MyMuesli Marketing Plan

The successful introduction of MyMuesli to the United States breakfast market through

retail and online options is the main goal for this marketing strategy. The objectives for the

company as they enter this market are outlined below.

Gain 20% market share of the breakfast food industry after the first year of introduction

Year 2-3-Partner with Universities and Businesses to expand MyMuesli market

Capture the leading position in breakfast foods over General Mills and Kelloggs

Gain customer equity of at least $650 per lifelong customer

Keep competitive edge in terms of online customization tools

Throughout this strategy outline, each objective will be explained and backed with evidence and

additional research.

Branding:

In terms of overall branding of MyMuesli in the United States, the best strategy is to

follow in the path of what MyMuesli has done previously in terms of international expansion. A

strategy of global unification is the best jumping off point. The MyMuesli logo, color scheme,

packaging, and overall appearance will stay the same in the United States, with the only changes

being those required by different labeling regulations. As MyMuesli is already sold in the United

Kingdom, the packaging has been properly translated into English and this translation can be

used in the United States. Keeping the same logo and packaging not only reduces costs, but it

will stand out to anyone who might have already experienced the brand in another country.

Continuing the process of global standardization will create the most successful branding

strategy for MyMuesli.

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 One of the most important aspects of the MyMuesli brand is the customer-centric focus.

As a company born from the need for customization, it is important for MyMuesli to stick to its

roots and focus on how best to empower customers. One example of this will be the creation of a

loyalty program for Muesli Friends. There will be two stages to this loyalty program. When

first time customers order online they will get 50% off a $50 or more purchase. After this initial

purchase, customers will receive one free 500g container of muesli for every 10 they purchase.

This rewards program will only exist online and in MyMuesli retail shops, once they open.

Muesli Friends will also have access to special deals and flavors throughout the year. The idea

behind the loyalty program is two-fold. It sends customers to the website which cuts out the

retailer and gives MyMuesli a bigger percentage of the profits, and it is a way for MyMuesli to

give back to customers and encourage customer loyalty.

Beyond the rewards program, MyMuesli needs to create an open feedback loop with

customers. Previously MyMuesli has relied on the suggestions from customers in terms of tastes

and preferences and especially with an expansion to this new market it is important to continue

this process. Receiving and applying customer feedback is key to the success of such a

customizable brand as MyMuesli.

Overall, the most important non-tangible aspect of the MyMuesli brand to transfer over to

the United States is the idea of authenticity and understatement both in packaging and overall

messaging. The product itself is made with simple and authentic ingredients, and the company

brand should reflect that to the American public. Especially when appealing to customers of

retail chains such as Whole Foods, it is important to emphasize that even though MyMuesli is a

packaged food it is not an over-processed food and the brand wants to be fully honest with the

consumer about the contents of the product.

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Image and Positioning:

In terms of muesli, MyMueslis biggest competitor is Kashi. However, there are some

key differences between the two that should be emphasized in order to position MyMuesli as the

more desireable brand. Firstly, even without the customization element, MyMuesli has many

more varieties than Kashi. Additionally, all of Kashis varieties contain nuts, which makes the

muesli not very allergy friendly compared to MyMuesli which can be customized to fit any diet

restrictions. While both brands are certified organic, MyMuesli is also certified fair-trade and

artificial ingredient free. These seemingly small details are actually very important to the target

market and should be emphasized throughout all of MyMueslis messaging.

The other important aspect of MyMueslis image to emphasize in comparison to Kashi is

the flexibility of the product itself. Kashi only markets its muesli as something to soak in milk

the night before and then eat in the morning. MyMuesli can be eaten that way, but it can also be

eaten like regular cold cereal or even used as granola over yogurt. Emphasizing the flexibility of

use of the product is a key way to differentiate MyMuesli from both Kashi muesli and other

traditional cereal products, giving it a unique advantage that should be reflected in the image

portrayed to customers.

Target Market:

MyMueslis first step in the marketing campaign is to target high end grocery stores such

as Whole Foods and Trader Joes. In order to target these stores, the target market must be

compatible with the shoppers that are already at these stores. In analyzing Whole Foods, our

main retailer target, the main target market is middle to high income consumers, making

combined household income of over $100,000 annually. These consumers are aged 25-44, have

an advanced degree, and are mainly two person households with no children (Whole Foods

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Shopper Insights (2016)).

