A marketing analysis / proposal of how to broaden Special K's target consumer audience

1. Executive Summary
Introduction
In the 1950s, Kellogg Company released the Special K cereal, which became the
first-ever high protein cereal in the market. In the last decade, Special K has greatly expanded its
product line to include cereal bars, protein bars, protein waters, shakes, pastry chips and
breakfast sandwiches. It offers a total of 53 different products. In addition to this, Special K
focused its target market to be women who are fitness-conscious and are trying to lose weight.
The key competitors for Special K include General Mills, Nestle and Quakers who also have
breakfast cereal brands and diet products. All of these products have been a response to the
trends in the market where people are looking to consumer more “better-for-you” foods. Due to
this trend in the market, Special K and other weight-loss, nutritional breakfast products have
been able to see a high revenues and growth.
Marketing Plan
Special K is a leading cereal brand in the market with 34% of market share in cereal
products. Its strengths include its growing revenue as well as their strong brand equity. Special K
under Kellogg Company is a well-known and trusted consumer brand. In addition to this, Special
K has been able to implement a successful marketing strategy to target women who are
shape-conscious. Special K’s weaknesses include its narrow target market that doesn’t include
men. Because of this, Special K misses many potential consumers because it fails to target men
at all. This sets up a clear opportunity for Special K to broaden its target market to include men
who are also interested in high protein diets and weight loss plans. Some threats that Special K
faces include macroeconomic risks such as rising oil that drive up the cost of manufacturing.
Special K has a well-defined target market, which is made up of young to middle-aged
women who are interested in losing weight. The women in the target market are looking for a
quality product to help them with their weight loss goals. Because of this, all of the advertising
highlights Special K’s benefits and how it will help these women achieve their fitness goals.
Marketing Mix
Special K’s product life cycle survived a potential decline 10 years ago by extending the
product line and narrowing their target market. It’s currently between the growth and maturity
stages of the product life cycle. In addition to this, it seeks to be positioned as a women’s cereal
product that is healthy and high in nutrients. It uses a target pricing strategy and therefore is more
expensive than the average cereal. This is due to their target market who are women willing to
pay a little extra for a quality product. Furthermore, Special K uses an indirect marketing
channel.
Special K’s advertising includes different types of media all with the goal of showing
women the benefits of Special K in helping them achieve their weight loss goals. It uses print
media, social media, television commercial and billboards to show the benefits of the products.

2. Most advertisements include women in red, which is representative of the entire Special K brand.
Furthermore, it uses different campaigns such as the “Special K Challenge” and the “Protein
Effect” campaign to encourage women to take up their fitness goals with the help of their wide
range of products.
Recommendations
The objective of the marketing campaign we propose for Special K is to begin marketing
the product line to male consumers, while retaining the base of female customers loyal to the
brand. Targeted advertisements will appeal to couples--men and women--and the focus on the
benefits of eating Special K as part of a balanced diet. To appeal to both genders, the products’
packaging will be altered slightly, removing feminine curves from some of the artwork while
continuing to model the packaging design by the texture and appearance of the specific product.
Rebranded Special K will remain at the same price point as before, which represents a
target pricing strategy serving high-end cereal customers. Promotions will display the benefits of
a Special K diet, with new targeted slogans aimed at men and women individually, as well as
couples. With a growing base of male consumers, Special K will have new opportunities for
cross-promotion with companies serving a male market. The product line will be distributed
through existing channels while spreading further into shelf space occupied by protein bars like
Clif and Powerbar as well as stores like GNC that specialize in vitamins and nutritional
supplements.
Introduction
Description of Product
The Kellogg’s Special K brand is a rice and wheat blend cereal product classified as a
low-fat weight loss meal supplement. Special K products are designed to promote a reduced
feeling of hunger by increasing daily intake of protein and fiber ˡ. Kellogg’s offers 53 Special K
products under 3 main categories (cereals, bars, and shakes) and 3 minor categories (crisps,
water mixes, and breakfast sandwiches). More specifically, the products that fall under the 3
major categories are cereals, protein shakes, and a variety of bars which include cereal, meal,
snack, and granola bars. The products that fall under the 3 minor categories include crackers,
chips, pastry crisps, protein water mixes, and flatbread breakfast sandwiches.² The Kellogg’s
Company offers a total of over 221 products through a multi-branding strategy that includes
names such as Eggo, Nutri-Grain, and a wide variety of household breakfast cereal favorites.
Brief History
W.K Kellogg and his brother Dr. John Harvey Kellogg founded Kellogg Company in
1906 after they co-invented the flaked cereal. It began solely as a breakfast cereal company but
throughout its existence, Kellogg has greatly expanded their product line. In addition, the
company currently maintains a global presence and is headquartered all over the world. Today,

