skemacereals

Kellogg and Nestle Cereal Branding

Children Ceral Market : Cocoa Krispies VS Chocapic

Customer insight : Motivations and Emotions

Through targeting children, Nestlé conveys the message that a healthier an tastier cereal product can go hand in hand with a more pleasant lifestyle. It also says that cereals will be beneficial for their daily breakfast habits.

The emotional insights of children with regard to cereals are:

  • Pleasure and health: children are emotionally attached to a pleasant tasty brand that balances between health principles and the pleasure of eating cereals.
  • Eating with moderation and balance:  moderation and balance are key components of a healthy, and enjoyable balanced diet
  • Transparent communication: children and their family members, especially their mothers, are highly influenced by information concerning cereal products, such as sugar, protein, fat, salt, energy, packaging size, colours, and values. The quality of information and the way it is transmitted influence the consumers’ feelings about the brand. Thus it has to be clearly, understandable by both children and mothers, and user friendly.

Take  Actions !

Nestlé

In order to get deeper into customers’ insight and satisfy its target customers’ needs, Nestlé believes that getting usual physical activity and establishing a healthy eating habits to children will enable the children to be healthy adults in future. Thus educating children is a powerful tool that Nestlé conducts regularly to ensure that children understand the nutrition value and the physical activities of their health. “Healthy Kid Program” is a global program launched by Nestlé with collaboration of national health and education authorities in order to increase children awareness about nutrition and health wellness.

Also, Nestlé has developed EPODE (Ensemble, Prévenons l’Obésité Des Enfants) in 167 towns in France with the partnerships of schools in order to prevent the increase of obesity among children. Nestlé promotes regular physical activities, walking to school groups, and healthy campaigns through newsletters, menus, posters, factsheets, and delivering ethical information about the product ingredients in all the brand packages. This program succeeded in increasing customers’ awareness about nutrition and decreasing the rate of obesity.  According to Nestlé, “education is the most powerful tool for ensuring that children understand the value of nutrition and physical activity for their health through the course of their lives.”

Creating Shared Value at Nestlé

Nestlé creates value to all its customers.

Sustainability: Ensure that Nestlé activities preserve the environment for the future generations. In line with the sustainable development to Nestlé -> “The development that meets the needs and wants of the present without neglecting the ability of the future generations to meet their own needs” (Nestlé 2011)

Compliance: cooperation with national laws and relevant conventions, without forgetting the company’s own regulations, which often go further than legal obligations

Creating shared values: Joint value optimization with Water, Rural Development, and Nutrition by following long term and good business principles

Cocoa Krispies

Cocoa Krispies focuses more on the nutrition aspects of their brand by providing customers with the most relevant information about the product component. For instance, getting strong emotional bonds with the mothers is essential for them because they are the ones who take decisions for their children, so it is necessary to be ethically transparent by providing relevant information.

In order to get more understanding of children insights and emotions, Kellogg’s divided the target segment of children market into four sub-segments. It analyzes each segments attributes translate them into benefits. This strategy enhanced the brand company in the market, helped to be more close to the customers’ insights and increase trust among the brand.

Sources :

http://www.nestle.com/CSV/CreatingSharedValueAtNestle/Pages/CreatingSharedValue.aspx*

http://www.cocopops.co.za/Downloads/Dietary_Recommendation.pdf

Chocapic Vs Cocoa Krispies Packaging Strategy

The packaging of Chocapic is made of colourful and exciting images. It promotes Pico, a dog that loves chocolate -> Chocapic has a strong chocolate flavor. In later advertisements it is seen with a child preventing several thieves from stealing the cereal and explaining the origin of Chocapic. In addition, it is available on 3 sizes 350g, 500g, and 700g. This means that is covers all the different family sizes from nuclear to extended families with more than three children. In addition, The package contains all the necessary information about the product (protein, calcium vitamins, ect.).

