1) Target Audience Objective:
• Focus media weight on men and women ages, 35-54, with a special emphasis
on married women.
Rationale: Data shows that 66% of RTE cereal purchases are made by women
and 60% of RTE cereal volume is consumed by men. The creative strategy
is directed at men and women, with an emphasis on married women, aged 35-54.
Despite taste test results showing strong potential among the 25-34 age
group, data shows that the 35-54 demographic age group consumes 75% of
products in Wild Honey ‘N’ Oats classified category, nutritional/natural
2) Geography Objective:
• Use media to achieve an intensive spot market advertising campaign with
limited national coverage.
Concentrate advertising budget equally in Kellogg’s top 20 markets
that include: Detroit, San Diego, St. Louis, Chicago, Los Angeles, Cincinnati,
Kansas City, Milwaukee, Oklahoma City, San Francisco-Oakland-San Jose,
Sacramento-Stkton-Mode, Indianapolis, Cleveland-Akron, Minneapolis-St.
Paul, Salt Lake City, Grand Rapids-Kalmzoo, Columbus, OH, Portland, OR,
Denver, and Phoenix.
Rationale: Sales by category show that Kellogg’s Top 20 Markets consume
89.8% of nutritional/natural cereal national sales. These markets also
consume 26.4% of family cereals national sales and 23.8% of fiber cereal
national sales. Because these markets account for such a large percentage
of Kellogg’s sales, especially with their dominance in the nutritional/natural
category, they will provide the opportunity to achieve 1.0% market share
for Wild Honey ‘N’ Oats in the first year. Limited national
coverage will help to increase Kellogg’s sales by 1.0% in one year
and continue to enhance its dominant reputation in the RTE cereal category.
3) Scheduling/Timing Objective:
• Launch campaign in February, and advertise in highest sales volume index
months of February-July and December-January. Flight advertising in August-November.
• Rationale: The sales volume index is highest in February at 106 making
it easiest to achieve high awareness and higher sales for the launch of
a new product. Because August through November have sales below average,
they should be flighted in order to allocate more money to higher selling
months that will generate higher sales to meet marketing objectives.
4) Reach/Frequency Objective:
• Achieve a national reach of 32 and a national frequency of 1.6 in February,
March, June, and July.
Rationale: Although a national medium is being used with women’s
magazines, the main purpose of national media is to continue Kellogg’s
dominant reputation in the industry rather than generate high levels of
reach or frequency. The emphasis on the campaign is in the spot markets
as previously stated. This national reach and frequency will continue to
promote Kellogg’s name and reputation nationally.
• Achieve a combined spot reach of 81 and frequency of 4.1 in February
and March. Achieve a spot reach of 79 and frequency of 3.8 in April and May.
Attain a spot reach of 78 and frequency of 4.5 in June and July. Achieve
a spot reach of 73 and frequency of 8.2 in December and January.
Rationale: Reach should be higher during the launch period not only because
it is the start of the campaign, but because it is a new product and needs
to draw a larger awareness. Reach should be higher in higher sales months
in order to reach a larger portion of the target population, which will
ultimately increase sales. Specified reaches were calculated with the use
of reach tables and the Sainsbury formula that allows for combined reaches
of different media. Those months with higher budgets and higher sales potential
have higher reaches. The frequency for various months has been set based
on Ostrow’s model and contributing factors such as high market share,
current brand establishment, flighting schedule, new copy campaign, short
purchase cycle, higher ad clutter, and new product launch.
5) Sales Promotion Objective:
• Provide media support to promote the launch of the new product in spot
markets. Concentrate promotions near the launch of the campaign in February,
but continue them throughout the year.
• Rationale: Promotions should be concentrated during the launch of the
product in order to generate awareness. Furthermore, the competitive pressure
other RTE cereal companies causes a threat during initial trial, as well
as throughout the rest of the year. Therefore promotions should continue
throughout the advertising year.
6) Media Budget Objective:
• Accomplish objectives within a working media budget of $13.2 million.
• Rationale: The budget is 44% of first-year sales goal of $30 million.
In the past five years, advertising expenditures for new cereal introductions
have ranged from 35%-50% of sales.
• Allocate budget by month based on estimated sales percentages from seasonality
data. Allocate extra money for launch month of February by moving funds
from August. Provide extra money for March by moving funds from September.
Reallocate money from September to April and October to May.