3. cereal only represents 53 percent of Kellogg’s worldwide sales (3) . The rest comes from a mix
of snacks and other grain-based foods. However, Kellogg Company continues to carry forward
the legacy of the company's founders by providing consumers with “great-tasting, high-quality
foods.”
In the 1950s, Kellogg released the Special K cereal which became the first-ever high
protein breakfast cereal offered to consumers. It was the first cereal to offer seven vitamins and
iron together. In 2001, Kellogg introduced cereals with freeze-dried berries to North America
after its success in Great Britain and France. By 2002, Kellogg's cereals with freeze-dried fruit
generated almost $100 million in sales for the company, surpassing its freeze-dried fruit cereal
competitors (4). Because of the cereal’s success, Kellogg took the opportunity to expand Special
K’s product mix to include cereal bars, pastry crisps, meal bars, snack bars, granola bars,
crackers, chips, protein shakes and protein waters.
Recent Sales/Profit History
In 2011 Kellogg’s posted net sales of $13.2 billion , which minus expenses, generated a
net income of $1.23 billion (5). Sales have increased considerably over the past 5 years from
$10.9 billion in 2006, providing approximately 21% growth (6). Kellogg’s revenue streams are
exhibited on the right where the company’s North American offerings generate about two thirds
of total revenue. Profit gains have paralleled sales growth over the past 5 years, rising 22.6%
from $1.004 billion in 2006. Kellogg’s earnings have beaten the market over this 5 year period as
the S&P 500 Index indicates a decline of 1.23%(7). (Refer to Appendix A).
Key Competitors
The key competitors to Kellogg are General Mills, Nestle, and Quaker. General Mills and
Nestle both compete with Kellogg’s breakfast cereal lines as well as its diet products. For
example, General Mills has had immense success with its Cheerios franchise and its Fiber One
brand. This led Kellogg to respond competitively with the development of its Fiber Plus product
line(8). In addition, Nestle’s 14 Day Fitness Challenge rivals the Special K challenge (a two
week diet that advertises considerable weight loss from the consumption of Special K products
and exercise). Nestle’s 14 Day Fitness Challenge currently maintains a larger global presence
than the Special K challenge. Kellogg’s final competitor, Quaker, also has considerable revenue
streams from breakfast and diet foods, especially oatmeal(9). Kellogg and Quaker have many
similar products such as cereals, granola, and fiber bars. Like the other competitors, Quaker
markets the nutrition of its products as a key benefit. While all four companies claim that their
own products are the healthiest on the market, similar goods and prices between the corporations
provide for an extremely competitive marketplace.
Industry Overview / Trends
With an industry revenue total of over $11 billion(10), the cereal and breakfast foods

