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    Kellogg's

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    Antonio Alvino
    Kellogg's is the world's leading breakfast cereal producer with $11 billion in annual sales. Its market is divided into 6 key segments. Kellogg's Nutri-Grain cereal was initially very successful but later declined, reaching the saturation stage of its product lifecycle. To reinvigorate sales, Kellogg's used Ansoff's Matrix to develop an extension strategy and relaunched Nutri-Grain in 2005 with a renewed brand image, new target audience, refocused investment, new packaging, and improved pricing structure.

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    Kellogg's

    Uploaded by

    Antonio Alvino
    104 views8 pages
    Kellogg's is the world's leading breakfast cereal producer with $11 billion in annual sales. Its market is divided into 6 key segments. Kellogg's Nutri-Grain cereal was initially very successful but later declined, reaching the saturation stage of its product lifecycle. To reinvigorate sales, Kellogg's used Ansoff's Matrix to develop an extension strategy and relaunched Nutri-Grain in 2005 with a renewed brand image, new target audience, refocused investment, new packaging, and improved pricing structure.

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    Kellogg's is the world's leading breakfast cereal producer with $11 billion in annual sales. Its market is divided into 6 key segments. Kellogg's Nutri-Grain cereal was initially very successful but later declined, reaching the saturation stage of its product lifecycle. To reinvigorate sales, Kellogg's used Ansoff's Matrix to develop an extension strategy and relaunched Nutri-Grain in 2005 with a renewed brand image, new target audience, refocused investment, new packaging, and improved pricing structure.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    104 views8 pages

    Kellogg's

    Uploaded by

    Antonio Alvino
    Kellogg's is the world's leading breakfast cereal producer with $11 billion in annual sales. Its market is divided into 6 key segments. Kellogg's Nutri-Grain cereal was initially very successful but later declined, reaching the saturation stage of its product lifecycle. To reinvigorate sales, Kellogg's used Ansoff's Matrix to develop an extension strategy and relaunched Nutri-Grain in 2005 with a renewed brand image, new target audience, refocused investment, new packaging, and improved pricing structure.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Kelloggs Company is the worlds leading producer of breakfast cereals . In 2006,Kelloggs had total sales of almost 11 billion dollars.

    Kelloggs market is divided into 6 keys segments: 1. Tasty start (breakfast cereals)

    2. Simply wholesome
    3. Shape management (Special K) 4. Inner health (All-bran)

    5. Kid preferred 6. Mum approved Kelloggs success is related to its social responsibility, as it cares about people and communities of consumers

    Nutri-grain was first designed for people who missed breakfast, it was for people who start their day running. The product life cycle of nutri grain:

    Maturity

    A successful strategy could increase sales

    SALES

    Growth Saturation

    Launch Launch Growth Maturity Saturation

    TIME Decline Decline

    (Before launching a product, there is the Research and Development stage)

    1. Launch: nutri grain was immediately successful, with 50% share of the growing cereal bar market in just 2 years. 2. Growth: the sales increased as the product was promoted and became well known, in addition, nutri grain became not only the missing breakfast, but an all-day healty snack. 3. Maturity: as the product became the best and the most sold, competitors imitations and other similar products of kelloggs gained important numbers of sale and made nutri grain slow down. 4. Saturation: the market is full and sales start to drop as there are many new cheaper products. 5. Decline: it is the point in which the company has to decide whether to re-launch the product or let it die

    The company decided to relaunch the product by using ansoffs matrix, an extension strategy was developed analizing the product-orientated and market-orientated Ansoffs matrix possibilities.
    Product development Product diversification
    Create new products (High risk) When a product already exists, others can grow on its base (Medium risk)

    Products

    Market penetration

    Market development

    RE-LAUNCH a product or Find or create new markets or increase brand awareness to take a expand in different markets greater share of market (Medium Risk) (Low Risk)

    Markets

    elloggs changed the product to meet customers needs. Kelloggs addressed issues as: 1- The brand message was not strong enough compared to competitors. Other products had taken away the focus from the core business. 2-Nutri grain received small advertising and promotion budgets.

    3-Sales of the last period were related to promotional pricing rather than brand strength.

    Re-launch of the product in 2005 with: Renewal of the brand image; Realistic snackers; Re-focus investment on the core products of Soft Bake Bars and Elevenses; New packaging; An improved pricing structure for stores and supermarkets was developed.

    The 4 Pof the marketing:

    Product

    Promotion

    Place

    Price

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