Product as defined by Farrall & Lindsey (2008) is “what you sell, and the variety or range of products you sell. This includes the quality (how good it is), branding, and reputation (the opinion the consumers have) of the product”.
Kellogg’s sell cereal and cereal based products. Since creating Corn Flakes in 1906, Kellogg’s have broadened their product bundle to 17 product lines (including Corn Flakes, Crunchy Nut, Special K, Frosties and Coco pops.) Through market segmentation Kellogg’s have created a variety of products that cater to the differing wants of consumers. For example Coco pops are aimed at children and Special K at women (Kellogg’s Australia, 2019). By using market segmentation Kellogg’s have been able to better understand and satisfy their customer needs, which is fundamentally what marketing is about.
The length of Kellogg’s product mix differs between each product line. Most recently Kellogg’s released a Strawberry version of their white chocolate coco pops. By listening to customers online feedback Kellogg’s realised there was a demand for white chocolate coco pops and released this new version of the product in June 2019 (Barrie, 2020). By listening to customers in this public way and carrying out new product development Kellogg’s maintained their well trusted reputation.
Kellogg’s has created a brand that consumer’s feel they can trust. In the UK Kellogg’s is recognised as the most trusted food and drink company (Kellogg’s Company, 2019), which highlights how important reputation is the success of the company. The Kellogg’s brand is also a valuable part of Kellogg’s product. Brand mascots like Tony the tiger contribute to the feel of Kellogg’s well recognised and trusted products. A study conducted by Nielsen in 2016 highlighted that Kellogg’s Corn Flakes packaging made customers feel the most nostalgic (Nielsen, 2016), highlighting how time and quality can effect customers perceptions of a product.
In 2020 Kellogg’s developed a new product range W.K. Kellogg by Kids, which was co-created with children. ‘Co-creation represents the already existing and even increasing customer participation in the process of new product development’ (Kotler et al, 2018). By co-creating the products Kellogg’s can ensure that children are satisfied with the cereals whilst also offering nutritional sound products. The products within the W.K Kellogg by Kids line are all plant based and contain no added sugar, artificial colours or flavours. Cereal bars are also produced under this brand to provide families with healthier snack choices (Gibbons, 2021).
Fundamentally cereal is an easy quick food option to start the day on. In addition to this, Kellogg’s continued focus on nutrition sets them apart from competition. Kellogg’s have always wanted to produce healthy breakfast options. In 1923 Kellogg’s were one of the first food companies to hire a dietician. Kellogg’s also created the first cereal to be fortified with vitamins to ensure that the health needs of families were being met (Kellogg’s, 2020). This highlights how Kellogg’s approach to their product is not just to create simple breakfast cereal, but to also add value that contributes to the health of their consumers. This has ensured that customers value Kellogg’s offering and ultimately stay loyal to them. It is also important to note that their focus and expertise on nutrition has been with them from the early days and not just when consumers grew more educated on nutrition and then started to demand such products. To this day Kellogg’s are focused on creating products that offer nutritional value. Between 2017 and 2018 the amount of sugar in Coco pops was cut by a half (NewFood 2017), which also highlights how Kellogg’s adapt and update their existing recipes to meet the concerns of customers.
Kellogg’s product mix makes the company unique to that of its competitors. Kellogg’s solely focus on cereal and cereal based products. Competitors of Kellogg’s like General Mills and Nestle are giant multinational food manufactures, but their brands cover a wider range of products, not just those focused on cereals and breakfasts. The focus and specialism that Kellogg’s has in its products has enabled it to grow a reputation with consumers and build from its history and heritage of being a cereal producer.
References
Landor (2019) Kellogg in Europe announced a packaging redesign in February 2019, focusing on the ‘naturalness’ of its cereal [photograph] in cnbc.com. Available at: https://www.cnbc.com/2019/02/28/kellogg-redesigns-its-cereal-boxes-in-europe-to-reflect-naturalness.html [accessed 31 Jan 2021]
Kellogg’s (2015) Kellogg’s launches new single price point on its price-marked cereals [photograph] in Kelloggsvantage.com. Available at: https://www.kelloggsvantage.com/en-gb/marketing/on-pack-promotions/kellogg-s-launches-new-single-price-point-on-its-price-marked-cereals/ [accessed 2 Feb 2021]
Barlow, N. (2020) Kellogg’s largest UK production plant is at Trafford Park in Manchester. [photograph] Available at https://aboutmanchester.co.uk/kelloggs-urgently-looking-for-workers-as-demand-for-cereals-increases/ [accessed 3 Feb 2021]
CerealMad (2020) 2020 Kelloggs We Do Cereal Advert no 3. Available at https://www.youtube.com/watch?v=lqRH7B2lUE0 [accessed 7 Feb 2021]
Twitter 2021, Kellogg’s Here to Help Available at: https://twitter.com/kelloggshelp_uk [accessed 8 Feb 2021]
Kellogg’s (2021). International Manufacturing plants (excluding North America). Available at https://investor.kelloggs.com/ir-home/manufacturing-locations/default.aspx [accessed 9 Feb 2021]
Famous Campaigns. (2020) Kellogg’s open first kids cereal café — designed and run by kids [photograph] Available at: https://www.famouscampaigns.com/2020/01/kelloggs-open-first-kids-cereal-cafe-designed-and-run-by-kids/ [accessed 11 Feb]