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  1. 1. Brand Management<br />Students:<br />Pedro Da Silva<br />
  2. 2. Kellogg’s<br />Kellogg’s Brand<br />● Origin: United States● Established: 1906● Founder: William K. Kellogg● WorldHeadquarters: Battle Creek, Michigan● Owner of thebrand: Kellogg Company● Chairman: James Janness● President & CEO: David Mackay● Turnover: U.S. $ 12.57 billion (2009)● Income: U.S. $ 1.21 billion (2009)● MarketCap: U.S. $ 18.9 billion (October/2010)● Brand value: U.S. $ 11,041 billion (2010)● Factories: 18● Global presence: 180 countries● Employees: 31,000● IndustryType: Food● Main products: cereals, cereal bars andbiscuits<br />Competitors<br />Challenges<br />Financial<br />Changes<br />Consumer<br />Brand Strength<br />Pyramid<br />Communication<br />Responsability<br />S.W.O.T.<br />Tomas Bata University, Zlín<br />
  3. 3. Kellogg’s Brand<br />● Website:<br />● Icons: characters like Tony theTiger and Toucan Sam <br />● Slogans: <br /> ”Bringing Our Best To You” “Thebest to youeachmorning.” “Thepopular choice for kidsbreakfast.” (Kellogg’s) “Tastethemagain, for thefirst time. ”(CornFlakes) “K-E-double-L-O-double-good, Kellogg's best to you...” (CornFlakes) “It'sgonnabe a greatday.” (CornFlakes) “Haveyouwokenup to Kellogg's cornflakes?” (CornFlakes) “Smaxeymakesbreakfastthehappiestmealoftheday.” (Sugar Smacks) “Toastedwheatwith a tasteofhoney.” (Sugar Smacks) “Becausethat'sthekindofMomyou are.” (Rice Krispies)<br />Kellogg’s<br />Competitors<br />Challenges<br />Financial<br />Changes<br />Consumer<br />Brand Strength<br />Pyramid<br />Communication<br />Responsability<br />S.W.O.T.<br />Tomas Bata University, Zlín<br />
  4. 4. Kellogg’s<br />A Brief History of Kellogg’s<br />Competitors<br />Challenges<br />Financial<br />Changes<br />Consumer<br />Brand Strength<br />Pyramid<br />Communication<br />Responsability<br />S.W.O.T.<br />Tomas Bata University, Zlín<br />
  5. 5. Kellogg’s<br />Main Competitors (from the rank of 100)<br />Competitors<br />Challenges<br />Financial<br />Changes<br />Consumer<br /><ul><li>The main competitor is Netlé Company (founded in Switzerland and positioned the top 100 ranking at 54th);
  6. 6. Nestlé Company have a lot of products, like cereals and animal food;
  7. 7. Nestlé was founded in 1866 (Kellogg’s – 1906).</li></ul>Brand Strength<br />Pyramid<br />Communication<br />Responsability<br />S.W.O.T.<br />Tomas Bata University, Zlín<br />
  8. 8. Kellogg’s<br />Challenges Kellogg’s Brand<br /><ul><li>To be efficient and effaces, like adoption of measures eco-friendly;
  9. 9. Rumors about Kellogg’s use genetically engineered corn (Try to “Kill” this rumor);
  10. 10. Brand of Philosophy is the best breakfast you can eat!
  11. 11. Trying to be more healthy (to substitute the salt, peanut, etc…);
  12. 12. The promotion are very low…It’s not attractive, in other words, Kellogg’s need to change the Communication.</li></ul>Competitors<br />Challenges<br />Financial<br />Changes<br />Consumer<br />Brand Strength<br />Pyramid<br />Communication<br />Responsability<br />S.W.O.T.<br />Tomas Bata University, Zlín<br />
  13. 13. Kellogg’s<br />Financial Performance<br />International Growth<br />Competitors<br />Challenges<br />Financial<br />Changes<br />Consumer<br />Brand Strength<br />Pyramid<br />Communication<br />Responsability<br />S.W.O.T.<br />Tomas Bata University, Zlín<br />
  14. 14. Kellogg’s<br />Financial Performance (2)<br />Financial Results (Summary)<br />Competitors<br />Challenges<br />Financial<br />Changes<br />Consumer<br />Brand Strength<br />Pyramid<br />Communication<br />Responsability<br />S.W.O.T.<br />Tomas Bata University, Zlín<br />
  15. 15. Kellogg’s<br />Financial Performance (3)<br />Gross Profit<br />Competitors<br />Challenges<br />Financial<br />Changes<br />Consumer<br />Brand Strength<br />Pyramid<br />Communication<br />Responsability<br />S.W.O.T.<br />Tomas Bata University, Zlín<br />
  16. 16. Kellogg’s<br />Brand value and changes in brand value<br /><ul><li>In the rank the brand Kellogg’s is positioned on the 35th place.
