Pob Marketing Sba Essay

This study seeks to investigate the marketing strategy of Kenlees & Company Cereal modified (KCCL). This successful cereal producer prides itself on having a quality harvest-tide and a policy of putting customer satisfaction first. The importance of the marketing mix, market research, competitors, substitutes and customer satisfaction all impact on the strategy adopted by KCCL. The impact of branding and the various choices available to the marketing department bequeath be discussed and the Ethical responsibility KCCL owes to its customers will be highlighted.Description of the BusinessKenlee Cereal & Company moderate (KCCL) was founded in 1987 as a privately have family business. The ac ships company is involved in the production and marketing of cereals. In1997 it took on a partner to provide more capital. It is also a limited liability business. This mediocre sized company employs 50 persons. It is financed by loans, personal savings and investments through its partnership with its local business partner Ericas Country Styled love life Roasted Peanuts. KCCL is located off the Sir Solomon Hochoy Highway close to the Presal fly-over. It plans to become the stellar(a) exporter of cereals in the Caribbean and thereafter the international market.Organization of the marketing DepartmentOrganization of the Marketing DepartmentMarketing four-in-hand The Marketing Manager is responsible for the cereal marketing and also the profit and loss of his department. Advertising Manager- The AdvertisingManager oversees the whole process of advertising for KCCL. The process begins from market research and finally leading to the actual sales. Advertising at KCCL is based on the image the company seeks to portray. In this case, the company is concerned about producing a cheap, quality, nutritious and tasty product. Sales Manager- Sales Managers are responsible for sales. Their role involves organizing, motivating and leading sales squads. They are responsible for th e combined performance of the team. At KCCL, Sales Managers are responsible forRecruiting and training sales staffSupervising, motivating and monitoring team performance all(prenominal)ocating areas to sales executivesSetting budgets/targetsLiaising with customers which includes actual selling (Wholesalers, Retailers)Keeping abreast of what competitors are doingMarket ResearchCustomers differ on many dimensions- taste, desires, and expectations. Managers therefore get to ensure that their product satisfies these tastes. Market research is therefore very important to reveal customer needs. Before this can be done the potential customers had to be identified. This is done by eitherTargeting the whole populationSegmentation (geographical, behavioral or demographics)Niche marketingKCCL has elect to target the whole population.At the companys recent launch of its new product. KCCL chose to segment themarket using demographics to identify its customers. Characteristics such as age,incom e, occupation or education can be utilize to divide the population. In theintroduction of its new Granola shut, age was enforced to identify the target population.The age groups were3-14years15-35years36 and olderThe marketing manager identified the needs of these groups with regard to their nutritional needs. The (3-14years) group indicated that these personsneeded proper nutrition in enunciate to promote healthy growth and development. The (15-35 years), included students and persons on the go.The (36years and over), were persons who did not need to eat as much. This groups mainconcern was focused on the maintenance of their health. The study of these segments identified a market for a nutritious meal-Kenlees Crunchy Bar was the result. legal injuryPrice is an important aspect of the marketing mix which must be considered. The price a product is sold at is dependent on the following-The pricing objective the firm sets for itselfThe demand for the productCost incurred in produ ction, marketing and distributionThe product characteristicsPricing is very competitive as there are four other similar companies with whom KCCL has to compete with. KCCls prices are based on cost plus mark up. KCCL has chosen a Market leadership objective. The aim is to increase their share of the market.CompetitorsThe market is very competitive. There are four major companies that sell the same products. See pie chart which shows the percentage of the market held by these cerealmanufacturers.SubstitutesSubstitutes are a threat to any company. This occurs if there is in existence products thatcan replace it. There needs to be qualities that the product exhibits that identifies it fromothers, if possible.Sales ForecastThe following table shows a sales forecast for KCCLs products. This was based onhistorical records of sales for the past five years.ProductUnits/Mth (000)Retail Price ($ per unit)Cereal1000$2.00K Flakes200$2.50Wheat Thins1500$15.25 coconut tree Flakes100$13.50Branding and PackagingThe Cereals produced are branded under the name KCCL and it is a well known brand.The product carries a distinctive red and white logo of the company. Branding is veryimportant because it allows consumers to identify the product of a particular manufacturer. Branding issues includeBrand name selectionBrand name extensionBrand patroniseKCCLs launch of its new product, Kenlees Crunchy Bar was under its present brandname. This name has been established in the minds of consumers as a quality cereal. Ithas therefore chosen a line extension strategy since its product has similar features to its present products. KCCL packages its products using attractive foil packaging. The packaging carries thecompanys color for immediate identification. The colors used for the logo are the colorsof the nation flag of Trinidad and Tobago.Information given on the packaging includesNutritional informationIngredientExpiry dateKCCL s Price StrategyTheir strategy is to to have market-share le adership to ensure its continued survival andexistence. It has chosen to sell its products at the lowest possible price in order to capturea large share of the market.PlaceThe method by which the product gets to the consumers is called channels of distribution.KCCL has a fleet of vehicles to transport its products. It also subcontracts delivery invery far geographical areas. umpteen small retailers buy directly from the centrally locatedoffice. Delivery is made twice weekly by boat to Tobago. Promotion MixKenlee Cereal & Company Limited (KCCL) advertises it products by the use of print,radio and television. In-store displays are sponcered by local businesses. The selling of KCCLs products are carried out through, sales meetings, sales presentations and incentive programs. KCCL products are promoted by the use of coupons and product samples. It also promotes its products through contests.Government RegulationsThe Bureau of Standards sets the standards in Trinidad and Tobago in terms of qualityand workmanship of products. Some standards include Products must be labelledAll ingredients identifiedThe value added tax (VAT) must be included in labelling of the priceInformation must also be written in slopeTechnologyKCCL uses high mechanization which reduces costs. All machinery used by KCCL isvery efficient and this increases productivity of the company. Record keeping iscomputerized.Consumer ComplaintsKCCL has two consumer complaint offices one is located at its head quarters and the other in Tobago. KCCL addresses all complaints and has a three day response policy.Ethical IssuesIngredients stated on the labeling and advertising of products is accurate and not misleadingCorrect declaration of sales for taxation.Proper disposal of wasteMoney laundering to hide illegal business transactionsKCCL has maintained its shibboleth of having good legal and estimable business standardsConclusionKey to success of Kenlees & Company Cereal Limited are1.Quality products.2.Goo d customer service.3.Good distribution channel.4.High ethical and business standards.