4. market in the United States is a rapidly growing segment in which there are many options and
competitors for consumers to choose from. Among the companies that sell cereals, Kellogg
Company owns the greatest market share. This is due to their extensive cereal product lines and
domination of the toaster-pastry and snack chips industries. Cereal bars, however, are a widely
underrepresented market with strong growth potential.
Many of the products currently being offered by cereal companies are “BFY”, or
“Better-For-You” food items that are taking the nation by storm and experiencing high growth
rates. Over the past several years, breakfast cereal manufacturers have been pressured by
consumers to lower sugar and sodium content while boosting protein and fiber in their products.
This trend comes as a response to consumer frustration over unhealthy cereals and deceptive
nutritional claims. Cereal packaging increasingly displays claims of high levels of protein and
fiber, along with suggestions that the product will lower one’s risk of heart disease, diabetes, or
other related illnesses. Sales growth for Kellogg’s over the past five years reflects this market
trend in demand for nutritional and authentically-branded cereals.
Overall, the breakfast cereal industry is stable and has modest rates of expected growth,
tight competition, and high barriers to entry. Rising grain and oil (transportation) prices exert
upward pressure on cereal prices, and further uncertainty in markets for cereal-producing
commodities will have broad effects on prices moving forward.
Marketing Plan:
SWOT Analysis ​(Refer to Appendix B)
Strengths
Special K is one of the leading cereal brands in the market and its success can be linked
to a variety of factors, including its strong brand equity. Special K under Kellogg Company is a
well-known and trusted consumer brand with more than 100 years of experience. Kellogg
Company also holds the highest market share among its competitors with 34% of the market
share in cereal products​[i]​. In addition to this, the company has generated increased sales over
the past 5 years. In the last quarter alone (3rd quarter of 2012), the company’s sales increased by
12%​[ii]​ According to CEO, John Bryant, this is due to the new proactive approach implemented
over the last two years instead of the former receptive approach​[iii]​. Furthermore, Kellogg
Company has a strong international presence and its products are marketed and sold in more than
180 countries around the world. This essentially adds to the product’s geographical diversity​[iv]​.
Because of this, the company will not be seriously hurt by economic problems exclusive to one
market or country.
In addition, Special K’s strengths include its clear and comprehensive advertising
strategy, which highlights the benefits of the product. Special K has used its weight loss focus to
promote its product during different stages of the purchase decision​[v]​. In the pre-purchase
decision, consumers can access the Special K website to create a weight loss plan which

5. incorporates the different Special K products. In the post purchase decision, Special K
encourages consumers to share their weight loss progress through social media websites like
Facebook. The current Special K Facebook page currently has around 870,000 likes​[vi]​. This is
important because it creates a strong community base as well as giving brand ambassadors a
platform on which to share their experiences with the products.
Weaknesses
Kellogg Company recognizes that the company has had many supply-chain problems,
which have cost the company a significant amount of money over the last few years. This year,
Kellogg had to recall some of its products due to a malfunction in the equipment with which the
company has been long familiar​[vii]​. In 2009, one of Special K’s protein bars also had to be
recalled for similar reasons. This has caused Kellogg to begin to update its worn-down and old
equipment as well as hiring more employees to supervise manufacturing. Both these things add
to the cost of production and therefore undermine the company’s profits.
Another weakness that Special K faces is its narrow target market by which it loses a
number of potential customers. In the last ten years, Special K has focused solely in developing
the women’s market and aiming all advertising towards women who are shape conscious.
However, Special K is a great-tasting product that is high in nutrients and also appeals to men.
Special K’s female-targeted advertising alienates itself from men where it should really begin to
exploit its potential.
Opportunities
The growing demand for high-protein cereal products presents an opportunity for Special
K. Within the past several years, the Special K product line has diversified considerably.
Reviewing the recent product extensions (including Special K protein shakes, protein bars,
breakfast sandwiches, even protein water mixes), it is clear that Kellogg’s has successfully
harnessed this trend. As this pattern may continue for some time, Special K will have room to
grow its high-protein product line and experiment with new products while sales in this area can
be expected to continue growing.
Special K has a unique opportunity to expand its sales into the male market. The average
male requires a diet slightly richer in protein than women; yet while men may be drawn to
high-protein Special K products, they might also be deterred from buying by the feminine
branding on the package [viii]. Though Special K products are consciously marketed to women,
a more holistic and male-inclusive marketing strategy, perhaps one targeting couples trying to
lose weight, could vastly increase Special K’s sales by capturing the male market.
When Special K users feel better and achieve their personal fitness goals, opportunities
arise for cross-promotion and expansion of the brand’s goodwill. In a 2009 promotion, Special
K boxes contained coupons redeemable for a $10 discount towards a new pair of jeans, a
purchase which is emblematic of the weight loss promised by the product. Current promotions

