Sample Case Study on Kellogg’s Products

Introduction

The launch of gluten-free products in the Indian market is largely dependent on the implementation strategies used in counter attacking the traditional beliefs. This is because of the fact that the market is fully aware of healthy foods supplied by different companies. It is therefore crucial for any company to tap the growing market as an attempt to maximize profit as sales increase. Gluten-free products are produced for celiac patients who find it hard to cope with high-calorie diets hence uncomfortable with products that contain this element. The reason behind this is that it causes health problems to their bodies in one way or another deferring from one individual to the other. In addition, athletes and health conscious individuals have embraced healthy living hence prefer healthy foods (Carter, Moschini and Sheldon 2011). Therefore, the introduction of healthy food will not only serve the niche market but also deliver to the health conscious society that is ready for the product.

The marketing of products of this kind is not a walk in the park in the sense that a company will invest a lot of money to convince customers to buy the product. This involves a variety of marketing strategies that range from promotional services to psychological selling. Pricing mechanism is another area that requires a lot of care and consideration in that the Indian market is price sensitive. It infers that the company has to find ways to harmonize quality and prices for the specific goods and services it aspires to introduce to the Indian market.

This essay will explain the reason why Kellogg should target the niche market for celiac patients when introducing the gluten free products. Specifically, the essay will talk about the health benefits attributed to the consumption of low-calorie foods by celiac victims.

Strategies to be used in Marketing the Product

The first thing that customers focus on is the benefits they accrue after consuming the product. They instigate their continued purchases thereafter leading to customer loyalty. In focusing on the market of healthy foods, Kellogg will be interested in rendering benefits to their target market that are unmatched by other companies in the food production industry. Some of the benefits include facilitation of immune system of the patient, having a good and sharp memory system, weight loss, flat stomach and increased focus. Numerous barriers may hinder the success of the gluten free dishes culminating from the traditional practices and staple food for Indians. Most of the diets that Indians use are composed very high percentages of wheat that accelerates the process of contacting the disease. Introduction of alternative meals will contravening their beliefs and reliance on staple food as well as their practices, creating a workload ahead for Kellogg’s new initiative (Dayal-Gulati and Jain 2010). Another challenge comes from Indian’s way of living, where the Indian population is not used to taking breakfast. In this situation, the meals to be introduced have to align with their traditional and social practices. Observing these challenges in coming up with a marketing strategy will ensure that the business entity is not stranded in the implementation of the best alternative. The marketing strategies applicable for this market include market segmentation, positioning and pricing.

Market Segmentation

The market will be segmented according to the health status of the clients. Kellogg needs to focus on the production and sale of food to the celiac patients and athletes as their market segment in the Indian market. One of the reasons for focusing on the two segments is that they form the largest consumer base for the products of the institution. Moreover, the segment is conscious of their health status hence stresses a lot of concerns on the dishes they consume. Most victims are ignorant about their health situation hence marketing will be an integral part in promoting the use of healthy foods by the Indian population. Creating awareness is therefore the most difficult task the company has to intensively engage in. A high percentage of the Indian people are illiterate, an action that hinders the effectiveness of mass marketing. The solution to these problems will be achieved as a result of the company engagement with the population by educating them about health issues thus promoting sales activities. The preferred promotional strategy is the combination of mass marketing on social media with road shows (Ungureanu and Ignat 2012).

Market Targeting

Targeting is the most important step in the planning process because it helps the company streamline their efforts on a particular market segment. In this case, Kellogg will offer its products to the athletes and the celiac patients. Having the two groups of people in mind, the organization will render customized services that facilitate customer satisfaction. The youth and the working population in India have shifted their consumption of food from unhealthy foods to health conscious dishes. Kellogg has no choice than to serve this market that is on the rise with much emphasis on the two groups guiding them (Ungureanu and Ignat 2012).

Product Positioning

Positioning of the Kellogg products is best served by the pricing mechanism. Demand for Kellogg foods is dependent on the pricing mechanism incorporated into the marketing activities. Market forces of demand and supply are less likely to play a big role in the inception of the products. Thus, Kellogg is unable to predict optimal consumption level. The product life cycle of gluten- free diets will be effected in four phases. The first phase is the introduction phase where the prices will be low. At this point, there is intensive and extensive advertising by the firm to introduce the product into the market. Second, we have the growth phase where consumers are adequately informed about the products. The institution increases the prices due to higher demand of goods and services. Third, stagnant phase requires less advertising because the business is now lucrative and rendering maximum profit (Ungureanu and Ignat 2012). Lastly, the declining phase calls for innovative services to avert the firm business portfolio.

Conclusion

In conclusion, I would advise Kellogg to go ahead and introduce health diets in their menu specifically the gluten-free products. Having a well-defined target group is central to the development of product as well as the business. Health practitioners have continually emphasized on health living. Food producing organizations that comply with the new developments in the market stand at an advantageous position of winning customers. For those companies that go against the initiative, there is a high possibility of making losses in future. Most diseases are attributed to the eating habits exhibited at an early age in child development. Most of the government agencies in the globe have engaged in an intensive campaign that is geared to promote healthy diets. The changing environment leaves most businesses at a cross road in determining their fate because there is undeterred demand for high- calorie products. Consequently, producing the goods leads to critics by government agencies hence damaging the company image. Failure to produce these items leads to loss of business opportunities. Kellogg should balance the two activities in India.

References

Carter, C., Moschini, G & Sheldon, I., 2011. Genetically modified food and global welfare. Bingley: Emerald Group Pub.

Dayal-Gulati, A & Jain, D., 2010. Winning strategies for the Indian market. Evanston, Ill.: Northwestern University Press.

Ungureanu, G & Ignat, G., 2012. Market Monitoring of Food Products using Market Studies. PARIPEX 3(4), 1-4.