Another important attribute of the packaging is to provide children with stories about different games and toys of heroes’ cartoons. However, even if this packaging is appreciated by children, it is no different from what competitors do. That is why the brand came up with an highly innovative and smart packaging with an integrated 3D game animation. According to  Sebastien Geist, Brand manager at Nestlé France “ the augmented reality technology was designed and developed by Dassault systems and turns the cereal boxes into 3D videogame consoles”. This new innovative package is not just containing and protecting the contents of the product , but it also enhances the shelf appeal of the product. This new package adds more benefits to customers such as time-temperature food quality labels, self-heating or self-cooling, information about nutritional qualities and origin of the product in numerous languages (Byrne, 2009).

On the other hand, Cocoa Krispies packaging attributes are using colourful images of cartoons providing information about product components and communicating the importance of nutrition to consumers. The different package sizes are also relevant to its target market as the case of Chocapic, but it is not presented with the same quantity. However the package did not contain heat claim and fair trade certification to be more credible in the eyes of customers unlike what its direct competitors have done. In October 2009, Kellogg’s was criticized by the US health authorities and consumer experts when it unveiled a description on its boxes of Cocoa Krispies cereal that stated “now helps support your child’s immunity”. Kellogg’s responded that it didn’t create the new copy to capitalize on the H1N1 Virus  concerns, but added “Kellogg developed this product in response to consumers expressing a need for more positive nutrition.” This action had a negative impact on Kellogg’s brand, chich lead to decrease on customers’ loyalty and the company profitability worldwide. (Bruce Horovitz, 2009)

Sources :

http://www.usatoday.com/money/industries/food/2009-11-02-cereal-immunity-claim_N.htm

http://www.bakeryandsnacks.com/Processing-Packaging/Nestle-aims-to-add-value-to-cereal-box-with-3D-game

Healthy Female: Defining the Special K Brand

Special K maintains a natural, wholesome image. They appeal to the value of their product. The ingredients and nutritional value are a key selling point.

Their target market is 20+ women who are interested in being healthy. The brand sells the importance of being healthy and starting the day right. There is a strong emphasis on nutrition and being good to your body.

Special K has a wide variety of products to appeal to all tastes. Their large product offering includes petite cereal, snack packs, bars and mini bars. They offer food for all times of the day as opposed to Nestle Fitness who is strictly in the breakfast market.

“Special” in the Special K brand implies that the brand is “specially” customized for you. The variety of flavors and products allows for people to customize their meal plan with their favorite tastes and products. Special K wants to provide the products that you eat throughout the day so that all of your snacks are healthy and keep you on track. Unlike Nestle Fitness’s app, the Special K app is aimed at planning meals and buying Special K products.

Special K’s goal is to build strong brand loyalty. They want their consumers to eat a Special K product for breakfast and lunch and any other snacks throughout the day.

Healthy Female: Defining the Nestle Fitness Brand

The Nestle Fitness brand is empowering and sporty. Nestle Fitness markets what the product can do for the consumer, it uses the consumer’s fitness potential as its incentive for buying. It doesn’t market ingredients or nutritional information (though it does show it), instead the message of its advertising is that by eating Nestle Fitness products, you can reach your fitness goals.

The target market is younger women who are trying to achieve their fitness goals. They care about their personal appearance.

Nestle Fitness differentiates itself by offering a magazine with articles on shape, fashion, seasonal food and fashion specialties, food recipes and beauty information. It has a website you can log in to to track your fitness goals, and it includes a work out program you can follow. There is also nutritional education on the website that is intended to guide you through healthy eating for the rest of the day. Special K’s selling proposition is nutrition, but they tell their consumers what to eat, Nestle Fitness is trying to teach their consumers how to choose what to eat.

Nestle Fitness offers consumers coupons online in order to get in-store discounts. It also sends out a newsletter that tries to create a deeper connection with the consumer. Nestle Fitness wants to convince the consumer that they are on their side in their fitness battle.

Nestle Fitness offers fewer products than Special K, only cereals and bars. They offer more consumer support than Special K though, through their newsletter, magazine, coupons, app, and website.

