imc plan to be printed

MKTG1266 Marketing Communication Integrated Marketing Communication Plan

1

STAGE 1

1. Situation Analysis

1.1 Internal Analysis

Kellogg Co sells its products in over 180 countries and manufactures in 18 countries. It has a

strong portfolio of brands in breakfast cereals including Rice Krispies, Coco crunch, Frosted

Flakes and Special K. The company has both global and regional brands and has over the

years expanded some regional brands. Kellogg has focused on building a healthy image for its

products, cutting sugar and salt content in many of its cereals, targeting weight-conscious

women with the Special K and Nutri-Grain brands.

1.2 External Analysis

Depressing sales of children’s breakfast cereals in mature markets is also a growing concern

over sugar levels in brands marketed at children. Kellogg has acted pre-emptively in some

cases such as voluntarily adding vitamin D to a range of brands including Coco crunch and

Froot Loops in 2011 in response to parental concerns over nutritional content. Kellogg is very

sensitive to criticism of its brands. These criticisms may bubble under the surface in the

emerging markets but they are not as vocalised and neither have government regulation or

parental lobby groups become as aggressive.

1.3 SWOT

Strengths Weaknesses

- Kellogg’s is largest global market share for

Cereals (42%)

- Strongest brand recognition and advertising

recollection

- Very attractive packaging for kids due to it

being colourful

- Rich in vitamins

- Product is high in sugar level

- Artificial coloring used in product.

- Damaged reputation of Kellogg’s due to

market recalls.

Opportunities Threats

- Growing demand for healthier food

- Develop mobile device applications

- Product and services expansion

- Strong competition from other established

cereal brands

- Cheaper house brands

- External pressure from health awareness

groups against product advertisement

targeted at kids


2

2. Identification of Marketing Problem or Opportunity

In 2010, Kellogg was reported to have recalled over 28 million boxes of numerous cereal

brands, including Froot Loops, due to unusual flavour and smell. (Pepitone 2010) This may

have caused consumers to lose their trust in Kellogg’s. Hence, our campaign will address the

negative perceptions and attitudes towards Froot Loops that may have developed from this

recall.

Other than the mass recall, consumers feel that Froot Loops have high sugar content,

associating the cereal as junk food and an unhealthy kid’s food. Additionally, they are facing

marketing issues such as targeting children in their advertising and not using real fruit in their

cereal. This campaign will therefore highlight the nutritional benefits that Froot Loops

contains, dispelling the image as an unhealthy food and position Froot Loop as a top breakfast

cereal choice in consumers’ mind.

3. Marketing Objectives

The main marketing goal would be to increase the sales volume of Froot Loops in the

Singapore market. We aim to increase currents sales by 3% for the year 2012-2013.

Currently, Kellogg’s is ranked 4th

as one of the leading breakfast cereal therefore one of the

objectives would be to improve their brand position.

Another primary marketing objective would be to continue to be the leading breakfast cereal

brand in the market. According to the information in 2008, Kellogg’s hold majority of the

breakfast cereal’s market share in Singapore. This was followed by Nestle with 29%, Kraft

foods and Quaker Oats co, with 18.8% market share each. In 2009, Kellogg’s still maintained

as its position as the leading brand with a 51.2% market share. (GMID category) With the

ever changing environment, Kellogg’s may face several changes in consumer’s behaviour

such as the parent having to work very hard and having lesser time to prepare meals for their

kid. The breakfast cereal market thus turns into a highly competitive field, with each brand

fighting for the consumer’s attention.

4. Positioning


3

High Price

High Fun

Factor

Low Price

Low Fun Factor

Froot Loops

Honey Crunch Cornflakes

Koko Krunch

Honey Stars

Fruity Pebbles

Waffle Crisps

Frosties

ChocosChex

. . .. ..

. .

In the product position map, the various cereals that are similar to Froot Loops are

categorized together and ranked according to how expensive and fun they are perceived to be.

