Friday 14 October 2011

Conclusion Comparision

Comparing Diesel to Kelloggs, there are many similarities and differences between them within the marketing strategies. Both companies choose their target audience, based on the product. The difference between Diesel and Kelloggs is that Diesel based their business on a 'dynamic lifestyle' whereas Kelloggs had a variety of children's cereals, as well as more mature, healthy option cereals.

Customers are key to both companies. Without the stakeholder, they would not have survived. Relationship marketing is important because it engages individuals to become lifetime customers to each company. Diesel have a more formal and individual approach when dealing with customers, even though they are a transactional marketing company. Keeping customers happy and returning is what Kellogg's concentrate on. Kelloggs do not have stores that customers can visit. Kelloggs products are in leading supermarkets where customers can choose from a variety of their products. Relationship marketing for Kelloggs is put across by a more informal way, including emails and texts.
This is still a good way of attracting existing customers.

Both Kelloggs and Diesel do not have a diverse product line, but each have their own way of branding their products. Colour and pictures for children cereals, fashionable photography for Diesel.

Consumer Protection Act

The Consumer Protection Act provides a right of 'compensation' for defective goods and protects the consumer against misleading pricing. As internet shopping is increasing, this act protects online shopping as well. It covers:

Consumers must be given clear information
purchases must be confirmed by the supplier
consumers must be given time to change their minds about the purchase


If the consumer of the product is satisfied, the the relationship marketing between the company and the customer will be at a high level.

Legislation


The Sales of Goods act is the first legislation that has an impact on marketing activities. Sales of Goods means that if any product is sold, it has to be sold how it has been advertised, matching the labels on the product packaging. All prices and labelling have to match the product.


Forr Diesel, if prices were lower, and matched up wrong, Diesel would then lose out on profit because they have labelled a product wrong. For Kelloggs, sell by dates, and nutrition values must be correct. If they promote a cereal that has 1 of your 5 a day inside, the product must have the correct nutritions to equal the value on the box.

Consumer Protection from Unfair Trading means misleading activities from a brand or intrusive commercial methods. Every individual customer has a right not to be hassled by a company or pester them to buy products. All staff need to be fair and friendly to each customer that enters the stores and to solve each query that they have.

All staff members of Diesel have the right information and knowledge they need to know to give the best customer service that they can give. As Kelloggs is not a specific shop, Kelloggs do not have staff that meet all customers of their business. By having online websites that you can sign up to, all customers have a right that Kelloggs will not harass them through email or phone calls to force them into buying their products.

The role of the ASA (Advertising Standards Authority) is being in charge of all the uses of media in the UK. ASA makes sure that they are legal and truthful.

The ASA regulate with a lot of forms of advertising. They seem to regulate sales promotions, special offers, magazines, leaflets, brochures, television shopping, DVD, Email, SMS and most commonly through normal TV and radio. The ASA avoid advertising through the likes of credit cards, telemarketing, political advertisment and in some cases do not regulate medical advertising.

A voluntary code is a code of practice that you is an essential in order to advertise through your chosen strategy. The code says that no offensive or aggressive language should be used in the advertisment. These include Religion, Sex, Age, Race and Disability.

'Drinkaware' is a campaign that highlights facts about drinking responsibly through the use of advertisments and a website. Drinkaware are always helping to change the way people consume alcohol. Drinkaware has raised approximately 5.2 million pounds in funding from bars, clubs, pub and alcohol industries.
Kellogg's cereal can be known for containing sugar in their sweeter products including Frosties. It has been discussed about issuing a ban on advertising unhealthy food to children during cartoon and entertainment programme intervals. It also talks of banning promotion within schools with the use of celebrities and cartoon characters. All of this relates to Kellogg's, because they are known to advertise their cereal between children’s shows and use phrases like "A great snack for after school" for coco pops.

Thursday 13 October 2011

Value of a Lifetime Customer

The value of a Lifetime Customer is very important to both Kelloggs and Diesel. This is because the customers are more likely to spread the word about how trustworthy and loyal the companies have been to them, so they work as 'promoters' and advertise the brand. By having such loyal customers it make it hard for new rival businesses to survive in the economy because if customers are satisfied with the services of Diesel and Kelloggs, there would be no need for any loyal customer to try new products. Different companies reward long time customers with different rewards. Kelloggs reward customers with coupons or vouchers. Diesel on the other hand, have a 'Diesel Cult Card' which allows customers to accumulate style miles which can be swapped for gifts.Also, invitations to parties an pre sales events. Lifetime customers can benefit from them and purchase brand new products, before release date. This can build the relationship between the customer and the company and to keep Diesel customers happy and loyal.

Wednesday 12 October 2011

Transactional Marketing

Transactional marketing is a business strategy that focuses on single transactions. The aim is to maximise the  volume of individual sales rather than building a relationship with the customer. The difference between transactional marketing is that it focuses on getting the customer to buy a certain product, whilst relationship marketing sees the sale as the first step in the building of a relationship and continues to engage the customer in a formal way.

