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During this blog entry i am going to guide you through different marketing methods used by Diesel and Kelloggs to gain more customers.
Below is an example of the Ansoff matrix:
Market penetration - Selling a current product customers trust in home territory.
Product development - Selling a new product in home territory.
Market development - Selling a current product in new territory.
Diversification - Selling a new product in a new territory.
By using the Ansoff matrix, i am going to explain how each section has an influence in both Diesel and Kellogg's marketing strategies.
Kellogg's
Kellogg's are a multinational breakfast cereal producing company and was founded by Will Keith Kellogg.
Will Keith Kellogg created and founded the company in 1906. Kellogg's is most famous for their own brand cornflakes. kellogg's cornflakes remain among the most popular of their kind to this very day.
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| William Keith Kellogg (Early 1900's) |
Diesel
Diesel are another multinational company who specialise in clothing and items that reflect on a persons lifestyle. Diesel was founded by a man called Renzo Rosso in the year 1978 in Italy. From the Beginning, Rosso set out to change the way people wore clothing, he took the risk of creating a different style of jeans and wore them to promote them. it worked.
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| Renzo Rosso |
How market penetration applies to Kellogg's:
Market penetration applies to Kellogg's because they are a well known brand and are famous for making and selling a variety of cereals including cornflakes and coco pops in the United Kingdom. For example; if Kellogg's were producing a product to be sold in the UK, their target customers would be UK residents. If Kellogg's wished to grow their business even further, they could do this by increasing the targeted number of customers who would then continue business. I believe the best way to enter a new market would be to gain competitors customers.
How market penetration applies to Diesel:
Market penetration applies to Diesel as they are well known for high demands for their products all over the world. Products including jeans, accessories and fragrances. Diesel can improve their market share by offering better customer services or promotional information within the markets they are already a part of. Penetration marketing is mostly aimed at selling the same products to the same audience. I believe Diesel started off this way and moved onto selling world wide. Diesel eventually achieved this.
How product development is applied to Kellogg's:
Kellogg's are famous for their huge range of cereals and new creations. In the past Kellogg's have created a different range of cereals which relate to men, women and children. They were responsible for giving men Kellogg's cornflakes, women special K and children Coco Pops. a lot of thought and preparation had gone into these ideas and not only does the cereal have to be designed, but the packaging and advertisement also. Kellogg's are also responsible for making their own cereals bars out of some of their favoured cereals like Frosties, Crunchy nut and Coco pops. New creations which do not involve an original cereal are also available through the likes of a Nutri grain bar or a Squares bar. all the above can be classed as product development because they all started off as a "new idea". Product development is the second stage to market penetration, as you develop over time and improve your business through new ideas but at the same time using the same target audience you started off with.
How product development is applied to Diesel:
As said about Kellogg's, product development happens over time and can be reffered to as the second stage after market penetration. Diesel have improved their sales by coming up with (as i like to call) weird and wonderful products. With Diesel constantly bringing out new products, they must conduct market research with the public. From this they can then develop the new products and release what they believe the public wants. Diesel are responsible for creating normal common products like a T-shirt or leather jacket, but then they are capable and not afraid for making slightly more bizzar items like a bicycle helmet. Product development is a must in making a successful bussiness, it is vital that the business introduces new products to keep customers interested and coming back for more. For example; diesel could try something even more out of the ordinary and create a new type of hand soap with the brand logo stamped on the top. This idea may interest people into trying the product as it is unusual.
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| A Diesel bicycle helmet |
How market development is applied to Kellogg's
I think its safe to say that Kellogg's have have successfully sold their products in the UK. And may now move on to other markets (countries) using the same product to see if it has the same affect and whether it is a money making opportunity. For example; Kellogg's may want to try their hand at making sales in Malaysia. Malaysian people may take liking to the Kellogg's brand over leading cereals in their country. Kellogg's could do this but it would be at their own risk. If the plan is executed correctly, they can then continue to spread the Kellogg's brand across other parts of the world.
How market development is applied to Diesel:
Diesel already have an absolutely huge name for them self and are currently spread across the planet. but why stop if you can go further?. If Diesel wish to expand even further on earth they could open up stores in countries in Africa for instance. The only risk would be GDP (Gross domestic product). If stores were to open up in different countries within Africa, they would have to be placed suitably depending on who can afford the products.
Diversification - Kellogg's
attempting to open up a new set of branches in a new environment with new products is an extremely high risk for any business to take. New customers would have to take a leap of faith on to try a brand new product to them. I believe Diversification would not be as much as a problem for Kellogg's as it would be for Diesel. This is because Kellogg's is just a cereal producing company in which all the customers would have to do is try their product by spending a small amount of money.
Diversification - Diesel
As said above I think it would be hard for Diesel to adapt to Diversification because of the price range Diesel will introduce to new customers. Some people may find the prices affordable depending on the item, but others may not. this is where the high risk is, but some market research in the target area before opening a store would be very useful to learn more about your surroundings and whether customers would generally be interested in buying your products.
Legislation:
What is the role of the ASA?
- The Advertising Standards Authority (ASA) is in charge of all advertising through the use of media in the UK. They work to make sure all advertising is legal, honest and truthful.
What advertising do they regulate?
- The ASA regulate with most forms of advertising, but not all. They tend to regulate sales promotions, special offers and competitions through the use of advertising in cinemas, magazines, leaflets, brochures, television shopping, DVD, Email, SMS and most commonly through normal TV and radio.
What advertising don't they regulate?
- The ASA avoid advertising through the likes of credit cards, telemarketing, fax marketing, political advertisment, fly posting and in some cases don not regulate medical advertising.
What is a voluntary code?
- A voluntary code is a code of practice that you must have in order to advertise through your chosen strategy. Without the code your advertisement would not be accepted for publishing of transmission. The code says that not offensive or aggressive language should be used in the chosen advertisment. These include not causing offence through the likes of; Religion, Sex, Age, Race, Disability and Sexual orientation.
What is the Drinkaware campaign about?
- Drinaware is a campaign that highlights facts about drinking responsibly through the use of advertisment and their own website. Drinkaware are always on the route to changing the way people consume alcohol.
Who funds the campaign?
- Drinkaware has raised roughly about 5.2 million pounds in funding from many different bars, pubs, clubs and alcohol industries.
Why would they do this?
- More deaths and injuries are caused each year through the used of alcohol not being consumed responsibly. Accidents have been made through drink driving, violence whilst being under the influence and generally through people not taking alcohol seriously.
BBC News article on junk food
- Kellogg's cereal can be known for containing sugar in their more sweeter products like coco pops and frosties. From this the article has said and disscussed about issuing a ban on advertising unhealthy food to children during program intervals. it also talks of banning promotion within schools with the use of celebrities and cartoon characters. All of this relates to Kellogg's, because they are known to advertise their cereal between childrens shows and use phrases like "A great snack for after school" for coco pops.
