Kellogg's Final Assignment

Strategic Brand Management | 14833837

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Daniel Chuah 1/9/2014

Strategic Brand Management | 14833837Table of Contents

1.0 Executive Summary…………………………………………………………………………..3

2.0 Introduction…………………………………………………………………………………...3

3.0 Research Findings…………………………………………………………………………….4

3.1 Consumer Insights………………………………………………………………….4-6

4.0 Brand Elements Analysis…………………………………………………………………….7

4.1 Brand names, logo & symbols……………………………………………………….7

4.2 Packaging…………………………………………………………………………...7-8

4.3 Characters…………………………………………………………………………..8-9

5.0 Brand Marketing Analysis………………………………………………………………….10

5.1 Channel Strategies…………………..…………………………………………...10-11

5.2 Product & Pricing Strategies……………………………………………………11-12

5.3 Communication Strategies………………………………………………………….13

6.0 Brand Strategy (CBBE pyramid)…………………………………………………………..14

6.1 Salience (Brand identity: Who are you?)………………………………………….15

6.2 Performance and Imagery (Meaning: What are you?)…………………………...15

6.3 Judgments and Feelings (Response: What about you?)…………………………..15

6.4 Resonance (Relationships: What about you and me?)……………………………15

7.0 Recommendations…………………………………………………………………………...16

8.0 References……………………………………………………………………………………17

9.0 Appendices…………………………………………………………………………………...18

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Strategic Brand Management | 148338371.0 Executive Summary

There are many aspects we can look at when it comes to effective branding and marketing

strategies. From its brand positioning to its elements, all of this contributes to the success of

building brand equity. This report seeks to identify what Kellogg’s branding and marketing

strategy is for its product line of Sultana Bran and its extensions. Have they applied the right

strategy for the New Zealand market? This report breaks down to different parts and that

includes: research findings, consumer insights, brand elements analysis, brand marketing

analysis, brand strategy (CBBE pyramid), and recommendations.

2.0 Introduction

Kellogg’s is an American company founded in 1906. It is now the world’s leading

producer of cereals and convenience food. It is established as an international leader in the cereal

trade with products marketed in more than 100 countries around the world. All of their products

are marketed under Kellogg’s brand name and are sold principally in supermarkets and

convenience store. In-depth questionnaires and interviews have been done for the brand

Kellogg’s to determine the awareness of the product range for Sultana Bran in this paper.

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Strategic Brand Management | 148338373.0 Research Findings

A questionnaire have been given out to 20 participants at the aged of 30-54 years old. An

individual in-depth interview was also conducted at Queen Street Countdown and New World

Metro. The objective of this questionnaire and interview is to determine the brand awareness for

Kellogg’s and its product range of Sultana Bran.

3.1 Consumer Insights

This consumer insights are mainly based and obtained from the survey form given to 20

participants at the aged 30-54 years old. (Appendix 1)

Traditionally, Kellogg’s Sultana Bran was considered as a breakfast cereal. However now

it is also being used at any time of the day, for meals, in between meals or snacks time. Most

respondents think breakfast is the most important meal of the day and they always make sure that

their kids have something to eat before they go to school. In question two and three of the survey

form, ninety percent of respondents answered Sanitarium Weet-Bix as their number one choice

breakfast cereal for themselves and family members. I conclude that most of the Kiwis think of

Sanitarium Weet-Bix as their main choice of cereal.

Furthermore, question four and five is mainly based on having the knowledge of whether

respondents do feed their kids with cereal for breakfast. I was curious to know the frequency at

which they consumed cereal per week. All of them answered “Yes, they do.” However it is not

consistent as to how many times they fed their children with cereal. This goes to show that all of

them know that breakfast is important for their kids but cereal is not the main source of food to

kick start their day.