  17. 17. The value of the brand is in $ 11.041 billions. </li></ul> Consumers who have grown up with Kellogg's breakfast cereals will have strong associations of childhood and home.<br /> So, this brand have a huge value from consumers that associate Kellogg’s to their breakfast .<br />Competitors<br />Challenges<br />Financial<br />Changes<br />Consumer<br />Brand Strength<br />Pyramid<br />Communication<br />Responsability<br />S.W.O.T.<br />Tomas Bata University, Zlín<br />
  18. 18. Kellogg’s<br />Changes in brand value:<br />Competitors<br />Challenges<br />Financial<br />Changes<br />Consumer<br />Brand Strength<br />Pyramid<br />Communication<br />Responsability<br />S.W.O.T.<br />Tomas Bata University, Zlín<br />
  19. 19. Kellogg’s<br />If there are changes in the rank or brand value, what factors accounted for it?<br /><ul><li>More people missed the breakfast;
  20. 20. The increased need for such a snack product;
  21. 21. The costs and risks for made a diversification;
  22. 22. The brand message was not strong enough;
  23. 23. Consumers were not impressed.</li></ul>Competitors<br />Challenges<br />Financial<br />Changes<br />Consumer<br />Brand Strength<br />Pyramid<br />Communication<br />Responsability<br />S.W.O.T.<br />Tomas Bata University, Zlín<br />
  24. 24. Kellogg’s<br />What is the role of the brand in consumermarkets<br /> 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. <br /> It shows that this products have quality and have the care of health and nutrition.<br /> Kellogg's has been able to clearly differentiate its product range from the competition. <br /> Extensive market researches helped to reduce the risk, and communication with consumer.<br />Competitors<br />Challenges<br />Financial<br />Changes<br />Consumer<br />Brand Strength<br />Pyramid<br />Communication<br />Responsability<br />S.W.O.T.<br />Tomas Bata University, Zlín<br />
  25. 25. Analyse the brand strength within the framework of the 10 Principles of Brand Strength <br />1) Commitment<br />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<br />2) Protection<br />Kellogg's has manages to convey a good image for your client while maintaining its integrity above all.<br />3) Clarity<br />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.<br />4) Responsiveness<br />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.<br />Kellogg’s<br />Competitors<br />Challenges<br />Financial<br />Changes<br />Consumer<br />Brand Strength<br />Pyramid<br />Communication<br />Responsability<br />S.W.O.T.<br />Tomas Bata University, Zlín<br />
  26. 26. 5) Authenticity<br />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.<br />6)Relevance<br />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.<br />7)Understanding<br />The 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.<br /> 8) Consistency<br />With a wide variety of products, Kellogg's can adapt to all markets in which it operates.<br />9) Presence<br />Kellogg Company (“Kellogg”) is committed to acting ethically. This commitment is reflected in our first core value “We Act with Integrity and Show Respect.” <br />10) Differentiation<br />Kellogg's is recognized by our customers as a brand with quality and variety. We're No. 1 in Cereals.<br /> <br />Kellogg’s<br />Competitors<br />Challenges<br />Financial<br />Changes<br />Consumer<br />Brand Strength<br />Pyramid<br />Communciation<br />Responsability<br />S.W.O.T.<br />Tomas Bata University, Zlín<br />
  27. 27. Analyse the brand using the brand equity pyramid <br />Kellogg’s<br />Competitors<br />Challenges<br />Financial<br />Changes<br />Consumer<br />Brand Strength<br />Resonance: There is an immediate identification with our client’s brand, and a relationship satisfaction on demand.<br />Judgments: In relation to our performance we managed to meet all customers. Our image is our guy, our customers know and love.<br />Feelings: We remain the best brand of cereal that means we are in the hearts of our customers.<br />Performance: When he awakens our customers think of Kellogg's, is the brand that satisfies you.<br />Imagery: Our client is psychologically satisfied with the results obtained by consuming Kellogg's.<br />Salience: We are a recognized brand worldwide, our customers can find us in almost every country.<br />Pyramid<br />Communication<br />Responsability<br />S.W.O.T.<br />Tomas Bata University, Zlín<br />