Rationale: Monthly allocation is based on estimated sales contribution
by month based on seasonality and sales volume indexes. Additional emphasis
is placed on launch month and the following three months (February-May)
in order to generate awareness for the introduction of Wild Honey ‘N’ Oats.
These months also have higher sales volume indexes at 106 and 101 and will
therefore generate higher sales. Because August-November has sales indexes
lower than average, they will be least hurt by flighting advertising.
Kellogg’s Wild Honey ‘N’ Oats Media Strategies
1) Use the following media:
• Spot Radio (PM Drive): Spot radio will allow advertisers to reach a narrowly
defined target at a relatively low cost, making it possible to generate
the reach necessary for awareness of this newly introduced cereal. Furthermore,
it can be coordinated with local sales promotions. Radio is also essential
because the psychographic profile of the target audience states that
both male and female commute 10 hours per week. Spot radio makes it easy to
target these consumers PM drive at a time when they are vulnerable to
last minutes stops before going home. Because the target also walks or jogs
2-3 time per week, it may be possible to reach consumers through spot
radio while they are participating in these or other sports related activities
when a radio is present. Although radio is one-dimensional, a problem
the creative strategy, the narrowing targeting of the medium, as well
as its ability to coordinate with sales promotions and its cost efficiency,
make it an important medium to use.
• Spot TV (Primetime and Late Fringe): Spot television will allow for maximum
mass coverage in the spot markets to create high awareness and high reach.
Because the nature of television provides sight, sound, and motion, it
will be possible to coordinate with the creative strategy. The psychographic
profile shows that both male and female target members view television
about 2-3 hours daily. Primetime and late fringe are more likely to be
viewed by the target during their available television viewing hours.
National Magazines: Women’s Magazines: Because magazines have a graphic
impact, they will coordinate with the creative strategy. Furthermore, they
can be narrowly targeted to reach a certain demographic such as health-oriented
individuals who enjoys sports activities as defined in the psychographic
target profile. Furthermore, the profile shows that women read 4 magazines
per month making it a medium widely used by the target audience member
that is also responsible for 66% of RTE cereal purchases. Although magazines
have delayed reach, magazines are being used nationally not to generate
reach, but more so to enhance Kellogg’s already existing reputation
as market leader in the RTE cereal category. National magazines will
help in creating the frequency needed to promote Kellogg sales.
2) Do not use the following media:
Network Television: Although network television would accomplish the same
goals and assets of spot television, the cost is so high that it should
not be used. In addition to its cost, the fact that 89.8% of nutritional/natural
cereal sales are made by Kellogg’s top 20 markets is evidence that
reaching these markets is more important than reaching a larger percentage
of the population that does not purchase the product. This would prove
wasteful for the advertisers’ budget.
• Other Television: Reasons against network television are applicable to
not using network cable and national syndication as well. In addition,
the advantage of a narrow target could be achieved through these media,
but the cost and coverage in areas where the product does not sell will
make it costly rather than cost efficient.
Network Radio: In addition to the high costs that national radio has, the
inability to target specific targets makes network radio a medium that
should not be used. As previously mentioned, radio’s one-dimensionality
makes it a problem for the creative strategy of Wild Honey ‘N’ Oats.
Unlike spot radio, network radio does not only coincide with the creative
strategy, but cannot reach a narrowly defined target audience.
• Spot Cable: Although the plan calls for intensive spot coverage, spot
cable should not be used because there is not significant evidence that the
target consumes cable in their 2-3 hours of television viewing time. This time
is probably spent on news channels broadcast on network television or
airing on network television throughout the week and weekend since the
profile reveals that the audience enjoys sports activities. Although
it would be possible to reach a narrowly defined audience through spot cable,
spot network television can reach a larger percentage of the viewing
and target in order to increase reach.
• Outdoor: Although outdoor could be beneficial, especially if paired with
radio to provide both sight and sound, the cost of outdoor makes it an
unwise choice in this case. Granted it would create the reach needed,
cost is a huge factor in deciding against outdoor since advertisers need to
spend their budget in those media the psychographic profile says the
target spends more time with.
• Daily Newspapers: Newspapers should not be used as an advertising medium,
but rather a sales promotion vehicle to distribute coupons. This should
come from the sales promotion budget. The psychographic profile states
that the target shops and reads the daily newspaper, as well as spending
twice as long with the Sunday paper. Newspapers should be utilized in
order to distribute coupons, but the high out of pocket costs paired with the
importance of using other media that can create a high visual appeal
cost effectiveness make it a medium that should not be used in this campaign.