Moreover, question six and seven was about brand awareness among respondents. 15/20

of respondents managed to answer question number six correctly. However, two other

respondents could not figure it out. As for question seven, all of them managed to identify

Sanitarium Weet-Bix brand, Hubbards, Nestle Milo and Home Brand. In contrast, only fifteen

respondents could identify the missing words for Kellogg’s brand. This goes to show that

Kellogg’s brand is still not in the hearts of every respondents.

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Strategic Brand Management | 14833837Question eight was to identify if respondents have heard of Kellogg’s cereal brand. If so,

they were able to continue to question nine. Fifteen respondents answered yes they have heard of

it but the remaining five answered no.

Question nine’s focus was mainly on what respondents thinks of Kellogg’s brand

personality if it were to be a person. Ten people circled similarly stating that Kellogg’s is a

“competent” brand. It goes to show that Kellogg’s is a reliable and successful brand for them.

However, the remaining five respondent’s circled “sophisticated”. The brand is perceived as

classy and charming for them.

Question ten is an open-ended question that seeks to ask mainly about what they think a

typical user of Kellogg’s would be. One respondent answered that Kellogg’s is a substitute

product for Weet-Bix. I find this very intriguing because although Weet-Bix is mostly a Kiwi

breakfast meal, not all of them enjoy eating it. Another respondent said that typical users of

Kellogg’s for me are for the rich stating that it can only be afforded by some people.

In question eleven, respondents were asked to circle the most appropriate answer whether

they had made purchases for Kellogg’s cereal product. There were three choices: “At every

occasion”, “From time to time”, and “Never”. Seven respondents circled “At every occasion”.

The remaining eight circled “From time to time”.

In addition, questions twelve and thirteen is mainly based on whether respondents have

tried any Kellogg’s Sultana Bran range of product before, and if yes what type of Sultana Bran

range of product they bought. Out of fifteen respondents, only ten answered “Yes” they have

bought Kellogg’s Sultana Bran range of product. Seven of them answered they usually buy

Sultana Bran Buds while the remaining three circled the original Sultana Bran flavor. This goes

to show that not all of them have tried or fancy eating Kellogg’s Sultana Bran range of product.

Question fourteen is mainly based on when respondents and their family members indulge

in their Kellogg’s Sultana Bran cereal. Out of the ten respondents, seven of them circled

“breakfast and snacks” while the remaining three circled “whenever”. This goes to show that

Kellogg’s Sultana Bran range of product is not just a breakfast thing. In question fifteen, it is

mainly based on what respondents think of the product Kellogg’s Sultana Bran.

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Unappealing to most Appealing

Low-quality to High Quality

Unpleasant to most pleasant

01234567

Chart Title

Series 1 Series 2 Series 3

Image 1. (Ratings for Sultana Bran product, 2014)

As for question sixteen, respondents are asked to rate the likelihood of buying Kellogg’s Sultana

Bran product range or likelihood of switching to another brand.

Sales

Sultana Bran range of product Sanitarium Weet-BixHome Brand Other Kellogg's product

Image 2. (Ratings for respondents, 2014)

Question seventeen and eighteen are questions probed answers as to what cereal product

they are most loyal to and satisfied with. Five respondents answered that they are most loyal to

Sanitarium Weet-Bix brand whereas three respondents answered they are loyal to Kellogg’s

brand. Two respondents however answered they are most loyal to Home Brand because of its

pricing. Last but not least, respondents are given an open-ended question in question nineteen

asking them how Kellogg’s Sultana Bran product can be improved to encourage repeat purchase.

One respondent’s answer captured my attention stating that “Kellogg’s can improve the product

by actually changing the packaging”. She thinks they could come up with an easier way to pour

out their cereal from the bag.

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Strategic Brand Management | 148338374.0 Brand Elements Analysis

Keller stated that brand elements, sometimes called brand identities, are those

trademarkable devices that serve to identify and differentiate the brand (2013). The main ones are

brand names, URLs, logos, symbols, characters, spokespeople, slogans, jingles, packages, and

signage (Keller, 2013).

