Posts Tagged ‘kellogg

14
May
09

stealing market share?

Increasing your company’s market share usually consists of tough, get-your-hands-dirty marketing strategy that includes product, pricing and promotional changes. However, every once in a while, a competitor drops an opportunity in your lap.

Post currently finds itself in the aforementioned position with its Shredded Wheat Brand and is taking advantage of the opportunity to steal market share from Kellogg’s. For those of you who are new to The Side Note, we reported in April on Kellogg’s run-in with the FTC for their Frosted Mini-Wheats advertising claims.

Those at Post acted quickly and are drawing attention to Shredded Wheat’s unchanged recipe. I was surprised to learn that Shredded Wheat has been made the same way since 1892. I think this is a good attempt at comforting any mothers who may have concerns about a cereal that is similar to Kellogg’s version of Frosted Mini-Wheats.

Post has accompanied the new print advertisements with a Web site- ThePalaceOfLight.com – which pokes fun at being “anti-progress.” This is a very good use of digital media. I like that Post is mixing in facts with humor. My favorite video is the “Speech On Progess.” (Below)

The ability of Post to respond quickly and strike while the iron is hot, further demonstrates the importance of knowing your competitive landscape and creating an appropriate angle to promote your product.

23
Apr
09

Kellogg Company misleads consumers

miniwheats1Recently, Kellogg Company was handed a wrist-slap by the FTC for misleading consumers during a national campaign to promote its Frosted Mini-Wheats cereal.

According to the FTC, “Kellogg claimed […] that a breakfast of Frosted Mini-Wheats cereal is clinically shown to improve children’s attentiveness by nearly 20 percent. The complaint alleges that, in fact, according to the clinical study referred to in Kellogg’s advertising, only about half the children who ate Frosted Mini-Wheats for breakfast showed any improvement in attentiveness, and only about one in nine improved by 20 percent or more.”

As far as I can tell, Kellogg is not going to be fined. Instead, they are being asked follow the rules. According to the FTC:

“The proposed settlement would bar Kellogg from making comparable claims about Frosted Mini-Wheats unless the claims are true and not misleading. It requires that claims about the benefits to cognitive health, process, or function provided by Frosted Mini-Wheats or any morning food or snack food be substantiated and true. The settlement would prohibit Kellogg from misrepresenting the results of tests, studies, or research regarding any morning or snack food product.”

I think that a national brand like Kellogg should be fined because they should have known better. Instead it sounds as if the FTC is just going to give them a warning. This is a great learning opportunity to remind all brands that their advertisements need to be factual and not misleading.




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