Marketing kelloggs

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Marketing kelloggs

  1. 1. THE KELLOGS CONNECTION
  2. 2. KELLOGGS – BRINGING THE BEST TO U• Kelloggs was founded as the Battle Creek Toasted Corn Flake Company on 1906• found by William Keith Kellogg• Worlds leading producer of breakfast cereals and convenience foods, such as cereal bars• Kellogg’s products and their characters crackle, pop are famous all over the world• Number one in market share with just under 34% of the $9 Billion cereal market• Kellogg recently announced a shortfall in earnings due to lower sales and continued competitive pressures in the ready-to-eat cold cereal market•
  3. 3. THE NUTRIGRAIN PROBLEM•The Market grew by 15% in 2003•There was a steady growth in thecompetitor’s market share•The sales of the Nutrigrain declined in thesame period•The tastes and behavior of the marketchanged•The manufacturers knew the product wasapproaching the decline period•The objective of the manufacturer shiftedfrom introducing another product toincreasing the life cycle of the existingproduct•Decided to rebrand and re launch thesame product to increase it’s maturitylifecycle and hence product lifecycle
  4. 4. PRODUCT LIFE CYCLEEvery product has its own life cycleShows the various stages of how salesof a product changes over timeFive stages of PLC:Launch – Product launch and its initialperformance in the market Growth – Period in which salessteadily increase Maturity – Stage in which othercompetitors emerge. Time of maxprofitability Saturation – Market is full of similarproducts. Sales start to fall Decline – Stage in which decisionsabout the death or resurgence of theproduct is taken.
  5. 5. Strengths of KelloggsStrong position in themarket for convenienceand health foodsWell established brandname and brand valueFocus on promotinghealthy livingStrong commitment tocorporate socialresponsibility
  6. 6. Causes for FailureProblems started at maturitystageCannibalisation – Competitionfrom products of Kellogg’s itselfand other manufacturers likeAlpen barsLack of product differentiationLesser focus on advertisingand promotional strategiesLack of measures to curbcompetition
  7. 7. Relaunching strategyIdentification of the problemPossible solutions for extending thePLC:Promoting Nutrigrain as an “all daysnack” rather than as a “breakfast food”.Improving the Integrated MarketingCommunication through enhancedadvertising and promotionsIntroducing new flavours to cater to allcategories of peopleTie ups with corporate, fitness centresand schools to increase promotionsUtilize the media, press to launch newadvertising strategies

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