Kelloggs

Students:Pedro Da Silva

Brand Management

Tomas Bata University, Zlín

Kellogg’s

Competitors

Challenges

Financial

Changes

Consumer

Brand Strength

Pyramid

Communication

Responsability

S.W.O.T.

Kellogg’s Brand

● Origin: United States● Established: 1906● Founder: William K. Kellogg● World Headquarters: Battle Creek, Michigan● Owner of the brand: Kellogg Company● Chairman: James Janness● President & CEO: David Mackay● Turnover: U.S. $ 12.57 billion (2009)● Income: U.S. $ 1.21 billion (2009)● Market Cap: U.S. $ 18.9 billion (October/2010)● Brand value: U.S. $ 11,041 billion (2010)● Factories: 18● Global presence: 180 countries● Employees: 31,000● Industry Type: Food● Main products: cereals, cereal bars and biscuits


Kellogg’s

Competitors

Challenges

Financial

Changes

Consumer

Brand Strength

Pyramid

Communication

Responsability

S.W.O.T.

Kellogg’s Brand

● Website: www.kelloggcompany.com● Icons: characters like Tony the Tiger and Toucan Sam

● Slogans: ”Bringing Our Best To You” “The best to you each morning.” “The popular choice for kids breakfast.” (Kellogg’s) “Taste them again, for the first time. ”(Corn Flakes) “K-E-double-L-O-double-good, Kellogg's best to you...” (Corn Flakes) “It's gonna be a great day.” (Corn Flakes) “Have you woken up to Kellogg's corn flakes?” (Corn Flakes) “Smaxey makes breakfast the happiest meal of the day.” (Sugar Smacks) “Toasted wheat with a taste of honey.” (Sugar Smacks) “Because that's the kind of Mom you are.” (Rice Krispies)


Kellogg’s

Competitors

Challenges

Financial

Changes

Consumer

Brand Strength

Pyramid

Communication

Responsability

S.W.O.T.

A Brief History of Kellogg’s

http://www.facebook.com/l.php?u=http://www.youtube.com/watch?v=XSpBd1Yclxo&h=c56e2


Kellogg’s

Competitors

Challenges

Financial

Changes

Consumer

Brand Strength

Pyramid

Communication

Responsability

S.W.O.T.

Main Competitors (from the rank of 100)

The main competitor is Netlé Company (founded in Switzerland and positioned the top 100 ranking at 54th);

Nestlé Company have a lot of products, like cereals and animal food;

Nestlé was founded in 1866 (Kellogg’s – 1906).


Kellogg’s

Competitors

Challenges

Financial

Changes

Consumer

Brand Strength

Pyramid

Communication

Responsability

S.W.O.T.

Challenges Kellogg’s Brand

To be efficient and effaces, like adoption of measures eco-friendly;

Rumors about Kellogg’s use genetically engineered corn (Try to “Kill” this rumor);

Brand of Philosophy is the best breakfast you can eat!

Trying to be more healthy (to substitute the salt, peanut, etc…);

The promotion are very low…It’s not attractive, in other words, Kellogg’s need to change the Communication.


Kellogg’s

Competitors

Challenges

Financial

Changes

Consumer

Brand Strength

Pyramid

Communication

Responsability

S.W.O.T.

Financial Performance

International Growth


Kellogg’s

Competitors

Challenges

Financial

Changes

Consumer

Brand Strength

Pyramid

Communication

Responsability

S.W.O.T.

Financial Performance (2)

Financial Results (Summary)


Financial Performance (3)

Gross Profit

Kellogg’s

Competitors

Challenges

Financial

Changes

Consumer

Brand Strength

Pyramid

Communication

Responsability

S.W.O.T.


Kellogg’s

Competitors

Challenges

Financial

Changes

Consumer

Brand Strength

Pyramid

Communication

Responsability

S.W.O.T.

Brand value and changes in brand value

In the rank the brand Kellogg’s is positioned on the 35th place. The value of the brand is in $ 11.041 billions.

Consumers who have grown up with Kellogg's breakfast cereals will have strong associations of childhood and home.

So, this brand have a huge value from consumers that associate Kellogg’s to their breakfast .


