Brand Equity of Kellogs

Description
Documentation describing Brand Equity of Kellogs.

Contents

1.

Introduction

……………...................................................................................................................3 2. Research

Methodology………….....................................................................................................4 2.1 Primary

Research……………………………………………………………………………………………….…..4 2.2 Consumer Research

…………………………………………………………………………………………..…..4 2.3 Data Collection

……………………………………………………………………………………………………….5 3. Brand Equity of Kellogg’s

Chocos................................................................................................6 3.1 Brand Association

……………………………………………………………………………………………….…8 3.2 Value proposition

………………………………………………………………………………………………… 10 3.3 Brand loyalty

…………………………………………………………………………………………………………10 3.4 Brand Image

………………………………………………………………………………………………………….12 3.5 Personality

…………………………………………………………………………………………………………….12 3.6 Brand Identity

……………………………………………………………………………………………………….13 3.7 Positioning

…………………………………………………………………………………………………………….14 3.8 Non-User Suggestions

…………………………………………………………………………………………..16

4.0 ……18 5.0 …….20 6.0 Annexure :

Conclusions

……………………………………………………………………………………………………………………

References

……………………………………………………………………………………………………………………

Questionnaire

……………………………………………………………………………………………………21

1.0 INTRODUCTION

Kellogg Company (often referred to as Kellogg or Kellogg's in its corporate logo, or even more formally as Kellogg's of Battle Creek), is the world's leading producer of cereal and a leading producer of convenience foods, including cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and veggie foods. The Company's brands include Kellogg'sChocos, Kellogg’s Cornflakes,Keebler, Pop-Tarts, Eggo, Cheez-It, NutriGrain, Rice Krispies, BearNaked, Morningstar Farms, Famous Amos, Special K, All-Bran, Frosted Mini-Wheats, Club and Kashi. Kellogg products are manufactured in 19 countries and marketed in more than 180 countries around the world.Its global headquarters are in Battle Creek, Michigan, USA.

Brand Equity: The most important assets of any business are intangible: its company name, brand, symbols, and slogans, and their underlying associations, perceived quality, name awareness, customer base, and proprietary resources such as patents, trademarks, and channel relationships. These assets, which comprise brand equity, are a primary source of competitive advantage and future earnings.

2.0 RESEARCHMETHODOLOGY ADOPTED 2.1 PRIMARYRESEARCH

• It is conclusive in nature. • As essentially required, Pilot survey (Sample size of 30) will be done. • The Pilot survey is conducted to find out the Sample size for research and to check the appropriateness of the questionnaire.
2.2 CONSUMER RESEARCH:

• Attributes of the product ranked by the consumer • Buying behavior of the consumers • Consumption Patterns of the consumers • Preferences of the consumers in terms of variants of the product • Positioning of the product

2.3 DATACOLLECTION

Profile of the Respondents
AGE (YRS) 10-14 10

NUMBER Total No. INCOME 12-15000 15-25000 25000- Above GENDER MALE FEMALE OCCUPATION SERVICE BUSINESS HOUSEWIFE STUDENT

15-18 25

19-25 25

25 ABOVE 25

2 3 5

8 13 4

7 10 8

5 12 8

6 4

17 18

6 19

5 20

0 0 0 10

0 0 0 25

6 4 12 3

11 0 14 0

Table 1: Sample Size Profile of Kellogg’s Cereals Users

NUMBER Total No. INCOME 12-15000 15-25000 25000- Above GENDER MALE FEMALE OCCUPATION SERVICE BUSINESS HOUSEWIFE STUDENT

AGE (YRS) 10-14 5

15-18 5

19-25 10

25 ABOVE 1

0 3 2

0 2 0

3 2 5

2 3 5

2 3

3 2

7 3

3 7

0 0 0 5

0 0 0 5

4 2 1 3

4 1 5 0

Table 2: Sample Profile Of Kellogg’s Cereals Non-User

3.0 EVOLUTIONOF BRANDEQUITY

Diagram –5: Determining The Meaning Of Your Brand

As per the above model it was concluded from the survey that the elements of the model are given below.

PICTURE

Consumers have a very delicious and mouth watering picture of chocos in their minds. All they could say was Chahiye hi chahiye ……………………chocolate, chocolate and lots of chocolate.

PERSONAL

More than 60% of the consumers’ associated with males. They found it very masculine, strong.
ANIMAL

The very obvious choice was the Bear by 40% of the consumers. The rest 60% of them rated other animals like rabbit; horse etc. bear is the most highly recalled feature of the chocos advertisement as well.
USAGE EXPERIENCE CEREAL

The users of chocos cereal found themselves to be healthy and fit after eating it.

BRAND USER CEREAL

The Brand users of Chocos Cereals are mainly Teenagers and young adults.

