EXECUTIVE SUMMARY

Cereal Run is an improvised product line made out of the cereals offered by the Kellogg
Company e.g. Rice Krispies, Frosted Flakes and Coco Pops and also milk powder that can be
mixed with either hot or cold water. The product is mainly marketed to students and working
adults due to its function of being easy to eat while on-the-go. The product is classified as a
convenience product. Thus, it is marketed using the wholesale channel and distributed
intensively. This is done in order to make sure that the product is available to most of the
consumers in Malaysia.

The product packaging is hassle-free. In the Cereal Run packaging, both persuasive and
informative labeling are used in order to educate the consumers on what they’re consuming
and simultaneously position the product in the customers’ mind. The product is also offered
in mini size and big size where the mini size is suitable for children and the big size is
suitable for an adult’s portion. Cereal Run is expected to last for 2 years after the date of
manufacture. 

Cereal Run is marketed using the Internet where a lot of consumers will notice the
product. Other than that, we will also use a point-of-purchase display alongside product
samplings in supermarkets to make the consumers curious and hence buy the product.
Coupons are also offered to the customers who purchase Cereal Run in a large quantity.
Cereal Run will use a price skimming strategy as Kellogg Company is the first one to
introduce cereal and milk in a bowl to the Malaysia market. 

The Cereal Run line still has limitations that can be improved by the company. The
limitations are the current product line does not include healthy cereals, there is a possibility
that the milk mixture does not taste the same to the consumers as it should, the milk powder
is easy to be spoiled, the milk powder originated from dairy sources and the current
manufacturing cost is high. These limitations can be improved by the company in the near
future with multiple strategies. Overall, the Cereal Run product can be a huge success if
marketed properly among the consumers. 
SEGMENTATION

The target market for Cereal Run are students and working adults of all genders.
Kellogg Company chose this target market because the main function of the product is to
help people to be able to eat breakfast anywhere and it has the potential to receive high
demand from both of these market segments. These segments have hectic lifestyles and do
not have the time to sit and eat proper breakfast due to rush hour most of the time. Therefore,
Cereal Run which is produced in a light and hassle-free packaging, is a perfect fit for them as
it can be taken to class, school or workplace.

 In dividing the total market to achieve the target market, three segmentation bases are
used by the company. Firstly, the company uses demographic segmentation. People in the age
range of 7 - 60 years old are targeted to be our potential customers. This is because
Malaysians have to go to government school mandatorily at the age of seven and the
minimum age for retirement is at 60 years old according to the Minimum Retirement Age Act
2012. Therefore, the people in the age range are confirmed to be going to school and work on
weekdays. In order to gain energy to start the day, the consumers have to eat breakfast.
Cereal Run enables the consumers in this age group to be able to eat breakfast while on-the-
go. 

The second segmentation that the company uses is geographic segmentation. We target
people who live in urban areas such as Kuala Lumpur, Selangor and Putrajaya. People who
live in urban areas, especially Kuala Lumpur, often have to experience traffic congestions
every day while commuting to their study place or workplace. The traffic congestion in Kuala
Lumpur gets worse during rush hour where it increases from an average of 28% to 46% in the
morning and 63% in the evening stated by TomTom Traffic Index. Thus, the people in the
urban areas have limited time to eat their breakfast in the morning because they have to rush
and avoid getting stuck in a traffic jam. With Cereal Run, these people do not have to worry
about not eating breakfast properly as they can just pack the product into their bags and eat it
either in the car, at school, university or workplace. 

The last segmentation that the company uses in determining the target market is
psychographic segmentation. The company targets people who have busy lifestyles and are
always on the go as our potential consumers. People who have busy lifestyles such as
auditors or medical officers often do not have the time to sit down and eat a proper meal. A
research conducted in Minnesota stated that 30.6% of males and 38.4% of females who
worked for over 40 hours per week agree that the reason why they were unable to eat a
healthy meal was because it was hard to find time to sit down and eat a meal.  With Cereal
Run, the user only has to mix the milk powder with hot or cold water and pour the cereal
pack into the bowl to eat it. It also comes with a folded plastic spoon. The product can be
prepared in just one to three minutes. These people can fill their stomachs quickly and resume
their daily activities without taking too much time out of their schedule.

The company is planning to use multi-segmented targeting for our target market
selection strategy. The total market is divided into two which are childrens in one,and
teenagers and adults in the other. Cereal Run is marketed differently to the segments. Kellogg
Company markets Cereal Run as a fulfilling snack alternative for the children segment and it
is produced in mini size which is suitable for the segment. Meanwhile for the teenagers and
adults segment, Cereal Run is marketed as both a convenient breakfast alternative and a
fulfilling snack alternative. It is produced in big sizes which are suitable for their portions.