6. offer Special K users chances to win fitness equipment light weights and yoga mats. Companies
selling clothing, nutritional supplements, and skincare products may want to offer
cross-promotional deals with Special K, which would further boost Special K’s credibility
among health-conscious consumers as related companies can generate sales through Special K’s
nutrition program users.
Threats
Competition among cereal manufacturers remains tight, as companies search for new and
innovative ways to differentiate their products. Competitors like Post and General Mills will
continue to offer products similar in nutritional value to Kellogg’s Special K. Failure to adapt to
their competition could put the Special K line at risk, especially given the prevalence of similar
cereals in the market, few of which are marketed exclusively to women.
Economic factors like rising commodity and energy prices have driven up production
costs for cereal manufacturers, and that trend is likely to persist for some time. If brand name
cereal products like those offered by Special K grow even more expensive, customers may
switch to more cost-effective breakfast alternatives like eggs and toast, or “bagged,” private label
cereal products that are available for much cheaper. Rising oil prices can compound these
factors by making the transportation of grains and other raw materials far more expensive.
Another threat is the criticism that cereals like Special K use additives to reinforce
nutritional content. Critics question the safety of habitually consuming excess amounts of
vitamins and minerals—perhaps most notably metallic iron—present in many popular breakfast
cereals. One unflattering research study or consumer report could substantiate a shift in public
opinion away from cereal products like Special K.
[i]​ "General Mills (GIS)." Stock:. Wikinvest, n.d. Web. 27 Nov. 2012.
<http://www.wikinvest.com/stock/General_Mills_(GIS)>.
[ii]​ Ziobro, Paul. "Kellogg Profit Rises on 12% Sales Increase." Wall Street Journal. N.p., 12
Nov. 2012. Web.
<http://online.wsj.com/article/SB10001424052970204712904578092530739624850.html>.
[iii]​ ibid
[iv]​ Guenette, Ryan. "Kellogg: Strengths, Weaknesses, Opportunities, Threats." The Motley Fool.
N.p., 13 Nov. 2012. Web.
<http://beta.fool.com/makinmoney2424/2012/11/13/kellogg-strengths-weaknesses-opportunities-
threats/16365/>.
[v]​ "Shopper Solution Of The Month (October) Special K." Shopper News Blog. Wordpress, 2
Oct. 2012. Web. <http://shoppernewsblog.com/2012/10/02/shopper-solution-october/>.
[vi]​ "Special K - Likes | Facebook." Facebook. N.p.. Web. 22 Nov. 2012.

7. <https://www.facebook.com/specialkus/likes>.
[vii]​ Ziobro, Paul. "Kellogg Profit Rises on 12% Sales Increase." Wall Street Journal. N.p., 12
Nov. 2012. Web.
[viii] ​National Academy of Sciences. Institute of Medicine. Food and Nutrition Board. ​Dietary
Reference Intakes: Recommended Intakes for Individuals. ​2010. Web: 27 Nov. 2012
Kellogg’s Target Market and Segmentation Bases
Kellogg’s offers a huge selection of products, ranging from cereals to waffles to
Pringles™ , and each product has its own target market. While most of the brands that Kellogg’s
offers cater to the same target market of parents who buy sugary snacks for their young children,
Kellogg’s Special K product line is clearly directed towards young to middle age women looking
to lose weight or stay fit. Their target market is almost exclusively shape-conscious females aged
20-45, which can be determined from common advertisements and public promotions. Recently,
Special K attempted to reposition its product line from “health and beauty” to “shape
management” [1]. To do this, Kellogg’s used multiple forms of advertisement to get women to
attempt the “Special K challenge” to promote weight loss. However, the predominantly female
target market is what our marketing team intends to change. Special K products, specifically
Special K cereal bars, are used by men around the country, but are not advertised as such.
The most current segmentation base for Kellogg’s Special K Cereal Bars is demographic,
focused on young to middle-aged women, likely to be either students or homemakers. Typically
these women are married or in a relationship, middle to upper class, who wish to lead or
maintain a healthier lifestyle. They are conscious about what they eat and how they take care of
their physical appearance, and they probably have influence over their family’s eating and
exercising habits.
Another possible method of market segmentation is psychographic; the women in
Kellogg’s psychographic segmentation base probably receive achiever for their VALS test result.
They are gregarious, outgoing women that enjoy time with friends and going to the gym. They
want to look good not just for themselves, but for everyone else around them. They seek a
quality product, and Kellogg’s Special K line provides them with a premium good for their
lifestyle.
Finally, the behavioral segment for Special K users are likely to be the type to respond to
direct marketing - once a woman in the target market sees an advertisement showing Special K’s
weight loss program, she is likely to go out and give it a try. Furthermore, the Special K brand
usage rate is likely to be quite high, because most users partake in the Special K challenge,
requiring them to replace two meals a day with a Special K product.
Kellogg’s currently has a very well-defined target market for the entirety of its Special K
product line. Television spots, print advertisements, and billboards all reach out to the masses
with the same idea that attractive, fit, exercising young women are enjoying healthy food. This