MyMuesli, being a previously established brand, already has a target market set for their

international retailers. This campaign wants to maintain the same target market that MyMuesli

already has, keeping the same brand image and retail goals. The intent is to focus on

sophisticated, middle to high income consumers. These consumers are generally looking for

organic options or have allergies or dietary restrictions. MyMuesli focused on these

demographics due to the organic and customizable options that they had with their products, so

continuing with this tradition will work in the U.S. market with the number of people who have

allergies or dietary restrictions, or even like the customizable options. As the marketing

campaign moves through the different phases, this target market will not change, but when

expanding to businesses and universities, the company will mainly focus on large scale

businesses and universities, rather than the target market demographics. The U.S. population

estimate is currently 321,418,820. With 29.3% receiving a Bachelors degree or higher and 44%

of the population aged 19-65 (Persons under 5 years, percent, July 1, 2015), MyMuesli has a

large amount of consumers that they are able to reach. This target market focuses on consumers

who can afford the products, especially the customizable options which start at a base price and

increase with each ingredient added. By targeting high end retailers, which Whole Foods alone

reported 14.23 million consumers in the spring of 2016, MyMuesli will reach these high income,

on-the-go professionals easily (Number of people living in households that shopped at Whole

Foods Market grocery stores within the last 7 days in the United States from spring 2008 to

spring 2016 (in millions). (2016)). Since MyMuesli is competing for the on-the-go cereal sales in

the breakfast food industry, they will focus on working professionals that look for fast and

nutritious options as they are on the way to work.

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 This target market gives a large potential in sales for the company. If after the first year of

introduction, MyMuesli is able to gain lifetime customers who will purchase the products five

days per week, one for each work day, each week annually ($2.50 per product), they could

potentially make an average of $650 per customer each year. When looking at this in terms of the

amount of consumers, if MyMuesli can get 30% of the Whole Foods customers to become

lifetime customers (previously stated that Whole Foods had 14.23 million consumers in the

spring 2016), they would potentially reach 4,269,000 consumers. That would account for

$2,774,850,000 in sales from one retail outlet alone. The potential sales and market for this

product will only increase as there is more brand awareness. Online sales will provide more sales

in terms of customer lifetime value, as the products are customizable and not priced at $2.50 per

product.

In the breakfast food industry, 40% of sales was allocated towards on-the-go cereal. The

goal for MyMuesli after the first year of introduction is to gain 20% of those sales, becoming the

leader in on the go breakfast options. As Kelloggs and General Mills keep the lead in breakfast

sales, MyMuesli will have to maintain competitive edge to become a leading competitor in the

industry.

Sustainable Competitive Advantage:

By entering the breakfast foods industry, MyMuesli will face large competitors such as

Kelloggs and General Mills, who currently lead in sales for the industry. The advantage

MyMuesli has over these two companies is the organic, gluten free options. Although Kelloggs

has the Kashi brand, which offers its own Muesli product, there is a stigma behind these brands

in consumers minds that they are unhealthy. If MyMuesli is able gain consumer awareness and

educate the target market consumers on the healthy benefits of their product, they could easily

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take over in terms of leading healthy, organic breakfast options.

For sales of breakfast foods in the past four years, there has been a 30% increase in online

sales for all products (Breakfast Food Industry Report. (2014, August 26)). Since MyMuesli

already has online customization and sales tools available (a U.S. website will be created

mimicking the websites available in other countries), they have competitive advantage over

competitors such as MixMyOwn. Their effective delivery techniques have been developed and

admired by international consumers, which will only increase the satisfaction of U.S. online

consumers. MyMuesli has developed online tools, which is a large competitive advantage when

entering a technologically savvy market. IF they continue to grow with the technology trends in

the U.S., they will always have this over their competitors, which MixMyOwn is the only current

competitor that offers online customization.

Product:

The MyMuesli product has several key differentiating factors in terms of core

components and packaging. First, MyMuesli can mass customize muesli on a much larger scale

than any of its competitors in the U.S. market. One of MyMueslis most direct competitors,

Kashi Overnight Muesli, only offers premixed combinations of muesli. Comparatively, there are

566 quadrillion possible muesli mixes to choose from (mymuesli.com). This is relevant to the

U.S. market because there has been a growing trend toward build-your-own food options. The

fast casual food segment grew by 11.4% in 2015, led by companies like Chipotle, Panera and

Sweetgreen. The ability to pick and choose the ingredients in a meal is of growing importance to

Americans and MyMuesli will be able to provide this at a level above the competition. The U.S.

is a highly individualist culture and this characteristic is epitomized in American food

consumption. According to industry experts and psychologists, We [Americans] have access to

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customized and personalized food experiences at the restaurant level, at the fast casual level, and

at the packaged food level and it has only increased (The Atlantic). In combination with high

technology levels that make this type of customization possible, MyMueslis customization

options will be highly attractive to the American consumer.