On the top of the price list would be Post Cereals’ Waffle Crisps followed by Nestlé’s Honey

Stars, although the latter is slightly more fun, with them using their bear astronaut icon and

rocket shaped cereals to increase its fun factor. Froot Loops is priced as cheaper then the two

mentioned, but is regarded as higher in fun factor with its colorful cereal and usage of Toucan

Sam. Below them would be Kellogg’s Chocos Chex and Nestle’s Koko Krunch, chocolate

cereals which are not as fun although Koko Krunch is fast approaching with its heavy

advertising on television of the cereal. Priced even lower would be Kellogg’s Frosties whose

icon is the Frosties Tony is one of the most recognizable cartoon characters around, making it

fun. Post’s Fruity Pebbles is priced way lower then Froot Loops, but due to its colorful nature

and coupled with its usage of the popular cartoon, the Flintstones, to front its cereal, it is

definitely higher in the fun factor. Lastly, at the other end of the price and fun spectrum would

be Kellogg’s Honey Crunch Cornflakes, with cornflakes being regarded as a boring basic

cereal by many. Of course, this list of cereals provided is not exhaustive, but it provides a

good sample of the cereal market that aims to target children.

5. Communication Objectives

5.1 Category Need

Our main target market consists of two categories, parents and kids. We aim to provide

different information to each category to satisfy their various needs. Parents tend to pay more

attention to information regarding their kids’ health and safety needs, while children only give

attention to exciting visuals. Therefore, one of our communication objectives would be to

present different information to our different target market category, addressing to our

respective categories’ needs.


4

5.2 Brand Awareness

Brand awareness can be classified as brand recognition and brand recall. Brand recognition

occurs when consumers are able to identify the brand with the category. Customers must

recognize the Froot Loops icon, Toucan Sam, building up brand awareness in the consumer’s

mind. Brand recall is making customers’ think of Froot Loops when they think of kids

cereals, with it being the first to come to the mind.

5.3 Brand Attitude/Preference

As mentioned in the identification of marketing problem, Kellogg’s product recall may have

created a negative perception and attitude towards the brand. In addition, Froot Loops contain

41 % sugar level in each box. Therefore, we aim to correct these negative attitudes and

influence their preference towards Froot Loops. Our strategy is to change the consumer minds

about Froot Loops is a healthy product. Kellogg’s created and launched new types of Froot

Loops such as Froot loops with Fibre to help to curb those negative perceptions. Lastly,

Kellogg’s ultimately wants to create long-term relationship with their customers.

5.4 Brand Purchase/Action Intention

Action intention is very important for marketer analyze the purchasing of product in market.

For instance, marketer must study why customer will chose to buy Froot Loops product and

stop buying breakfast cereal meal of other company. Besides, marketing also need to find out

what customer want and need to increase sale of Froot loops. For example some customer

review that they Froot Loops added fibre, which lead them more likely to purchase product.

In addition Create promotion offer for customer such as buy two Froot Loops with cheaper

price, which also encourage target audience to make a mental commitment to purchase this

breakfast cereal meal

6. Campaign Budget

Communication

Mix

Budget (S$)

TV Commercial 612,000

Newspaper Ads 471,168

Bus Ads 42,000

Bus Stops Ads 220,000

Bonus Gifts 5,000


5

Communication

Mix

Budget (S$)

Scratch & Win Coupons

13,200

Sponsorship 20,000

Event Marketing 7,260

Publicity 250,000

Total 1,640,628

7. Campaign Target Audience

7.1 Brand Loyalty

Being loyal to a brand can be referred to as having a psychological attachment to the brand.

By focusing on the experience, credibility and consistency, Froot Loops is able to encourage

repeat purchases and thus brand loyalty in consumer.

To create brand loyalty, Froot Loops must develop a total brand experience towards their

consumer. In this case Froot Loops can focus on the fun elements, experiencing the colourful

cereals will be the fun parts for the kids. Furthermore, Froot Loops must maintain their

credibility towards their customers. As a cereal food, Froot Loops can convince their

consumers by creating a good image. In the end, a consistent brand image is the most

important element in enhancing brand loyalty.

