BSBMGT617 - Develop and Implement a Business Plan

Assessment Task 1
Compare and Analyse Business Plans

A. Kelloggs

a. The Vision: To enrich and delight the world through foods and brands that matter.

b. The Mission: Nourishing families so they can flourish and thrive.

c. Kellogg’s objectives were to:

 encourage and support physical activity among all sectors of the population

 use resources to sponsor activities and run physical activity focused community
programmes

 for its consumers and the public in general

 increase the association between Kellogg and physical activity

 use the cereal packs to communicate the ‘balance’ message to consumers

 introduce food labelling that would enable consumers to make decisions about the right
balance of food.

d. SWOT analysis of Kelloggs:

Strengths:

1. Worldwide presence: Kellogg’s products are manufactured in 18 countries and marketed

in over 180 countries. Kellogg’s became the world’s second-largest snack food company
(afterPepsiCo) by acquiring the Pringles potato crisps brand from Procter & Gamble for
$2.7 billion in a cash deal in 2012.

2. Strategic Acquisition: Kelloggs has acquired various companies over the years which
helped it in optimizing the use of its resources. Kellogg’s made its largest acquisition, the
Keebler Company in the year 2001. Over the years, it has also gone on to
acquire Morningstar Farms and Kashi divisions or subsidiaries. Kellogg’s also owns
the Bear Naked, Natural Touch, Cheez-It, Murray, Austin cookies and crackers, Famous
Amos, Garden burger (acquired 2007), and Plantation brands.

3. High Awareness: Kelloggs is successful in creating awareness in developed economies. It

is world’s largest cereal maker by sales, which spends more than $1 billion annually on
brand advertising and marketing and is an official sponsor of the U.S. Olympic and
Paralympic Teams.

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4. Marketing Initiatives: It has positioned itself as a brand meant for fighting hunger
specifically as an alternative to the breakfast i.e. breakfast cereal brand which has helped
the company to acquire the share of wallet of the customers. “Fighting Hunger” initiative
with Walmart, Master brand TV campaign and many others are some of the major
marketing initiatives that helped Kellogg in establish itself as a global brand.

Weaknesses:

1. Questionable marketing campaigns: Some of Kellogg’s marketing has been questioned

in the press, prompted by an increase in consumer awareness of the mismatch between
the marketing messages and the products themselves which resulted into negative word
of mouth. Food bloggers have also questioned the marketing methods used by cereal
manufacturing companies such as Kellogg’s, due to their high sugar content and use of
ingredients such as high-fructose corn syrup.

2. Slow Innovation: Although the cereals market is overcrowded with local, National &
international brands but despite of this extent of competition Kellogg is not able capture
the market in the developing markets reason being slow innovation in contents of the
cereals.

Opportunities:

1. Market penetration: Penetrating further in the current market & targeting other
developing markets will help the company in increasing its sales.

2. Changing lifestyle: With the growth of the urban population, their hectic & changing
lifestyle people are looking for some easy meals to put down their hunger & save their
time which is the driving force the growth of the cereal industry.

3. Targeting Restaurants & hotels: Many companies from FMCG & food industry are tying-
up with Restaurant & hotel chains to expand their business. There’s
great opportunity lying ahead for Kelloggs if they can generate their business from this
growing segment.

Threats:

1. Intense competition: Inter Industry & intra industry rivalry is one of the major factors
that are affecting the industry as a whole. Readymade foods, Local food joints,
restaurants in close proximity are some of the reason that restricts the growth of cereal
industry.

2. Government regulations: Government policies relating to the contents & ingredients

used in the cereals is creating a big hurdle in their growth.

3. Changing lifestyle: With the increase in the urban population office going people use to
have less time so now they are shifting to “Take away outlets” to save their time.

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 e. Strategy

Having created an aim and set objectives, Kellogg put in place a process of planning to
develop a strategy and a series of actions. These were designed to meet the stated aim and
range of business objectives.

In the area of food labelling, Kellogg introduced the Kellogg’s GDAs to its packaging, showing
the recommended Guideline Daily Amounts. These GDAs allow consumers to understand
what amount of the recommended daily levels of nutrients is in a serving of Kellogg’s food.
Working with a group of other major manufacturers, Kellogg introduced a new format in May
2006, with GDAs clearly identified on brand products and packages. These GDAs have been
adopted by other manufacturers and retailers such as TESCO.

Kellogg became the main sponsor of swimming in Britain. This ensured that Kellogg’s
sponsorship reached all swimming associations so that swimmers receive the best possible
support. Kellogg sponsors the ASA Awards Scheme with more than 1.8 million awards
presented to swimmers each year. This relationship with the ASA has helped Kellogg
contribute in a recognisable way to how individuals achieve an active healthy balanced
lifestyle. This reinforces its brand position.

