sparx 10_ “kellogg’s mate”- why it failed

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10/27/13 SPARX 10: Kelloggs Mate- Why it failed??

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SPARX 10

SUNDAY, DECEMBER 12, 2010

Kelloggs Mate- Why it failed??

You are what you eat..is a belief what made Kelloggs a must breakfast

every morning. It was set up by brothers Will Keith Kellogg and Dr John

Harvey Kellogg in year 1870s. In 1876, while experimenting with different

ways to cook and crush wheat to make it more palatable without losing its

goodness, he inadvertently ran a batch of cooked wheat through the rollers

that had been standing around for a day or so. And out of the other side

came Kellogg's Corn Flakes! (a prototype version)

Lets look at one of biggest idea failure of Kelloggs. This shows sometimes

improper research and failure to understand consumers can be great

problem to brand, however big it is.

If you are given choice to eat Kelloggs Corn flakes, how you would like to eat

it, by pouring refrigerators cold milk over cereal bowl, or eat it at room

temperatures warm milk and cereals? The company failed to understand the

choice of consumers. They launched product Kelloggs Mates all-in-one

breakfast package in year 1998 with a $30 million TV and print advertising

campaign, with a view of accelerating trend of convenience foods, increasing

in working hours in United States causing short of

time to prepare breakfast quickly. Kelloggs Mate

was a concept in kit form - a four oz. box of cereal,

a four oz. container of aseptically packaged milk [no

refrigeration required] and a plastic spoon. The line

consisted of four popular Kelloggs brands; Corn

Flakes; Fruit Loops; Mini Wheats; and Frosted

Flakes.

However, despite of great efforts by Kelloggs, it

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Kelloggs Mate- Why itfailed??

Abhinav PrajapatiGLCRMM1012

Zaras supply chain

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at 6:17 AM

failed to make position in minds of customer. Lets look all the major factors

of failure one by one as studied by various marketing professionals and

journalist:

1. Breakfast Mate used the concept of warm milk. It contained asepticallypackaged milk which didt need refrigerator. Many Americans who have

tried drinking aseptically packaged milksomething available in the U.S.

from local and international dairy sourceshave complained that it tastes

"burnt."

2. The product suggested keeping the container in refrigerator, since most ofAmericans pour cold milk over cereals when they serve. This lead to more

confusion among consumers. Breakfast Mates was not in a location where

you would generally expect to find breakfast cereal. The expense of trying to

re-educate the consumer to look for cereal in the dairy case proved too

enormousway beyond, apparently, what Kelloggs wanted to spend on

selling the new line.

3. TV commercials, ad showed how parents tell their small children to servebreakfast themselves by using of Breakfast Mates and let them sleep in.

But packing of this product was too far from child-friendly, as many a timeyoung hands squeeze the soft side of packing too hard, causing spill of liquid

all over the table. Thus what ad was communicating to consumers was too

different from actual situation.

4. Breakfast Mate was portable packet to be used when one is out of his home.This can be kept in lunchbox, briefcase, brownbag, and desk drawer. But the

problem was the milk get warm up at the ambient temperature. This caused

the change in taste of milk.

5. Breakfast mate was charged premium for convenience. Its retail price was in

range from $1.39 to $1.69 depending on retail store. Consumers felt thatwas too expensive for what they perceive as a four. Oz. box of cereal.

After a one-year market exposure, the company announced that it was

discontinuing Breakfast Mates in year 1999. Convenience, ease and a

handy spoon isnt everything it seemsnot when youve got cold cereal and

warm milk. A company should look at all dimensions while launching a new

product, sometimes looking only at one particular parameter and overseeing

others can be fatal.

Reference:Brand failures The truth about the 100 biggest branding mistakes of alltime- Matt Haigwww.kelloggs.comhttp://www.mrbreakfast.com

Dishti NaikGLCRMM1012

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