity and product development do not have any relations between them

H1: Creativity and product development have relations between them 

Conclusion

In short, from the above discussion it can be said that cereal food companies have significant role in the development of creative economy. The paper has reviewed several articles in order to reflect the idea of product development. It has been found that the innovation is the key tool for developing a new product. However, in has reviewed the performance of Small and Medium staple food companies over various countries. It has also developed ideas on the way in which the enterprises can affect the creativity of the market. It has been found that Kellogg’s has significant role in developing the brand image.

1. What are the focus areas for growing a new product?
2. What effect can be made by a new product in the existing market?
3. How much a new product can be connected to the mass?
4. What is the knowledge required for developing a new item?
5. How creativity and product development is related?
6. What are various approaches can be used for introducing a new product?
7. How a brand is created?
8. How much it takes to adapt to the existing market for a new product.

• To study the efficiency of an organization
• To analyze the importance of social media for launching a new product
• To investigate the effectiveness of marketing and branding
• To analyze the importance of brand promotions
• To scale the target audience for a particular product
• To predict the viability of the market 

The selected research methodology and methods:

The approach will be used through the qualitative method, along with quantitative method to analyze the problem. A systematic analysis is needed to clarify the content that is appropriate for the research along with an easy access. The analysis will be done to achieve the desired target and results.

The qualitative method shall be utilized to identify the characteristics of the research. The methods will also discuss the nature and quality of variables, causes and trends. It will assist to address the problem or a particular phenomenon to illustrate data. The aim of the research will be to describe, analyze and evaluate the characteristics and dimensions of the phenomenon in a certain framework (Flick 2015). Data collection is needed to critically analyze the causes and factors those control the problem. Qualitative analysis always focuses on giving quality output. The main idea behind the research was to justify the answers by quality analysis. On the other hand, quantitative method is incorporated through primary data and secondary data analysis. These data were first filtered and then the best data are selected for analysis. Statistical packages are used for giving the result more dimension and truth. Formulas are used so that one can justify the results. The factorial analysis would help to draw a generalized conclusion.

Importance of Branding and Innovation

The research methodology in the proposed research will be based on searching available literature. It will include quantitative data and qualitative methods to conduct the required analysis of the subject. The recommendation to the status quo would be done accordingly (Wright and Davis 2014).  

The survey is a method or technique to collect data and information on the subject issue. It can be taken by asking questions on a range of individuals or by a particular structure. It will look to the needed change and clarify the situation for initiating results. The recommendations would contribute to resolve the phenomenon (Sharma 2013).

Questions concerning the problem related to be gathered through personal interviews, e-mails, phone calls and customer focus groups. The design of the questionnaire form will follow several following steps (Taylor 2015).

1. The Formulated questions shall be clear, crisp and short
2. Questions shall be related to the targeted subject.
3. The interviewer would need to ask the questions sequentially.
4. Questions should reveal the sincerity of the answer.
5. The questionnaire form should be verified by supervisors
6. Questions should be free flowing.
7. Testing part and sample part adjustments should be done if needed.

The collected data that shall be displayed analyzed and interpreted by the obtained results. In case some of the forms were not filled or did not meet the research objectives should not be taken into consideration.

The research shall include main objectives, statement of the relative importance, and descriptive statement about the vocabulary. Vocabulary will be subject to the conducted research. They together with the nature of the data that is collected will be needed. The style used in the assembly, the time to complete the survey shall be as per the purposed timetable (Pratt and Hutton 2013).

The detailed results need to include the initiatives and recommendations. These recommendations should base on key findings. The research shall apply the qualitative method to investigate the present situation. The research should always explore creative industries to generalize the findings. These findings need to find the potential growth, strength, development strategy and generate ideas for improving the quality of the result. The qualitative methodology shall be applied to illustrate the statistical contents. It will help to generate the findings. It would help to contribute in building the qualitative analysis over the assembled quantitative data (Ng Lingard and Kennedy 2013). The research was done through one on one interview method. Equal importance was given to each questions and time limit was mentioned. The interviewer gave ample opportunities to the people to speak about what they think (Appleton 2015).

The research could face some obstacles in collecting the required data. It is because some terminologies could be unknown. It should be translated to match the official authority’s language. Moreover, lack of official statistics related to the economic sectors in the state. Nevertheless, due to some diligence to represent a transparent understanding of the phenomenon it will be stated. The outcome will be reflected in the proposed research.

From the given literature, some analysis can be taken. The analysis can be a window for others to marketers to only to present products but to the customers also. The benefits from the above literature are,

• It can be a cost effective method to campaign through twitter and facebook. By doing so, the brand can cater to a larger audience.
• The world is now a global market place. Social media has been a platform where the brand can put their newly launched product to display to everyone.
• The involvement of media can regulate the segmentation clearly. The brand can take their newly launched product to the people they want to target.
• Various media types and communication systems should make a community. Making a community can give the brand a stronghold and they justify their product to others
• The sizable amount and volume of social circle and media nowadays has given an upright helping hand to the brands
• The brand should update their products and they should always make their customers feel that they are continuously with them. Togetherness often helps to bridge the gap. 

