2. Researchers also found that a key part of the market was a group termed ‘realistic
Snackers’. These are people who want to snack on healthy foods, but still crave a great tasting snack. The re-launched nutria-Grain product needed to help this key group fulfil both of these desires.
3. Kellogg decided to re-focus investment on the core products of soft bake bars and Elevenes as these had maintained their growth (accounting for 61% of soft bake bar sales) . Three new ranges introduced and poorly performing ranges (such as minis) were withdrawn.
4. New packaging was introduced to unify the brand image.
5. An improved pricing structure for stores and supermarkets was developed.
GLOSSARY
Investment : putting funds to use in the hope of securing later.
Marketing mix : a series of variable factors such as the four Ps (product /price /place /promotion) used by an organization to meet its customers’ needs.
Point-of-sale-materials : information that is used where the sale actually takes place, such as displays in stores and by tills.
Using this information, the re-launch focused on the four parts of the marketing mix :
Product –improvements to the recipe and a wider range of flavours, repositioning the brand as ’healthy and tasty; not a substitute for a missed breakfast
Promotion- a new and clearer brand image to cover all the products in the range along with advertising and point-of-sale materials
Place-better offers and materials to stores that sold the product
Price-new price levels were agreed that did not rely on promotional pricing. Thins improved revenue for both Kellogg and stores.
As a result Soft Bake Bar year-on-year sales went from a decline to substantial growth, with Elevenses sales increasing by almost 50%. The Nutri-Grain brand achieved a retail sales growth rate of almost three times that of the market and most importantly, growth was maintained after the initial re-launch.