7.2 Creative Targets

Froot Loops main target audience is the kids, therefore the initiator in purchasing the product

will be the kids itself. The decider for the kids will be the parents since they have

authoritative power and financial means to make choices regarding which breakfast cereal to

buy. In addition, family members and friends become the most influential groups. Finally, the

purchaser would still be the parents.

7.3 Behavioural Sequence Model

Purchasing Froot Loops requires limited decision making as Froot Loops is classified as a low

involvement product category. The information search process can be from internal and

external but behaviour sequence model is mainly limited to internal search. The internal

information search such as memories and personal experience is consulted when consumers


6

make the decision to purchase the product on the other hands external information from

independent sources is rarely used. For alternative evaluation, Froot Loops can be classified

as evoked or consideration set, since their brand image is better than competitor. According to

the research from Smarty Pants, the research is “kids top most 100 loved brands”, from the

past three years Froot Loops keep maintaining their good brand image. This campaign will

run for 12 months, the location will be in Singapore.

8. Creative Brief

1. Marketing Objectives

- Kellogg’s company dominated with 51.2% market share

- The marketing objective would be to continue being the leading brand

- Froot Loops’ marketing goal is to continue to increase the sales volume by 3%.

2. Communication Objectives

- To make consumers aware that Froot Loops is beneficial to the kid by publicising

knowledge to parents.

- To build up the brand image in customer's mind and brand loyalty

- To stimulate a want or desire of consumers.

- To attract attention from the kids through brand logo and product design

3. Corporate and / or Brand Positioning

- Froot Loops is positioned as a nutritious, delicious, middle range priced cereal.

- Target market is children from 5 to 11 years of age.

- Its RDB would be it being fun and colourful 4. Brand Character

- One key phrase is 'fun and nutritious that is an essential part of a child's diet'.

- It also portrays a bright, cheerful and light hearted personality.

- Other describing words would be like 'colourful', 'exciting' and 'happy’

5. Target Audience Profile

- Demographics of target audience would be kids aged from 5 to 11 years old.

6. Main Message / Communication Focus

- The main message to be communicated is it is a nutritious and healthy meal, being a

good cereal to start off the day.

- It is also seen as fun, colourful and sweet.

7. Support / Permission to Believe

- Froot Loops has been consistent in their packaging iconic mascot, Toucan Sam,

- Their colourful and informative printing on the cereal boxes evokes a happy emotion

while highlighting the nutritional benefits.

- Long standing brand reputation allowed them to build trust and support among

parents.

8. Current Audience Attitudes / Perception / Behaviour

- Froot Loops have high sugar content, associating the cereal as junk and unhealthy

kids cereal.

- Other issues are targeting children in their advertising and not using real fruit

- Cnn.com reported that Kellogg's recalls 28 million boxes of several cereal brands.

- Affects the perception and consumers’ attitude and result in negative behaviour

from consumers which need to be changed.


7

9. Desired Target Audience Response

- Positive attitude towards Froot Loops.

- The kids should feel motivated, excited and happy to purchase Froot Loops

- TOMA (Top of Mind Awareness) The first brand that comes to consumer’s mind must

be Froot Loops.

- Froot Loops ultimately wants to achieve brand loyalty from its target audience.

10. Communication Evaluation

- The response can be shown from the level of recall and recognition, emotional

reaction, persuasive impact, sales volume and market shares.

- Several ways to measure are bruzzone test, psychological test, Ipsos-ASI Next*TV

method, and IRI’s Behavior scan.

11. Executional Manditories

- The brand's iconic mascot, Toucan Sam appears in all of the Froot Loops' TV

commercials, print advertisements as well as the company website.

- The brands image is represented by the colourful Froot Loops' logo therefore it will be

included in all advertorials. 12. Budget

TOTAL = S$ 1,640,628 (refer to 6. Campaign Budget)

STAGE 2

9. Creative Strategy

9.1 Development of TV advertisement

The 1st scene shows an unhappy kid eating her fruit and vegetables while her mum doesn’t

know how to make her enjoy eating vegetable. The scene will move on to Toucan Sam

entering the kitchen providing the mum with the cereal substituting the vegetables and fruits.

