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Daniel Chuah 1/9/2014
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Table of Contents
1.0 Executive Summary…………………………………………………………………………..3
2.0 Introduction…………………………………………………………………………………...3
3.0 ResearchFindings…………………………………………………………………………….4
3.1 Consumer Insights………………………………………………………………….4-6
4.0 Brand Elements Analysis…………………………………………………………………….7
4.1 Brand names, logo & symbols……………………………………………………….7
4.2 Packaging…………………………………………………………………………...7-8
4.3 Characters…………………………………………………………………………..8-9
5.0 Brand Marketing Analysis………………………………………………………………….10
5.1 Channel Strategies…………………..…………………………………………...10-11
5.2 Product & Pricing Strategies……………………………………………………11-12
5.3 Communication Strategies………………………………………………………….13
6.0 Brand Strategy (CBBE pyramid)…………………………………………………………..14
6.1 Salience (Brand identity: Who are you?)………………………………………….15
6.2 Performance and Imagery (Meaning: What are you?)…………………………...15
6.3 Judgments and Feelings (Response: What about you?)…………………………..15
6.4 Resonance (Relationships: What about you and me?)……………………………15
7.0 Recommendations…………………………………………………………………………...16
8.0 References……………………………………………………………………………………17
9.0 Appendices…………………………………………………………………………………...18
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1.0 Executive Summary
There are many aspects we can look at when it comes to effective branding and marketing
strategies. From its brand positioning to its elements, all of this contributes to the success of
building brand equity. This report seeks to identify what Kellogg’s branding and marketing strategy
is for its product line of Sultana Bran and its extensions. Have they applied the right strategy for
the New Zealand market? This report breaks down to different parts and that includes: research
findings, consumer insights, brand elements analysis, brand marketing analysis, brand strategy
(CBBE pyramid), and recommendations.
2.0 Introduction
Kellogg’s is an American company founded in 1906. It is now the world’s leading producer
of cereals and convenience food. It is established as an international leader in the cereal trade with
products marketed in more than 100 countries around the world. All of their products are marketed
under Kellogg’s brand name and are sold principally in supermarkets and convenience store. In-
depth questionnaires and interviews have been done for the brand Kellogg’s to determine the
awareness of the product range for Sultana Bran in this paper.
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3.0 Research Findings
A questionnaire have been given out to 20 participants at the aged of 30-54 years old. An
individual in-depth interview was also conducted at Queen Street Countdown and New World
Metro. The objective of this questionnaire and interview is to determine the brand awareness for
Kellogg’s and its product range of Sultana Bran.
3.1 Consumer Insights
This consumer insights are mainly based and obtained from the survey form given to 20
participants at the aged 30-54 years old. (Appendix 1)
Traditionally, Kellogg’s Sultana Bran was considered as a breakfast cereal. However now
it is also being used at any time of the day, for meals, in between meals or snacks time. Most
respondents think breakfast is the most important meal of the day and they always make sure that
their kids have something to eat before they go to school. In question two and three of the survey
form, ninety percent of respondents answered Sanitarium Weet-Bix as their number one choice
breakfast cereal for themselves and family members. I conclude that most of the Kiwis think of
Sanitarium Weet-Bix as their main choice of cereal.
Furthermore, question four and five is mainly based on having the knowledge of whether
respondents do feed their kids with cereal for breakfast. I was curious to know the frequency at
which they consumed cereal per week. All of them answered “Yes, they do.” However it is not
consistent as to how many times they fed their children with cereal. This goes to show that all of
them know that breakfast is important for their kids but cereal is not the main source of food to
kick start their day.
Moreover, question six and seven was about brand awareness among respondents. 15/20 of
respondents managed to answer question number six correctly. However, two other respondents
could not figure it out. As for question seven, all of them managed to identify Sanitarium Weet-
Bix brand, Hubbards, Nestle Milo and Home Brand. In contrast, only fifteen respondents could
identify the missing words for Kellogg’s brand. This goes to show that Kellogg’s brand is still not
in the hearts of every respondents.
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Question eight was to identify if respondents have heard of Kellogg’s cereal brand. If so,
they were able to continue to question nine. Fifteen respondents answered yes they have heard of
it but the remaining five answered no.
Question nine’s focus was mainly on what respondents thinks of Kellogg’s brand
personality if it were to be a person. Ten people circled similarly stating that Kellogg’s is a
“competent” brand. It goes to show that Kellogg’s is a reliable and successful brand for them.
However, the remaining five respondent’s circled “sophisticated”. The brand is perceived as classy
and charming for them.
Question ten is an open-ended question that seeks to ask mainly about what they think a
typical user of Kellogg’s would be. One respondent answered that Kellogg’s is a substitute product
for Weet-Bix. I find this very intriguing because although Weet-Bix is mostly a Kiwi breakfast
meal, not all of them enjoy eating it. Another respondent said that typical users of Kellogg’s for me
are for the rich stating that it can only be afforded by some people.
In question eleven, respondents were asked to circle the most appropriate answer whether
they had made purchases for Kellogg’s cereal product. There were three choices: “At every
occasion”, “From time to time”, and “Never”. Seven respondents circled “At every occasion”. The
remaining eight circled “From time to time”.
In addition, questions twelve and thirteen is mainly based on whether respondents have
tried any Kellogg’s Sultana Bran range of product before, and if yes what type of Sultana Bran
range of product they bought. Out of fifteen respondents, only ten answered “Yes” they have
bought Kellogg’s Sultana Bran range of product. Seven of them answered they usually buy Sultana
Bran Buds while the remaining three circled the original Sultana Bran flavor. This goes to show
that not all of them have tried or fancy eating Kellogg’s Sultana Bran range of product.