BRAND AWARENESS

Top of the mind recall for Kellogg’s is mainly as cornflake. Some of the consumers also said that it’s a healthy breakfast cereal. The brand awareness of chocos biscuits is not very high as very few respondents could think of chocos biscuit when asked this question.

3.1 BRANDASSOCIATION

Diagram –6: Brand Association
PRODUCT ATTRIBUTES

After doing the factor analysis for cereals and biscuits, we found the following attributes very important.
• Nutritional

Value, • Eating Experience

INTANGIBLES

The Intangible values associated with • Healthy, fit & convenient

COMPETITORS

The major Competitors of Chocos comes from the multitude of Private labels and the recent launches

• Kweens • Tasty Treat

PRODUCTCLASS

Chocos Cereal is conspicuous product i.e. it talks about the life style and here the food habits of an individual. And according to the Product Color Matrix it can be classified as a “Yellow Good”. • • • • Convenience Healthy breakfast High nutritional value Social Status

Chocos cereal is a Premium Price Product.

LIFE STYLE & PERSONALITY

As described in the Brand Personality with the help of Semantic Differential Scale graph in the later part of the report, • •


39% of the consumer associated it with a sports person Use application : Healthy and convenient breakfast Customer Use: For growing children and young adults of age 15 yrs and

above. 44% of the times the mother buys for them.

3.2 VALUEPROPOSITION

A combination of functional benefits, emotional and self-expressive benefits

CHOCOS CEREAL FUNCTIONAL BENEFITS

• Convenience • Nutritious breakfast • Good health • Easy to prepare
EMOTIONALBENEFITS

• Keeps the consumer fit • Chocolatetaste
SELF EXPRESSIVE BENEFITS

• Confidence • Pride • Cool

3.3 BRANDLOYALTY

CHOCOS CEREAL Very Consistent Brand loyalty has been exhibited in Question Number17, 18 and 19 of the questionnaire. This has been verified by the under shown Pie Charts. If Chocos not available in shop
Loo k for cho cos in othe r sho p

Grap h–1

3 6

Will not look for choc os in

o

t h

s

hop

If Chocos Cereal is not available in a particular shop 64% of the respondents will confirmed that they will look for it in the next shop, because of their loyalty towards chocos. More than 50% of the consumers will not buy if the retailer gives them any brand other than chocos in case it is not available. Even if the price was to be increased by Rs.5, the consumers are willing to buy it due to its best quality and unique taste of chocolate. Graph – 2
5 5 % 45 % buy choc os if the price is incre ased by Rs. 5 will not buy chocos if the price is increa se by Rs 5

Hence there exists a loyalty towards chocos cereals among the consumers and this loyalty contributes highly towards the brand equity of chocos. This brand equity can be leveraged to other products of Kellogg’s and possible extensions.

3.4 BRANDIMAGE
Characteristic Brand Features Brand Information Brand users Brand Evaluation Brand Statement Chocos Cereal Boat shapes wheat scoops Breakfast is a healthy habit Higher income group High nutritional value with extra calcium ‘Irresistible taste of chocolate’

3.5 BRANDPERSONALITY CHOCOS CEREAL DEMOGRAPHIC PROFILE OF CHOCOS CEREAL

• Age-early teens • Sex-Male • Social Class-Upper class • Life style-Non Traditional • Human/ Personality trait- Friendly and contemporary
BRAND PERSONALITY SCALE

• Sincerity Honest & cheerful personality • Excitement Spirited &up to date personality • Competence Reliable, intelligent &confident personality • Ruggedness Outdoorsy & tough personality

3.6 BRANDIDENTITY

Diagram –7: Brand Identity Prism
PICTURE OF SENDER PHYSIQUE

1. Male 2. Bear 3. Chocolaty 4. Sports person

PERSONALITY

• Modern

• Healthy • Energetic • Contemporary • Whole some
PICTURE OF RECIPIENT CUSTOMER SELF-REFLECTION

• •

Smart Intelligent

CUSTOMER SELF IMAGE PROJECTION



Young achiever

3.7 POSITIONING

Kellogg’s has positioned chocos on a fun filled health platform. All the attributes of the cereals as well as the biscuits as rated by the consumers denote the existing positioning of chocos. There isaconsistencybetweenthe positioning done by the company and what is there in the mindset of the consumer. After doing the factor analysis of the attributes of cereals and biscuit sand following factors were obtained.

CEREAL S Nutrition Appearance

Eating experience Scrumptious Table: Factors of Positioning After doing the factor analysis on the attitudinal attributes obtained from semantic differential scale used for obtaining the brand personality, following factors were obtained.