The 3rd

scene to 7th scene demonstrates the five vitamins that Froot Loops contains, one for


8

each colour. The whole advertisement will end with the slogan “Kids love it, Parent believe in

it” and with the scene of the child hugging her mum.

9.2 Newspaper Advertisements

By advertising the sales promotion through newspaper, we aim to increase parents’ curiosity

about the brand, enticing them with sweepstakes and lucky draws, especially to housewives.

This will grab their attention and increase their motivation to process the information. Parents

are not only buying Froot Loops for their children’s health benefit but also allow them to have

a chance to win the grand prize.

9.3 Bus advertising

The all red SBS bus symbolize Froot Loops’ iconic red brand image. The hot red bus would

be a prominent vehicle which will be able to draw the attention of any passer-bys.

A medium size Toucan Sam mock-up will be mounted on top of a single decker bus which

will help increase brand awareness as well as strengthen the image of Fruit Loops. This

unconventional mode of advertising will be able to leave a longer lasting impression in

consumers’ minds.

9.4 Advertorial Posters - Bus Stops


9

The slogan, “Kids love it, Parents believe in it”, creates an emotional connection between the

brand, the children and their parents. The posters will highlight Froot Loops’ nutritional

benefits which are able to relate to those health conscious parents. In addition, QR codes on

the poster pose as an effective method in which consumers are able to directly access and gain

more information from the website. This saves consumers’ time as they are able to access the

website anytime which aids the buyer decision process.

10. Media Strategy

10.1 Behavioural Sequence Model

Consideration at

each stages

What decision stage

Need Arousal Information,

Search, and

Evaluation.

Purchase Usage

Who

(Decision roles

involved)

Parents; Kids Friends, Promoter Customers Children, Teen

ages.

Where

(Where the stage

occur)

Television,

Poster, Flyer,

Newspaper

Internet, Booth,

supermarket.

Super market,

Department

store, mini-

marts,

convenient store

Home, School.

When

(Timing of stage)

- Food fare, Health

promotion board

booth

Promotion

period

-

How

(How it will occur)

Attractive, Fun,

healthy,

convenient.

Informative Flyer,

Samples, trial.

Chose product

and finish

transaction.

(With or

without

promotion)

Post-purchase

dissonance, Use

the product and

gain experience.

10.1.1 Need Arousal.

We strategy would be to influence customers to recognise the need for Froot Loops from

advertisements through TV commercial, newspaper and posters at bus stops. Through the fun

and attractive commercials, consumers’ need to purchase Froot Loops can be amplified. As a

result, the consumer will be encouraged to seek out more information about the brand.

10.1.2 Information Search and Evaluation.


10

Consumers will tend to search for information and opinions from their immediate social circle

such as family members, friends as well as promoters. Moreover, food fair is also a good

source of information as informative flyers and samples will be handed out to interested

customers. They are also able to use the internet and research on other consumer’s past

experience and opinion in community forums.

10.1.3 Purchase.

Purchase is the phase when the customer decides to buy the Froot Loops. Parents often

purchase the product at supermarket (fair price, cold storage) or mini-marts (Cheers, 7-

Eleven). Base on this stage, we can analyze the buying behaviour of customer and their

intention, so more promotion will be created to increase the sales of Froot Loops.

10.1.4 Usage

This stage will cover the product usage and post purchase dissonance. This happens after

customer tried Froot Loops and gained experience from it. The kid can consume Froot Loops

by their own time at home and school. The consumer is able to voice out their experience to

others through word-of-mouth and will either choose to continue purchasing Froot Loops or

stop using it.

10.2 Media Plan

The media plan illustrates all the print advertisements for Froot Loops that we planned to

implement throughout the year. A thorough analysis of the plan shows a heavy amount of

advertising being done simultaneously in the month of July, which actually would be the start

of one of our sales promotion, which would last for four months till the end of October.

