Kelloggs HRM report

Submitted toMr. PuneetGaur

Submitted bySukriti Pant-30Udisha Anthwal-33Vikrant Negi-38

CONTENTS

HistoryIntroductionProduct linesProduct life cycleStrategic use of product life cycleImplementing extension strategyMarketing mixconclusion

HISTORY1898 - W.K Kellogg and John Harvey kellogg created kellogg’s cornflakes.

1906 - Opened “ BATTLE CREEK TOASTED CORNFLAKE COMPANY”

1915 - Introduced BRAN FLAKES, 1st high fiber cereals.

1942-1945 - Produced K-rations for U.S .armed forces during world war2.introduced kellogg’s raisin bran.

2006 - Created new KELLOGGS SPECIAL K BARSworldwide sales of 5.5 billion euros.

2007 - Britain’s biggest selling grocery brand.sales more than 550 million euros.

INTRODUCTION

Captured the marked for more than 100 years.Spread across the world in 180 countries.Strong commitment to corporate social responsibility.Six key segment:Tasty start : Kellogg's Corn FlakesSimply wholesome : Kashi MuesliShape management: Special KInner health : All-BranKid preferred: FrostiesMum preferred: Raisin Wheats

Product lines

CerealsCookiesCrackersSnacksFrozen foods

Product life cycle- NUTRI-GRAIN

Product life cycle shows how sales of a product change over time.Life cycle starts with research and development(R&D).

Five stages of life cycle:Launch: launched in1997 and gained 50% share in 2 years.Growth: expansion of products with new development of flavours

MISSED BREAKFASTALL DAY HEALTHY SNACKMaturity: Increased competition in the market.Saturation: better and cheaper competitors led to decrease in sale.Decline: product loosing its position

need of a key business decision making.

Strategic use of product life cycle

Development of extension strategy for the product

Ansoff’s matrix

Extending the nutri grain cycle: identifying the problem

1. Brand message was not strong enough. Consumers were not impressed by the product to choose it over competitors.

2. Some Kellogg products (e.g. Minis) had taken the focus away from the core business.

3. The core products of Nutri-Grain Soft Bake and Elevensesbetween them represented over 80% of sales but received a small proportion of advertising and promotion budgets.

4. Those sales that were taking place were being driven by promotional pricing(i.e discounted pricing) rather than the underlying strength of the brand.

IMPLEMENTING EXTENSION STRATEGY2005- Re-brand & re-launch of product.

• The healthy grains were soft rather than gritty• The eating experience is closer to the more indulgent foods that people could be eating.

unique selling point‘soft bake’2.Re-launch of Nutri-Grain product to fulfil the health and taste demands of realistic snackers.3. Te-focus investment on the core products of Soft Bake Bars andElevenses (accounting for 61% of Soft Bake Barsales). Three existing Soft Bake Bar products were improved, three new ranges introduced and poorly performing ranges (such as Minis) were withdrawn.4. New packaging was introduced to unify the brand image.5. Improved pricing structure for stores and supermarkets was developed.

1.Renewal of brand image.

Marketing mix

• Product – improvements to the recipe and a wider range offlavours, repositioning the brand as ‘healthy and tasty’, not asubstitute for a missed breakfast.

• Promotion – a new and clearer brand image to cover all theproducts in the range along with advertising and point-of-salematerials.

• Place – better offers and materials to stores that sold theproduct.

• Price – new price levels were agreed that did not rely onpromotional pricing. This improved revenue for both Kellogg andthe stores.

Conclusion

Tools used to relaunch nutri grainProduct life cycleAnsoff’s matrixMarketing mix

Aims fulfilled by kelloggs during relaunch of nutri grain

• re-position the brand through the use of the marketing mix• return the brand to growth• improve the frequency of purchase• introduce new customers to the brand.