Kellogg Media Plan
       

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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 cereals.
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 from 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 with 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 sports 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 population 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 and cost effectiveness make it a medium that should not be used in this campaign.

 
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