Marketing Plan

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Heart to Heart Cereal
by Kashi
“The first functionally enhanced cereal specifically designed for heart health!”
MARKETING PLAN
PATRICK GARBIN
MKTG 6010 – Marketing Management
Professor William All
Fall 2003
HEART TO HEART CEREAL
2
TABLE OF CONTENTS
I. Introduction Page 3
II. Executive Summary Page 3 – 4
III. Positioning Page 4
IV. Target Market Page 4
V. SWOT Analysis Page 4 - 5
VI. Competition Page 5 - 6
VII. Packaging Page 6
VIII. Marketing Tactics Page 6 - 7
IX. Advertising and Promotions Page 7
X. Distribution Page 7 - 8
XI. Pricing and Budget Page 8 - 10
XII. Evaluation of Results Page 10
HEART TO HEART CEREAL
3
I. INTRODUCTION
In October of 1983, Kashi, Seven Whole Grains and Sesame Breakfast Pilaf was introduced to breakfast consumers all over the world. To the dismay of the Kashi corporation, the reception of its pilaf was disheartening as it was discovered that people were somewhat reluctant to cook whole grains for over 25 minutes, and really did not know how to use the grains to benefit their health. Around that time period, the national news started to report the importance of fiber in nutrition, especially to people in the United States. With this in mind and using Kashi Pilaf's Seven Whole Grain and Sesame formula as a base, the Kashi corporation invented Puffed Kashi in 1987, a pure, ready-toeat cold cereal. Since then, Kashi has introduced several other cereals including Good Friends, GoLean, and soon will release Heart to Heart. As the Marketing Manager for the Kashi organization, it is my responsibility to develop a marketing plan for the newly developed Heart to Heart cereal. The following report is an attempt to accomplish this goal.

II. EXECUTIVE SUMMARY
Heart to Heart is a healthy and good-tasting breakfast cereal containing whole oats and oat bran. While most health conscious cereals are beneficial to breakfast-eaters by being, for example, just nutritious, low in cholesterol, or helping weight loss, consuming Heart to Heart is valuable for these and a number of other reasons. Heart to Heart is beneficial to individuals watching their weight in that one serving contains just 110 calories and 1.5 grams of fat. Also, each serving includes five grams of fiber, which should keep most breakfast-eaters feeling full for several hours after consumption. Most importantly, Heart to Heart is the first cereal designed to promote and enhance heart health. The fiber in the cereal can reduce the risk of heart disease by lowering cholesterol levels while its Bvitamins regulates homocysteine, an amino acid implicated in heart disease. Also, the oats are loaded with 100% of the daily value for the antioxidants vitamin E and C, both having been shown to lower the risk of heart disease by protecting cells in the heart from damage. Finally, grape seed and green tea extracts are included to prevent cholesterol build-up on blood vessels walls. While other cereals may also promote heart health, Heart to Heart is currently the only one that has earned the American Heart Association’s heart-check approval mark.

Similarly to our other products, Kashi has targeted one main customer group to which to sell Heart to Heart – grocery stores. The grocery stores will then sell directly to the end consumer. Also, Heart to Heart will be available to be purchased online in bulk via ecommerce on our company’s web site. Internet surfers will be able to buy the cereal directly from www.kashi.com under “Cereals” at the “Kashi Store”. Using an online shopping cart and checkout system, consumers will be able to purchase 12 boxes of Heart to Heart at a time and have them shipped directly to their home via UPS. This ecommerce system is currently in place for most of our other Kashi cereals. Promotion of Heart to Heart will be done through advertising on the radio and in health magazines, and further samples of the cereal will be placed into small plastic packets and inserted into other Kashi cereals for a three-month...
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