What is the single biggest challenge or opportunity that this assignment solves for?
In South East Asia, the Ready to Eat Cereal, RTEC, in Kids segment is dominated by Nestle KK Krunch behind strong equity on fun & chocolatey taste. But it’s in a declining trend because 1) kids are getting bored with the flavour and 2) its image is too childish.
To differentiate and compete with Nestle, we would like to focus on building Frosties behind the brand character, Tony the Tiger, then utilize Tony the Tiger to engage with kids and drive trial for whole Kellogg’s kids rang.
What key learning’s do we have on this current challenge or opportunity to help inform this assignment?
1. Kids segment represents around 70% of the Ready-to-Eat Cereal (RTEC) and it is mainly dominated by Nestle with about 53% val share followed by Eurocopp at 23% val share and Kellogg’s places third with 10% val share (Nielsen, Sept 2015)
2. Based on the 2015 brand health check study in Thailand & Malaysia, we found
1) Ideal breakfast should provide satiety, is delicious, provide balance nutrition and is convenient. Asides, there is a need for variety of breakfast choice to be rotated on a daily basis.
2) “The food no longer makes my kids filling till lunch time” is the key barrier why consumers reject or quit RTEC.
3) 95% of respondents in TH & 88% of respondents in MY say that breakfast should contain protein.
So the opportunity for Kellogg’s is to restage Kellogg’s Frosties as a delicious breakfast cereal that could provide energy and build an affinity with kids so that Tony the Tiger will be seen as “me”