Re-branding a Corporate Image
A Kellogg's case study

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Page 2: What Is A Brand

The marketing of Kellogg's and the creation of some of the most valuable individual brand names has been key to the company's success.

Firms are keen to give products their own identity, which will clearly distinguish them from any competition. A successful brand name will encourage loyalty amongst consumers who will be more likely to buy the product on a regular basis. An effective brand 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. This sensitivity is called the price elasticity of demand. Small changes in the price will not lead to big changes in the amount demanded by consumers.

Firms may try to build loyalty by creating a corporate brand name that will suggest an identity or characteristics that would apply to all its products. This is known as corporate branding. Alternatively, firms may choose to establish a brand identity for each of its products.

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.

Kellogg's has, over the years, built up some key core brand characteristics, emphasising quality and nutritional benefits that will apply to any Kellogg's'sproduct. Consumers will trust the Kellogg's brand name to fulfil these requirements whichever type of cereal they choose. To these core brand valuesare 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. There are currently 29 products in the Kellogg's family.

One of the key factors is the creation of the brand identity. What characteristics would the company want its products to show? This is known as positioning. Kellogg's products are positioned to highlight the quality of the goods and to build on the emotional attachments. Consumers who have grown up with Kellogg's breakfast cereals will have strong associations of childhood and home.

Having decided on the position of the products within the cereal market, Kellogg's can consider the elements of the marketing mix, the different marketing tactics it will employ to make its products more desirable.

Kellogg's | Re-branding a Corporate Image