Adult Cereal Market: Insight into the Consumer

There are several different sub-segments within the adult cereal market. As a result, Nestlé Plus and All Brand respond to different insights, although some motivations and associations are similar. For example, “good for the health” is a common expectation for consumers of All Bran and Nestlé Plus but it is placed at a different degree of importance. Nestlé Plus’s differentation strategy lies the fact it addresses simultaneously two consumer insights: “I’m concerned with my health” and “I’m looking for pleasure and good taste”.  All Bran mostly answers to the former.

Here is the typical thinking of an All Bran’s consumer:

“I have severe bowel problems which constantly drain my morale. They affect both my physical state and my mental state.  In other words, they prevent me from having a normal life. I want to feel better and definitely solve these problems. I want to fully enjoy my life! I want my life back! But I would rather not use drugs. I would rather use a natural food product, so I can enjoy it while I eat it.”

And here is the typical thinking of a Nestlé Plus’ consumer:

“As an adult, I like to eat cereals at breakfast. These cereals must be tasty because I place a high value on pleasure.  Although I do not have specific health problems, I am concerned by my health and I seek to maintain it by having a balanced diet. I may seek to prevent potential bowel problems by eating cereals which contain natural fibers.  As breakfast is an important moment of the day, I choose carefully the cereal brand I purchase.“

Adult Cereal Market: Ethics and Corporate Social Responsibility

In the last few years, many expectations of ethical behaviour from companies have come into existence and the concept of “corporate social responsibility” (CSR) has become proeminent. Many brands consider it as a differentiating element for which a certain proportion of customers are ready to pay.

The objective of this post is not to analyze the CSR policies of Nestlé and Kellog’s. Both companies have developed many of them in a wide range of subjects, from making healthy products with less sugar to sustaining local communities. I will contend myself to analyzing the specific elements Nestlé Plus and All Bran put forward on their packagings, in their dedicated websites and communication channels in order to do a comparison. It is very interesting to do as it is adults who care the most about companies being ethical.

There is nutritional information on both packagings. However, Nestlé Plus contains more sugar and this is perhaps the reason why it is tastier than All Bran. Cereal brands cannot reduce forever the amount of sugar, although this is a variable they play on in their communication to say their products are good for the health. On Nestlé Plus’ webpage, we can read that Nestlé Plus contains on average 25% less fat, sugar and salt when compared to other cereal brands. This is true only to a certain extent as All Bran contains much less sugar for example.

To stay on the topic of nutrition, it is interesting to note that Nestlé heavily promotes its cereal products as “garantie avec du blé complet” (whole grain guaranteed), which is related to CSR as whole grain is overall better for the health than non-whole grain (providing cereals good for the health is a commitment of Nestlé). It is a little deceptive as it is only on the back side that we learn that only 70% is whole grain. So, here ethics and CSR are used as a marketing tool and there is a promise/performance gap. All Bran does not make such visible claims. It says it is “riche en fibres”, which is vague but true. Nestlé Plus also emphasizes the fact it contains fibers.

Both brands say (on the packagings and in TV ads) their cereals will be good for your health but only if you have a sound life and a balanced diet. What is interesting is that All Bran “hides” this on its packaging by mentioning it using a minuscule font while Nestlé Plus incorporates it in its brand discourse. In other words, Nestlé Plus goes beyond the legal requirement.

Finally, All Bran says on its packaging it uses recycled materials to make its packaging, something which Nestlé Plus does not.

Adult Cereal Market: Nestlé Plus’ Image

Kapferer (Strategic Brand Management, 2008) defines brand image as constituted by systems of interconnected mental associations which cover different aspects: brand territory, level of quality, qualities, most discriminating benefit and brand personality.

In this post, I analyze these five aspects for Nestlé Plus.

-Brand territory: when consumers see a Nestlé Plus packet, they obviously know it contains cereals but it is not thanks to the “Neslté” inscription they perceive it (Nestlé is a large food and nutrition company which has multiple product lines) nor thanks to the “Plus” (“Plus” can refer to many things). It is rather thanks to the packaging and its illustrations consumers perceive Nestlé Plus as a cereal brand.

-Level of quality: like All Bran, the perceived level of quality is high. It is perhaps even higher: an element which increases this perception is the higher price (around €4 per 375 gram packet).

-Qualities: perceived qualities of Nestlé Plus are the following: tasty cereals, well-balanced nutrition, good for the health.

