Week 7 – appendix (2)

Week 7– Appendix – Capstone Forum: Assignment With Peer Review: What Is the Strategy That Your Playbook Is Designed to Support?

The main aim of any organization is maximize on the profit. However, this goal is limited by a number of challenges that include external business environmental factors, competition, and lack of capability among other things. Kellogg has employed various strategies to enhance its competitiveness and profitability. However, it has not effectively managed to perform to its very best. More still need to be done to enhance high level of sale. The company volume of sale has been declining, resulting to a decline in the net income. I addition, the company is investing more in debt, making it hard for the company to make anticipated income. The company’s focuses on providing balance diet food product and cereals. They have also tried to increase various minerals and other valuable elements to enhance their product. However, however, the outcome is not as much appealing as the company would want to see. This may be due to the employment of dissatisfying marketing strategies. Kellogg is an international company that focuses on selling its products worldwide. In this regard the company needs to adopt more international based marketing strategy other than relying on traditional marketing strategies. This strategy must still be based on the current marketing mix concept, but in this case 7ps concept of mix marketing should be employed.

International marketing strategy involves 7Ps mix marketing concept is the chosen strategy to enhance the sales growth and profitability in Kellogg. International marketing in this case refers to a standardized form of marketing that focus on the company’s global customers, but with some aspect of individualization where the cultural aspect is integrated to marketing strategies employed in each country, where culture is highly valued, especially in food products. The 8Ps mix marketing strategies will include the traditional 4ps which include product, price, place and promotion, as well as four more additional Ps that include packaging, people, process, and physical evidence (Rafiq & Ahmed, 1995).

International 7Ps Mix Marketing Strategies

Product and People

The company will develop its product putting all current measures into considerations. These include the nutritional value, and taste. However, in this case, the company will consider specific regional consideration of taste. The company will change its product tastes based on customers’ preference, but maintaining the health and nutritional value of these products. The company should also consider developing products for specific group of customers. For instance, the company should define cereals for infants, older children, adults, and elderly. These products should vary based on health needs and digestive ability of each group. The company should also diversify based on health nutritional needs of different groups. They should have cereals for diabetic people, and obese people among others. This will help in diversifying the company’s products and addressing the needs of all in the society. Addressing more special groups in the market will increase the company’s market share. This will also address the people aspect in 7Ps since it involves focusing on individuals needs while designing a product (Rafiq & Ahmed, 1995).

Price

The company should also employ different pricing strategies to enhance sales and to expand its market share. These strategies will vary based on the region and the level of customers’ awareness in the region. The company should employ low prices while entering in a new market as a way of encouraging consumers to buy and try its product. Close monitoring on the volume of sales should be done to ensure that once the sales stabilizes and that the consumers are familiarized with the products, the cost is constantly increased to normal. This will allow the company to maintain loyal customers who purchase its products due to its quality, taste, nutritional value and because it addresses their age or health needs. The company standard price in a stable market should be standardized based on the prices of other competitors in the market. This should be done as per the region to ensure that the company prices match those of competitors in each region.

Place

The company already has a superior supply chain with efficient distribution system. This kind of distribution system should be extended to other parts of the world where the company consider venturing into. It should ensure that the products are highly available at the customers reach at all the time. This should also be ensured in new market entry. The company should consider ensuring that its products are available in various customers’ retail outlets at all time. This makes it easy for customers to depend on the product since it is always available at the defined distribution points at all time.

Promotion

The company is currently majoring TV ads as the main promotion technique. However, this is not sufficient for international marketing. The company should consider promotion techniques that will be accessible to all in the world. In case TV ads will be used, the company may consider airing the ad in the international TV stations, or localizing the ad to ensure that similar ad is aired in different nations but using the local language and embracing the culture of the people living in the region. For instance, an advert can be aired by American using American English, and can as well be aired in Asian country such as India using Indians; where the Indian culture of dressing is employed, social protocol and local language is embraced. This makes it easy for the locals to feel that they own the product or that the product was designed with their needs in mind. The company should also consider various promotion strategies that include the use of modern technology such as online marketing, Youtube ads, and social media including Facebook and twitters. The company should also develop e-mail marketing platform for customers who purchase in wholesale. In addition, the company should develop a platform to gather customers’ feedback in the market and improve its products based on these products. The company should also consider employing other promotion techniques that include offering free testing outside the retail store where the company products are sold, discounting, or offering free samples. This increases the extensibility of product awareness (Rafiq & Ahmed, 1995).

Packaging

The company needs to pack its products in different sizes to ensure that they address the needs of all customers. This will ensure that even customers with less money can get a product to purchase. The company should consider the cultural aspect while making package branding. In this case, the company should localize the product by using local language in the packages. Common local slogans that dignify taste and health can also be used. This increases the customers trust towards the company’s products.

Process

The company should ensure that it employs right processes that enhance effective services to the customers. This should include effective customer services. The company should establish a platform to get customers complains and be able to address these complains within the shortest time possible. This increases people reliance to the company’s products.

Physical evidence

The company should have physical premises where customers can directly interact with its agent. This is highly applicable to customers purchasing the company’s products in wholesales or in bulks. This will ensure that the customers are sure of where to go in case they have any problem with the company’s products. This should be available in every region where the company ventures into in the world market (Nag, n.d.).

Analysis of the Provided Strategy

Marketing is very important in enhancing the products sales and increasing the company’s market share. Since Kellogg is operating internationally, it is very important for the company to consider employing international marketing strategies that will help it to reach all its customers. With effective international marketing strategies, the company will manage to create extensive product awareness, creating a higher chance of increasing its market share. The marketing strategy provided in this case advice on the product improvement to meet the targeted market and hence it is more likely that the company will be able to attract more customers since the products addresses the customers’ needs. Thus, the strategy is anticipated to be very effective in promoting the company’s growth.

References

Dominici, G. (2009). From marketing mix to e-marketing mix: a literature overview and classification. International Journal of Business and Management, 4(9), 17-24.

Nag, B. (n.d.). Basic of international marketing: Mode of entry, product, positioning, pricing, and promotion. Retrieved from < http://artnet.unescap.org/tid/artnet/mtg/competitivenesss_s7.pdf >

Rafiq, M., & Ahmed, P. K. (1995). Using the 7ps as a generic marketing mix: An exploratory survey of UK and European marketing academics. Marketing Intelligence & Planning, 13(9), 4-15