  28. 28. Kellogg’s<br />Analyse the communication mix of the brand, which is most dominant?<br />Competitors<br />Challenges<br /> Kellogg´s first direct their attention to the recipients of marketing communication: the target audiences.<br /> A series of campaigns was designed with the objective of tapping into the health-conscious concerns of its target audience. <br />Objectives of the communication mix of kellogg’s:<br /><ul><li> Immediately effect increasing in sales and engage its target audience as part of a long-term strategy to reposition of the company. </li></ul>Financial<br />Changes<br />Consumer<br />Brand Strength<br />Pyramid<br />Communication<br />Responsability<br />S.W.O.T.<br />Tomas Bata University, Zlín<br />
  29. 29. Kellogg’s<br />Corporate socialresponsability<br />Enviroment<br />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.<br />Community<br />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. <br />Competitors<br />Challenges<br />Financial<br />Changes<br />Consumer<br />Brand Strength<br />Pyramid<br />Communication<br />Responsability<br />S.W.O.T.<br />Tomas Bata University, Zlín<br />
  30. 30. Kellogg’s<br />S.W.O.T. Analysis <br /> <br /> S.W.O.T analysis is a scan of the internal and external environment and is an important part of the strategic planning process. <br /> Environmental factors internal to the company are classified as Strengths and Weaknesses and external as Opportunities or Threats.<br /> <br />Competitors<br />Challenges<br />Financial<br />Changes<br />Consumer<br />Brand Strength<br />Pyramid<br />Communication<br />Responsability<br />S.W.O.T.<br />Tomas Bata University, Zlín<br />
  31. 31. Kellogg’s<br />Strengths<br /> <br /><ul><li>Control 42% of global market share for Pre-sweeter cereal, which is more than triple the market share of any of their competitors.
  32. 32. They have the strongest brand recognition and advertising recollection of all the cereal manufacturers</li></ul>Weaknesses<br /><ul><li>Have not aggressively developed many new cereal lines in the past four years.
  33. 33. Slow erosion of their U.S. market share in the past few years.</li></ul> Follower in Pricing Strategy<br />Competitors<br />Challenges<br />Financial<br />Changes<br />Consumer<br />Brand Strength<br />Pyramid<br />Communication<br />Responsability<br />S.W.O.T.<br />Tomas Bata University, Zlín<br />
  34. 34. Kellogg’s<br />Opportunities<br /><ul><li>International expansion is the biggest area for growth for Kellogg’s.
  35. 35. Kellogg can continue to slowly diversify, while still remaining in their core business area, which will increase their profitability.
  36. 36. If they can develop a better pricing strategy and guarantee lower prices, they can reduce costs while increasing their market share.</li></ul> Threats<br /><ul><li>Others General Mills, Post, and Quaker Oats are using price competition and product proliferation to erode Kellogg’s share of the market.
  37. 37. Discount imitation cereals brands have been successful in reducing premium brands in the more commodity like cereals.</li></ul>Competitors<br />Challenges<br />Financial<br />Changes<br />Consumer<br />Brand Strength<br />Pyramid<br />Communication<br />Responsability<br />S.W.O.T.<br />Tomas Bata University, Zlín<br />
  38. 38. Creating a stronger position<br />When contemplating long-term investment decisions, brand managers face two key questions.<br />1. In what projects should the company invest?<br />2. What level of investment should be approved?<br /><ul><li>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.
  39. 39. 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.
  40. 40. The judgement has proved to be correct, to the benefit of the company and its many stakeholders.</li></ul>Kellogg’s<br />Competitors<br />Challenges<br />Financial<br />Changes<br />Consumer<br />Brand Strength<br />Pyramid<br />Communication<br />Responsability<br />S.W.O.T.<br />Tomas Bata University, Zlín<br />
  41. 41. Kellogg’s<br /><ul><li>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.
  42. 42. 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.
  43. 43. Product research showed that the UK products could be adapted to meet the individual tastes of consumers within those markets.
  44. 44. The Kellogg's strategy was truly global; it developed an idea in Europe which it then adapted and applied worldwide.
  45. 45. 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.</li></ul>Competitors<br />Challenges<br />Financial<br />Changes<br />Consumer<br />Brand Strength<br />Pyramid<br />Communication<br />Responsability<br />S.W.O.T.<br />Tomas Bata University, Zlín<br />
  46. 46. Kellogg’s<br />Competitors<br />Challenges<br />Financial<br />Thankyou for to payattention<br />Changes<br />Consumer<br />Brand Strength<br />Pyramid<br />Communication<br />Responsability<br />S.W.O.T.<br />Tomas Bata University, Zlín<br />