Page 1: Introduction
Businesses need to set themselves clear aims and objectives if they are going to succeed. The Kellogg Company is the world's leading producer of breakfast cereals and convenience foods, such as cereal bars, and aims to maintain that position.
In 2006, Kellogg's had total worldwide sales of almost $11 billion (£5.5 billion). In 2007, it was Britain's biggest selling grocery brand, with sales of more than £550 million. Product lines include ready-to-eat cereals (i.e. not hot cereals like porridge) and nutritious snacks, such as cereal bars.
Kellogg's brands are household names around the world and include Rice Krispies, Special K and Nutri-Grain, whilst some of its brand characters, like Snap, Crackle and Pop, are amongst the most well-known in the world.
Kellogg's has achieved this position, not only through great brands and great brand value, but through a strong commitment to corporate social responsibility. This means that all of Kellogg's business aims are set within a particular context or set of ideals. Central to this is Kellogg”s passion for the business, the brands and the food, demonstrated through the promotion of healthy living.
The company divides its market into six key segments. Kellogg's Corn Flakes has been on breakfast tables for over 100 years and represents the 'Tasty Start' cereals that people eat to start their day. Other segments include 'Simply Wholesome' products that are good for you, such as Kashi Muesli, 'Shape Management' products, such as Special K and 'Inner Health' lines, such as All-Bran. Children will be most familiar with the 'Kid Preferred' brands, such as Frosties, whilst 'Mum Approved' brands like Raisin Wheats are recognised by parents as being good for their children.
Each brand has to hold its own in a competitive market. Brand managers monitor the success of brands in terms of market share, growth and performance against the competition. Key decisions have to be made about the future of any brand that is not succeeding.
This case study is about Nutri-Grain. It shows how Kellogg's recognised there was a problem with the brand and used business tools to reach a solution. The overall aim was to re-launch the brand and return it to growth in its market.