Secondly, the ease and convenience of the product itself is in line with American

consumer preferences. As of 2011, 31 million Americans were skipping breakfast and millennials

skip twice as many breakfast meals as older generations (NPD Group). In addition, Americans

also work longer hours than the majority of the world, causing a constant time constraint. These

factors create opportunity in the breakfast and on-the-go-food industries that MyMuesli can fill

because of the products ease and convenience. MyMuesli is offered in both convenient to-go

cups as well as larger quantities. The to-go cups will be a portable option that busy young

professionals can grab and eat with little-no preparation. The larger quantities can be stored and

used for meal prep. For example, mixed the night before and quickly eaten or brought to work

the next morning. The ease of preparing and consuming MyMuesli will help differentiate the

product as a more convenient alternative than its competitors.

Third, MyMueslis health benefits will be an important distinguishing factor. Americans

are becoming increasingly health conscious in combination with a steep rise in dietary

restrictions. According to the USDA, American adults are eating better, making better use of

available nutrition information, and consuming fewer calories coming from fat and saturated fat,

consuming less cholesterol and eating more fiber (USDA). MyMueslis extensive range of

organic ingredients will be a key component in attracting our target market. For example,

consumers that shop at Whole Foods have a higher focus on food attributes such as natural and

organic (Whole Foods Market). In terms of dietary restrictions, an estimated 15 million

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Americans alone have food allergies (FARE). A high number of Americans also have food

intolerances, diseases such as Celiacs, or choose special diets like veganism. MyMueslis target

retailers (Whole Foods, etc.) place special emphasis on these types of consumers and sell

products that meet these consumers needs. Again, MyMueslis diverse range of ingredients and

combinations will allow our target consumers to meet their dietary and healthy lifestyle needs.

Lastly, MyMueslis packaging represents a unique component that is both customizable

and eco-friendly. The customizable packaging will appeal to American consumers sense of

individualism and the personalization that has become standard for wealthier consumers. The

psychology behind the importance of package customization is similar to the importance of food

customization (The Atlantic). Furthermore, the ability to customize packages will be even more

important when marketing MyMuesli to corporations and universities. 85% of American

companies threw holiday parties in 2015 and these companies have many additional meetings,

events and celebrations throughout the year (Battalia Winston).The opportunity to personalize

MyMueslis packaging will be an attractive selling point for these organizations. Eco-friendly

packaging is also a valuable product differentiator because consumers are willing to pay more for

it. An increasing number of American consumers, particularly in our target market, choose

environmentally friendly packaging over regular packaging (MJS Packaging).

MyMueslis product is currently very in line with American consumer preferences and

demands, especially those of our target markets. However, as an innovative company, MyMuesli

will conduct market research in order to stay up to date with market changes. In Germany and

other European countries MyMuesli has had tremendous success on social media. Therefore, we

would like to extend this to the American market and participate in social listening and consumer

engagement to understand what our customers are looking for. MyMuesli will use these customer

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insights to improve its muesli and produce products that make customers happy. Later, when

MyMuesli has established its presence in the American market, other forms of market research

will be implemented such as focus groups with key influencers.

Pricing:

MyMuesli will use a three-tiered pricing strategy when entering the U.S. market. This

means that we will utilize three different strategies for different types of consumers. The three

different tiers are online, retailers and business to business (B2B) sales.

For online sales MyMuesli will aim to keep prices globally consistent, while taking into

consideration exchange rates. Currently, the United Kingdom website lists a price range of about

6.90 to 12.90 for 500 g containers (mymuesli.com). The other European websites use the Euro

and the pricing is very similar. Therefore, the American website will price its muesli using the

same price range as Europe and the UK. The most recent exchange rates show the euro at 0.95

and the pound at 0.79 in comparison to the U.S. dollar (Google Finance). Over the long term,

these three currencies are generally close and tend to move together. This will aid our goal of

keeping online prices as consistent as possible.

In terms of retail pricing, MyMuesli intends to sell to high-end grocery retailers who have

a focus on healthy products. MyMuesli will employ a competitive pricing tactic, penetration

pricing, when selling to these retailers. We believe penetration pricing will be most successful

because Mymuesli will be a relatively unknown product when entering the U.S. market. This

pricing strategy will allow us to gain brand recognition, market share and a high quantity of

sales. In addition, this strategy will differentiate us from competitors because many products at

these retailers use premium pricing. MyMuesli will first target Whole Foods and will sell our

product at the price of $1.50 per cup. This competitive price will enable Whole Foods to markup

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the muesli and still sell it at a lower price than our competitors. Our suggested retail price for

Whole Foods and similar retailers would be $2.50 per cup. For example, Kashis Overnight

Muesli which is currently priced at $3 per cup (Kashi.com).