8. comes with a clear message: look good and feel good, all with the help of some Special K.
Marketing Mix
Product
Even though the Special K brand has been around for more than 50 years, it wasn’t until
the last ten years that Special K really took off. A decade ago, Special K was “really was a dying
brand” because it was “losing a lot of its luster and really needed to be rejuvenated” [i]. Special
K survived a potential decline because after conducting extensive market research, it decided to
extend its product line and to narrow its target market. This occurred after Kellogg’s market
research identified that the Special K’s strongest opportunity to develop the brand was by
targeting women who want to lose weight. Because of this, Special K launched many weight-loss
products accompanied by weight-loss campaigns, all of which helped extend the product’s life
cycle. Currently, Special K is still at a growing stage because the product line continues to be
expanded and as a result, it continues to bring in increasing sales revenue.
In terms of the perceptual map, Special K has aimed to put itself as a nutritious cereal
brand for females (Refer to Appendix C). This perception of Special K has been achieved by the
various marketing campaigns that the product has launched. For example, in a recent campaign,
Special K developed the “protein effect” campaign, which is a re-launch from the original
protein products in 2006. This campaign seeks to show women that a high intake of protein will
help them manage their weight[ii]. Therefore, a whole line of products have been added to
include high protein Special K cereals as well as protein shakes, water and meal bars. These
products aim to bring healthy, great-tasting foods to women who wish to lose weight and remain
fit. All of these programs and campaigns are advertised towards women and they encourage
women to take on the “Special K Challenge” and track their weight loss progress.
Pricing
Among Kellogg cereals, Special K is priced above the average cereal price. This is
because Special K seeks to emphasize itself as a high quality and specialty product [iii]. Kellogg
Company uses a target pricing strategy because it understands that their target markets are
consumers who are seeking fitness and health. Kellogg Company understands that their
consumers are women who are looking to lose weight. The target market is then willing to pay a
little extra for this specialty, great-tasting dietary product.
Distribution (Refer to Appendix D)
Kellogg Company uses an indirect marketing channel to distribute its products to
retailers. In a press release, Kellogg Company announced that Special K Protein products could
be found in the diet & nutrition, cereal and snack aisles of grocery convenience and drug stores
nationwide as of October 3, 2012[iv]. Beforehand, Special K products were only sold to major

9. retailers and could not be found in convenience stores[v]. This has been done in an effort to
make Special K Protein products seem more of a specialty dietary product than its competitors as
well as make Special K more accessible to its consumers.
Promotion
In order to effectively communicate with its current consumer target base, Special K®
utilizes a promotional mix consisting of advertising, personal selling, public relations, and sales
promotion.
Advertising within the Special K® brand involves print media, television commercials,
and online sites[1]. The promotional basis of the brand is the “Special K Challenge”, which asks
women to substitute 2 meals a day with a Special K® cereal, protein shake, or protein meal bar
in order to drop a jean size in only 2 weeks[2]. The color red is typically used throughout the ads
as a motif for a bold dieting choice. Print media is typically displayed in magazines oriented
toward women, and depict “real-life” women who are taking the “Special K Challenge.”
Television commercials highlight the weight loss factor of the “Special K Challenge” and
mention the benefits of the “Protein Effect”, which stresses the nutritional value of extra fiber
and protein in the products[3]. However, it is the social media side of the brands advertising that
has had the highest impact on consumers, according to Symphony IRI Group[4]. The “Special K
Challenge” has its own website dedicated to offering women meal planning technologies,
nutritional information on all Special K® products, healthy recipes for weight control, and a
mobile app that can be downloaded to a phone. Special K announced that the company plans on
reducing commercial filming by 10-20% within the coming years due to the success of the
“Special K Challenge” online campaign[5]
Personal selling​ ​has begun to rise within the Special K® brand due to the increase of
online media resources. A brand Twitter account tweets news on upcoming new products to be
released and current products. It also prompts users to share their personal opinions on the
products and if they plan to buy the new product. Special K® also has an interactive Facebook
page, which allows consumers to comment on the progress of their “Special K Challenges” and
allows the Special K® brand to post encouraging messages to the consumers[6]. The brand also
holds taste testing of their new products (locations and dates often posted via twitter) in local
stores.
Public relations of the Special K® brand are coupled with advertising of the “Special K
Challenge” and personal selling actions. The “Special K Challenge” is reviewed on daytime talk
shows and popular health sites such as WebMd[7]. Taste testing of new products may also be
aired on the news and the product opinions of potential buyers and newscasters are broadcasted
to viewers. Since Special K® is a brand within the Kellogg’s Company™, most of its
sustainability and social responsibility efforts are housed within the parent company.
Kellogg’s™ partnered with Action for Healthy Kids by asking consumers to upload photos of
how they share their breakfast eating Kellogg’s™ products. In return, Kellogg’s donates a