CEREAL S Taazgi Contemporary Friendly Honest Dynamic Table: Factors of Positioning The above factors obtained are representative of the mindset of consumers and they can be used as the unique selling proposition of the product. We propose that the advertising strategy of chocos should not only encompass the attributes obtained from the factor analysis but also the elements obtained from the factor analysis of the semantic differential scale. Therefore a clubbing of both of these can be used to garner a perfect positioning in the mindset of the consumer. Bringing the tangibles and intangibles together will achieve the breakthrough that was elusive till now.

3.8 NON-USERSUGGESTIONS

GRAPH- 7

CHOCOSCEREAL
REASONS THAT THE CEREAL ARE : NON-USERS GAVE FOR NOT HAVING CHOCOS




28% found chocos costly 23% of them said that they don’t have Chocos cereal because it becomes soggy in hot milk.




13% of them have not tried yet. 10% prefer non-chocolate Flavor in cereals.

SUGGESTIONS

• • •

20% suggested that there should be free gifts along with chocos 27% asked for better availability 20% asked for more sweet chocolate

GRAPH- 9

4.0 CONCLUSION

The compilation of this report bears a judgmental mark on the brand building process of chocos cereals. The perception of the consumers and the attitude of the retailers have no doubt added a new dimension to the existing advertising strategy in use by the company. The various models explained here in have helped in assimilating the core branding elements of the proposed brand study. There has been considerable success in inculcating new breakfast eating habits in the Indian consumer. This increased acceptance in Kellogg India was brought about by its shift in positioning from nutrition to fun-filled flavors.
THE HABIT BARRIER:

The closer Indian food-habits are to the heart of the meal, the harder it is to change them. People believe that Kellogg’s wants to change habits. Nowhere in the world have they done that. Their approach, instead, has been to offer an alternative to the many options that consumers have for breakfast. sales volumes. While Kellogg’s argues that itis not looking for volumes for its variants, the search for a product to break down the taste-barrier may force the company to increasingly rely on sub-brands like Chocos.
THEPRICEBARRIER:

At present, Chocos accounts for 20 percent of Kellogg’s

Kellogg’s is able to cater only to the A-class towns or the more affluent consumers. Price is the biggest element of consumer resistance. The Indian consumer is not that discerning about quality when it comes to looking at the whole price quality package.
THE POSITIONING BARRIER:

Hammering home the nutritional benefits of its products, Kellogg have spent more than Rs.25 crore on advertising over the past 6 years. However, research shows that the average Indian consumer rarely attaches importance to the level of iron and vitamin intake, and instead looks at the quantity, rather than the quality of the food consumed. The Kellogg

mandate is to develop awareness about nutrition. While retaining its health positioning, Kellogg’s new product-range promotion schemes, and sampling exercises are now clearly aimed at a younger audience. At one end they are attracting the children with promotions. On the other, they are talking to them about health. So, the child can go home and persuade the parents to get Kellogg because it is a healthy product. There’s a long way to go before Kellogg can turn the corner in India. If it took 25 years inMexico, Kellogg has set a stretch target of 10 years for India.

5.0 REFERENCES
1.

Aaker, David,” Managing Brand Equity”, The Free Press, Printed in the United States Of America, Year 1994.

David, Fred R.,” Concepts Of Strategic Management” Prentice Hall, Printed in the United States of America, Year 1987.
2. 3.

Kotler, Philip,” Marketing Management, Ninth Edition” , Prentice Hall, Printed in India, Year 1999.

Ulnar, Fredrick, The Marketing Periodicals – The Kellogg’s Study, Volume88, Number 233 , March 2005, page-26.
4.

5.

www.kelloggs.com- Search engines

6. www.indiainfoline.com- Search engines 7. www.google.com- Search engines

6.0 ANNEXURE

QUESTIONNAIRECEREAL
This Questionnaire is for Academic purposes only and all the information revealed will be kept confidential. 1. 2. What comes to your mind when you think of Kellogg’s? ------------------------------------------------------------------------------------------What do you look for when you purchase biscuits and cereals? Please rate them on a scale of 1 to 5. (1 being the least important and 5 being the MostImportant). ATTRIBUTES Taste Crispiness Size Nutritionalvalue(Vit,Minetc.) Ingredients Shape Color Flavor Well known name BISCUITS CEREALS

Any other (please specify) 3. Rank the various buying factors (tick any one) Price Availability Free gifts Brand name Discounts

4.

When do you have Chocos Cereal (tick any one)? Breakfast Snacks 5. Between meals Any other

What are the preferred forms in which you like to have cereals (lick any one)? Rice flakes Wheat flakes ChocosMusilis Fruit loops Frosties Any other Com flakes

6.

How do you like to have Chocos Cereal (tick any one)? Hot milk Cream Cold milk

7.

What do you like to add to Chocos Cereal (tick any one)? Honey Nuts Fruits

8.

What are the other shapes of Chocos cereal that you can think of? ----------------------------------------------------------------------------------------

9.