Lastly, MyMuesli will follow the same principles as its headquarters for B2B sales. These

sales will be determined on a case to case basis through consideration of facts such as quantity

and potential for a long term relationship.

The purpose of MyMueslis pricing strategy is to gain consumer recognition and build

brand awareness. American consumers are bombarded by an overwhelming number of choices

on a daily basis and MyMueslis pricing strategy will help differentiate our muesli from the

competition.

Service Elements:

MyMueslis service elements are highly important to extending MyMueslis key values to

America. We aim to maintain a highly qualified and extensive customer service department to

service the needs of American customers. Research shows that 91% of unhappy customers who

are non-complainers simply leave (Esteban Kolsky). There are countless additional statistics

that emphasize the importance of customer service to gaining and retaining customers.

Furthermore, the U.S. ranks in the top five countries that complain about customer service the

most (Customer Service Manager). American consumers are much more vocal about their

customer complaints than many other countries, and MyMuesli is prepared to handle that with

excellent customer service representatives. A large part of MyMueslis customer service will be

devoted to website assistance, as well as representatives to field questions such as dietary issues.

In Germany, MyMuesli customers are referred to as muesli friends and we would like

to continue this practice in America. This would increase consumer engagement and allow our

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customers to connect more personally with our brand. Many consumers enjoy special treatment

and the exclusivity of being part of a group, however informal it may be. The number of

American consumers involved loyalty programs reached 3 billion in 2015 and is projected to

grow (Colloquy). We believe this practice will cohesively encompass MyMueslis brand image

and create lasting relationships with American customers.

Distribution:

MyMuesli operates primarily as an online retailer where they offer their customizable

muesli. However when expanding to the U.S. there will be a 3 phase distribution approach. The

first phase of the distribution approach is introducing the product into Whole Foods. This Whole

Foods introduction is intended to build brand awareness and brand loyalty with already existing

Whole Foods shoppers. Through the use of in store sampling and demonstrations, Whole Foods

customers will be able to try our products and then purchase MyMuesli2Go with discount

coupons after visiting the booth. These coupons would range from buy 1 get 1 free to save $1 off

your next MyMuesli2Go. By providing new customers with buy 1 get 1 free coupons, they are

able to try more flavors and develop a relationship with our brand.

The second phase of the distribution plan is to introduce our online customizable mixer

tool and pre-mixed canisters of muesli that are 575g each. After using the online mixer tool, and

adding any additional items to the shopping cart, customers will proceed to checkout and follow

a traditional online purchase process. Once the order has been placed, the MyMuesli order will

be delivered within 4 business days of the date of purchase, following our brand promise of 4-

days Store to Door. This satisfies the US customers desire to have things when they want them

and ensures freshness. On orders larger than $50, shipping will be free and orders smaller than

50 dollars will incur a flat rate shipping fee. To supplement online sales, MyMuesli will also

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begin contracts with colleges, universities, and large businesses. These large order contracts will

be negotiated with sales representatives on a case by case basis due to the large scale and the

complexity of the process.

The third and final distribution approach is through the MyMuesli retail locations that

will open during year 3 of the implementation timeline. Retail locations would allow for people

walking by to see the offerings that MyMuesli carries in stock as well as sample products and

receive coupons. These retail locations will offer various customizable options in the store such

as gift canisters that can be printed on location (Appendix item 2). MyMuesli stores will offer the

benefit of being able to become a muesli friends rewards program member. The rewards

program is the benefit of shopping at company retail outlets over the various Whole Foods

retailers that will carry products.

Advertising and Promotion

There are various methods of advertising and promotion that will be utilized to build

brand recognition, awareness, and loyalty. The social media platforms facebook, twitter, and

instagram will be leveraged to gain customer interaction with the brand through promotions,

giveaways, contests and creative content (Appendix item 4). Additionally, following the trend of

Tasty by Buzzfeed (Appendix item 1), instructional videos of how to use muesli to its fullest

potential will be posted to social media pages to gain customers attention.

Aside from social media, there will be two primary face-to-face, consumer based

promotional events to achieve brand awareness. The first is promotional events for our loyalty

program members, muesli friends. These muesli friends would enjoy fun family-friendly

events such as childrens carnivals and community service events at community parks. These

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promote the ideas of customer interaction and wholesomeness that MyMuesli embodies. Second,

through the use of in-store promotions at Whole Foods, promotional tables will give away

samples and coupons for buy-one-get-one-free cups of MyMuesli2Go. These in store promotions

will encourage customers who are unfamiliar with our products to try various flavors and sample

flavors that interest them.

