Using new product development to grow a brand
Kellogg’s and the marketing mix

Introduction
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In a rapidly changing and competitive business environment, it is not easy to predict:

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future trends in consumer tastes and preferences competitors’ actions market conditions.

With annual sales of more than £4.5 billion, Kellogg’s is the world’s leading producer of cereal products and convenience foods, such as cookies, crackers and frozen waffles. Its brands include Corn Flakes,

uncertain world where the organisation’s strategy is to focus on

be expensive. It involves making investment decisions now, in the

products and brands that are either the market leader or in a strong

hope of making a return later. Weighing up future returns against an

second position the company believes that this focus upon core and

investment is a crucial part of a manager’s job.

successful products enables it to provide consistent and reliable returns and rewards for its stakeholders.

It always involves an element of risk, because the future is never

outcomes. However, all business activities involve some element of risk. There is often said to be a link between risk and return. The

accepts that products have a finite life, and analysts chart a product’s performance through several phases, from its launch through various phases of growth until it reaches maturity and eventually decline.
A product’s life cycle may last only a few months (e.g. with a fad, or

Kellogg’s is a global organisation. Its products are manufactured in 19 countries worldwide and sold in more than 180 countries. In an

research information helps them to predict future events and

analysing its position within the product life-cycle. Life-cycle analysis

Nutri-Grain and Rice Krispies.

Creating new products or making changes to existing brands