Kellogg Company of Great Britain Ltd

Topic: BusinessLeadership
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Last updated: April 17, 2019

Kellogg Company of Great Britain Ltd, a subsidiary of the US Kellogg Company of Michigan, remains the dominant brand in the UK breakfast cereals market, with around 40% sales volume in 2000.

The company has a large portfolio of well-established cereal brands, seven of which were in the top ten RTE cereal brands in the grocery trade in 2000. Kellogg’s operates mainly in the RTE sector, with a range of over 30 products, and is most famous for its Corn Flakes product. Other popular brands include Frosties, Crunchy Nut Corn Flakes, Rice Krispies, Special K, Coco Pops,Kellogg’s are renowned for its traditional red Kellogg’s logo; it has been associated with different cereals for many years. It is apparent that customers associate the logo with different functional and symbolic attributes. This is a large contributory factor in creating loyalty toward the product.

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The strategic focus of Kellogg’s is on superior quality and image that reflects on their quality control and assurance.When a consumer is brand loyal, they do not consider going through the decision making process. Though a great similarity swims between habit and loyalty and copy products, repeat purchases are made out of convenience where commitment purchases are made out of loyalty and passion towards the brand. People generally become loyal to a particular brand as a result of its functional and symbolic benefits. With Kellogg products, consumers are able to evaluate the functional benefits before purchase.

Kellogg’s advertised on symbolic associations when the brand was first advertised in the 1990s. Continuous appealing symbolisms in Kellogg’s advertisements have been the dimension that trigger loyalty over a period of time especially with all the ‘copycat’ products from its competitors such as Nestle and supermarket own products. The basic assumption is that Kellogg has always updated its offerings of product line, which have resulted in competitive advantage over competing brands.Kellogg’s plays role of a “nutritional code”, which when decoded revels the consumer nutritional life-style. Hence, it is not a surprise that Kellogg’s brand name is highly recognizable within the children and adult population at breakfast time, placing the Kellogg’s brand close to certain attributes:* First meal of the day* Healthy eating* Snacking* Reasonable price* Tony the tigerThe physical attributes in Kellogg’s vast product range vary from the different features, quality and weight issues. Its main beneficial functional attribute is the reliability aspect and its winning performance. Effectively functional attributes of a product will distinguish one product from the next on supermarket shelf.The main factors in symbolic attributes are in self-esteem, social recognition and pricing.

Symbolic attributes can also be emotional attributes. Where an individual has grown up with Kellogg’s breakfast cereal, the brand will have strong associations of childhood and home. The Kellogg’s brand symbolizes the beginning of the day and instigates the first thought of breakfast. The brand plays on the security issue of family and home.

This becomes appealing to many people despite being in a fast corporate and somewhat broken society.Its functional attributes are from the benefit of continuous advertising therefore it stays at the top of the mind. Its positive highly flavoured lasting taste of appeal forges for consumption. Kellogg’s illustrates the relationship between segmentation, targeting and positioning and branding. Various market segments will respond appropriately to different brands in the same product category-whether high or low involvement. Kellogg’s primarily targeted children by offering current Disney world toys in every pack purchased.

This enhances their interest in the brand hence more sales and sales targets are reached. Well, another aspect of increasing high involvement is through the timing of their adverts in the media. Specifically the television where the Kellogg’s adverts are on after school times i.e. the early morning and in between weekend cartoon slots. Kellogg’s is such a big well-known name that branding takes place everyday in supermarkets and in the homes. It just doesn’t target children, but also adults. Here, the shredded wheat and its slogan that it reduces heart failure for the old folks.

This is effective targeting since everyone is obsessed with living longer. This just shows, very clearly how segmenting the market cleverly has induced the high involvement and separated Kellogg’s and nestle. Kellogg’s has a basic position strategy, which is superior quality. This targets the ‘superior’ and premium demanding person.

