2.0 Promotion Opportunity Analysis In this phase, we will introduce the opportunity analysis, which serves as the foundation for the rest of the campaign development. It is crucial to analyze the key target markets, including the following:
• Demographics -> Based on information provided by Nestle company, demographics are divided as follows: 60% households and 40% singles.
• Income -> Our target market consists of individuals with an average monthly salary ranging from €500.00 to €700.00.
• Social Class -> Our product appeals to almost all social classes due to its affordable price.
• Psychographic Variables -> In the case of families, our product, Clusters ™, is considered a necessity and is often purchased without solicitation. On the other hand, singles, who are also part of our target market, tend to become repeat buyers if they are satisfied with the product.
1 Communication Analysis In this section, we will identify and analyze the marketing environment and the communication activities within it. This analysis will be conducted through PEST and SWOT Analysis. Here is our analysis using these tools:
PEST ANALYSIS
POLITICAL
The economic recession in our industry leads to price competition among similar products.
ENVIRONMENTAL
Positive impact due to competitive pricing.
SOCIAL
TECHNOLOGICAL
Trends and modern social models are improving new technologies that enable mass communication. A breakfast establishment is becoming a healthier lifestyle option for both potential and existing customers. The PEST Analysis shows that political, social, and environmental factors favor the relaunch of our product, while the environment is welcoming new data for Clusters ™. In terms of the SWOT Analysis, our strengths include an established product, but we also face a challenge from a big competitor with a similar offering. Additionally, consumers have trust in the established big brand (Nestle).
Opportunities and threats arise from various factors. For instance, we have introduced a new edition with a larger variety of nuts, which presents an opportunity for growth. Additionally, the market has witnessed the arrival of new imported brands. Furthermore, nutritional studies have highlighted the significance of breakfast, leading more and more people to prioritize their nutrition. Consequently, our analysis indicates that although we may encounter an established competitor, factors like our innovative edition and the growing trend towards a healthier lifestyle that emphasizes good nutrition and exercise enhance our efforts to increase our market share.
The media vehicles that will be used to promote the product include TV, with commercials played during programs that focus on nutrition and a healthier lifestyle, as well as magazines like “Forma” and “Shape” that also cover nutritional and digestion topics, and will include inserts and full-page advertisements. Additionally, the competitive analysis will highlight the distinctive elements of our product in the market compared to its main competitors.
In addition to discussing marketing techniques for promoting the product to potential customers, this section also includes information provided by the company and data collected from a market survey. The information revealed the following important benefits of our marketing strategy: Our cereals have GDA (Guideline Daily Amounts) and nutritional values that are approved by organizations responsible for regulating such matters.
In addition, Clusters ™ provide the necessary calories from specific ingredients. This indicates that each serving of our cereals contributes to a healthier diet, which is more than just a trend nowadays.
Vitamins and mineralsPer 100g % RDA*Per serving % RDA*
Vitamin C: 51 mg (85% RDA*) | 17.5 mg (25% RDA*)
Thiamin (B1): 1.2 mg (85% RDA*) | 0.4 mg (25% RDA*)
Riboflavin (B2): 1.4 mg (85% RDA*) | 0.6 mg (35% RDA*)
Niacin: 15.3 mg (85% RDA*) | 4.7 mg (25% RDA*)
Vitamin B6: 1.7 mg (85% RDA*) | 0.5 mg (25% RDA*)
Folic acid (folacin): 170 ug(85%R DA*) |51 ug(25 %R DA*)
Vitamin B12:0 .85ug(8 %5R D A *)|0 .75ug(7
Pantothenic acid5. 1 mg85%1. 9 mg30% Iron11. 9 mg85%3. 6 mg25% Calcium267 mg 30%230 mg 25% *Recommended Daily Allowance (RDA) according to the EC Nutrition Labelling Directive 90/496/EEC. ** Not mandatory to list this. A 30 gram serving of Nestle Clusters provides 25% of the RDA of eight vitamins and iron. Furthermore, the package weights 500 gr, and costs 3,00 €, while similar competitive products, in packages of 375 gr, cost more than 3,50 €. This makes our product be value for money, especially in the case of households with income up to 700,00 €.