4.1 Brand names, logos and symbols

Kellogg’s brand have been around for more than hundred years making them one of the

most recognizable cereal brands in the world. With its new tagline, “Let’s Make Today Great”

reveals the key product benefit. For years, Kellogg’s have been the biggest producer of cereal and

this tagline does provide a linkage as to what the company’s vision and mission statement is.

Kellogg’s logo or symbol have been a very prominent one as well due to the brand’s long history

of success and fame. However, based on the respondent’s answers in the survey form not all of

them could identify the logo or symbol for Kellogg’s. This posed as a problem for Kellogg’s

brand in the New Zealand market.

4.2 Packaging

Sultana Bran range of cereal products is more than just a simple breakfast cereal because

it fulfills a certain set of expectations. When consumers buy Sultana Bran they are buying the

benefits that come with it. Consumers sees the product and brand as a healthy nutritious high in

fiber product. Kellogg’s packaging for each and every product they sell has its own unique design

and features. As for Sultana Bran cereal range, the packaging is bright purple and it emphasizes

on its high fiber content. Kellogg’s Sultana Bran has three products in its range: Kellogg’s

Sultana Bran, Kellogg’s Sultana Bran Buds and Kellogg’s Sultana Bran Crunchy Oat Clusters.

All of its products size and content vary.

Image 3. Kellogg’s Sultana Bran.

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Image 4. Kellogg’s Sultana Bran Buds.

Image 5. Kellogg’s Sultana Bran Crunchy Oat Clusters.

4.3 Characters

Kellogg’s is one of the very first cereal brands to come up with characters to fit the

product they were offering. Such characters includes Tony the Tiger for Frosted Flakes, Toucan

Sam for Froot Loops breakfast cereal and now Buddy for Sultana Bran Buds. Below are the

images for it.

Image 6. Toucan Sam for Froot Loops and Tony the Tiger for Frosted Flakes

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Image 7. Buddy character for Kellogg’s Sultana Bran Buds product

In the 19th century, Kellogg’s came up with a catchy jingle for its product Kellogg’s

Frosted Flakes. Tony the Tiger was the character and the voice for it. It starts with this “They’re

Gr-r-reat!” and ends with a catchy jingle “Good morning, good morning the best to you each

morning. Let K double LO double good Kellogg’s starts your day”. Since their debut, Tony the

Tiger and Toucan Sam became an iconic symbol for Kellogg’s cereal products and it became one

of the most talk-a-bout brand characters in the world. Tony the Tiger was also used for Tony‘s

Cinnamon Krunchers and Tiger Power. However, for the Buddy character in Kellogg’s Sultana

Bran Buds product it is still not well-known. Brand image is defined as an impression created by

brand messages and experiences and assimilated into a perception or impression of the brand

(Duncan, 2005).

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5.0 Brand Marketing Analysis

Keller (2013) stated that in today’s marketplace, there are many different means by which

products and services and their corresponding marketing programs can build brand equity.

Channel strategies, communication strategies, pricing strategies, and other marketing activities

can all enhance or detract from brand equity (Keller, 2013).

Kellogg’s, being the biggest and one of the most recognized brands for breakfast cereal in

the world proves that their communication strategy is working well for them. Having its own

originality and one of a kind characters for their products and brand, Kellogg’s is now the top

salesman for breakfast cereal. However, we are here to discuss the product range of Kellogg’s

Sultana Bran in New Zealand market and through the survey form answers that I got back most

respondents would rather stick to Weet-Bix. Why? According to one of the respondent that I have

personally interviewed, she said that Weet-Bix have been the heart and soul of every Kiwi

consumers. Every person’s house you go to, Weet-Bix will definitely be on their kitchen shelves.

She says Weet-Bix satisfies her main priority need which is a filling breakfast every morning. It

makes her kids full whereas Sultana Bran only fills them up for a short period of time. Besides

that, Weet-Bix communication strategy is at the heart and soul of every New Zealanders by

sponsoring the All Blacks team.

