Comparative Analysis of Weetabix & Kellogg’s Special K

The report aims at carrying out extensive research on the target markets for breakfast cereals from Kellogg’s Special K and Weetabix as well as carrying out a comparative analysis of their 4p’s of marketing. The evaluation looks at the factors that influence consumers’ choice of products from the two companies in a highly competitive market. The comparative evaluation of the 4P’s of marketing for the two brands indicates that both companies have almost similar pricing, distribution and promotion strategies that enable them to dominate various market segments. However, concerning the products, the two brands differ significantly. Kellogg’s Special K aims at achieving weight watchers in addition to general consumers. On the other hand, Weetabix’s products are designed for all consumers regardless of their social classes. Market research is essential in developing products that meet consumer expectations.

The primary objective of the report is to carry out extensive research on the target markets of Weetabix and Kellogg’s Special K brands with the help of market research databases. Also, the evaluation focuses on the market values of the brands as well as their competitive advantages in the marketplace. The report also gives a comparative analysis of the 4P’s of marketing that the two companies use to enhance their sales.

Weetabix refers to a wide range of full cereal wheat breakfast that is produced by Weetabix Limited in the UK (McKevith and Jarzebowska, 2010). The brand comes in various products such as Weetabix Minis, Weetabix chocolate, Weetabix banana, Weetabix protein, Oatibix as well as Weetabix baked with golden syrup. Weetabix products are sold globally in over ninety countries.  In 2017, Weetabix saw its market share increase from 15.3% to about 16.5%. For the last couple of years, Weetabix has managed to stand out in a highly competitive cereals market. The introduction of new Weetabix products between 2013 and 2017 has led to the continuous growth of the brand’s market size (Thomas et al., 2013).

According to McKevith and Jarzebowska (2010), Kellogg’s Special K is a range of breakfast cereals and meal bars that are produced by the Kellogg’s in the USA. Special K’s brands include toasted rice, wheat and barley which are meant to help customers lower their body fats (Smith, 2003). The evolution of eating habits and trending healthy lifestyles among consumers makes the United States of America the largest market for Kellogg’s products. In 2010, the Kellogg Company held about 29.9% share in the world breakfast cereal platform.   The USA generated over 60% of Kellogg’s net sales between 2009 and 2016 (Thomas et al., 2013). Kellogg Company lost the market share until 2015. However, in that year the company’s morning food section generated an estimate of 13.5 billion dollars.

In 2016, Kellogg’s Frosted Flakes was among the top three ready to eat cereals in the United States with a market share of about 4.7%.  Kellogg’s was one of the most influential food brands globally. According to Thomas et al., (2013), the enterprise saw a tremendous increase in overall sales between 2010 t0 2013 followed by the decline in sales from 2014 to 2017.

Comparison of Target Markets for Weetabix and Kellogg’s Special K

Weetabix Ltd through its full range of Weetabix products targets all the consumers regardless of their age (Thomas et al., 2013). The company brands are suitable for the whole family. However, depending on lifestyles Weetabix products that are low in calories are essential for those who are looking into maintaining their body weight (Smith et al., 2001). Majority of the consumers prefer Weetabix brands since they can combine them with other foods such as yoghurt, milk and fruits to create a meal that satisfies their taste.

Weetabix Ltd generates products that target a specific social class of people who cannot manage to make breakfast at home and do not consume the right meals regularly. For instance, Weetabix fuel on the go biscuits available in single or several packs targets working mothers who have a series of morning plans including watching TV and working on their duties while at the workplace (Smith et al., 2001). Weetabix focuses a majority of the consumers with a maximum personal disposable income of about £155.20 (Wani, 2013). The products do not limit any consumer since a majority of the products are affordable and easily accessible globally. However, a majority of the consumers of Weetabix also take other breakfast cereals such as products from Nestle, Kellogg Company and Tree House Foods Inc.

On the other hand, Kellogg’s Special K is for consumers who have a busy lifestyle and are unable to take a proper meal (Smith, 2003). Thus, Special K targets a segment of urban residents who have to plan their time well due to tight schedules. The nutritious Kellogg’s Special K caters for the nutritional needs of all consumers regardless of their age limits. As a result, it is essential for people who are looking into replenishing their nutrient reserves.

The continuous changes in lifestyles and increase in healthy eating habits make Special K a meal designed for both men and women who are looking into maintaining their shapes. As a result, Kellogg’s’ Special K does limit its products from gender, age, social class, levels of education, family life cycle,  as well as lifestyles.  Kellogg’s Special K is mostly purchased by urban residents who have a higher disposable income and can afford to buy the sumptuous meal for breakfast.  Wani (2003) illustrates that majority of the consumers of Kellogg’s Special K receive a personal disposable income of over £155.20.

A Comparative Analysis of the 4P’s of Marketing

Product

Weetabix products come in the shapes of round rectangle-shaped biscuits which measures approximately four by 2 inches (McKevith and Jarzebowska, 2010). The brands include organic and Weetabix Minis which are the conventional versions. The brands sold in the United Kingdom come into two biscuits which weigh about 37.5 grams and have 3.8 grams of fibre. In the US, Weetabix products weigh about 35g with the grain of roughly 4grams.

The packaging of Weetabix is emotional and functional as it easily attracts more consumers (McKevith and Jarzebowska, 2010). Weetabix Ltd promotes the consumption of nutritious food by including vitamins and proteins in their products. Thus, Weetabix is spending money on ensuring their customers are aware of the existence of the various products. Also, the company is maintaining their brand values to ensure that Weetabix serves more groups of people. Basing on Aaker’s brand personality, Weetabix’s sincerity, excitement, competence, sophistication and ruggedness enables the company to maintain a competitive image in the breakfast cereals industry globally (Wani, 2003).

