The paper "Marketing Plan for Rejuvenation of the Coco Krispies Brand of Kellogg’ s Co. " is a perfect example of a case study on marketing. With 2008 sales of more than $ 12 billion, Kellogg’ s is the world’ s largest producer of cereal products and one of the largest in the convenience products industry. Their products are almost iconic and have been around for decades. The company’ s marketing and brand identity prowess have been credited for changing the mindset of entire generations of people. Today, Kellogg faces the most difficult operating environment that it has faced since its inception.
The entire world has slumped into a slowdown, with every other newspaper speaking of job losses and pressure on expenditure. In addition, rising input prices are adding pressure to the company’ s bottom-line and threatening to erode profit margins. Moreover, its competition that continuously dogs its presence has tried to erode its market share time and again. In spite of this, the company has posted a healthy growth of 8% in 2007 and operating profit growth of 3%. The specific brand that we are dealing with in this marketing plan is Cocoa Krispies.
Introduced in 1954, the product is a high-sugar cereal famous for its mascots. It is part of the high market share brands of Kellogg’ s and contributes to nearly 7.5 % of total worldwide revenue to the company. Introduction and situation analysis Kellogg’ s is a global multinational company that strives to build long-term growth in volume and profit and enhancing its worldwide position by offering products that are nutritious and are of superior value. In Phillio and McLuddy’ s (2009) brief on the company, they say that as a company its organization revolves around leadership in product innovation, strengthening its seven large cereal markets, accelerating the growth of the convenience foods business, and developing a more focused organization.
In addition, for product markets, the company indulges in constant innovation of its products to introduce them to existing customers and also those that fit new customer’ s needs. Cocoa Krispies is a breakfast cereal produced by Kellogg’ s and it’ s a cocoa-flavored version of Rice Krispies. The cereal was introduced in the United States in the year 1958 and is now available across Kellogg’ s global operations under various names. Cereal Industry Market The cereal industry market size has sales of nearly $22.2 billion in the Ready-To-Eat Market in 2008.
The industry has posted a compound annual growth rate (CAGR) of 2.9% for the period spanning four years since 2004. Some of the well-known brands in the kids’ cereal brands are GM lucky charms, GM Count Chocula, Post Marshmallow Alphabits, Q Marshmallow Safari, and Rice Krispy. In terms of competition, the marketplace is quite crowded as sales have been flat and low-priced imitation products have eaten into the market shares of Kellogg’ s and General Mills.