5.1 Channel Strategies

The competition in the cereal market have become intensely competitive in its market

segment. More and more cereal brands are developing their own unique choice of cereal for

consumers today. The market for natural and healthy breakfast cereal is vast growing. As for the

New Zealand market, Kellogg’s Sultana Bran range of products main competitors are Australian

owned Sanitarium products, local brand Hubbards, and private labels. Direct competitors are

Weet-Bix and other branded and white label cereal with high fiber content or categorized as

healthy belonging to the cereal aisle at the Supermarket. Customers can buy the entire Sultana

Bran range of products, along with direct competitors from the same point of sale – Supermarkets

and convenience stores. Kellogg’s cereal products are given an adequate amount of space in the

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Strategic Brand Management | 14833837shelves of these two supermarkets. Below are images taken at Countdown and New World Metro

supermarket in Queen Street.

Image 8. Product Placement.

Image 9. Product Placement.

5.2 Product & Pricing Strategies

Price may also be an issue as there is opportunity in the market for other private label

brands that offer cheaper, healthy with similar taste alternatives. Its pricing strategy is at a higher

range making it expensive for Kiwis. This posed an issue as to how much the Kiwis are willing to

pay for it. Being priced slightly higher as compared to their main competitor Weet-Bix, this may

cause a downturn in volume of sales as the Kiwis are more intrigued with the thought of a filling

breakfast. Two supermarkets were analyzed to see the difference in pricing for these three

products. These two supermarkets included Countdown and New World Metro in Queen Street.

At New World Metro, the price for Kellogg’s Sultana Bran 420g product cost 6.59NZD whereas

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Strategic Brand Management | 14833837in Countdown it only cost 5.70NZD. However, during special promotions in Countdown the price

for any Kellogg’s Sultana Bran 420g product cost 10NZD for 2 boxes. Below are images of

prices in Countdown and New World Metro.

Image 10. Kellogg’s Sultana Bran priced at 6.59NZD

Image 11. Kellogg’s Sultana Bran Extra or Buds promotion

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5.3 Communication Strategies

On the other hand, Kellogg’s Sultana Bran range of products communication strategy is

targeted to mothers of school-aged children. The product is mainly aimed at parents aged 30 or

older, focusing more on mothers. This population segment in New Zealand accounts for around

50% of the total population. Appendix 2 and 3 Kellogg’s main focus is to generate interest in

their product based on the nutritional benefits that children need. Its communication strategy is all

about the high fiber content that children need every morning. As for Sultana Bran Buds,

Kellogg’s created a “Buddy” character in its ads telling children they should include Sultana Bran

Buds cereal in their school bag. They also make ties with TVNZ to drive awareness and

reappraisal with older families through the Smart Choice Everyday program. Through this

program, host Stacey Morrison is the perfect Kiwi icon being a fulltime mum herself she was able

to educate and tell consumers about a healthy and nutritious breakfast option for their whole

family to enjoy.

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6.0 Brand Strategy (CBBE pyramid)

Image 12. CBBE pyramid for Kellogg’s Sultana Bran range of product

We formally define customer-based brand equity as the differential effect that brand knowledge

has on consumer response to the marketing of the brand (Keller, 2013).

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Resonance

Judgement & Feelings

Performance & Imagery

Salience

Decreasing resonance

Self-respect

Successful, classy

Healthy nutritious breakfast cereal

Reliable, High in fiber

Trustworthy


6.1 Salience (Brand Identity: Who are you?)

“Brand identity is a unique set of brand associations that the brand strategist aspires to

create or maintain” (Aaker, 1996). Kellogg’s brand association is a healthy nutritious breakfast

cereal. Kellogg’s over the years have built some key core brand attributes, emphasizing on its

quality and nutritional benefits thus making it a well-known brand for its nutritious benefits.

6.2 Performance & Imagery (Meaning: What are you?)

Kellogg’s have a long history of producing cereal, making them a reliable brand.

