Business Case Studies | Kellogg's | Creating a stronger position

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  1. Introduction
  2. Kellogg's and the marketing mix
  3. The product life-cycle
  4. Special K - cereal
  5. Special K - bars
  6. Growing the brand
  7. Creating a stronger position » Next steps
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Kellogg's

Using new product development to grow a brand

Creating a stronger position

When contemplating long-term investment decisions, brand managers face two key questions.

1. In what projects should the company invest?

2. What level of investment should be approved?

For the Kellogg company, market research suggested that using funds to develop variants on Special K looked like a comparatively low risk project that offered the prospect of a good rate of return. This was largely because it involved developing and extending a brand that already enjoyed huge consumer support in ways that could be adapted to the market place worldwide. The judgement has proved to be correct, to the benefit of the company and its many stakeholders.

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