On the other hand, Kellogg’s Special K is a range of nutritious cereal products that are rich in fibre, vitamins and minerals. Special K comes in packages of cereals and cereal bars which contain about 15% of vitamins B3, B6 and B9 (Smith et al., 2001). A significant percentage of Special K products come in bright red packets that are quite attractive thus making the products more emotional.  In the US one serving of Special K has120 calories, 0.5 grams of fat, 4 grams sugar as well as 6 grams proteins.  However, a 30 gram serving of the same product in the UK contains 5 grams of sugar. As a result, Kellogg’s Special K has managed to preserve its brand value by developing products that satisfy their consumer needs.

Price

According to Mintel, in 2015 consumers spent more than $9.0 billion on breakfast cereals which were 7% higher than the level of consumption in 2012 (Wani, 2013). Table 1 below illustrates the prices of some of the most common types of cereal products globally.

Table 1: Comparison of rates of breakfast cereals in the UK (Source: Mintel, 2015)

Kind of Cereal

Quantity

Approximate cost (£)

Kellogg’s Rice Krispies

440g

4.44

Kellogg’s  crunchy nut corn flakes

750g

3.50

Kellogg’s Frosted Flakes Cereal

650g

4.44

Kellogg’s Two Scoops Raisin Bran

1.15kg

6.77

Weetabix  cereal 24 biscuits

24 biscuits

9.89

Weetabix whole grain cereal

400g

3.97

Weetabix Crispy Minis Chocolate Chip

600g

2.50

Weetabix Protein Cereal

500 g

3.00

Oatmeal Crisp Almond Cereal

400g

3.74

Nestle Cheerios Oat-Low Sugar

325g

2.50

Nestle shredded Wheat Bitesize

500g

3.20

As per the price analysis in table 1, the majority of breakfast cereals producing companies are adopting a simple pricing strategy that ensures that the majority of the consumers can afford. Besides offering quality, the companies are looking into preserving the nutrition quality of their brands (Smith et al., 2001). Both Kellogg’s Special K brands and Weetabix Ltd do not overprice their product thus they can maintain a market image in a highly competitive cereals industry globally.

Place

Kellogg’s Special K and Weetabix brands are available globally. A significant number of outlets in the UK including Wal-Mart, Tesco, Sainsbury, ASDA and mySupermarket stock both Weetabix and Kellogg’s Special breakfast cereals (McKevith and Jarzebowska, 2010). According to Wani (2013), both companies utilise e-commerce platforms such as Amazon to ensure that their products reach consumers globally.

However, Weetabix has a unique product distribution strategy that involves coming up with new products that suit specific needs of the consumers in different market segments (McKevith and Jarzebowska, 2010). In areas with low sales such as Kenya, Weetabix has come up with a sales team that distributes its products in small quantities to consumers in the rural areas. Weetabix is a mass market product. The company has managed to maximise market demands. For instance, in Mexico, consumers are more likely to buy large boxes in comparison to Kenya where customers prefer cheap transactions.

On the other hand, Kellogg’s Special K sells their brands with the aid of convenience stores, vendors and supermarkets (Smith, 2003). Also, the company uses direct sales agents to resale the products to small outlets and stores.

Promotion

Weetabix and Kellogg’s Special K aim at creating a strong brand that will enhance their sales. Under the marketing mix, both companies use various communication strategies that involve the use of videos, TV advertisements, use of marketing campaigns, social media, print media as well as company websites (Wani, 2013). The companies have been sponsoring events as a way of reaching more consumers. For instance, Weetabix has been a sponsor for the Women’s British Open from 1987 to 2006. On the other hand, Kellogg’s Special K has been active in sponsoring kids’ stories, motorsport events as well as Gymnastics in the USA

Conclusion and Recommendations

Kellogg’s Special K and Weetabix have applied the 4P’s of marketing in an almost similar manner. The pricing of their products is quite affordable. Similarly, their brands contain specific features that enhance consumer intake thereby leading to an increase in sales. Their distribution and promotion strategies have ensured that the two brands have managed to penetrate several markets globally and can compete with companies that produce breakfast cereals.

Both Kellogg’s Special K and Weetabix have been quite successful in utilising their 4P’s of marketing to enhance their sales in a highly competitive market. Also, the brands have been able to adapt to the changing needs of the consumers over the years. Kellogg’s Special K and Weetabix should always ensure that they carry out market research and development to be able to align their company objectives with the 4P’s. That way, they can win the hearts of many consumers globally.

Reference List

McKevith, B. and Jarzebowska, A. (2010). The role of breakfast cereals in the UK diet: headline results from the National Diet and Nutrition Survey (NDNS) year 1. Nutrition Bulletin, 35(4), pp.314-319.

Smith, M. (2003). Kellogg on Marketing20031Edited by Dawn Iacobucci. Kellogg on Marketing. John Wiley & Sons, Inc., Publishers, 2001. European Journal of Marketing, 37(1/2), pp.329-330.

Smith, A., Bazzoni, C., Beale, J., Elliott-Smith, J. and Tiley, M. (2001). High fibre breakfast cereals reduce fatigue. Appetite, 37(3), pp.249-250.

Thomas, R., Pehrsson, P., Ahuja, J., Smieja, E. and Miller, K. (2013). Recent Trends in Ready-to-eat Breakfast Cereals in the U.S. Procedia Food Science, 2, pp.20-26.

Wani, T. (2013). From 4Ps to SAVE: A Theoretical Analysis of Various Marketing Mix Models. SSRN Electronic Journal.