Consumers are dependable on Kellogg’s brand because they know that it’s been around for some

time. It is also perceived as a classy and successful product, making the brand seemed expensive.

6.3 Judgments & Feelings (Response: What about you?)

Due to its expensive pricing strategy, consumers feel secure in relying on the brand.

Mothers trust the brand and know that they have made the smarter choice by feeding Kellogg’s

Sultana Bran for the whole family. They treat themselves with more respect knowing that their

children have the right source of nutrients.

6.4 Resonance (Relationships: What about you and me?)

Kellogg’s have not achieved resonance market due to its lack of attractiveness to the

consumers in the New Zealand market.

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7.0 Recommendations

Kellogg’s current strategy is that of competitive differentiation rather than cost leadership,

and although we are looking at the product from a marketing stand point, it would work to the

company’s advantage to identify the key success factors of the current pricing strategy. The key

question that we need to answer is: Are most consumers willing to pay for Kellogg’s Sultana

Bran cereals for a value differentiation that it brings, compared to all other lower priced brands?

Is the value correctly projected in the packaging and marketing communications? Weet-Bix have

been known to be a family favorite due to its affordable pricing strategy and the amount of

content given within a single box of cereal.

In addition, Kellogg’s Sultana Bran should change its packaging. The words and

messages portrayed on the packaging is too cluttered. It is not comfortable for the eyes of

consumers to read. Kellogg’s should also change its packaging on the inside. Based on one of the

respondent, she recommended that the packaging should be made easier for her to pour her

cereal. Therefore, instead of having its current white plastic bag packaging, they should change it

to a re-sealable white packaging. This makes it easier for consumers to seal back once it is used.

It also encourages time saving and ease of effort for consumers.

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8.0 References

Aaker, D. A., (1996) Building Strong Brands. New York: The Free Press.

Countdown (2014) “Kellogg’s Sultana Bran range of products” (August 17).

Countdown (2014) “Product Placement” (August 17).

Countdown (2014) “Price Promotion” (August 17).

Davis, M. P. (2011). Kellogg’s Froot Loops and Frosted Flakes cereal [Photograph]. Retrieved

August 15, 2014, from

http://www.mlive.com/news/kalamazoo/index.ssf/2011/11/southwest_michigan_links_kello_3.ht

ml

Duncan, T. (2005). Principles of Advertising and IMC. (2nd International Edition). New York:

McGraw-Hill/Irwin.

Keller, K. L., (2008). Strategic Brand Management: Building, Measuring, and Managing Brand

Equity. (3rd ed.). N.J: Pearson Education, Inc.

Keller, K. L., (2013). Strategic Brand Management: Building, Measuring, and Managing Brand

Equity. (4th ed.). N.J: Pearson Education, Inc.

MacPherson, L. (2014). New Zealand Population Chart [Image online]. Retrieved from

http://www.stats.govt.nz/browse_for_stats/population/estimates_and_projections/

NationalPopulationEstimates_HOTPAt30Jun14.aspx

New World Metro (2014) “Product Placement” (August 17).

New World Metro (2014) “Price” (August 17).

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http://www.stats.govt.nz/browse_for_stats/population/estimates_and_projections/NationalPopulationEstimates_HOTPAt30Jun14.aspx

http://www.stats.govt.nz/browse_for_stats/population/estimates_and_projections/NationalPopulationEstimates_HOTPAt30Jun14.aspx

http://www.mlive.com/news/kalamazoo/index.ssf/2011/11/southwest_michigan_links_kello_3.html

http://www.mlive.com/news/kalamazoo/index.ssf/2011/11/southwest_michigan_links_kello_3.html


9.0 Appendices

Appendix 1

Survey form. Refer to attached Kellogg’s Sultana Bran Questionnaire or a sample on the next

page.

Appendix 2

Target Market of Sultana Bran, 2014.