10. breakfast to a hungry child, up to $200,000 worth of Kellogg’s products[8].
Sales promotion of the product within the Special K® line offer incentives for consumers
to purchase particular products. Select Special K® cereals, protein bars, snack bars, and several
other line items have codes imprinted in the box. If consumers enter 5 codes, from 5 separate
Special K® products purchased, then they can win range of weight management prizes such as a
treadmill, gift cards, and yoga mats[9].
Recommendations
Market-Product Strategy
The goal of our marketing team is to change the target market of Special K products to
include men and women. Since there is little to no advertising directed towards the male market,
we believe that the most effective market-product strategy is market penetration. Market
penetration is the strongest strategy because Special K will be selling existing products to an
existing market. It is also the least risky growth strategy because Special K is already an
experienced and well-known company in the market. To go along with the strategy, a new and
improved target market would include men of a similar age to the female demographic who are
likely to be in a relationship with a partner who already purchases Special K. The segmentation
base would still be demographic, but it would change to include men in the same age group and
of the same economic status as that of the female target market. Overall, Special K needs to
advertise not just to women but to their partners as well.
New Marketing Mix
Product
The product line can provide a larger profit for the Special K brand because its emphasis
on the nutritional value instead of dietary aspects has the ability to support a male consumer
market. By advertising the amounts of protein in the product, more men will be likely to buy the
cereals, protein bars, and shakes because it suits their demographic and lifestyle. In addition, the
market penetration into the designated consumer target market will only add to the success of the
“protein effect” campaign because the products are now applicable to both men and women. For
couples, this line presents the opportunity to work together to lose the weight or lead a healthier
lifestyle. The most prominent difference would be that the perception of the product would be
perceived as a healthier alternative for protein products that can provide the same level of
nourishment.
Pricing
The most effective pricing strategy for our new target market is target pricing. Target
pricing for the male target market is the same pricing strategy used for the female target market.

