Page 2: The Kellogg company
William Kellogg, who founded the company in the USA, believed that diet played a key role in a healthy lifestyle and that breakfast was the most important meal of the day. Around 1898 he conducted experiments that led to the development of Corn Flakes. The company prospered, and in 1924 Kellogg's established the Kellogg Company of Great Britain. By the 1950s the US company had begun to develop cereals appealing to younger tastes. Frosted Flakes hit the USA in 1952. In 1954 they arrived in the UK, as Frosties.
Kellogg's has flourished through skilful marketing of good products, and by creating and sustaining a highly valuable brand name. Kellogg's is an example of multiple branding, where each product within the range is given its own clear identity and defining characteristics, but is marketed using the Kellogg's name as an umbrella.
Segmentation and targeting are key factors in creating these brand identities. Seg-mentation involves subdividing markets into constituent parts. Each part has clear characteristics that distinguish it from any other part. For example, the main segment for Frosties consists of children under the age of 12 years, although over half of all Frosties are consumed by adults.
When segments have been identified, targeting then takes place. This involves developing a marketing mix that creates characteristics and brand valuesthat appeal to consumers within each segment. It is this approach to marketing that has led to the creation and ongoing development of Tony the Tiger.