-Most discriminating benefit: the most discriminating of Nestlé Plus is the fact it is well-balanced but also very good to eat (it combines wheat, chocolate and fruits) – probably better tasting than All Brand which is blander.

-Brand personality: the typical buyer the brand evokes is a male or female adult who is looking for two things in cereals: well-balanced nutrition and excellent flavour. This is conveyed both through the packaging (which look “serious” and not for children and which lists arguments and facts) and through the TV commercials (which show adults enjoying Nestlé Plus and who prefer it against other brands which contain goodies in the packets). The word “Plus” is branded as being “plus nutritionel” but it may well convey other meanings to consumers: the fact these cereals are superior, the fact these cereals are both well-balanced and succulent, etc. The organic side is strongly emphasized through the dominant green colour to reinforce the well-balanced argument.

Adult Cereal Market: All Bran’s image

Kapferer (Strategic Brand Management, 2008) defines brand image as constituted by systems of interconnected mental associations which cover different aspects: brand territory, level of quality, qualities, most discriminating benefit and brand personality.

In this post, I analyze these five aspects for Kellog’s All Bran.

-Brand territory: for this aspect, it is clearly Kellog’s which is perceived first by French consumers and not All Bran as most know consumers Kellog’s. They know it is a succesful producer of cereal foods.

-Level of quality: the perceived level of quality is high. Again, it is Kellog’s which is principally responsible for this. The fact that All Bran is high-priced (around €3.3 per 500 gram packet) increases this perception.

-Qualities: the perceived qualities of All Brand are the following: good for the health, good against bowel problems, wholefood.

-Most discriminating benefit: the perceived positioning of All Bran (or the most discriminating benefit) is a food which is very good at alleviating bowel problems. It is really the benefit which stands out and the reason why most All Bran buyers consume these cereals.

-Brand personality: the typical buyer the brand evokes is above all an optimistic person who seeks to solve a problem he or she has. The fact that All Bran is represented everywhere by the yellow colour – a colour which means optimism, enlightment and happiness at the same time in popular symbolism – is a proof of it. This optimistic person can either male or female but iconographic elements – both on the packaging and the dedicated website – suggest it is rather a woman. The slogan “Libérez-vous !” adds to this sentiment. In general words, the brand personality of All Brand is that of an helper, a sincere person who wants to help you and makes you carefree again.

Healthy Female: App Advantage for Nestle Fitness

The Nestle Fitness app is focused on managing your personal workout. When you access the app there is a video greeting (image below) encouraging you on your weight loss mission. Instead of tracking food like the Special K app, the Nestle Fitness app is about tracking exercises and your workout sessions. This is in line with Nestle Fitness’s brand image of weight loss through fitness and dedication.

 

Healthy Female: App Advantage for Special K

Special K’s app focuses on creating a daily menu and putting together a healthy grocery list based on four different meal plans they offer. The app correlates with Special K’s strategy of being “your nutritionist”. The app is focused around eating healthy, tracking your progress, and planning meals to stay on course.

Screenshots of the app are below:

 

Adult Cereal Market: Analysis of the Advertising Present on the Packagings

In this post, I will analyze the advertising elements which are present on the two packagings.

On the front side and the back side of Nestlé Plus’ packaging, there is the “saveur de l’année 2011” award. This award and its red and yellow logo were created about ten years ago by the private company Monadia. This award is given to around 160 foodstuffs each year. The method is the following: a sample group of consumers (240 for Nestlé Plus) conduct a blind test and the product which comes first gets the award.

Although this award bears official tones, it is entirely a marketing concept and it can be argued that it can be bought by the company which desires to have it put on its products.

Nestlé Plus resorts to this award  in order to acquire new customers. The idea is to make them believe Nestlé Plus is endorsed and promoted by a third party “expert” organization. This is understandable as Nestlé Plus was released as a new product only in 2010. It must conquer a position in the minds of consumers. As a note, Nestlé Plus already used this award in 2010. It is also used in the TV commercials.

This is the only advertising element present on the packaging but it stands out with its red and yellow colours.

