Using new product development to grow a brand
A Kellogg's case study

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Page 5: Growing the brand

Kellogg's soon came to realise that the variants were responsible for a huge growth in the Special K brand, without a drop in sales of the core cereal product. New product development had transformed the brand within the UK. This in turn gave a great opportunity to roll-out other developments in other markets, including the USA, Australia and Canada. Product research showed that the UK products could be adapted to meet the individual tastes of consumers within those markets.

The Kellogg's strategy was truly global; it developed an idea in Europe which it then adapted and applied worldwide. Within the space of 2 years the extensions to the brand had achieved global coverage, and were providing not only significant developments in sales value and volume of Special K products, but also a huge boost to the brand's equity.

Supporting such expansion was not always easy for Kellogg's UK. Initially it produced all the Special K variants sold within Europe. The UK company had to increase its manufacturing capacity and also refine supply chainmanagement processes to ensure that the product would be available at the point of purchase. It had opened a portable foods plant at Wrexham, to produce bars. Other capacity was created by commissioning the production of Special K cereal in Spain.

Kellogg's | Using new product development to grow a brand