Question fourteen is mainly based on when respondents and their family members indulge
in their Kellogg’s Sultana Bran cereal. Out of the ten respondents, seven of them circled “breakfast
and snacks” while the remaining three circled “whenever”. This goes to show that Kellogg’s
Sultana Bran range of product is not just a breakfast thing. In question fifteen, it is mainly based
on what respondents think of the product Kellogg’s Sultana Bran.
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Image 1. (Ratings for Sultana Bran product, 2014)
As for question sixteen, respondents are asked to rate the likelihood of buying Kellogg’s Sultana
Bran product range or likelihood of switching to another brand.
Image 2. (Ratings for respondents, 2014)
Question seventeen and eighteen are questions probed answers as to what cereal product
they are most loyal to and satisfied with. Five respondents answered that they are most loyal to
Sanitarium Weet-Bix brand whereas three respondents answered they are loyal to Kellogg’s brand.
Two respondents however answered they are most loyal to Home Brand because of its pricing. Last
but not least, respondents are given an open-ended question in question nineteen asking them how
Kellogg’s Sultana Bran product can be improved to encourage repeat purchase. One respondent’s
answer captured my attention stating that “Kellogg’s can improve the product by actually changing
the packaging”. She thinks they could come up with an easier way to pour out their cereal from the
bag.
0
1
2
3
4
5
6
7
Unappealing to most
Appealing
Low-quality to High
Quality
Unpleasant to most
pleasant
Chart Title
Series 1 Series 2 Series 3
Sales
Sultana Bran range of product Sanitarium Weet-Bix
Home Brand Other Kellogg's product
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4.0 Brand Elements Analysis
Keller stated that brand elements, sometimes called brand identities, are those
trademarkable devices that serve to identify and differentiate the brand (2013). The main ones are
brand names, URLs, logos, symbols, characters, spokespeople, slogans, jingles, packages, and
signage (Keller, 2013).
4.1 Brand names, logos and symbols
Kellogg’s brand have been around for more than hundred years making them one of the
most recognizable cereal brands in the world. With its new tagline, “Let’s Make Today Great”
reveals the key product benefit. For years, Kellogg’s have been the biggest producer of cereal and
this tagline does provide a linkage as to what the company’s vision and mission statement is.
Kellogg’s logo or symbol have been a very prominent one as well due to the brand’s long history
of success and fame. However, based on the respondent’s answers in the survey form not all of
them could identify the logo or symbol for Kellogg’s. This posed as a problem for Kellogg’s brand
in the New Zealand market.
4.2 Packaging
Sultana Bran range of cereal products is more than just a simple breakfast cereal because it
fulfills a certain set of expectations. When consumers buy Sultana Bran they are buying the benefits
that come with it. Consumers sees the product and brand as a healthy nutritious high in fiber
product. Kellogg’s packaging for each and every product they sell has its own unique design and
features. As for Sultana Bran cereal range, the packaging is bright purple and it emphasizes on its
high fiber content. Kellogg’s Sultana Bran has three products in its range: Kellogg’s Sultana Bran,
Kellogg’s Sultana Bran Buds and Kellogg’s Sultana Bran Crunchy Oat Clusters. All of its products
size and content vary.
Image 3. Kellogg’s Sultana Bran.
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Image 4. Kellogg’s Sultana Bran Buds.
Image 5. Kellogg’s Sultana Bran Crunchy Oat Clusters.
4.3 Characters
Kellogg’s is one of the very first cereal brands to come up with characters to fit the product
they were offering. Such characters includes Tony the Tiger for Frosted Flakes, Toucan Sam for
Froot Loops breakfast cereal and now Buddy for Sultana Bran Buds. Below are the images for it.
Image 6. Toucan Sam for Froot Loops and Tony the Tiger for Frosted Flakes
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Image 7. Buddy character for Kellogg’s Sultana Bran Buds product
In the 19th century, Kellogg’s came up with a catchy jingle for its product Kellogg’s Frosted
Flakes. Tony the Tiger was the character and the voice for it. It starts with this “They’re Gr-r-reat!”
and ends with a catchy jingle “Good morning, good morning the best to you each morning. Let K
double LO double good Kellogg’s starts your day”. Since their debut, Tony the Tiger and Toucan
Sam became an iconic symbol for Kellogg’s cereal products and it became one of the most talk-a-
bout brand characters in the world. Tony the Tiger was also used for Tony‘s Cinnamon Krunchers
and Tiger Power. However, for the Buddy character in Kellogg’s Sultana Bran Buds product it is
still not well-known. Brand image is defined as an impression created by brand messages and
experiences and assimilated into a perception or impression of the brand (Duncan, 2005).
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5.0 Brand Marketing Analysis
Keller (2013) stated that in today’s marketplace, there are many different means by which
products and services and their corresponding marketing programs can build brand equity. Channel
strategies, communication strategies, pricing strategies, and other marketing activities can all
enhance or detract from brand equity (Keller, 2013).
Kellogg’s, being the biggest and one of the most recognized brands for breakfast cereal in
the world proves that their communication strategy is working well for them. Having its own
originality and one of a kind characters for their products and brand, Kellogg’s is now the top
salesman for breakfast cereal. However, we are here to discuss the product range of Kellogg’s
Sultana Bran in New Zealand market and through the survey form answers that I got back most
respondents would rather stick to Weet-Bix. Why? According to one of the respondent that I have
personally interviewed, she said that Weet-Bix have been the heart and soul of every Kiwi
consumers. Every person’s house you go to, Weet-Bix will definitely be on their kitchen shelves.