11. This is the best pricing strategy because the consumers are easily able to afford Special K even
though it is slightly more expensive than its competition. For instance, General Mills Honey Nut
Cheerios are less expensive than the Special K protein cereals, but the Special K cereals are more
wholesome in general. While Quaker Oats granola bars are cheaper than Special K cereal bars,
Special K cereal bars have more nutritional value and allow the consumer to stay fuller for
longer. In the end, Special K products are priced more logically than those of its competition
because they have more health benefits. The target market is also more likely to choose Special
K over Quaker because Special K is a better fit for the consumer’s lifestyle.
Promotion
For Special K to reach its new target market (male, 20-44 yrs, active, health-conscious)
while keeping its existing female customers, Kellogg’s will have to remodel its marketing plan
carefully.
First, the packaging of the product will have to change slightly to accommodate male buyers.
Specifically the elimination of the wavy vertical line apparent on some Special K packaging,
reminiscent of the female waistline, would broaden the appeal of the packaging to include the
male market. Colors and images on the packaging would continue to highlight the colors and
textures of the specific product, keeping the focus on the distinctiveness and flavor of the Special
K line and not the image of an idealized female figure. Muting the femininity of the product
allows men to adopt it while changing nothing essential about the product experience for women.
Special K would also need to adapt its advertising campaign to target men while retaining
its female market. This campaign could have a name like “His & Hers” and would highlight
benefits that both men and women experience from using the product. Advertising would target
men and women individually as well as couples with shared weight loss goals. Slogans targeting
men could include “give her your best” and “for men with something to lose,” while
advertisements featuring couple could remind viewers that “healthy couples choose Special K”
and “the more we gain the more we lose.” Ads aimed at single women could easily be derived
from existing Special K advertisements.
The goal of the new promotion is to create a unified brand—and following—for Special
K that will create opportunities to maximize long-term growth. Ads will reconcile the fitness
objectives of men and women, highlight the nutritional value of the product, and create a playful
dialogue between the men and women who eat Special K. Social media outlets like Facebook
would be instrumental in facilitating conversation about the brand and serving as an outlet for PR
and personal selling to social media users. Outlets like Twitter and Facebook will also provide
opportunities for the company to address uncertainty and pushback about the rebranding effort.
Special K’s website would include a men’s tab, with a Special K challenge tailored for
men. With minor, gender-specific differences, both men and women can use the site to create
and track fitness goals, interact with other Special K users, and discover new products and
recipes that use Special K ingredients. In addition to existing sales promotions aimed at women,

12. new opportunities would arise for firms marketing products to males to promote sales through
this new demographic of Special K buyers.
Place
Special K is already a highly visible product that can be found in supermarkets and
convenience stores around the country. These existing distribution channels will continue to be
valuable, but to help increase Special K sales, some additional channels would go a long way.
To increase the products’ visibility to a male audience, Special K could selectively sell its
protein products through stores like GNC and Vitamin Shoppe where men shop for nutritional
supplements and other health-boosting products. In supermarkets and convenience stores
nationally, Special K protein products can be positioned next to items like Clif Bars, Boost
Protein Shakes, and Mio drink mix, which would further promote sales among male buyers.
This process of repositioning Special K as an all-purpose nutritional supplement has already
begun, and it will continue to make the brand more prominent, especially when the product is
viewed as gender-neutral.
New and effective distribution channels could support a higher level of long-term sales.
Distributing Special K products through Starbucks Coffee shops, for example—if such a deal
could be reached—would vastly expand the visibility of these products while also helping
Starbucks appeal to health-conscious, on-the-go consumers.
Because women often oversee the better part of a family’s buying decisions, especially
those involving grocery shopping, they will continue to buy Special K and in many case increase
their consumption of these products to satisfy additional male demand. Women will continue to
see Special K as a wholesome, family-based brand, while men will be increasingly prompted to
try the brand as it appears next to products they traditionally buy.
Conclusion
Kellogg’s success over the past 5 years has allowed it to hold the greatest market share in
the cereal and breakfast foods market in the United States. The popularity of Kellogg’s Special K
took off about 10 years ago after market researchers discovered that the strongest target market
was women who want to lose weight. In 2006, the launch of the nutrition and protein-focused
products hit the market, and since then, Special K has been a thriving brand for Kellogg. While
Special K has an extremely effective marketing mix for its current target market, we believe that
the brand could see even more profit if it were to advertise toward a male target market. The
male target market consists of nearly identical features to that of the female target market, most
importantly the same age range and economic class. Using a market penetration strategy, we plan
to change a few key features of the marketing of the cereal bars. The packaging must be altered
to appeal to this new male market. In addition, a new ad campaign that draws attention away
from the focus on females and instead sheds light on the weight loss and healthy living of both
genders would be of beneficial use for the strategy. We know that a powerful brand like Special

13. K, after slight repositioning to fit a male target market, would generate significant profits. While
Special K emphasizes that its products help its consumers “to lose”, we are convinced that the
brand itself has nothing to lose by trying this new market penetration and target market strategy.
Appendix
Appendix A
Appendix B
SWOT Analysis- Special K
Strengths- Internal Factors Weaknesses- Internal Factors
·​ ​Strong Brand Equity
·​ ​High revenues
·​ ​Well-defined advertising Strategy that is
benefit-focused
·​ ​Strong social networking presence
(870,000 likes)
·​ ​International markets
·​ ​Supply-Chain Problems
·​ ​Old, worn down equipment
·​ ​Recalls (Special K protein bar recall)
·​ ​Narrow Target Market (women only)