Kellogg's

Years Position

2007 40

2008 39

2009 34

2010 35

Changes in brand value:Kellogg’s

Competitors

Challenges

Financial

Changes

Consumer

Brand Strength

Pyramid

Communication

Responsability

S.W.O.T.


If there are changes in the rank or brand value, what factors accounted for it?

More people missed the breakfast;

The increased need for such a snack product;

The costs and risks for made a diversification;

The brand message was not strong enough;

Consumers were not impressed.

Kellogg’s

Competitors

Challenges

Financial

Changes

Consumer

Brand Strength

Pyramid

Communication

Responsability

S.W.O.T.


Kellogg’s

Competitors

Challenges

Financial

Changes

Consumer

Brand Strength

Pyramid

Communication

Responsability

S.W.O.T.

What is the role of the brand in consumer markets

Is associated to the breakfast of the consumers. The role of the brand represents the way how to consumers look at the brand, because they recognize the kellogg’s products by the brand.

It shows that this products have quality and have the care of health and nutrition.

Kellogg's has been able to clearly differentiate its product range from the competition.

Extensive market researches helped to reduce the risk, and communication with consumer.


Kellogg’s

Competitors

Challenges

Financial

Changes

Consumer

Brand Strength

Pyramid

Communication

Responsability

S.W.O.T.

Analyse the brand strength within the framework of the 10 Principles of Brand Strength

1) Commitment

Kellogg's has accompanied the growing consumer concerns on issues of health and

nutrition, providing excellent quality products. In this line of products are leading brands

and high profile as they are Special K, All Bran, Corn Flakes, Choco Krispies or Frosties

2) Protection

Kellogg's has manages to convey a good image for your client while maintaining its

integrity above all.

3) Clarity

Kellogg Company’s Vision statements define our focus upon sustainable growth, our

broadened definition of social responsibility and the true strength of our company – our

people and our brands. Our Vision encompasses the full spectrum of our stakeholders

including shareowners, employees, customers, consumers and communities.

4) Responsiveness

Kellogg's with its array of cereals, and you will adapt to changing market as it fulfills several

types of clients and is always in mind the health and well being of the client.


Kellogg’s

Competitors

Challenges

Financial

Changes

Consumer

Brand Strength

Pyramid

Communciation

Responsability

S.W.O.T.

5) Authenticity

For more than 100 years, innovation and our commitment to being the best in the categories in

which we compete has guided our Company. From being the first company to offer premiums in

our cereal boxes to being the first to fortify our cereals, Kellogg has historically been a leader in

industry, innovation and marketing.

6) Relevance

Our founder, W.K. Kellogg, started the company more than 100 years ago and quickly expanded into new

geographies. The early adoption of this growth plan has provided us with a global business today. Kellogg

products are manufactured in 18 countries and marketed in more than 180 countries around the world.

Therefore we can satisfy any client.

7) UnderstandingThe customer knows the brand and knows you can trust, all products are quality and all

products can meet the desires dos our customers we have in mind the needs of our clients so they may to

satisfy them.

8) ConsistencyWith a wide variety of products, Kellogg's can adapt to all markets in which it operates.

9) PresenceKellogg Company (“Kellogg”) is committed to acting ethically. This commitment is reflected in our first core

value “We Act with Integrity and Show Respect.”

10) DifferentiationKellogg's is recognized by our customers as a brand with quality and variety. We're No. 1 in Cereals.


Analyse the brand using the brand equity pyramid

Resonance: There is an immediate identification with our client’s brand, and a relationship satisfaction on demand.

Judgments: In relation to our performance we managed to meet all customers. Our image is our guy, our customers know and love.

Feelings: We remain the best brand of cereal that means we are in the hearts of our customers.

Performance: When he awakens our customers think of Kellogg's, is the brand that satisfies you.

Imagery: Our client is psychologically satisfied with the results obtained by consuming Kellogg's.

Salience: We are a recognized brand worldwide, our customers can find us in almost every country.

Kellogg’s

Competitors

Challenges

Financial

Changes

Consumer

Brand Strength

Pyramid

Communication

Responsability

S.W.O.T.


Analyse the communication mix of the brand, which is most dominant?

Kellogg´s first direct their attention to the recipients of marketing communication: the target audiences.

A series of campaigns was designed with the objective of tapping into the health-conscious concerns of its target audience.