In terms of market share, Kellogg’s cereals are our main competitor, but they have been relatively unnoticed in terms of publicity for a significant period of time. This presents an opportunity for Cluster’s™, as consumers are typically influenced by product exposure through advertising. Our objective is to target segments that haven’t been effectively reached by our competitors’ primary advertising efforts.
We will now focus on importing new groups of people who could potentially become consumers. An important point to note is the price gap between our product and competing products, which was mentioned briefly earlier. This is a significant issue for households who buy cereals, as every household manager must compare prices of similar products when managing monthly expenses. Conversely, singles are more likely to purchase products that provide simple enjoyment.
The chart below presents a comparison of the characteristics of the main products and other factors that determine our market strategy for achieving a larger market share:
Product | Nestle | Kellogg’s
—|—|—
Quality | 5 | 5
Selection | 5 | 5
Price | 5 | 3
Added Value Factors | Nestle | Kellogg’s
—|—|—
Experience | 5 | 5
Expertise | 5 | 5
Reputation | 5 | 5
Image | 4 | 5
Stability | 5 | 4
(1) *Grading: 1 (worst) – 5 (excellent)*
(1) Results obtained from a market survey and general overview of the two companies.
Based on the provided table and marketing survey, Nestle with Clusters™ has a competitive advantage in terms of lower price compared to Kellogg’s. However, Nestle lacks image establishment in comparison to Kellogg’s. Therefore, it is necessary to increase product awareness and brand recognition among potential customers through promotional activities.
2.1 Opportunity Analysis:
In this section, we will evaluate the attractive factors that drive our activities and analyze the opportunities within our market and business environment. These attractive factors include lower price and larger package size, which provide more quantity and ultimately make the product value for money.
Moreover, this includes the high quality of the product, which encompasses the three most competitive factors that influence consumer perception. The consideration of market growth and lifestyle changes is crucial as it aligns with the prevailing trend towards a balanced diet and exercise, promoting a particular way of life. Consequently, market growth continues to surge, creating opportunities for multiple products to thrive. While there may be a dominant player in the market, competition ensures that numerous products can attain a satisfactory market share. Additionally, conducting an analysis on the target market holds utmost significance. In our situation, we will concentrate on two primary segments: family households and singles. Dietary authorities offer established criteria classifying food ingredients as high, medium, or low based on the provided chart.
This text serves as a tool to educate consumers about the ingredients they should consume daily for nutrition. It allows them to compare these requirements with the clusters™ formula. The text includes a chart that explains the levels of ingredients in food (high, medium, or low) and lists the clusters™ ingredients based on their calories, sugar, fat, saturates, and salt content. By providing this information, consumers can understand that the advertising campaign is supported by evidence and represents the minimum requirements for maintaining their health and physical condition.
Additionally, there is a customer analysis chart provided which shows that there are two main categories of decision makers – housewives who make decisions for households and singles who make decisions for their individual shopping baskets. The market segmentation strategy focuses on meeting the needs of singles who desire a good breakfast and want to maintain attractiveness through a healthier lifestyle. It also targets families (adults & children) who prefer homemade meals.
Safe Nutrition is a product suitable for every member of the family and offers great value for money. The aim is to position it as a top choice in consumers’ minds. In today’s society where health and beauty are highly valued, trends play an important role for those who exercise or have adopted healthier lifestyles. Safe Nutrition falls under the category of basic need products because nutrition remains a major concern in every household regardless of its size.Kellogg’s, our main competitor in the market, currently holds a larger market share. Nevertheless, what differentiates us is the superior quality of our ingredients and packaging. While it may not always be apparent how nutritional products benefit customers, our company has made significant advancements in this field. We have introduced a new era of food comparison and clinical studies validate that our product not only prevents weight gain but also offers all the essential nutrients found in whole grain flakes combined with various nuts.