Pictures of Kelloggs Brands



Ansoff Growth Matrix for Diesel

Market penetration.

Diesel use market penetration as their main growth strategy. This is because of the dynamic lifestyle that have portrayed with the products. The customers trust the quality of the products and the formality of the company. Diesel promote the company to their existing customers who know the products well.
















Product development.

When developing products that already exist, the customers you often buy from Diesel can experience improved products that have been on the shelves before. By improving products, existing customers can build their marketing relationship with Diesel.

Market development

Finding a new target audience can bring in more customers to their lifestyle brand. Using existing products to a new audience in a new region can increase the reputation of the company and could also, like Kelloggs, increase the profit at the end of each year.

Diversification

If Diesel were to produce a computing range, this is the diversification for their company. This is because it is not a normal product that Diesel sell and is also not part of the 'dynamic' lifestyle.

The 4 areas of the Growth Matrix

Market penetration  – current products and current markets
.

Product development strategy – new products and current markets
.

Market development strategy – current products and new markets
.

Diversification – new products and new markets


For Kellogs
Market penetration for Kelloggs is aimed at existing customers or other customers that buy rival products, similar to Kelloggs. By promoting their market to their existing customers with extra value, the relationship between the company and the customers will be a great way of engaging the customers to stay,


Product Development
Kelloggs develop and improve their existing products, for example less sugar in a specific cereal. This means the relationship between existing customers and the company can increase if it satisfies the customers needs or wants.


Market Development
Kelloggs products range from children cereals to adult cereals. For Kelloggs, market development can find a new target audience and pitch a new product to them. This can bring in more customers and a higher profit after each year.

Diversification

Cereal bars and snacks were a new range of products for Kelloggs. For example, 'Nutri Grain Bars' were created as a healthy 'on the go' snack which is healthy and a third of the recommended whole grain amount each day. By creating a new product to a different audience, the more customer relationships Kelloggs can build. In more depth, if Kelloggs were to, for example, make a clothing brand, this is a completely diverse strategy. This engages completely different customers that appreciate fashion.


What is Growth Matrix?

Gtowth Matrix, otherwise known as Ansoff's Matrix is the framework for identifying coparate growth. In the growth matrix., there are 4 main areas. These are diversification, market penetration, market development and market development.

Relationship Marketing for Kelloggs

As a company, Kelloggs have different ways of attracting customers to buy their variety of products. A new strategy has been created with 'Augme Technologies' to engage with the customers via text. This is a modern way on interacting and informing customers of the company and building a more formal relationship with each and every customer. This is an excellent way of communicating with Kelloggs customers which then engages the customers to experience new or improved cereals that have recently been produced.




Comparing both comapnies within relationship marketing, Diesel is more of a brand subjected to a certain lifestyle whereas Kelloggs is more a family based brand.

Tuesday 11 October 2011

Pictures of Diesel Brands



Transactional Marketing for Diesel

When talking about the transactional marketing strategy, it means focusing on single transactions In every business, keeping the customers happy and interested is key to the company's success. Diesel concentrate on individual sales, rather than building up a relationship with the customer. When customers leave a Diesel store, the staff want them to be satisfied but do not have a relationship with the customer as an individual, but buying their products regularly.
By expanding the business, each individual customer have a wider variety of products to choose from. This means more and more customers would be intrigued into the different products designed by Diesel. This is a strategy which is linked in with the relationship marketing. This is called brand extensions. Brand extensions is expanding the range of products available to the customers. The wider the range, the more likely customers are to return or experience their newer products. By having a strong and trustworthy relationship with each and every customer, they are 'out doing' other leading brands.

Branding For Kelloggs

The marketing of Kellogg's and the creation of some of their individual brand names has been key to the company's success. Kelloggs have specific cereals for each target audience. Colourful, extravagant pictures (including 'Coco Pops) for the child audience and more mature and formal packaging, for example, 'Special K', for the adult/motherly cereal.




Branding For Diesel

You might be wondering what branding actually is. Branding is the promotion of a particular product or service by advertising and distinctive design. Diesel and Kelloggs both have brands.


Diesel have a very clear brand. Within the whole company, Diesel have the 'Diesel Kid' brand within the company. Diesel have a specific lifestyle brand for their customers. If a 'dynamic' and fashionable lifestyle is you, then the Diesel brand is the right way forward. This shows that Diesel have done their job, and found their target audience.

The Market

When starting up a new service or product, making sure the market is right is a very important part  of marketing.The target audience is key when marketing. For example, a brand new make up range would not have men as the target audience.

Monday 10 October 2011

Introduction to Marketing

Marketing means the action of business, either promoting and selling products/services, including market research and advertising. Marketing have different techniqiues which are being used for both Kellogs and Diesel. These include branding, relationship marketing and growth matrix.