Kellogg’s cereals can be broken down by type of cereal, e.g. corn flakes, wheat biscuits, bran or muesli, and also by product/consumer category, i.e.

staples, children’s, health, adult indulgence and muesli. The two largest sectors are staples and children’s cereals. Kellogg’s All-Bran Apricot Bites, for example, is aimed at consumers aged 40and over who are seeking better-tasting health products, while its indulgent, luxury range World Temptations is more suitable for indulgent snack treats and is aimed at professional women. On the other hand, we have the wide range of shaped cereals which are aimed to children who represent a massive market for breakfast cereals, and their influence on their parents’ choice of products cannot be underestimated.Since then, Kellogg has stepped up its convenience range with the introduction of cereal-and-milk bars for children in 1999, and Nutri-Grain Elevenses, a morning snack, in summer 2000. A new flavour variant, Chocolate Caramel, was also added to its Rice Krispies Squares countline. Another innovative product was a new fruit-flavoured variant of Kellogg’s classic All-Bran cereal, called All-Bran Apricot Bites.

The product is marketed as an all-day snack product, and is aimed at consumers aged 40 and over who are looking for better-tasting high-fibre products.In early 2000, Kellogg reformulated four of its popular children’s brands – Frosties, Coco Pops, Corn Pops and Honey Loops – with added calcium. In autumn 2000, a new luxury range called World Temptations was launched, targeted particularly at professional women. Based on the expectation of cereal volume growth, and strong results from product innovation and the continued global rollout of convenience foods, management believes the Company is well positioned to deliver sales and earnings growth. Key Note Ltd 2001The marketing of Kellogg’s and the creation of some of the most valuable individual brand names has been key to the Company’s success. The overall Kellogg’s brand identity commentates and conveys an image to consumers of products that provide high quality and great tasting foods worldwide. Kellogg’s has, over the years, built up a number of key core brand identity characteristics, emphasising quality and nutritional benefits that apply to the Kellogg’s product.

Consumers trust the Kellogg’s brand name to fulfil these requirements whichever type of cereal they choose. To these core brands identity values are added the elements of the individual brand personality. Like members of a family, each will bear the same surname, but each individual has its own characteristics and strengths. The Kellogg’s brand communicates a brand that promotes a positive, energising, optimistic and fun environment which serves customers and delight consumers through the quality of their products and services, through its bright, colourful new corporate image for all its cereal brands.The Kellogg’s brands tries to communicate itself as a wholesome fun loving family, which emphasis’s a high live of nutritional value of it brand and a health conscious life style living to both children and adults. In the past five years, in particular, Kellogg’s have underlined the healthy qualities of its product. Indeed, Kellogg’s has carried out educational campaigns to raise awareness of the importance of a balanced diet and was a major sponsor of World Heart Day 2001. There is commercial gain to be exploited, as health-oriented products are generally able to command a higher premium, although tough competition makes this higher margin a hard-fought one to maintain.

The Kellogg’s brand highlights the quality of their goods and tries to build on the emotional attachments.Their packaging for children’s cereals has enabled them to communicate an image of youth and fun to both adults and kids. By combining some elements of corporate branding with the individual product’s own identity, it has provided the assurances of quality and nutrition that come with Kellogg’s name and also appeal to the end user.Kellogg’s are keen to give products their own identity, which will clearly distinguish them from any competition.

Kellogg’s’ brand identity and name encourages loyalty amongst consumers, so will be more likely to buy the product on a regular basis. Their effective brand identity will distinguish one product from the next on the supermarket shelves. This familiarity adds extra-perceived value to the product and means that a customer’s decision to buy is not purely determined by price, Kellogg’s effectively does both.

Kellogg’s is an example of multiple product branding, where each product within the range is given its own clear identity and personality but is also marketed using the Kellogg’s name as an umbrella. For example, Special K is aimed towards women, Start has a sporty image and Frosties and Coco Pops are primarily aimed at children. Corn Flakes, by contrast, are aimed at the whole family. By combining some elements of corporate branding with the individual product’s own identity, it can provide the assurances of quality and nutrition that come with the Kellogg’s name and appeal to the end user.

The brand identity communicated by the company has already proved to be very consumer friendly and a big success. Kellogg’s Cornflakes and Weetabix are the most favoured breakfast cereals, with just over a fifth of consumers choosing to purchase these brands, so there seems to be a matching fit in the brand identity being communicated to the consumer and how it is successfully being perceived by the target market.

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