Conclusion

The study of the subject has given a perfect insight on how to launch a new cereal to the market. The product should try to influence the customer in such a way that the customer can understand what the product is telling. The features and specialties should be there. The customers try to find the nutrition level in the cereal so, the new product should be specific about the nutritional contents in it. Effective policy guidance and developing capacity building equipments are required to support convert local talent into crucial mechanism for creative industry and able to augment the sustainable employment; growth of the economy. It plays a crucial role in forming the development strategies, as growth in this industry is resulting into reduction in unemployment rate. The products of the creative industry require new ideas; creation; production and distribution. The distribution channel needs to be smart enough to enter any possible market place to sell the product. Product ornamentation should be specific and detailed. In this way, the new product can be categorized.  

Concept of Creative Economy

References

Appleton, K.M., 2015. Greater fruit selection following an appearance-based compared with a health-based health promotion poster. Journal of Public Health, p.fdv147.

Aronczyk, M., 2013. Branding the nation: The global business of national identity. Oxford University Press.

Begum, V., 2015. Effects of Kellogg's Nutritional Label on Consumer Buying Behaviour in Dubai, UAE. Procedia-Social and Behavioral Sciences, 211, pp.1195-1202.

Billig, S.H. and Waterman, A.S. eds., 2014. Studying service-learning: Innovations in education research methodology. Routledge.

Brennan, I., 2015. Brand Placement in Novels and Competitor Recall: The Robustness of the Part-List Cueing Effect. Academy of Marketing Studies Journal, 19(3), p.63.

Chabowski, B.R., Samiee, S. and Hult, G.T.M., 2013. A bibliometric analysis of the global branding literature and a research agenda. Journal of International Business Studies, 44(6), pp.622-634.

Che, D., 2014. What happened to Tony the Tiger?: The rise and fall of Kellogg's Cereal City USA. CAUTHE 2014: Tourism and Hospitality in the Contemporary World: Trends, Changes and Complexity, p.780.

Empen, J., Loy, J.P. and Weiss, C., 2015. Price promotions and brand loyalty: Empirical evidence for the German ready-to-eat cereal market.European Journal of Marketing, 49(5/6), pp.736-759.

Flick, U., 2015. Introducing research methodology: A beginner's guide to doing a research project. Sage.

Gast, D.L. and Ledford, J.R., 2014. Single case research methodology: Applications in special education and behavioral sciences. Routledge.

Heckler, S.E., Keller, K.L., Houston, M.J. and Avery, J., 2014. Building brand knowledge structures: Elaboration and interference effects on the processing of sequentially advertised brand benefit claims. Journal of Marketing Communications, 20(3), pp.176-196.

Kapferer, J.N., 2012. The new strategic brand management: Advanced insights and strategic thinking. Kogan page publishers.

Klimentov, S.B., 2015. Another version of Kellogg’s theorem. Complex Variables and Elliptic Equations, 60(12), pp.1647-1657.

Koga, C.C., Lee, S.Y. and Lee, Y., 2016. Consumer Acceptance of Bars and Gummies with Unencapsulated and Encapsulated Resveratrol. Journal of Food Science, 81(5), pp.S1222-S1229.

Leverenz, J.W., 2012. Corn Flakes Aren't Just for Kellogg's: A Look at Corn Stover and Its Effect on Leasing in the Landlord-Tenant Farmer Relationship.Drake J. Agric. L., 17, p.511.

Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design. Routledge.

Panneerselvam, R., 2014. Research methodology. PHI Learning Pvt. Ltd..

Pettifor, A., MacPhail, C., Anderson, A.D. and Maman, S., 2012. ‘If I buy the Kellogg's then he should [buy] the milk’: young women's perspectives on relationship dynamics, gender power and HIV risk in Johannesburg, South Africa. Culture, health & sexuality, 14(5), pp.477-490.

Picard, R.G. ed., 2014. Media product portfolios: Issues in management of multiple products and services. Routledge.

Stanciu, C., 2013. An Indian woman of many hats: Laura Cornelius Kellogg's embattled search for an indigenous voice. Studies in American Indian Literatures, 25(2), pp.87-115.

Supriya, N., Vasudha, T.J. and Yadav, P.J., 2014. Social Networking-An Influencer of Brand Promotion. International Journal of Innovative Research and Development, 3(12).

Tam, K.H., Liu, T., Song, S., Huang, R. and Li, Q., 2013. Group G.

Theng So, J., Grant Parsons, A. and Yap, S.F., 2013. Corporate branding, emotional attachment and brand loyalty: the case of luxury fashion branding.Journal of Fashion Marketing and Management: An International Journal,17(4), pp.403-423.

Vinoy, S., Normand, S., Meynier, A., Sothier, M., Louche-Pelissier, C., Peyrat, J., Maitrepierre, C., Nazare, J.A., Brand-Miller, J. and Laville, M., 2013. Cereal processing influences postprandial glucose metabolism as well as the GI effect. Journal of the American College of Nutrition, 32(2), pp.79-91.