There is no advertising on the front side of All Bran’s packaging: All Bran has been in existence for many years in the French market and Kellog’s even more so it does not need it.

Half of the back side is occupied by an advertisement for Danone’s Activia milk.

Activia is marketed as a milk which alleviates bowel problems. Activia also features advertisements for Kellog’s cereals (including All Bran) on its packaging. This is the result of a partnership between Kellog’s and Danone.

The idea behind this partnership is to redirect each brand’s consumers to the partner brand and thus increase sales.

Adult Cereal Market: Analysis of the Packagings

A few years ago, the French communication agency DDB carried out a survey in which marketing directors were asked to name what they considered the characteristics of a strong brand. The strengh of the signs of recognition (packaging, logo, codes, etc.) by the consumer ranked third (36%).

Packaging is all the more important in the cereals market as the actual product cannot be tried before buying it. Consumers need signals which will reassure them and make them buy the product. The packaging constitutes one of these signals, perhaps the most important. It is a touch point.

It is therefore important to analyse and compare the packagings of Nestlé Plus and All Bran.

  • I will now describe and compare the most evident elements.

The shape is the same, a rectangle. The size is almost equal, Nestlé Plus’s packaging being a little bigger in height. The colours are different : All Bran’s packaging has lighter and hot colours (yellow and different shades of orange) whereas Nestlé Plus’ has darker and colder colours (purple, green as well as some white). The positions of the main descriptive parts on the packagings are a little different : the detailed nutritional information are not on the same edge.

  • I will now start a deeper analysis. I will only analyze and compare the front side of the packagings. The back side contain brand sales ptiches which will be reviewed in another post.

        All Bran

The element which draws the attention the most on the All Bran’s packaging is the shining yellow sphere placed upon the bowl full of cereals. Inside this yellow sphere is written in large letters All Bran and Kellogs. One can say without a doubt that it is meant to be the sun (it is depicted in the upper left corner, as in drawings). So the message is this : by eating these cereals, you obtain for yourself the sun’s characteristics. In other words, you get more life, more energy, more light, more well-being. These are the key brand benefits of All Bran.  The message may seem easy to understand. However, in my opinion one needs to think about it some time before getting it.

Regarding the Kellogs logo next to the All Bran inscription, it is a brand naming strategy aimed at increasing All Bran’s brand equity: Kellogs is a famous name. Doing this instantly ties All Bran to Kellogs in the minds of consumers. Nestlé does the same thing.

The smaller brown sphere with “Fible Plus” inside may be viewed as a planet but this is of secondary importance.

Around the bowl is written in white “Libérez-vous !”, an order which may be unclear to consumers who do not know what Kellog’s All Bran stand for or what “fibres” (fibers) do. All Bran contains fibers. These help alleviate bowel problems. It can be said bowel problems are considered as a prison. In other words, All Bran is the key to freedom. Thus, the key brand benefits are again highlighted but the delivery to the consumers may be problematic.

Given the brand benefits (which are nearly medicinal) All Bran says it brings, one can say a certain number of customers engage with All Bran on a functional level. This is emphasized on the whole packaging. The same can be said of Nestlé Plus.

        Nestlé Plus

On this packaging, the element which draws the attention the most is the word “Plus”. It obviously refers to the brand benefits. The “Plus” is explained below with arguments put in a bulleted list. It is interesting to note that unlike All Bran, which has chosen a visual and symbolic strategy to explain the brand benefits, Nestlé Plus has chosen to write two arguments. As a comparison, there is three time more words on the front side of Nestlé Plus’ packaging. Besides the different packaging colours, this is perhaps the most differentiating element between the two brands.

The presence of more words perhaps make clearer the brand benefits. One should not forget the targeted consumers, adults, will probably read what is written on the packaging, unlike children.  The message is that Nestlé Plus will bring you a large amount of fibers, which is good for your health as it has already been said. The message also emphasizes how delicious Nestlé Plus’ cereals are. This is another differentiating point as on the All Bran packaging there is no mention of pleasure.

It should be noted there exists another Nestlé Plus product called Nestlé Plus antioxidants. Instead of containing fibers, it contains antioxidants. So the benefits and the message are a little different.