Would you like having Chocos with egg flavor? Yes No

10.

Have you seen the Chocos cereal advertisement? Yes No

11.

If yes, what do you remember about the ad? Please specify. -------------------------------------------------------------------------------------

12.

Which Nutrient would add more value to Chocos Cereal (tick any one)? Calcium Vitamins Carbohydrates Glucose Magnesium Iodine Fats Any other (specify)

13.

What are your preferred Chocolate Flavors (tick any one)? Sweet Chocolate Chocolate Chips Bitter Chocolate

14.

Where do you buy Chocos Cereal (tick any one)? Super market College canteen Kirana shop Retailer Pan shop Food shops

15.

Who purchases Chocos Cereals for you? ------------------------------------------------------------------------------------------

16.

How long does it take for you tohave a pack of Chocos Cereal of 100gms (tick any one)? Less than a Week 15 days A week 15 days to a month

17.

If Chocos is not available in theshop will you look for it in the next shop? Yes No

18.

If the retailer gives you another brand of Cereals instead of Chocos, will you buy? Yes No

19.

Will you buy Chocos Cereal if the price increases by Rs.5? Yes No

20.

I like Kellogg’s ChocosCereal because (tick any one) • It keeps me healthy and fit • It makes me fell strong • It satisfies my hunger • It makes me feel happy • It gives me a feeling of being funky and trendy • It makes me feel energetic • It makes me think better • It is the Healthiest Breakfast I can have • It is very convenient to have • Any other (please specify) -------------------------------------------------

21.

In my leisure time I (tick any one) Read Watch TV Party Watch movies Visit a friend Play

22.

If Chocos is born as a Person,it has to be (tick any one)? Male Female

23.

What should be the age of Chocos according to you (tick any one)? Baby (Less than a year) Kid (1 – 5 yrs old) Teenager (early teens, 13-15 yrs) Late Teen (15-19 yrs.) College student (20-22 yrs) Young (22-26 yrs) Mom Dad

24.

You think Chocos is …… please tick any one. Sports person Actor Doctor Teacher James bond Student Pilot Businessman Dancer Prime Minister

25.

If Chocos is born as an animal, it would be (tick any one): Horse Rooster Deer Rabbit Tiger Bear Chimpanzee

26.

Who eats Chocos (tick any one)? Horse Deer Tiger Rooster Rabbit Chimpanzee

27.
AGREE PATIENT THRILLING

What could be the attitude of Chocos according to you?
3 2 1 0 -1 -2 -3 DISAGREE IMPATIENT BORING UNENTHUSIASTIC INSENSITIVE LETHARGIC DUMB INTROVERT STATIONARY HOT WEAK CARING TAME DESTRUCTIVE DISLOYAL TRADITIONAL UNRELIABLE RASH

ENTHUSIASTIC SENSITIVE ENERGETIC INTELLIGENT EXTROVERT DYNAMIC COOL STRONG DISREGARDING WILD ENVIRONMENTALIST LOYAL MODERN RELIABLE SENSIBLE

28. Smart Intelligent 29.

The bear in the Chocos ad is (tick any one): Cute Healthy Will you buy any product form of Chocos? Please tick one: Milk food drink Drinking chocolate Wafers Cream biscuit Coffee Chocolate bar Friendly

30.

After eating Kellogg’s Chocos, I feel (tick any one) Healthy Energetic Adds to my Social status Funky and trendy Any other Fit Strong Happy Lively

IF YOU ARE A NON USER OF CHOCOS CEREAL PLEASE ANSWER THE FOLLOWING QUESTIONS 31. Why don’t you have Kellogg’s Chocos Cereal? Please specify (tick any one) • I am yet to try Kelloggs Chocos Cereal • I don’t like the taste of Chocos Cereal • I prefer the non-chocolate flavor in Cereals • • • • • 32. Because I cannot have Kellogg’s Chocos with hot Milk I don’t like the packaging of Chocos Don’t like the advertisements of Kellogg’s Chocos It is not easily available It is very costly

What improvements would you suggest for the Kellogg’s Chocos Brand (tick any one)? • Should be available in the form of both Bitter and Sweet Chocos • Should be available in more number of retail outlets • The product should offer more nutrients than what it currently has • Should be made available with fruits, nuts and other additives • Should offer more attractive free gifts

33.

What other form of breakfastcereal do you use (tick any one)? Mohan’s Oatmeal Porridge

PLEASE FILL IN THE FOLLOWING DETAILS Name Age (yrs): (10 - 14) (15 – 18) (19 – 25) (25 & above) House Hold income level: (12000 – 15000) pm (15000 – 25000) pm (25000 – above) pm Occupation Address Sex:M/F

Thank You for Your Cooperation



doc_766593722.doc
 

Attachments

Back
Top