Therefore, we plan to increase the promotion awareness by advertising on all three

newspapers for the first three weeks of July.

From the media plan, it can be observed that posters in the bus stops will advertise

alternatively with those advertisements on the buses itself. Bus advertising would only

be carried out for the entire month of June and December. Children having their

holidays would usually spend most their time outdoors rather than indoors and for that

reason, our team arranged bus advertorial to occur during the holiday months, where

the buses travel around increasing exposure and awareness.


11

10.3. Media Choices

10.3.1. Television

Television will be the main advertising medium for Froot Loops as we would be able to reach

mass audience and can create a stronger impact on the target audience’s minds. The media

chosen for the Froot Loops advertisement will be Channel 5, Channel 8 and OKTO Channel.

The table below illustrates the different time slots in which the commercial will be broadcast

through the different TV channels.

MON TUE WED THU FRI SAT SUN

Channel 5

20:00-21:00 20:00-21:00 20:00-21:00 20:00-21:00 15:00-16:00 9:00-10:00 9:00-10:00

20:00-21:00 15:00-16:00 15:00-16:00

20:00-21:00 20:00-21:00

Channel 8

20:00-21:00 20:00-21:00 20:00-21:00 20:00-21:00 15:00-16:00 9:00-10:00 9:00-10:00

20:00-21:00 15:00-16:00 15:00-16:00

20:00-21:00 20:00-21:00

OKTO

15:00-16:00 15:00-16:00 15:00-16:00 15:00-16:00 15:00-16:00 9:00-10:00 9:00-10:00

20:00-21:00 15:00-16:00 15:00-16:00

The reason for the increase in the frequency of commercials towards the end of week is quite

clear. It allows us to expose advertisements and commercials to those families who prefer to

stay home during the weekends and relax themselves by watching television. The 8pm-9pm

time slot on weekdays can be considered as a prime time to advertise, seeing that during this


12

period, most of the kids and parents should be relaxing themselves after a long day at work or

school.

Frequency and Cost

The commercial will be advertising for 30 seconds, and cost S$1,000. Every week, we plan

broadcast 12 times for each channel.

(Number of weeks x 12 ads each weeks x advertising cost)

Channel 5 : 19 x 12 x 1,000 = S$228,000

Channel 8 : 16 x 12 x 1,000 = S$192,000

OKTO : 16 x 12 x 1,000 = S$192,000

Total advertising cost for television advertising equates to S$ 612,000.

10.3.2 Newspaper

Though kids are Froot Loops’ main target audience, we have identified their parents as the

key influencer and decider when making a decision. Newspaper advertisement can therefore

be used to distribute information to parents and influence their perception. Hence newspaper

such as Straits Times, The New Paper and mypaper will be utilized to advertise the brand.

Frequency and Cost

The newspaper ads will be advertise on Monday and Wednesday, while the cost of printing

the advertisement per quarter page in Straits Times is S$14,382, S$ 3,080 for mypaper and S$

2,400 for The New Paper.

(Advertising cost on Sunday and Wednesday) x number of weeks

Straits Times = (S$ 14,382 + 14,382) x 12 =S$ 345,168

myPaper = (S$ 3,800 + S$ 3,800) x 9 =S$ 68,400

The New Paper = (S$ 2,400 + S$ 2,400) x12 =S$ 57,600

The total advertising cost for newspaper is S$ 471,168.

10.3.3 Bus advertising

By placing advertisements on buses, it enables maximum exposure to consumers all over

Singapore. We have strategically chosen four bus services with the advertisements placed on

them. These bus services include bus service number 12, 198, 100 and 76. Bus number 12

covers from East to Central, while number 198 covers from West to Central. Bus number 100

covers from West to South and number 76 covers from North to East. This implies that the

buses will travel in all major areas in Singapore and this allows people in the neighbouring

areas to be exposed to the advertisement on those buses.

Frequency and Cost

The advertising will go on for 2 months in the month of June and December.

