Using promotion to boost sales and brand value A Kellogg's case study
Page 3: Promotion at Kellogg
Kellogg recently carried out two effective promotions aimed at totally different audiences. The first targeted families and drew on the incredible success of the Star WarsTM movies. This was a large-scale event extending over a number of Kellogg's brands appealing to families. These included Corn Flakes, Frosties, Rice Krispies and Coco Pops.
The event coincided with the worldwide movie release of the final Star WarsTM movie - Revenge of the SithTM. A large event such as this needs to create consumer interest straightaway, have 100% trade backing and use a number of varying methods of promotion.
Kellogg used a 30-second TV commercial to support the event - the first time Kellogg had used this time-length for a promotional advertisement since 1999 - linking their own familiar characters (Tony the Tiger and Coco Monkey) with Star WarsTM.
There was over £250,000 spent on TV advertising with additional online support making it the company's biggest family event for 2005. It involved the production of over 30 million promotional packs, some of which featured free mini LightsabersTM in every pack. The other packs allowed consumers a chance to win a LightsaberTM signed by actor Christopher Lee or one of 500 runners-up prizes of a Hasbro electric LightsaberTM. The promotion ran across both the cereal brands and some cereal bars allowing Kellogg to take advantage of Star WarsTM in both categories.
To measure the success of such an event, Kellogg observes the changes occurring within its market. The advertising for the event reached 65% of its target market audience. Its effectiveness can be shown by the increase in sales and in Kellogg's market share:
Kellogg's share of the ready-to-eat-cereal market for families rose from its usual 40-45% to 53%.
An extra 859,000 households purchased at least one of the Star WarsTM brands during the promotion when compared with the previous period.
The second event was aimed at adults and involved just one brand - Kellogg's Crunchy Nut. Ten million packs carried the distinctive artwork, offering a chance to win one of ten special edition gold coloured Minis.
Kellogg used this event to apologise to its customers for making Crunchy Nut so irresistible! Consumers were invited to text in or enter on line or by post for a chance to win one of these unique prizes. Hundreds of thousands took the opportunity to do so and if you see a gold coloured Mini in the UK it will have been one of the prizes from the Sorry promotion.
The event provided great exposure and interest for the brand and encouraged consumers to try the newer variants of Crunchy Nut - Crunchy NutClusters and Crunchy Nut Nutty.
Kellogg's | Using promotion to boost sales and brand value