She says Weet-Bix satisfies her main priority need which is a filling breakfast every morning. It
makes her kids full whereas Sultana Bran only fills them up for a short period of time. Besides that,
Weet-Bix communication strategy is at the heart and soul of every New Zealanders by sponsoring
the All Blacks team.
5.1 Channel Strategies
The competition in the cereal market have become intensely competitive in its market
segment. More and more cereal brands are developing their own unique choice of cereal for
consumers today. The market for natural and healthy breakfast cereal is vast growing. As for the
New Zealand market, Kellogg’s Sultana Bran range of products main competitors are Australian
owned Sanitarium products, local brand Hubbards, and private labels. Direct competitors are Weet-
Bix and other branded and white label cereal with high fiber content or categorized as healthy
belonging to the cereal aisle at the Supermarket. Customers can buy the entire Sultana Bran range
of products, along with direct competitors from the same point of sale – Supermarkets and
convenience stores. Kellogg’s cereal products are given an adequate amount of space in the shelves
of these two supermarkets. Below are images taken at Countdown and New World Metro
supermarket in Queen Street.
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Image 8. Product Placement.
Image 9. Product Placement.
5.2 Product & Pricing Strategies
Price may also be an issue as there is opportunity in the market for other private label brands
that offer cheaper, healthy with similar taste alternatives. Its pricing strategy is at a higher range
making it expensive for Kiwis. This posed an issue as to how much the Kiwis are willing to pay
for it. Being priced slightly higher as compared to their main competitor Weet-Bix, this may cause
a downturn in volume of sales as the Kiwis are more intrigued with the thought of a filling breakfast.
Two supermarkets were analyzed to see the difference in pricing for these three products. These
two supermarkets included Countdown and New World Metro in Queen Street. At New World
Metro, the price for Kellogg’s Sultana Bran 420g product cost 6.59NZD whereas in Countdown it
only cost 5.70NZD. However, during special promotions in Countdown the price for any Kellogg’s
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Sultana Bran 420g product cost 10NZD for 2 boxes. Below are images of prices in Countdown and
New World Metro.
Image 10. Kellogg’s Sultana Bran priced at 6.59NZD
Image 11. Kellogg’s Sultana Bran Extra or Buds promotion
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5.3 Communication Strategies
On the other hand, Kellogg’s Sultana Bran range of products communication strategy is
targeted to mothers of school-aged children. The product is mainly aimed at parents aged 30 or
older, focusing more on mothers. This population segment in New Zealand accounts for around
50% of the total population. Appendix 2 and 3 Kellogg’s main focus is to generate interest in their
product based on the nutritional benefits that children need. Its communication strategy is all about
the high fiber content that children need every morning. As for Sultana Bran Buds, Kellogg’s
created a “Buddy” character in its ads telling children they should include Sultana Bran Buds cereal
in their school bag. They also make ties with TVNZ to drive awareness and reappraisal with older
families through the Smart Choice Everyday program. Through this program, host Stacey Morrison
is the perfect Kiwi icon being a fulltime mum herself she was able to educate and tell consumers
about a healthy and nutritious breakfast option for their whole family to enjoy.
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6.0 Brand Strategy (CBBE pyramid)
Image 12. CBBE pyramid for Kellogg’s Sultana Bran range of product
We formally define customer-based brand equity as the differential effect that brand knowledge
has on consumer response to the marketing of the brand (Keller, 2013).
Resonance
Judgement & Feelings
Performance & Imagery
Salience
Decreasing resonance
Self-respect
Successful,
classy
Healthy nutritious breakfast
cereal
Reliable,
High in fiber
Trustworthy
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6.1 Salience (Brand Identity: Who are you?)
“Brand identity is a unique set of brand associations that the brand strategist aspires to create
or maintain” (Aaker, 1996). Kellogg’s brand association is a healthy nutritious breakfast cereal.
Kellogg’s over the years have built some key core brand attributes, emphasizing on its quality and
nutritional benefits thus making it a well-known brand for its nutritious benefits.
6.2 Performance & Imagery (Meaning: What are you?)
Kellogg’s have a long history of producing cereal, making them a reliable brand.
Consumers are dependable on Kellogg’s brand because they know that it’s been around for some
time. It is also perceived as a classy and successful product, making the brand seemed expensive.
6.3 Judgments & Feelings (Response: What about you?)
Due to its expensive pricing strategy, consumers feel secure in relying on the brand.
Mothers trust the brand and know that they have made the smarter choice by feeding Kellogg’s
Sultana Bran for the whole family. They treat themselves with more respect knowing that their
children have the right source of nutrients.
6.4 Resonance (Relationships: What about you and me?)
Kellogg’s have not achieved resonance market due to its lack of attractiveness to the
consumers in the New Zealand market.
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7.0 Recommendations
Kellogg’s current strategy is that of competitive differentiation rather than cost leadership,
and although we are looking at the product from a marketing stand point, it would work to the
company’s advantage to identify the key success factors of the current pricing strategy. The key
question that we need to answer is: Are most consumers willing to pay for Kellogg’s Sultana Bran
cereals for a value differentiation that it brings, compared to all other lower priced brands? Is the
value correctly projected in the packaging and marketing communications? Weet-Bix have been
known to be a family favorite due to its affordable pricing strategy and the amount of content given
within a single box of cereal.
In addition, Kellogg’s Sultana Bran should change its packaging. The words and messages
portrayed on the packaging is too cluttered. It is not comfortable for the eyes of consumers to read.
Kellogg’s should also change its packaging on the inside. Based on one of the respondent, she
recommended that the packaging should be made easier for her to pour her cereal. Therefore,
instead of having its current white plastic bag packaging, they should change it to a re-sealable
white packaging. This makes it easier for consumers to seal back once it is used. It also encourages
time saving and ease of effort for consumers.