Bus Advertising Cost = $7,000 per bus service


13

Total Cost = Cost per bus advertisement x number of buses x number of months

= S$ 7,000 x 4 x 2 = S$ 42,000

10.3.4 Bus stop advertising

Keeping our target audience in mind, we decided to place advertisements only at bus stops

that are situated around primary schools and that are highly visible to kids within the area. By

selectively placing the Fruit Loops advertisements in such bus stops, we are able to grab the

attention of school children just before they reach school and immediately after they leave

their school compound. We hope that the brand would retain in the kids mind subconsciously

and Froot Loops will be the first breakfast cereal brand that comes to their mind. Similar to

the bus advertising strategy, we will spread these advertisements throughout Singapore, with

at least one in each area. We will have nine advertisements, running in the month of April,

May, July, August, October, November, January and February.

Frequency and Cost During the month of Advertising Areas

April, May

October, November

- Outside ChongZheng Primary School, East district

- Outside West Grove Primary School along Jurong West Street 72, West

area

- Outside Zhangde Primary School along Lower Delta Road, South area

- Outside Fuchun Primary School along Woodlands Avenue 1, North

- Outside Raffles Girls Primary along Dunearn Road, Central area.

July, August

January, February

- Along Tampines Avenue 2 and

outside Geylang Methodist Primary School along Geylang East Central,

East side

- Outside Queenstown Primary School along Margaret Drive, West area,

- Outside River Valley Primary School along River Valley Road, South

area

- Outside Horizon Primary School along Punggol Central Road, North

area

- Outside Raffles Girls Primary along Dunearn Road, Central area

Total Cost = Cost advertising per month x Area x number of months

= S$2,500 x 11 x 8 = S$ 220,000

11. Other IMC Activities

11.1 Sponsorship

Froot Loops can undertake public relations sponsorship by sponsoring Soccer academies that

trains kids of the age group three years old onwards. Early exposure to the brand can only

serve to increase their awareness of it and even persuade their parents to buy it for them. The

soccer academies targeted for this sponsorship would be JSSL Arsenal Soccer School,

Brazillian Jericho Soccer Academy and Fandi Ahmad Academy. We plan to print Froot

Loops brand name and logo on the kids uniforms for all the kids in the academy. Such high

exposure will allow kids to recall Froot Loops whenever they think of breakfast cereal


14

brands(top of mind awareness). At the moment, the uniforms of these suggested academies

are largely untouched by sponsor logos and they occupy the lion’s share of the market in

youth soccer training academies. In addition, these academies suggested all have websites,

thus links to the Froot Loops website and advertisements can be prominently displayed in

them.

The printing of jerseys is an irreversible process and Froot Loops tends to benefit in the long

run as only a lump sum has to be paid, and the brand exposure through the printing on the

jersey is for a relatively long time. Furthermore, there is regular exposure, with the kid

definitely having to wear the jersey at least once a week for Soccer training.

Other than increasing brand awareness of Froot Loops, this sponsorship also allows the

product to be associated with a healthier lifestyle by playing Soccer. This would align our

marketing objective to change and dispel the negative consumer perception of Froot Loops

being unhealthy junk food.

These academies will be given incentives for them to undertake the publicizing of the brand

and name of Froot Loops These academies exist primarily to earn profits and thus if the right

sponsorship sum of money is offered to them, it is very likely that they would agree.

Cost of sponsorship

A sum that can be offered would be the paying S$2,500 to the academies per 100 sets of

jerseys printed with the Froot Loops logo and name. This is inclusive of the printing cost of

$5 per jersey. Altogether, we will budget S$20,000 to get 800 jerseys printed.

