Kellogg’s is the world’s leading producer of cereal products and convenience foods with annual sales of more than £4.5 million. Its products are manufactured in 19 countries worldwide and sold in more than 180 countries.
Special K is one of the well-established brands among Kellogg’s brand category and was viewed as a stand-alone product. But, Kellogg’s had not created any variants or brand extensions to develop the core product. Kellogg’s recognised that it’s time to stretch the brand to not only keep original core product, Special K, strong but also grow the brand as a whole. They did a lot on marketing research, tasty research and quantitative research before they launched Special K cereal and Special K bars. Soon Kellogg’s came to realise that there was a huge growth in the Special K brand since the launch of variants, and at the same time sales of the original Special K didn’t drop anymore.
The launch of the extensions of Special K brand was very successful, within 2 years Special K cereal and Special K bar had achieved global coverage, but the success couldn’t be achieved without the effect of original Special K brand. Original Special K affected Special K cereal and Special K bar from brand equity, brand personality, customer loyalty aspects.
Brand life cycles
Kellogg Company was established initially in USA with an image of healthy lifestyle breakfast. Special K as one of the brand in Kellogg’s brand family has been launched for many years, and it has performed very well on brand building. But if not continually managed and upgraded, brand has a life cycle and soon reach maturity (Bradley Frank, 1995) and eventually decline. For a single product category of household products in the USA, Jones (1986) has reported that for the period 1936-77only two of the five most important brands in 1936 were still on the market in 1977, and with severely reduced market shares; of the twelve most important brands introduced since...
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