Magazine article Marketing

Changing Habits Can Hit Even the Biggest Brands

Magazine article Marketing

Changing Habits Can Hit Even the Biggest Brands

Article excerpt

A new report from WPP's Brandz survey, which questions 70,000 consumers across seven major world markets, including the UK, France, Germany and the US, names Kellogg's Corn Flakes as the fourth strongest superbrand among European consumers. The survey was based on people's attitudes and loyalty toward a brand, and ranked above Kellogg were the likes of Gillette, McDonald's and Pampers.

Yet Kellogg the company, despite its Superbrand status, is in serious trouble. Earlier this month the US-based business announced it was axing 500 head office staff and a further 240 contract staff. The cutbacks come after Kellogg already shed some 1200 staff between 1995 and 1996. In the UK this week it announced it was slashing the price of several of its leading cereal brands.

Kellogg has been overtaken by changes in the market largely beyond its control. People in the UK and in other countries do not eat the same amount of breakfast cereal they once did. But most tellingly, own-label cereal brands, with aggressive pricing, have eroded Kellogg's share of a declining market. Even with price cuts, Kellogg cereal brands remain significantly more expensive than the own-label competitors which have done so much to damage them. …

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