Cost = Cost of sponsorship per soccer academy x number of soccer academy

=S$ 2,500 x 8 soccer academy = S$ 20,000

11.2 Event Marketing

An event will be a three day competition to draw Toucan Sam, the mascot of Froot Loops

breakfast cereal. The location will be at road show near Toy R’ Us Vivocity (the flagship

store in Singapore), where we targeted the kids who are walking around the area as the


15

contestants. The eventual winner gets a S$500 Toys R’ Us cash voucher, with the first and

second runners up getting S$300 and S$100 respectively. The event would be held from the

weekend of the 21st to the 23rd of December from 10am to 8pm on those days, nearing the

Christmas period where the human traffic at Toys R’ Us is the highest as this is the season to

purchase Christmas presents. This would be effectively targeting the 5 to 11 years old age

group as they form a large part of the toy store’s client. Also, by having this contest, the

image of Froot Loops being fun and colourful is also put across, with the various colours used

and children having fun drawing and using different colours.

In order to create awareness a Toucan Sam mascot will be around the scene, to encourage the

kids and have fun with them while they are trying to come up with a nice drawing. An

emcee will be hired to talk about how nutritious Froot Loops is over the speaker, broadcasting

the message to parents who are walking about, who might consider purchasing it for their

children. This is also part of our aim to promote the nutritious values of the product. The

presence of the booth will increase product awareness and the drawing of the Toucan

Sam will definitely increase the emotional attachment, and creating the fun factor; it is shown

by the mascot and the children enjoying draw and coloring the mascot out.

In the end, we publicize our Froot Loops Facebook page at the event by ensuring that

kids who take part in the contest ‘like’ the page using their or their parents’ Facebook

account. To ensure this, the winners of the contest will be announced via the page.

Also, the pictures drawn by the kids will be uploaded to the page and they will be

tagged, creating attention for Froot Loops as the kids and the parents’ friends would

be able to see their drawings of Toucan Sam and maybe attracting them to like the

page as well.

Cost of Event Marketing

Prizes given out: $900 (cash vouchers)

Venue rental: $5000

Emcee: $200 per day

Mascot: $100 per day

Students as temporary staff

to run the event: $60

Audio system: $500

Tables and chairs: $300

Materials

(Drawing paper, Coloring tools, drawing tools): $200


16

Total Costs $ 7,260

11.3 Sales Promotion - Bonus gifts

A colourful spoon will be packaged with every 350 gram Froot Loops pack. Six different

coloured spoons will be available colours which includes red, orange, pink, blue, yellow and

green. This promotion will attracted kids to purchase Froot Loops products from the month

of February to March. The limited time offer while the supplies last. Basically, the percentage

value growth of children’s breakfast cereals increased by 19.92% from 2006 to 2011 in total.

Thus, the promotion will encourage consumers to support Froot Loops, which base on the

increase of children’s breakfast cereals demand. The 350 gram pack will still maintain at

usual price $ 5.45 so that kids not only can enjoy their favourite cereal, but also have fun to

collect these colourful spoons.

The bonus gift cost = Price per spoon x Number of spoons

= S$0.5 x 10,000= S$5,000

11.4 Sales Promotion - Scratch and win coupons

From July to October, Kellogg’s will have a new sales promotion, namely the scratch and win

coupons. A coupon will be inserted inside each packet of cereal. Consumers will scratch the

silver layer on the coupon to discover which prize that they have won. There is one grand

prize and five other categories of prizes. They can also text their coupon’s code to Foot

Loops’ telephone number, which is +65 9766 6676 to submit their entries for the grand prize

with the message being free of charge. This gives them another chance of winning something,


17

regardless of whether they have won in the initial scratch and win contest. Announcement of

the winner will be done via the official Facebook’s page.

Grand prize: 2 package travel to Hong Kong Disney Land 3Days 2 Nights for 4 Family

members, worth $1,600 which include 3D2N stay at Largos Hotel + Return Cathay Pacific

Airline Tickets + Return Airport Transfer + City Tour.

