MKT301 Spring 2011Term
Module 4, CASE
Select TWO products from the list of product categories below and using the teaching materials and any additional research explain what you think would be an appropriate promotions strategy for both them. In doing so compare and contrast the two promotions strategies explaining why you think they would be similar or different.
Select TWO products from the following product categories:
• CARBONATED SOFT DRINKS—Pepsi Cola Products
• BREAKFAST CEREALS – Kellogg Breakfast Cereals
Illustrate your answer by referring to specific brands within each of the two product categories you have chosen.
June 6, 2011
I have decided to look at the promotion strategy for the Pepsi Cola Soft Drink Company and
Kellogg’s Breakfast Cereal. I chose these two companies because I use both of them frequently
and both of them looked a lot easier to delve into the promotion strategy than the other products.
I think I am addicted to have at least a Pepsi everyday and it seems as though my children would
prefer to have cereal versus making them a real meal for dinner. So, I will start with Pepsi-Cola.
Pepsi-Cola is the invention of Caleb Bradham, a pharmacist and drugstore owner from New
Bern, North Carolina. According to sirpepsi.com, his creation, a unique mixture of kola nut
extract, vanilla and rareoils, became so popular his customers named it "Brad's Drink." In June
1903, "Pepsi-Cola" was officially registered with a U.S. Patent office. Pepsi has a rich history in
marketing innovation starting with in 1939, a newspaper cartoon strip, "Pepsi & Pete," that
introduced the theme "Twice as Much for a Nickel" to increase consumer awareness of Pepsi's
value advantage, in 1940 Pepsi made advertising history with the first advertising jingle ever
broadcast nationwide with "Nickel, Nickel" and eventually become a hit record, translated into
55 languages. In 1941, Pepsi changed the color of its bottle crowns to red, white and blue as a
way to show support for the World War II. This obviously was a genius promotional move.
Pepsi has always had a massive advertising and promotional machine behind them as
referenced above. They have a history of using celebrities from Michael Jackson (remember he
burnt his hair) to recently using Beyonce. Pepsi, mainly segment their market by demographics
such as age, income and family size and I tend to think the target market is the younger
generation from 14-35, mostly based off of their strategy of using younger celebrities and recent
advertising. Another target market is diabetic or older folks with Diet Pepsi diet for the people
who are suffering from diabetic and for those who are likely to avoid sugar.
I also decided to look at Kellogg’s promotion strategy because I grew up on the cheap, simple
cereal and always loved adding my own sugar to my bowl. Dr. John Harvey Kellogg, a
vegetarian, and his brother William Keith Kellogg created cornflakes in 1894 as a healthy
breakfast alternative for Dr John’s patients at his sanatorium. Fast forward a century later and
they remain one of the most popular breakfast cereals in the world. Today, Kellogg’s produces
more than 40 different cereals with plants in 19 countries, on six continents and markets its
products in more than 180 countries. The company employs 15,657 people in its worldwide
organization. The Company's cereal products are generally marketed under the Kellogg's name
and also marketed under trademarks, brand names and slogans it owns.
The target segment of Kellogg’s Cereal is children, even though it seems the corn flakes
brand originally didn’t seem to be marketed to children. According to Jpfarrel...