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8.0 References
Aaker, D. A., (1996) Building Strong Brands. New York: The Free Press.
Countdown (2014) “Kellogg’s Sultana Bran range of products” (August 17).
Countdown (2014) “Product Placement” (August 17).
Countdown (2014) “Price Promotion” (August 17).
Davis, M. P. (2011). Kellogg’s Froot Loops and Frosted Flakes cereal [Photograph]. Retrieved
August 15, 2014, from
http://www.mlive.com/news/kalamazoo/index.ssf/2011/11/southwest_michigan_links_kello_3.ht
ml
Duncan, T. (2005). Principles of Advertising and IMC. (2nd International Edition). New York:
McGraw-Hill/Irwin.
Keller, K. L., (2008). Strategic Brand Management: Building, Measuring, and Managing Brand
Equity. (3rd ed.). N.J: Pearson Education, Inc.
Keller, K. L., (2013). Strategic Brand Management: Building, Measuring, and Managing Brand
Equity. (4th ed.). N.J: Pearson Education, Inc.
MacPherson, L. (2014). New Zealand Population Chart [Image online]. Retrieved from
http://www.stats.govt.nz/browse_for_stats/population/estimates_and_projections/NationalPopulat
ionEstimates_HOTPAt30Jun14.aspx
New World Metro (2014) “Product Placement” (August 17).
New World Metro (2014) “Price” (August 17).
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9.0 Appendices
Appendix 1
Survey form. Refer to attached Kellogg’s Sultana Bran Questionnaire or a sample on the next
page.
Appendix 2
Target Market of Sultana Bran, 2014.
Appendix 3
Statistics of New Zealand population. (MacPherson, L. 14 August 2014)
Demographic profile
 Mothers between the ages of 30 to 54
 They typically eat cereals once a day
 Mainly living in the city
 Middle to high range income
Psychographic profile
 Active and busy lifestyles
 Concerned with health for themselves
and their kids
 Modern and actively changing
 Low sensitivity to price for quality
products
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Survey Form
I am a student from AUT University. I was given the task to carry out research aimed at
understanding the consumers of breakfast cereal brands.
This is a voluntary questionnaire and all results are anonymous. The questionnaire will last
approximately five minutes and I will be available if you have any queries regarding the research.
1. Do you believe that breakfast is the most important meal of the day?
a. Yes
b. No
2. Please name as many brands of cereal you can think of.
_______________________________________________________
3. Please name the brands of cereal that you purchased for yourself or family members.
_______________________________________________________
4. Do you feed your children cereal? If yes please continue to question 5. If no thank you for
participating in our survey.
a. Yes
b. No
5. How often do your children have cereal for breakfast?
a. 1-3 days
b. 2-5 days
c. Not consistent
d. Everyday
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6. Please complete the following missing letters.
_ _ ll _ g _s
7. Here is a list of brand (ads, logos) for breakfast cereal. Do you remember having seen this
brand (ads, logo) before? Please fill up the remaining letters below.
a. _____________
b. ____________
c. ____________
d. _______________
e. ________________
f. ____________________
g. ____________
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8. Have you heard of Kellogg’s cereal? If yes please continue to question (9). If no thank
you for participating.
a. Yes
b. No
9. If Kellogg’s were to be a person what would his or her personality be like?
a. Sincere (down-to earth, honest, wholesome, cheerful)
b. Excited (daring, spirited, imaginative, up-to-date)
c. Competent (reliable, intelligent, successful)
d. Sophisticated (upper-class, charming)
e. Rugged (outdoorsy, tough)
10. In your own opinion, who are the typical consumers of Kellogg’s?
______________________________________________
11. I buy Kellogg’s cereal
At every occasion From time to time Never
(Circle most appropriate answer)
Question 12 onwards is subject to Kellogg’s Sultana Bran range of product.
12. Have you bought Kellogg’s Sultana Bran range of product before? If yes please continue
to question (13). If no thank you for participating.
a. Yes
b. No
13. What type of Kellogg’s Sultana Bran range of product do you usually buy? (Circle most
appropriate answer)
Sultana Bran Sultana Bran Buds Sultana Bran Crunchy Oat
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14. When do you or your family indulge in Kellogg’s Sultana Bran range of product? (Circle
most appropriate answer)
For breakfast Breakfast or snacks Whenever
15. What do you think of Kellogg’s Sultana Bran?
Unappealing 1 2 3 4 5 6 7 8 9 10 Appealing
Low- Quality 1 2 3 4 5 6 7 8 9 10 High-Quality
Unpleasant 1 2 3 4 5 6 7 8 9 10 Pleasant
16. Rate your likelihood of buying Kellogg’s Sultana Bran product range or likelihood of
switching to another brand
I will certainly buy ___________ in the next 3 months.
Disagree 1 2 3 4 5 6 7 8 9 10 Agree
17. I am extremely loyal to _________(Name any cereal product/brand)
Disagree 1 2 3 4 5 6 7 8 9 10 Agree
18. I am fully satisfied with ________(Name any cereal product/brand)
Disagree 1 2 3 4 5 6 7 8 9 10 Agree
19. How can Kellogg’s Sultana Bran be improved to encourage you to repeat a purchase?
____________________________________________________________________
I and all those involvedatAUT Universitywouldlike totake thisopportunitytothankyouforyour time
and cooperation.If youthink of anyquestionsata laterdate please feel freetocontactus via e-mail
(info@ddz6797@aut.ac.nz) ortelephone 0223458712 from8am – 5pm, Monday-Friday.
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Kellogg's Final Assignment

  • 1.
  • 2.