Appendix 3

Statistics of New Zealand population. (MacPherson, L. 14 August 2014)

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Demographic profile

Mothers between the ages of 30 to 54 They typically eat cereals once a day Mainly living in the city Middle to high range income

Psychographic profile

Active and busy lifestyles Concerned with health for themselves

and their kids Modern and actively changing Low sensitivity to price for quality

products


Survey Form

I am a student from AUT University. I was given the task to carry out research aimed at

understanding the consumers of breakfast cereal brands.

This is a voluntary questionnaire and all results are anonymous. The questionnaire will last

approximately five minutes and I will be available if you have any queries regarding the research.

1. Do you believe that breakfast is the most important meal of the day?

a. Yes

b. No

2. Please name as many brands of cereal you can think of.

_______________________________________________________

3. Please name the brands of cereal that you purchased for yourself or family members.

_______________________________________________________

4. Do you feed your children cereal? If yes please continue to question 5. If no thank you for

participating in our survey.

a. Yes

b. No

5. How often do your children have cereal for breakfast?

a. 1-3 days

b. 2-5 days

c. Not consistent

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Strategic Brand Management | 14833837d. Everyday

6. Please complete the following missing letters.

_ _ ll _ g _s

7. Here is a list of brand (ads, logos) for breakfast cereal. Do you remember having seen this

brand (ads, logo) before? Please fill up the remaining letters below.

a. _____________

b. ____________

c. ____________

d. _______________

e. ________________

f. ____________________

g. ____________

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Strategic Brand Management | 148338378. Have you heard of Kellogg’s cereal? If yes please continue to question (9). If no thank

you for participating.

a. Yes

b. No

9. If Kellogg’s were to be a person what would his or her personality be like?

a. Sincere (down-to earth, honest, wholesome, cheerful)

b. Excited (daring, spirited, imaginative, up-to-date)

c. Competent (reliable, intelligent, successful)

d. Sophisticated (upper-class, charming)

e. Rugged (outdoorsy, tough)

10. In your own opinion, who are the typical consumers of Kellogg’s?

______________________________________________

11. I buy Kellogg’s cereal

At every occasion From time to time Never

(Circle most appropriate answer)

Question 12 onwards is subject to Kellogg’s Sultana Bran range of product.

12. Have you bought Kellogg’s Sultana Bran range of product before? If yes please continue

to question (13). If no thank you for participating.

a. Yes

b. No

13. What type of Kellogg’s Sultana Bran range of product do you usually buy? (Circle most

appropriate answer)

Sultana Bran Sultana Bran Buds Sultana Bran Crunchy Oat

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Strategic Brand Management | 1483383714. When do you or your family indulge in Kellogg’s Sultana Bran range of product? (Circle

most appropriate answer)

For breakfast Breakfast or snacks Whenever

15. What do you think of Kellogg’s Sultana Bran?

Unappealing 1 2 3 4 5 6 7 8 9 10 Appealing

Low- Quality 1 2 3 4 5 6 7 8 9 10 High-Quality

Unpleasant 1 2 3 4 5 6 7 8 9 10 Pleasant

16. Rate your likelihood of buying Kellogg’s Sultana Bran product range or likelihood of

switching to another brand

I will certainly buy ___________ in the next 3 months.

Disagree 1 2 3 4 5 6 7 8 9 10 Agree

17. I am extremely loyal to _________(Name any cereal product/brand)

Disagree 1 2 3 4 5 6 7 8 9 10 Agree

18. I am fully satisfied with ________(Name any cereal product/brand)

Disagree 1 2 3 4 5 6 7 8 9 10 Agree

19. How can Kellogg’s Sultana Bran be improved to encourage you to repeat a purchase?

____________________________________________________________________

I and all those involved at AUT University would like to take this opportunity to thank you for your time and cooperation. If you think of any questions at a later date please feel free to contact us via e-mail (info@[email protected]) or telephone 0223458712 from 8am – 5pm, Monday-Friday.

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Kellogg's Final Assignment