Kellogg has also delivered a wide range of community programmes over the last 20 years.
For example, the Kellogg’s Active Living Fund encourages voluntary groups to run physical
activity projects for their members. The fund helps organisations like the St John’s Centre in
Old Trafford which runs keep-fit classes, badminton and table tennis.

Research undertaken by Kellogg as part of the 2005 Family Health Study emphasised that a
balanced diet as well as regular exercise were essential for good all round health and
wellbeing. Kellogg is demonstrating good corporate responsibility by promoting and
communicating this message whenever it can and by investing money in the appropriate
activities. This was the broad aim. To achieve this aim, Kellogg set out measurable objectives.
It developed a business strategy that engaged Kellogg in a series of activities and
relationships with other organisations. The key was not just to create a message about a
balanced lifestyle for its consumers. It was also to set up activities that helped them achieve
this lifestyle.

B. Eastern Dental Clinic

a. The Vision: to become the number one choice when it comes to dental care service
delivery in the whole of Vaucluse, Sydney and also to be amongst the top 20 dental care
service providers in the Sydney within the next 10 years.

b. The Mission: Eastern Dental Clinic is in business is to establish a first-class dental clinic
that will take care of both highly placed clients and lowly placed clients as long as they
can afford our services. We want to become one of the leaders in the dentists’ industry
in Sydney, and in Australia.

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c. The objectives: Eastern Dental Clinic will ensure that all our patients cum customers are
given first class treatment whenever they visit our dental clinic. They have a CRM
software that will enable them to manage a one on one relationship with their
customers no matter how large the numbers of their customers’ base grow.

d. The SWOT analysis of Eastern Dental Clinic:

Strength:

Their strength lies in the fact that they have a team of well qualified professionals
manning various job positions in their dental clinic. As a matter of fact, they are some of
the best hands in the whole of Vaucluse – Sydney. Their location, the business model
they will be operating on, opening 24 hours daily and 7 days in a week, multiple payment
options, well equipped medical call centre and their excellent customer service culture
will definitely count as a strong strength for them.

Weakness:

Their perceived weakness lies in the point that they are just starting out and they may
not have the required finance to sustain the kind of publicity that they intend giving the
business and also the finance needed for the acquiring some of the latest medical and
dental surgical equipment et al.

Opportunities:

The opportunities that are available to dental care services providers are unlimited and
they are going to position their dental clinic to make the best out of the opportunities
that will be available to them in Vaucluse – Sydney.

Threat:

Just like any other business, one of the major threats that they are likely going to face is
economic downturn and unfavorable government policies (healthcare reform). It is a fact
that economic downturn affects purchasing power. Another threat that may likely
confront them is the arrival of a new and bigger / well established hospital or dental
clinic brand in same location where their dental clinic is located.

e. The Strategy

Marketing Strategy and Sales Strategy:

The marketing and sales strategy of Eastern Dental Clinic will be based on generating
longterm personalised relationships with customers. In order to achieve that, they will
ensure that they offer top notch all – round dental care services at affordable prices
compare to what is obtainable in Vaucluse – Sydney.

Eastern Dental Clinic will adopt the following sales and marketing approach to win customers
over;
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 Introduce their business by sending introductory letters to residence, business owners
and corporate organisations in and around Vaucluse – Sydney

 Advertise their dental clinic in community based newspapers, local TV and local radio
stations

 List their dental clinic on yellow pages ads (local directories)

 Leverage on the internet to promote our dental clinic

 Engage in direct marketing

 Leverage on word of mouth marketing (referrals)

 Enter into business partnership with health management organisations, government

agencies and health insurance companies.

 Attend health care related exhibitions / expos.

Here are the platforms they intend leveraging on to promote and advertise Eastern Dental
Clinic;

 Place adverts on both print (community based newspapers and magazines) and
electronic media platforms

 Sponsor relevant community health programs

 Leverage on the internet and social media platforms like; Instagram, Facebook, twitter,
YouTube, Google + et al to promote our brand

 Install their Bill Boards on strategic locations all around Vaucluse – Sydney.

 Engage in road show from time to time in target communities

 Distribute their fliers and handbills in target areas

 Ensure that all their workers wear their branded shirts and all their vehicles are well
branded with their dental clinic’s logo et al.

The Pricing Strategy:

At Eastern Dental Clinic, their payment policy is all inclusive because they are quite aware
that different people prefer different payment options as it suits them. Here are the payment
options that will be available in every of their outlets;

 Payment by cash

 Payment via Point of Sale (POS) Machine

 Payment via online bank transfer (online payment portal)

 Payment via Mobile money

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 Check (only from loyal customers)

In view of the above, they have chosen banking platforms that will help them achieve their
payment plans without any itches.