    StrategicBrand Management|14833837 2 Table ofContents 1.0 Executive Summary…………………………………………………………………………..3 2.0 Introduction…………………………………………………………………………………...3 3.0 ResearchFindings…………………………………………………………………………….4 3.1 Consumer Insights………………………………………………………………….4-6 4.0 Brand Elements Analysis…………………………………………………………………….7 4.1 Brand names, logo & symbols……………………………………………………….7 4.2 Packaging…………………………………………………………………………...7-8 4.3 Characters…………………………………………………………………………..8-9 5.0 Brand Marketing Analysis………………………………………………………………….10 5.1 Channel Strategies…………………..…………………………………………...10-11 5.2 Product & Pricing Strategies……………………………………………………11-12 5.3 Communication Strategies………………………………………………………….13 6.0 Brand Strategy (CBBE pyramid)…………………………………………………………..14 6.1 Salience (Brand identity: Who are you?)………………………………………….15 6.2 Performance and Imagery (Meaning: What are you?)…………………………...15 6.3 Judgments and Feelings (Response: What about you?)…………………………..15 6.4 Resonance (Relationships: What about you and me?)……………………………15 7.0 Recommendations…………………………………………………………………………...16 8.0 References……………………………………………………………………………………17 9.0 Appendices…………………………………………………………………………………...18
  • 3.
    StrategicBrand Management|14833837 3 1.0 ExecutiveSummary There are many aspects we can look at when it comes to effective branding and marketing strategies. From its brand positioning to its elements, all of this contributes to the success of building brand equity. This report seeks to identify what Kellogg’s branding and marketing strategy is for its product line of Sultana Bran and its extensions. Have they applied the right strategy for the New Zealand market? This report breaks down to different parts and that includes: research findings, consumer insights, brand elements analysis, brand marketing analysis, brand strategy (CBBE pyramid), and recommendations. 2.0 Introduction Kellogg’s is an American company founded in 1906. It is now the world’s leading producer of cereals and convenience food. It is established as an international leader in the cereal trade with products marketed in more than 100 countries around the world. All of their products are marketed under Kellogg’s brand name and are sold principally in supermarkets and convenience store. In- depth questionnaires and interviews have been done for the brand Kellogg’s to determine the awareness of the product range for Sultana Bran in this paper.
  • 4.
    StrategicBrand Management|14833837 4 3.0 ResearchFindings A questionnaire have been given out to 20 participants at the aged of 30-54 years old. An individual in-depth interview was also conducted at Queen Street Countdown and New World Metro. The objective of this questionnaire and interview is to determine the brand awareness for Kellogg’s and its product range of Sultana Bran. 3.1 Consumer Insights This consumer insights are mainly based and obtained from the survey form given to 20 participants at the aged 30-54 years old. (Appendix 1) Traditionally, Kellogg’s Sultana Bran was considered as a breakfast cereal. However now it is also being used at any time of the day, for meals, in between meals or snacks time. Most respondents think breakfast is the most important meal of the day and they always make sure that their kids have something to eat before they go to school. In question two and three of the survey form, ninety percent of respondents answered Sanitarium Weet-Bix as their number one choice breakfast cereal for themselves and family members. I conclude that most of the Kiwis think of Sanitarium Weet-Bix as their main choice of cereal. Furthermore, question four and five is mainly based on having the knowledge of whether respondents do feed their kids with cereal for breakfast. I was curious to know the frequency at which they consumed cereal per week. All of them answered “Yes, they do.” However it is not consistent as to how many times they fed their children with cereal. This goes to show that all of them know that breakfast is important for their kids but cereal is not the main source of food to kick start their day. Moreover, question six and seven was about brand awareness among respondents. 15/20 of respondents managed to answer question number six correctly. However, two other respondents could not figure it out. As for question seven, all of them managed to identify Sanitarium Weet- Bix brand, Hubbards, Nestle Milo and Home Brand. In contrast, only fifteen respondents could identify the missing words for Kellogg’s brand. This goes to show that Kellogg’s brand is still not in the hearts of every respondents.
  • 5.
    StrategicBrand Management|14833837 5 Question eightwas to identify if respondents have heard of Kellogg’s cereal brand. If so, they were able to continue to question nine. Fifteen respondents answered yes they have heard of it but the remaining five answered no. Question nine’s focus was mainly on what respondents thinks of Kellogg’s brand personality if it were to be a person. Ten people circled similarly stating that Kellogg’s is a “competent” brand. It goes to show that Kellogg’s is a reliable and successful brand for them. However, the remaining five respondent’s circled “sophisticated”. The brand is perceived as classy and charming for them. Question ten is an open-ended question that seeks to ask mainly about what they think a typical user of Kellogg’s would be. One respondent answered that Kellogg’s is a substitute product for Weet-Bix. I find this very intriguing because although Weet-Bix is mostly a Kiwi breakfast meal, not all of them enjoy eating it. Another respondent said that typical users of Kellogg’s for me are for the rich stating that it can only be afforded by some people. In question eleven, respondents were asked to circle the most appropriate answer whether they had made purchases for Kellogg’s cereal product. There were three choices: “At every occasion”, “From time to time”, and “Never”. Seven respondents circled “At every occasion”. The remaining eight circled “From time to time”. In addition, questions twelve and thirteen is mainly based on whether respondents have tried any Kellogg’s Sultana Bran range of product before, and if yes what type of Sultana Bran range of product they bought. Out of fifteen respondents, only ten answered “Yes” they have bought Kellogg’s Sultana Bran range of product. Seven of them answered they usually buy Sultana Bran Buds while the remaining three circled the original Sultana Bran flavor. This goes to show that not all of them have tried or fancy eating Kellogg’s Sultana Bran range of product. Question fourteen is mainly based on when respondents and their family members indulge in their Kellogg’s Sultana Bran cereal. Out of the ten respondents, seven of them circled “breakfast and snacks” while the remaining three circled “whenever”. This goes to show that Kellogg’s Sultana Bran range of product is not just a breakfast thing. In question fifteen, it is mainly based on what respondents think of the product Kellogg’s Sultana Bran.
