Special K

Topics: Marketing, Breakfast cereal, John Harvey Kellogg Pages: 7 (1333 words) Published: October 13, 2010
MKTG 806
Applied Marketing Strategy


1) Executive Summary
2) Product Overview
* What’s the product
* Target market- stakeholder
* Marketing message, brand positioning, product positioning 3) Location Overview
4) Current Marketing Mix
* Product
* Price
* Placement/place
* Promotion
5) Key Marketing Issue
6) Recommendation
* 3 strategic recommendations to improve
7) References

2) Product Overview

(Special K with Chocolatey Flakes)
It’s a little treat you’ll feel good about

* What’s the Product?

Kellogg’s is a big name in the cereal industry and Special K with Chocolatey Flakes is one of Kellogg’s powerful brands which introduced to cereal market in 2009. The product is combination of lightly sweetened Special K flakes with delicious chocolate Special K flakes. * Less than 150 calories per serve

* Less than 2g of fat per serve

Nutritional Facts:
Source of B1, B2 and Niacin = Helps release energy from food Good source of Folate = Needed for normal growth and development of cells and is especially important for women in their childbearing years Source of Calcium = Needed for strong healthy bones

Source of Iron = Needed to help carry oxygen around the body for daily activity

5.79 AUD for 400G

* Target market- stakeholder

Kellogg’s produce cereals for: children, teenagers, young and middle-aged adults and older adults When to consume Special K with Chocolatey flakes: Breakfasts and after meals Specialties of the product: healthy, light and tasty

Target market
Kellogg’s successfully segmented the market and produced different products for different segments Kellogg's® Special K® is designed for women who want to take the first step at breakfast to help manage their shape (http://www.kellogg.com.au/Home/Products/Cereal/SpecialK/tabid/388/Default.aspx). Special K with Chocolatey flakes targets young-middle aged women who give importance to stay in shape but crave a little something sweet after meals.

* Marketing message, brand positioning, product positioning
Kellogg’s is basically a breakfast company therefore anything eaten in the breakfast can be a substitute for Kellogg’s products.

Product Positioning Ma
pBrand Positioning Map


Kellogg’s Coco pops


Lowan Cereal Cocoa Bombs



Forest Berries
Special K Honey Almond
Chocolatey flakes



Special K Advantage

Special K


“it’s a little treat you’ll feel good about!” is the motto of Special K with Chocolatey Flakes. Their aim is to offer low fat cereals which are less than 150 calories instead of fattening ice creams, chocolates or chocolate biscuits as an after meal sweet or breakfast.

4) Current marketing mix

* Kellogg’s product strategy is; changing the core product “Special K” through new variants. * For a long time Special K seemed to be a stand alone product. In 2006 Kellogg’s decided to create brand extension and introduced Special K Forest Berries and Special K Honey Almond and one year later their third by-product was launched Special K Advantage. * Finally in 2009 Special K with Chocolatey flakes was introduced as the last by-product of the core product.

* Kellogg’s have different pricing strategies for their different products. Even special K variants have different prices.

* Kellogg’s using centralized distribution method in Australia with one main warehouse in Sydney and one small warehouse in Perth. * Groceries are overwhelming Kellogg’s products sales
Major Role: Woolworths, Coles
Minor Role:...

References: http://www.kellogg.com.au/
Kotler, Brown, Burton, Deans, Armstrong “Marketing 8e”, 2010
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