Using promotion to boost sales and brand value
A Kellogg's case study

Page 1: Introduction

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How much cereal do you eat? Who makes most of it? The British are almost the biggest consumers of cereal in the world, second only to Ireland. Kellogg is the prominent player in the world of breakfast and produces more than three out of every ten packets eaten in the UK. The company manufactures and markets ready-to-eat cereals (i.e. not hot cereals like porridge) and nutritious snacks such...
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Page 2: Promotion

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There are two reasons for promotion. It: lets consumers know about products and services tries to encourage consumers to purchase the product or service, often by telling them about the benefits they will gain. Promotion is just one element of the marketing mix, known as the 'four Ps'. These stand for: Price Product Promotion Place. A marketing mix means that the business must have...
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Page 3: Promotion at Kellogg

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[audio= at Kellogg]

Kellogg recently carried out two effective promotions aimed at totally different audiences. The first targeted families and drew on the incredible success of the Star WarsTM movies. This was a large-scale event extending over a number of Kellogg's brands appealing to families. These included Corn Flakes, Frosties, Rice Krispies and Coco Pops. The event coincided with the worldwide movie release...
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Page 4: Above and below the line

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[audio= and below the line]

Promotion is divided into two areas: above-the-line and below-the-line. Above-the-line promotion is that which is paid for directly. It includes spending on TV, radio, poster and press advertising and on other paid-for media such as the Internet. Below-the-line promotion refers to those methods of promoting a product that do not use direct advertising. These include public relations, such as...
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Page 5: Co-ordinating promotion across the business

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[audio= promotion across the business]

Major promotions like the Star WarsTM and Sorry events have to be co-ordinated across all the different departments. Management will make the major decisions about the type and direction of a promotion and departments such as sales, marketing, and even the legal division, will be involved in organising the event. A promotion will affect all parts of Kellogg business including: Sales - both...
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Page 6: Conclusion

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What a consumer sees is an exciting, professional and relevant promotion. This encourages them to choose the promoted brand and, in the case of almost a million households in the Star WarsTM campaign, to buy the Kellogg cereal brand. Behind these results is an enormous amount of planning and communication, all of which must be both effective in itself and in supporting other parts of the...
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