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    StrategicBrand Management|14833837 6 Image 1.(Ratings for Sultana Bran product, 2014) As for question sixteen, respondents are asked to rate the likelihood of buying Kellogg’s Sultana Bran product range or likelihood of switching to another brand. Image 2. (Ratings for respondents, 2014) Question seventeen and eighteen are questions probed answers as to what cereal product they are most loyal to and satisfied with. Five respondents answered that they are most loyal to Sanitarium Weet-Bix brand whereas three respondents answered they are loyal to Kellogg’s brand. Two respondents however answered they are most loyal to Home Brand because of its pricing. Last but not least, respondents are given an open-ended question in question nineteen asking them how Kellogg’s Sultana Bran product can be improved to encourage repeat purchase. One respondent’s answer captured my attention stating that “Kellogg’s can improve the product by actually changing the packaging”. She thinks they could come up with an easier way to pour out their cereal from the bag. 0 1 2 3 4 5 6 7 Unappealing to most Appealing Low-quality to High Quality Unpleasant to most pleasant Chart Title Series 1 Series 2 Series 3 Sales Sultana Bran range of product Sanitarium Weet-Bix Home Brand Other Kellogg's product
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    StrategicBrand Management|14833837 7 4.0 BrandElements Analysis Keller stated that brand elements, sometimes called brand identities, are those trademarkable devices that serve to identify and differentiate the brand (2013). The main ones are brand names, URLs, logos, symbols, characters, spokespeople, slogans, jingles, packages, and signage (Keller, 2013). 4.1 Brand names, logos and symbols Kellogg’s brand have been around for more than hundred years making them one of the most recognizable cereal brands in the world. With its new tagline, “Let’s Make Today Great” reveals the key product benefit. For years, Kellogg’s have been the biggest producer of cereal and this tagline does provide a linkage as to what the company’s vision and mission statement is. Kellogg’s logo or symbol have been a very prominent one as well due to the brand’s long history of success and fame. However, based on the respondent’s answers in the survey form not all of them could identify the logo or symbol for Kellogg’s. This posed as a problem for Kellogg’s brand in the New Zealand market. 4.2 Packaging Sultana Bran range of cereal products is more than just a simple breakfast cereal because it fulfills a certain set of expectations. When consumers buy Sultana Bran they are buying the benefits that come with it. Consumers sees the product and brand as a healthy nutritious high in fiber product. Kellogg’s packaging for each and every product they sell has its own unique design and features. As for Sultana Bran cereal range, the packaging is bright purple and it emphasizes on its high fiber content. Kellogg’s Sultana Bran has three products in its range: Kellogg’s Sultana Bran, Kellogg’s Sultana Bran Buds and Kellogg’s Sultana Bran Crunchy Oat Clusters. All of its products size and content vary. Image 3. Kellogg’s Sultana Bran.
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    StrategicBrand Management|14833837 8 Image 4.Kellogg’s Sultana Bran Buds. Image 5. Kellogg’s Sultana Bran Crunchy Oat Clusters. 4.3 Characters Kellogg’s is one of the very first cereal brands to come up with characters to fit the product they were offering. Such characters includes Tony the Tiger for Frosted Flakes, Toucan Sam for Froot Loops breakfast cereal and now Buddy for Sultana Bran Buds. Below are the images for it. Image 6. Toucan Sam for Froot Loops and Tony the Tiger for Frosted Flakes
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    StrategicBrand Management|14833837 9 Image 7.Buddy character for Kellogg’s Sultana Bran Buds product In the 19th century, Kellogg’s came up with a catchy jingle for its product Kellogg’s Frosted Flakes. Tony the Tiger was the character and the voice for it. It starts with this “They’re Gr-r-reat!” and ends with a catchy jingle “Good morning, good morning the best to you each morning. Let K double LO double good Kellogg’s starts your day”. Since their debut, Tony the Tiger and Toucan Sam became an iconic symbol for Kellogg’s cereal products and it became one of the most talk-a- bout brand characters in the world. Tony the Tiger was also used for Tony‘s Cinnamon Krunchers and Tiger Power. However, for the Buddy character in Kellogg’s Sultana Bran Buds product it is still not well-known. Brand image is defined as an impression created by brand messages and experiences and assimilated into a perception or impression of the brand (Duncan, 2005).
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    StrategicBrand Management|14833837 10 5.0 BrandMarketing Analysis Keller (2013) stated that in today’s marketplace, there are many different means by which products and services and their corresponding marketing programs can build brand equity. Channel strategies, communication strategies, pricing strategies, and other marketing activities can all enhance or detract from brand equity (Keller, 2013). Kellogg’s, being the biggest and one of the most recognized brands for breakfast cereal in the world proves that their communication strategy is working well for them. Having its own originality and one of a kind characters for their products and brand, Kellogg’s is now the top salesman for breakfast cereal. However, we are here to discuss the product range of Kellogg’s Sultana Bran in New Zealand market and through the survey form answers that I got back most respondents would rather stick to Weet-Bix. Why? According to one of the respondent that I have personally interviewed, she said that Weet-Bix have been the heart and soul of every Kiwi consumers. Every person’s house you go to, Weet-Bix will definitely be on their kitchen shelves. She says Weet-Bix satisfies her main priority need which is a filling breakfast every morning. It makes her kids full whereas Sultana Bran only fills them up for a short period of time. Besides that, Weet-Bix communication strategy is at the heart and soul of every New Zealanders by sponsoring the All Blacks team. 5.1 Channel Strategies The competition in the cereal market have become intensely competitive in its market segment. More and more cereal brands are developing their own unique choice of cereal for consumers today. The market for natural and healthy breakfast cereal is vast growing. As for the New Zealand market, Kellogg’s Sultana Bran range of products main competitors are Australian owned Sanitarium products, local brand Hubbards, and private labels. Direct competitors are Weet- Bix and other branded and white label cereal with high fiber content or categorized as healthy belonging to the cereal aisle at the Supermarket. Customers can buy the entire Sultana Bran range of products, along with direct competitors from the same point of sale – Supermarkets and convenience stores. Kellogg’s cereal products are given an adequate amount of space in the shelves of these two supermarkets. Below are images taken at Countdown and New World Metro supermarket in Queen Street.
