1. THE KELLOGS
CONNECTION

2. KELLOGGS – BRINGING
THE BEST TO U
• Kellogg's was founded as the Battle
Creek Toasted Corn Flake
Company on 1906
• found by William Keith Kellogg
• World's leading producer of breakfast
cereals and convenience foods, such
as cereal bars
• Kellogg’s products and their characters
crackle, pop are famous all over the
world
• Number one in market share with just
under 34% of the $9 Billion cereal
market
• Kellogg recently announced a shortfall
in earnings due to lower sales and
continued competitive pressures in the
ready-to-eat cold cereal market
•

3. THE NUTRIGRAIN
PROBLEM
•The Market grew by 15% in 2003
•There was a steady growth in the
competitor’s market share
•The sales of the Nutrigrain declined in the
same period
•The tastes and behavior of the market
changed
•The manufacturers knew the product was
approaching the decline period
•The objective of the manufacturer shifted
from introducing another product to
increasing the life cycle of the existing
product
•Decided to rebrand and re launch the
same product to increase it’s maturity
lifecycle and hence product lifecycle

4. PRODUCT LIFE CYCLE
Every product has its own life cycle
Shows the various stages of how sales
of a product changes over time
Five stages of PLC:
Launch – Product launch and its initial
performance in the market
 Growth – Period in which sales
steadily increase
 Maturity – Stage in which other
competitors emerge. Time of max
profitability
 Saturation – Market is full of similar
products. Sales start to fall
 Decline – Stage in which decisions
about the death or resurgence of the
product is taken.

5. Strengths of
Kellogg's
Strong position in the
market for convenience
and health foods
Well established brand
name and brand value
Focus on promoting
healthy living
Strong commitment to
corporate social
responsibility

6. Causes for
Failure
Problems started at maturity
stage
Cannibalisation – Competition
from products of Kellogg’s itself
and other manufacturers like
Alpen bars
Lack of product differentiation
Lesser focus on advertising
and promotional strategies
Lack of measures to curb
competition

7. Relaunching strategy
Identification of the problem
Possible solutions for extending the
PLC:
Promoting Nutrigrain as an “all day
snack” rather than as a “breakfast food”.
Improving the Integrated Marketing
Communication through enhanced
advertising and promotions
Introducing new flavours to cater to all
categories of people
Tie ups with corporate, fitness centres
and schools to increase promotions
Utilize the media, press to launch new
advertising strategies