14. Opportunities- External Factors Threats- External Factors
·​ ​Growing Demand for High-Protein Cereal
·​ ​The Male Market
·​ ​Product Synergies and Goodwill
·​ ​New cross-promotional opportunities in
social media
·​ ​Competing Brands- Nutritional similarities
across product lines
·​ ​Need to constantly differentiate products
·​ ​Volatile commodity prices may drive up
production costs
·​ ​Rising oil prices increase cost of
transportation
·​ ​Poor Perception of Additives- Nutrient
content is fortified artificially
Appendix C- Perceptual Map

15. Appendix D- Distribution Channels

16. Working Bibliography
[1]Kellogg NA Company. ​Special K.​ http://www.specialk.com/#. 2012
[2]Kellogg Company. ​Kellogg’s.
http://www.kelloggs.com/en_US/product-search.pt-null.pc-false.html​. ​2011
[3]​ ​Kellogg Company. ​Kellogg History Timeline.​ Kellogg Co.http://kellogghistory.com/timeline
2011.
[4] Ibid
[5]​ ​http://www.annualreport2011.kelloggcompany.com/financial.htm
[6] seekingalpha.com/article/232808-kellogg-is-the-cereal-leader-but-for-how-much-longer
[7]​ ​www.statisticbrain.com/breakfast-food-statistics/

17. [8]​http://www.ibisworld.com/industry/default.aspx?indid=226
[9] United States Department of Agriculture. Agricultural Research Service. ​Recent Trends in
Ready-To-Eat Breakfast Cereals in the U.S.​ By: Robin Thomas M.S. and Pamela Pehrsson PhD.
October 2011. Web. 4 Nov. 2012
[10]United States Department of Agriculture. Agricultural Research Service. ​Recent Trends in
Ready-To-Eat Breakfast Cereals in the U.S.​ By: Robin Thomas M.S. and Pamela Pehrsson PhD.
October 2011. Web. 4 Nov. 2012
[1]​ Newman, Andrew Adam. “Pitching a Product, Without Showing It.” ​The New York Times.
Jan 2010.
[2]​ Special K. “My Special K.” ​Kellogg’s Company Inc.​ 2012.
[3]​ Newman, Andrew. “Pitching a Product.”
[4]​ Symphony IRI Group. “Market Pulse Survey.” 2012.
[5]​ York, Emily Bryson. “Kellogg’s Special K: A Marketing 50 Case Study.” ​AdvertisingAge.
Nov 2008.
[6]​ Facebook. “Special K.” 2012.
[7]​ Zelman, Kathleen M. “The Special K Challenge.” ​WebMD. 2009.
[8]​ Akhila Vijayaraghavan. “Share Your Breakfast with Kellogg: CSR or Advertising?”
Justmeans. Busines. Better. 2011.
[9]​ Special K. “Promotions and Coupons” ​Kellogg’s Company Inc.​ 2012
[i]
Kellogg Company. (2011). Kellogg History Timeline. (Kellogg Co) Retrieved 2012, from Kellogg
History: http://kellogghistory.com/timeline
​[ii]​ Special K. 2012. Special K Products. Retrieved 2012 from Special K. http://specialk.com
[iii]​ Press Release, Kellogg Company. (2012, October 3). Help Outsmart Hunger With New
Protein Cereal, Meal Bars, And Shakes. Yahoo Finance.
​[iv]​ Anne-Kathrin Müller, 2004, Determination of Target Market for Kellogg's Special K,
Munich, GRIN Publishing GmbH
[v]​ Press Release, Kellogg Company. (2012, October 3). Help Outsmart Hunger With New
Protein Cereal, Meal Bars, And Shakes. Yahoo Finance.
[vi]​ Anne-Kathrin Müller, 2004, Determination of Target Market for Kellogg's Special K,
Munich, GRIN Publishing GmbH