1st prize: 50 Toucan Sam Cameras 2nd prize: 100 Foot Loops bags

3rd prize: 500 Froot Loops’ T-shirts 4th prize: 1000 Froot Loops 42gram (travel packet)

Travel package cost = S$1,600 x 2 = S$ 3,200

Camera cost = Price per camera x Number of camera

= $30 x 50 = S$1,500

Bag cost = Price per bag x Number of bages

= $15 x 100 = S$1,500

T-shirt cost = Price per T-shirt x Number of T-shirt

= $10 x 500 = S$5,000

Froot Loops small package = Price per package x number of package

= $2 x 1000 = S$2,000

TOTAL COST = $3,200 + $1,500 + $1,500 + $5,000 + $ 2,000

= S$13,200


18

11.5 Interactive Advertising –Facebook

Technology plays an importance role in advertising or searching for product’s information.

Nowadays customers prefer to search for information online rather than reading the

newspapers or magazine. So marketers cannot ignore the usefulness and importance of online

advertising. Froot Loops created a Facebook page where consumers can easily to find out

information about Froot Loops products as well as which sales promotion programs at

specific period. Moreover, people can share their experiences or opinions along with

suggestion about Froot Loops. All the information as well as sales promotion programs,

promotion winner announcement are up to date. Children can log in Facebook and have fun

with various ranges of educated stories or short firms as well as games that they can enjoy

reading or playing through Froot Loops page. All of this features will be provide free of

charge. Facebook were arranged attractively with convenience information heading at the left

column which are Info, Newsletter, Photos, Stories and Games, Videos, Twitter, Contest and

Promotion.

11.6 Publicity

Gaining publicity through cause related marketing is one way to help Kelloggs Fruit Loops

enhance their current brand image. By aligning the brand with non-profit organization, it can

thwart negative publicity as consumers have favourable attitudes towards cause-related

marketing.


19

The Save Africa’s Children (SAC) is one of the non-profit organizations that support and care

the orphans and vulnerable children affect by HIV/AIDS, poverty and war throughout Sub-

saharan Africa and the Caribbean. Currently SAC have several on-going projects, such as the

building of community schools, church and clinic. They also have the support to celebrities

such as Denzel Washington, Kanye West and Ray Romano. We feel it would be an ideal

choice for Fruit Loops to partner up with SAC, giving aid to the children as kids are the

primary consumer that the brand is entailing.

One way Fruit Loops can get involved would be to implement a system so as when every box

of Fruit Loop purchase (350g, $5.45), Kelloggs will donate 20cents to the children in Africa.

The money donated will go to the funding to set up schools and a proper education system for

the kids there. By letting consumer know that donations by Kelloggs will be given whenever

they purchase a box Fruit Loop, it allows them to feel as if they have played a part in

participating for a good cause. This event will be publicised on Froot Loops’ cereal box for 2

months during December till January, where holidays such as Christmas would encourage

people to engage in charitable acts to give back to society.

12. Evaluation and Control

Evaluation Method Corrective action

Sponsorship - Exposure of brand

- Ensure that academy makes

kids wear their printed jerseys

every week

- Ensure that academies get

existing students’ jerseys

printed with logo as well


20

- Change sponsored academy

if plans do not work out

Event Marketing - Response to competition

- Increase the attractiveness of

prize to higher values

- Change venue

- Change aggressiveness of

promoting the contest to

children in the vicinity

Bus and Bus Stop

Advertisements

- Exposure of brand to

consumers and potential ones

- Change number of buses and

bus stops advertised on

-Adjust size of advertisement

Traditional media

(Television and Newspaper

advertisements)

-Exposure of brand to

consumers and potential ones

-Viewership

-Change frequency of

advertisements

-Change length/size of

advertisements

-Change way the message is

put across

-Change color scheme to

attract attention

Sales Promotion (Bonus

Gift/Scratch and Win)

-Response of consumers -Change of free gifts or prizes

to more attractive ones

-Increase awareness of

promotion

Interactive Advertising-

Facebook

-Number of ‘likes’ of page

- Response to activities on

page

-Advertising on Facebook to

promote page

-Adding on of page link to

various advertisements

-Increase in fun factor of

activities

Publicity - Change in perception of

Froot Loops and Kellogg’s by

consumers

-Increase in publicity of

campaign

-Increase in scale of donation

imc plan to be printed

Documents