Objectives of the communication mix of kellogg’s:

Immediately effect increasing in sales and engage its target audience as part of a long-term strategy to reposition of the company.

Kellogg’s

Competitors

Challenges

Financial

Changes

Consumer

Brand Strength

Pyramid

Communication

Responsability

S.W.O.T.


Kellogg’s

Competitors

Challenges

Financial

Changes

Consumer

Brand Strength

Pyramid

Communication

Responsability

S.W.O.T.

Corporate social responsability

Enviroment

Sustainable supply of water,

energy and agriculture is the culture that depends on the

Kellogg's but it is trying to reduce the environmental impact

that has until now and is trying to find solutions.

Community

Social responsibility has been a key part of our heritage since our

founding more than a century ago. Our stakeholders – consumers and

customers, employees and retirees, policymakers and shareholders –

expect Kellogg to be a good corporate citizen, and we hold ourselves to

this same high standard. We believe it’s important to continue the

commitments of our founder, W.K. Kellogg, by investing in our

communities and assisting those in need.


Kellogg’s

Competitors

Challenges

Financial

Changes

Consumer

Brand Strength

Pyramid

Communication

Responsability

S.W.O.T.

S.W.O.T. Analysis

S.W.O.T analysis is a scan of the internal and external environment and is an important part of the strategic planning process.

Environmental factors internal to the company are classified as Strengths and Weaknesses and external as Opportunities or Threats.


Kellogg’s

Competitors

Challenges

Financial

Changes

Consumer

Brand Strength

Pyramid

Communication

Responsability

S.W.O.T.

Strengths Control 42% of global market share for Pre-sweeter cereal, which

is more than triple the market share of any of their competitors.

They have the strongest brand recognition and advertising recollection of all the cereal manufacturers

Weaknesses

Have not aggressively developed many new cereal lines in the past four years.

Slow erosion of their U.S. market share in the past few years.

Follower in Pricing Strategy


Kellogg’s

Competitors

Challenges

Financial

Changes

Consumer

Brand Strength

Pyramid

Communication

Responsability

S.W.O.T.

Opportunities

International expansion is the biggest area for growth for Kellogg’s.

Kellogg can continue to slowly diversify, while still remaining in their core business area, which will increase their profitability.

If they can develop a better pricing strategy and guarantee lower prices, they can reduce costs while increasing their market share.

Threats

Others General Mills, Post, and Quaker Oats are using price competition and product proliferation to erode Kellogg’s share of the market.

Discount imitation cereals brands have been successful in reducing premium brands in the more commodity like cereals.


Kellogg’s

Competitors

Challenges

Financial

Changes

Consumer

Brand Strength

Pyramid

Communication

Responsability

S.W.O.T.

Creating a stronger position

When contemplating long-term investment decisions, brand managers face two key questions.

1. In what projects should the company invest?

2. What level of investment should be approved?

For the Kellogg company, market research suggested that using funds to develop variants on Special K looked like a comparatively low risk project that offered the prospect of a good rate of return.

This was largely because it involved developing and extending a brand that already enjoyed huge consumer support in ways that could be adapted to the market place worldwide.

The judgement has proved to be correct, to the benefit of the company and its many stakeholders.


Kellogg’s

Competitors

Challenges

Financial

Changes

Consumer

Brand Strength

Pyramid

Communication

Responsability

S.W.O.T.

Kellogg's soon came to realise that the variants were responsible for a huge growth in the Special K brand, without a drop in sales of the core cereal product.

New product development had transformed the brand within the UK. This in turn gave a great opportunity to roll-out other developments in other markets, including the USA, Australia and Canada.

Product research showed that the UK products could be adapted to meet the individual tastes of consumers within those markets.

The Kellogg's strategy was truly global; it developed an idea in Europe which it then adapted and applied worldwide.

Within the space of 2 years the extensions to the brand had achieved global coverage, and were providing not only significant developments in sales value and volume of Special K products, but also a huge boost to the brand's equity.


Thank you for to pay

attention

Kellogg’s

Competitors

Challenges

Financial

Changes

Consumer

Brand Strength

Pyramid

Communication

Responsability

S.W.O.T.

Kelloggs

Education

Transcript of Kelloggs