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    StrategicBrand Management|14833837 11 Image 8.Product Placement. Image 9. Product Placement. 5.2 Product & Pricing Strategies Price may also be an issue as there is opportunity in the market for other private label brands that offer cheaper, healthy with similar taste alternatives. Its pricing strategy is at a higher range making it expensive for Kiwis. This posed an issue as to how much the Kiwis are willing to pay for it. Being priced slightly higher as compared to their main competitor Weet-Bix, this may cause a downturn in volume of sales as the Kiwis are more intrigued with the thought of a filling breakfast. Two supermarkets were analyzed to see the difference in pricing for these three products. These two supermarkets included Countdown and New World Metro in Queen Street. At New World Metro, the price for Kellogg’s Sultana Bran 420g product cost 6.59NZD whereas in Countdown it only cost 5.70NZD. However, during special promotions in Countdown the price for any Kellogg’s
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    StrategicBrand Management|14833837 12 Sultana Bran420g product cost 10NZD for 2 boxes. Below are images of prices in Countdown and New World Metro. Image 10. Kellogg’s Sultana Bran priced at 6.59NZD Image 11. Kellogg’s Sultana Bran Extra or Buds promotion
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    StrategicBrand Management|14833837 13 5.3 CommunicationStrategies On the other hand, Kellogg’s Sultana Bran range of products communication strategy is targeted to mothers of school-aged children. The product is mainly aimed at parents aged 30 or older, focusing more on mothers. This population segment in New Zealand accounts for around 50% of the total population. Appendix 2 and 3 Kellogg’s main focus is to generate interest in their product based on the nutritional benefits that children need. Its communication strategy is all about the high fiber content that children need every morning. As for Sultana Bran Buds, Kellogg’s created a “Buddy” character in its ads telling children they should include Sultana Bran Buds cereal in their school bag. They also make ties with TVNZ to drive awareness and reappraisal with older families through the Smart Choice Everyday program. Through this program, host Stacey Morrison is the perfect Kiwi icon being a fulltime mum herself she was able to educate and tell consumers about a healthy and nutritious breakfast option for their whole family to enjoy.
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    StrategicBrand Management|14833837 14 6.0 BrandStrategy (CBBE pyramid) Image 12. CBBE pyramid for Kellogg’s Sultana Bran range of product We formally define customer-based brand equity as the differential effect that brand knowledge has on consumer response to the marketing of the brand (Keller, 2013). Resonance Judgement & Feelings Performance & Imagery Salience Decreasing resonance Self-respect Successful, classy Healthy nutritious breakfast cereal Reliable, High in fiber Trustworthy
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    StrategicBrand Management|14833837 15 6.1 Salience(Brand Identity: Who are you?) “Brand identity is a unique set of brand associations that the brand strategist aspires to create or maintain” (Aaker, 1996). Kellogg’s brand association is a healthy nutritious breakfast cereal. Kellogg’s over the years have built some key core brand attributes, emphasizing on its quality and nutritional benefits thus making it a well-known brand for its nutritious benefits. 6.2 Performance & Imagery (Meaning: What are you?) Kellogg’s have a long history of producing cereal, making them a reliable brand. Consumers are dependable on Kellogg’s brand because they know that it’s been around for some time. It is also perceived as a classy and successful product, making the brand seemed expensive. 6.3 Judgments & Feelings (Response: What about you?) Due to its expensive pricing strategy, consumers feel secure in relying on the brand. Mothers trust the brand and know that they have made the smarter choice by feeding Kellogg’s Sultana Bran for the whole family. They treat themselves with more respect knowing that their children have the right source of nutrients. 6.4 Resonance (Relationships: What about you and me?) Kellogg’s have not achieved resonance market due to its lack of attractiveness to the consumers in the New Zealand market.
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    StrategicBrand Management|14833837 16 7.0 Recommendations Kellogg’scurrent strategy is that of competitive differentiation rather than cost leadership, and although we are looking at the product from a marketing stand point, it would work to the company’s advantage to identify the key success factors of the current pricing strategy. The key question that we need to answer is: Are most consumers willing to pay for Kellogg’s Sultana Bran cereals for a value differentiation that it brings, compared to all other lower priced brands? Is the value correctly projected in the packaging and marketing communications? Weet-Bix have been known to be a family favorite due to its affordable pricing strategy and the amount of content given within a single box of cereal. In addition, Kellogg’s Sultana Bran should change its packaging. The words and messages portrayed on the packaging is too cluttered. It is not comfortable for the eyes of consumers to read. Kellogg’s should also change its packaging on the inside. Based on one of the respondent, she recommended that the packaging should be made easier for her to pour her cereal. Therefore, instead of having its current white plastic bag packaging, they should change it to a re-sealable white packaging. This makes it easier for consumers to seal back once it is used. It also encourages time saving and ease of effort for consumers.