The green and the white are found on the packagings of the other brands of Nestlé. The white may be interpreted as representing purity while the green as authenticity and nature. The organic image Nestlé wants to broadcast is also highlighted through the green “blé complet” sign. This is radically different from All Bran’s branding strategy which does not bring up any organic consideration.

Healthy Female: Nestle Fitness Image

The image of Nestle Fitness is active and empowering. Nestle Fitness targets women who are trying to meet fitness and body type goals. They are focused on the whole process of losing weight, not simply the diet. Nestle Fitness is your “work out partner” coaching you through your fitness goals, whereas Special K acts as your nutritionist, helping you eat as healthy and balanced as possible.

The easiest way to understand Nestle Fitness’s image is by analyzing their packaging. The white woman silhouette  represents the active empowered target consumer of Nestle Fitness cereal. The package does have pictures of fruit and mentions “ble complet” (whole wheat) to show that it uses natural products in the food. Yet unlike Special K, that’s not the key message for consumers. Nestle Fitness is goal oriented, and eating healthy is a means to an end. The goal for the target consumer is to feel like the empowered woman pictured. She is active, healthy, and motivated to make a change in her body.

Another important feature to note from the packaging is that the back of the package corresponds to the cereal type purchased. Also, the message is different based on which flavor Nestle Fitness you buy. Special K maintains a very similar message on all of its different products.

Fitness Nature discusses the natural ingredients and benefits of the product. Fitness Chocolate Noir is about indulgence but still taking care of yourself. It’s the healthy way to have your chocolate satisfaction. Lastly, the Fitness Fraises is fitness focused. It advertises a “flatbellyprogram” because it is assuming a woman who purchases this cereal is actively looking for ways to improve her shape. There is also a workout DVD included in the package. Nestle Fitness is filling all of the emotional needs of their consumer,  the need to eat natural, indulge, and feel motivated.

Healthy Female: The Special K Image

Special K is trying to maintain a wholesome, friendly, natural image. They want to be your partner in trying to lose weight and get healthier. Special K focuses on a target market of women who want to be healthy and lose weight, whereas Nestle Fitness is also about health but focuses on being healthy by achieving fitness goals.

The Special K packaging highlights the natural elements of the product with images of fresh fruits and grain. On the back of the packaging, the tagline “Un moment pour moi tous les matins” (A moment for me every morning) reiterates the friendly image Special K is trying to portray. The packaging is also educational on how to have a balanced healthy energy filled breakfast (specifically targeted at the French market).

Special K emphasizes the nutritious appeal of their products. They offer a wide variety of products to appeal to all tastes and diets. They offer more products than Nestle Fitness. These include:
  • Cereal
  • Petite cereal
  • Snack bars
  • Bars
  • Mini bars
  • Crackers
  • Meal bars
  • Protein shakes
  • Cereal bars

Special K’s strategy is to offer a full line of health products so followers only eat Special K. The Special K brand has assured them that all of the products are nutritious. By offering a wide variety of products, Special K looks like a partner who is trying to meet all of your daily nutritious needs. Special K products are not only for breakfast, there are options for each meal of the day.

“Special” implies that the food plan is customized for each consumer. The ability to choose from the variety of products allows for flexibility in each person’s diet.

Marketing Cereals to Children

Cereals for children compose a major part of the portfolio of products of all major cereal companies. Hence it becomes imperative for the cereal companies to create a separate advertising campaign aimed at attracting children their products. And how do they do it? Well, they use children, celebrities, cartoons, gifts and everything else that is fun to sell cereals to children.

There is little doubt that the goal of these campaigns is to influence children’s choices and according to a review by the National Academies’ Institute of Medicine, studies indicate that food advertising by food companies affect the food choices, food purchase requests and the diet & nutrition of children. In the further sections of the blog, we will try to analyze the methods used by cereal companies to gain/alter child loyalty towards their brand. We shall also examine the effects of these campaigns on the food habits of the children in an effort to determine the success of the campaigns.

