KELLOGG’S

EXTENDING THE PRODUCT LIFE CYCLE

BIKASH KUMAR SAH

CONTENT
 About case
 Introduction
 Product life cycle
 Ansoff’s matrix
 Extending the Nutri – Grain cycle – identify the problem
 Implementation of extension strategy for Nutri – Grain
 Conclusion
ABOUT CASE
 This case is about Nutri – Grain and its problem
with the brand or market or both.
 INTRODUCTION
 Kellogg company is one of world leading
producer of breakfast cereals and convenience
food.
 Britain’s biggest selling grocery brand in 2007
($550 M).
 Brand : - Rice krispies, special K and Nutri –
Grain recognized by Household name.
 Brand characteristic are: - snap, crack and pop.
 CONT…..
 SIX SEGMENT : -
 Taste Start: - Kellogg's Corn Flakes
 Simple Wholesome: - Kashi Muesli
 Shape management: - Special K
 Inner health: - All- Bran
 Kid preferred: - Frosties
 Mum Approved: - Raisin Wheats
 Each brand of this product hold its own competitive
market.
PRODUCT LIFE CYCLE
ANSOFF’S MATRIX
IDENTIFY THE PROBLEM
 Customer tastes had changed
 people missed breakfast so increase in snack
food.
 Two strategy: - Product Diversification and
development.
CONT……
 Several issues: -
 Brand message wasn’t strong enough.
 Focus away from other product core business.
 Sales taken place by promotional pricing not
strength of the brand.
 Core product of Nutria – Grain Soft Bake and
Elevenses between them represented over 80% of
sales but received a small proportion of advertising
and promotion budget.
IMPLEMENTATION OF EXTENSION STRATEGY FOR NUTRI – GRAIN

 It can develop the solution of re-brand and re-launch

the product.
 1) looked at the core feature of new – brand images of
nutria – grain.
 2)A key part of market was a group termed as
‘Realistic group’.
 3) Decide to re-focus investment on the core product.
 4) New packaging
 5) Improved pricing structured
CONT…..
 Re-Lunch focus on four part of Marketing mix
that is
 Product, Price, Place and promotion
RESULT
 Soft Bake Bar sales growth.
 Nutri – Grain brand achieved a retail sales growth
rate of almost three time.
 Growth was maintained after the initial re-launch.
CONCLUSION
 Kellogg was able to use a number of business
tolls in order to successful re-launch the Nutri-
grain brand.
 Such tools are useful when used properly.
 Kellogg checked the growth of the re-launched
product against its own objectives, it had met all
its aims that is: -
CONT……..
 Re-position the brand through the use of the
marketing mix.
 Return the brand of growth.
 Improve the frequency of purchase.
 Introduce new customer of the brand.