Executive Summary p.2
Key facts p. 3
Place (distribution) p.6
Appendix 1. Aisle of Breakfast cereals at Woolworth Ashfield p.9
Appendix 2. Print ad of Special K, 1964 p.10
Results of the survey p.12
Special K is a successful brand, with a good level of innovation and communication. It has reached many consumers; especially women aged 20 to 40 yearsold, focusing on key elements such as beauty, shape, and weight loss. People are ready to pay more for Special K cereals, positioned as high quality products, with higher prices as competitors’. As the market of breakfast cereals is in maturity step, with many competitors and strong distribution channels in retail and market, the brand has to attract more consumers and gain market shares against its competitors, identified as being (from higher to lower competitiveness), Nestlé “Uncle Toby’s Plus” range, Weightwatchers “Flakes” and Woolworth “Special choice”. Plus cereals are the most present in aisles, against Special K, and has a range of products with specificities meeting the needs of different customers, which Special K doesn’t have: “Plus antioxidant”, “Plus fiber”, “Plus Omega 3”. For its natural cereal, that we will call Special K original (with no flavors), the brand will have to extend the product through different particularities in order to attract more and different customers, such as men with “Special K protein + “ or “Special K energy +” (focusing on protein), men and women aged 45/50 to 65 and more with “Special K omega 3”, and men and women aged 40 to 65 and more with “Special K antioxidant”. It will allow the brand to reach the customers who buy competitive offers because they didn’t find a product corresponding to their needs in the Special K range. The brand should focus on men through the extension of its line, but also in communications. Special K should go back to its first ads where men were present. Men represent a good opportunity in many industries, as their concerns have changed (example of cosmetics products created for men, such as anti-age creams). The last recommendation for the brand concerns the advertising in store: the visibility of the products is limited to their location on the aisle. There should have advertising on the floor, with messages guiding the customer to the product, but also on the shelves, attracting customer’s attention from both sides of the aisle. All these recommendation have been confirmed by a questionnaire I have distributed to twenty customers at Woolworth Ashfield, in order to corroborate my suppositions (See appendix 3). With all these changes, the brand will gain market shares, change its perception in people’s mind, such as men who consider this brand as being for “women”, but also extend its target to older people, by understanding their concerns about nutrition. Special K doesn’t have to change all its communication or range of product, but just dedicate some products to potential customers.
Kellogg’s is an American brand, created in 1906. Its headquarter is in Michigan (USA). The company operates in the Industry of Processed and Packaged goods, in the sector of Food and Beverages. It is the world’s leading producer of cereals and convenience food. Kellogg’s sells in 180 countries, most in the US (67% of its revenues), but also in Europe (19%), Latin America (8%) and Asia Pacific region (6%). In Australia, the Kellogg’s cereals present in the market are divided by segment: Coco Pops®, Froot loops® and Rice bubbles® for kids, Crispix®, Frosties® and Mini Wheats® for teenagers, All Bran®, Corn Flakes®, Guardian®, Just right®, Complete®, Nutri grain®, Special K®, Sultana Bran®, Crunchy nuts® and Sustain® for the adults.
The choice of products
I have selected the products Special K because...