Promotion Strategies

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Trident International University

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...
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