 

Marketing Insights

Today kids represent a very important demographic for the cereal companies. This is not only because of the growing child population in many countries but also due to the ability of the children to influence the purchasing decisions of their parents. Not to forget that these children will later become parents and influence the eating habits of their children.

With growing GDP’s and shrinking family sizes, parents today have more disposable income to spend on their children. And the fact that parents try to overcompensate their guilt of not spending enough time with their children by giving into their children’s demands only complements the previous point. This kind of social behavior makes it an easy job for marketers to influence the buying behavior of their target segments.

 

Controversies

Although the advertising campaigns have been largely successful in promoting their brands to children, the means that they have been using are more and more being considered to be unethical and harmful to the overall health of the children. Studies indicate that cereals for children contain 85% more sugar, 65% less fiber and 60% more sodium than adult cereals making their claim on nutrition questionable. In fact, a research by the organization Cereal FACTS made the following observations:

FACTS on cereal marketing

 

The following video by MediaBites on Kellogg’s Froot Loops shows how children have been used to market the cereal as a healthy choice. Notice how the advertisers use children and toys to put across their selling points into the minds of their target segments.

 

References:

Adult Cereal Market: Brand Identity Matrix

Below is the Kapferer’s brand identity matrix applied to Nestlé Plus and All Bran.

It can be seen that the differences between the two brands are not big. It does not mean that there is no or little differentiation between the two brands. It means rather that it is difficult to make consumers perceive the differences. Differentiation is hard to attain in the cereals market, especially in the sub-market which is the adult market.

Child Cereal Market Competition Analysis

There is a fierce competition between three large brands in the same category of chocolate children cereals. These Brands are “Quaker” (national brand), “Brin du jour” (Private label brand), “Petal Choco” (Chabrior Private Label) ect… These brands are successful for making “Cocoa kispies” and “Nestle” (national brand) lose their market share by using price competition strategies and newer and fast line extensions. In addition, one of the reasons of the intense competition is the merge on new competitors and the presence of substitute products. Cocoa Krispies and Chocapic have to develop a competitive pricing strategy in the level of setting prices closer to their competitors. However, it is hard to the company to reach the prices of private labels because their total costs are very lower than Kellogg’s and Nestle ones. Therefore, the company should adopt advertising techniques to create awareness in the market to show that private labels brands are less nutritious for customers

From a customer point of view, the key equity drivers are chocolate taste, Coco the monkey, snap, crackle and pop. In addition, Chocapic and Cocoa Krispies’customers need a product that is very sweet but healthy at the same time, and contains nutritious elements with a colorful and nice package.

There are many ways that Cocoa Krispies and Chocapic creates long durable brand awareness and knowledge:

-usage of holographic images that are becoming more common as an attention-getter

- Usage of popular cartoons characters

-National brands are on top and down of shelves at the eyes of Kids!

- Have funny attractive package, colorful, capture children’s attention

- Afford different kinds of chocolate flavors

- Offer in-box prizes to kids and their families such as sweepstakes, frequent flier miles, and coupons


On the other hand, Private labels chocolate brands have twice the same category of brand on the same shelf and they are on the middle of the shelves at the eye level of consumers (parents).


Healthy Female: What’s Similar between Special K and Nestle Fitness?

I wanted to start out by looking at what’s similar between these two brands.

  • Both brands offer a healthy breakfast option targeted at women
  • They appeal to women and their feelings about their body. Often, the subliminal message is “you’ll lose weight if you eat our cereal”
  • Both brands make eating their cereal more than a decision of what’s for breakfast. They try to create a relationship with their consumer
  • Both brands portray an empowering message to women. They are saying, “Be proud of your body and treat your body right”
  • Special K and Nestle Fitness strengthen their brand not only by offering cereal, but by offering other products that complement the branding of their cereal, such as breakfast bars.
  • Each brand offers a fruity cereal option and a sweet chocolate option. The variety of choices is appealing to women because they can go to their desired cereal supplier and have multiple tastes to choose from depending on their mood.
  • Special K and Nestle Fitness focus on losing weight, yet their methods of achieving this differ.

Post Navigation

Follow

Get every new post delivered to your Inbox.