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    StrategicBrand Management|14833837 17 8.0 References Aaker,D. A., (1996) Building Strong Brands. New York: The Free Press. Countdown (2014) “Kellogg’s Sultana Bran range of products” (August 17). Countdown (2014) “Product Placement” (August 17). Countdown (2014) “Price Promotion” (August 17). Davis, M. P. (2011). Kellogg’s Froot Loops and Frosted Flakes cereal [Photograph]. Retrieved August 15, 2014, from http://www.mlive.com/news/kalamazoo/index.ssf/2011/11/southwest_michigan_links_kello_3.ht ml Duncan, T. (2005). Principles of Advertising and IMC. (2nd International Edition). New York: McGraw-Hill/Irwin. Keller, K. L., (2008). Strategic Brand Management: Building, Measuring, and Managing Brand Equity. (3rd ed.). N.J: Pearson Education, Inc. Keller, K. L., (2013). Strategic Brand Management: Building, Measuring, and Managing Brand Equity. (4th ed.). N.J: Pearson Education, Inc. MacPherson, L. (2014). New Zealand Population Chart [Image online]. Retrieved from http://www.stats.govt.nz/browse_for_stats/population/estimates_and_projections/NationalPopulat ionEstimates_HOTPAt30Jun14.aspx New World Metro (2014) “Product Placement” (August 17). New World Metro (2014) “Price” (August 17).
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    StrategicBrand Management|14833837 18 9.0 Appendices Appendix1 Survey form. Refer to attached Kellogg’s Sultana Bran Questionnaire or a sample on the next page. Appendix 2 Target Market of Sultana Bran, 2014. Appendix 3 Statistics of New Zealand population. (MacPherson, L. 14 August 2014) Demographic profile  Mothers between the ages of 30 to 54  They typically eat cereals once a day  Mainly living in the city  Middle to high range income Psychographic profile  Active and busy lifestyles  Concerned with health for themselves and their kids  Modern and actively changing  Low sensitivity to price for quality products
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    StrategicBrand Management|14833837 19 Survey Form Iam a student from AUT University. I was given the task to carry out research aimed at understanding the consumers of breakfast cereal brands. This is a voluntary questionnaire and all results are anonymous. The questionnaire will last approximately five minutes and I will be available if you have any queries regarding the research. 1. Do you believe that breakfast is the most important meal of the day? a. Yes b. No 2. Please name as many brands of cereal you can think of. _______________________________________________________ 3. Please name the brands of cereal that you purchased for yourself or family members. _______________________________________________________ 4. Do you feed your children cereal? If yes please continue to question 5. If no thank you for participating in our survey. a. Yes b. No 5. How often do your children have cereal for breakfast? a. 1-3 days b. 2-5 days c. Not consistent d. Everyday
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    StrategicBrand Management|14833837 20 6. Pleasecomplete the following missing letters. _ _ ll _ g _s 7. Here is a list of brand (ads, logos) for breakfast cereal. Do you remember having seen this brand (ads, logo) before? Please fill up the remaining letters below. a. _____________ b. ____________ c. ____________ d. _______________ e. ________________ f. ____________________ g. ____________
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    StrategicBrand Management|14833837 21 8. Haveyou heard of Kellogg’s cereal? If yes please continue to question (9). If no thank you for participating. a. Yes b. No 9. If Kellogg’s were to be a person what would his or her personality be like? a. Sincere (down-to earth, honest, wholesome, cheerful) b. Excited (daring, spirited, imaginative, up-to-date) c. Competent (reliable, intelligent, successful) d. Sophisticated (upper-class, charming) e. Rugged (outdoorsy, tough) 10. In your own opinion, who are the typical consumers of Kellogg’s? ______________________________________________ 11. I buy Kellogg’s cereal At every occasion From time to time Never (Circle most appropriate answer) Question 12 onwards is subject to Kellogg’s Sultana Bran range of product. 12. Have you bought Kellogg’s Sultana Bran range of product before? If yes please continue to question (13). If no thank you for participating. a. Yes b. No 13. What type of Kellogg’s Sultana Bran range of product do you usually buy? (Circle most appropriate answer) Sultana Bran Sultana Bran Buds Sultana Bran Crunchy Oat
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    StrategicBrand Management|14833837 22 14. Whendo you or your family indulge in Kellogg’s Sultana Bran range of product? (Circle most appropriate answer) For breakfast Breakfast or snacks Whenever 15. What do you think of Kellogg’s Sultana Bran? Unappealing 1 2 3 4 5 6 7 8 9 10 Appealing Low- Quality 1 2 3 4 5 6 7 8 9 10 High-Quality Unpleasant 1 2 3 4 5 6 7 8 9 10 Pleasant 16. Rate your likelihood of buying Kellogg’s Sultana Bran product range or likelihood of switching to another brand I will certainly buy ___________ in the next 3 months. Disagree 1 2 3 4 5 6 7 8 9 10 Agree 17. I am extremely loyal to _________(Name any cereal product/brand) Disagree 1 2 3 4 5 6 7 8 9 10 Agree 18. I am fully satisfied with ________(Name any cereal product/brand) Disagree 1 2 3 4 5 6 7 8 9 10 Agree 19. How can Kellogg’s Sultana Bran be improved to encourage you to repeat a purchase? ____________________________________________________________________ I and all those involvedatAUT Universitywouldlike totake thisopportunitytothankyouforyour time and cooperation.If youthink of anyquestionsata laterdate please feel freetocontactus via e-mail (info@ddz6797@aut.ac.nz) ortelephone 0223458712 from8am – 5pm, Monday-Friday.
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