Online and Social Media

MyMuesli will utilize its already existing online platform for online retail sales. The

mymuesli.com url will have a United States, English and Spanish option that allows for the

ordering and payment of products entirely on its website. This online retail site will offer full

customization options as well as premixed popular muesli combinations and large pack

purchases of MyMuesli2Go cups. MyMueslis social media sites will offer product promotions

and giveaways such as free variety packages of MyMuesli2Go. The MyMuesli youtube channel

will become the go-to spot for muesli tips, recipes, and tricks for making your muesli creative

and different (Appendix item 1).

Resources Required

In order to successfully launch MyMuesli in the U.S., significant resources will be

required. These resources include people and training, as well as money to fund these

expansions. In terms of human resources, MyMuesli will need technicians to set up the website,

a sales force, customer service representatives, an executive to oversee the expansion and

employees for distribution. The website construction will be simple and low cost because it will

be modeled after the U.K. website and there will be little-no language translation required. The

MyMuesli American sales force will specialize in personal selling to high end retailers. This

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sales force will be more costly, but is imperative to establishing strong relationships with the

right retailers. The average base salary for a salesperson is about $40,000 per year (PayScale).

The personal retail salespeople will be offered lucrative salaries starting at $50,000 and

increasing based on the size of the retailer. The initial sales team will be staffed by both

Europeans knowledgeable in the product and MyMueslis company values as well as Americans

who are experts in the grocery retail market. Training sessions will be held to cross-train these

two groups into a more cohesive team. MyMueslis customer sales representatives will also be an

important part of the expansion. The customer sales reps will be based in Germany and will offer

assistance via phone and online. They will be required to speak English and German and

preference will be given to applicants who speak a third language. Additionally MyMuesli will

need a strong American distribution team to handle transporting MyMuesli throughout America.

This includes shipping the products to America and delivering them safely and securely to

retailers and consumers. Finally, to ensure a smooth expansion to the U.S., there will be an

executive and small staff to oversee the transition. This executive will help translate and teach

MyMuesli values to the new American staff members and reiterate them to current MyMuesli

employees working on the American division.

Timeline

MyMueslis timeline is long but extensive. The timeline for implementation must account

for the time it takes to achieve recognition in the market and all of the following steps are

contingent on initial success. Beginning in the first year of expansion into the U.S. market,

MyMuesli will introduce its products into Whole Foods and other luxury retailers and will have

limited offerings available in its online store. Products will ship from existing manufacturers in

Germany and the customizable muesli will be offered on the website. Following the first year of

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market introduction, the second year of expansion will include offering more variety in the

online store and expanding the Mixer tool to include more options. The new products offered

online will include seasonal items and new mixes. Depending on the level of success, the

company will move to open a local manufacturer for faster shipping and local production and the

four days store-to-door policy will take effect in the United States. During the end of the second

year and beginning of the third year of expansion, contracts with colleges and universities will be

underway with the Partnership for a Healthier America. By working with Partnership for a

Healthier America, MyMuesli will expand its brand recognition and tap into new markets with

different segments of consumers who were previously untapped by the Whole Foods target

market. Lastly, after success in the last 3 stages of the expansion timeline, MyMuesli would work

to open retail locations in large cities and locations where the product has been most successful.

These MyMuesli retail locations will offer various product lines, customizable canisters through

4D printing, and other MyMuesli exclusives and will work in coordination with the Muesli

Friends rewards program.

By following this timeline and initiatives set forth in this marketing plan, we believe that

MyMuesli will have great success in its U.S. expansion. MyMueslis message and its initiatives

align well with the U.S. market and its product would be well received in a market that values

customization, individuality, and speed.

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 Appendix
1) https://www.youtube.com/watch?v=TvANax524qQ
a) This video shows how one can make their muesli their own after the customization part is over.
b) This is similar to the Tasty videos by Buzzfeed:
i) https://www.buzzfeed.com/jordankenna/this-chili-lime-tilapia-with-avocado-crema-is-the-best-
dinne?utm_term=.ytWgZQd5L
2) https://www.youtube.com/watch?v=vS6ZzSQy1A8
a) This video shows the ultimate customization that can occur
3) The MyMuesli U.S. Expansion Timeline

4. Facebook promotion leveraging the Muesli Friends

rewards program.

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17
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