October 24, 2005

In the latest edition of BrandWeek, Sonia Reyes writes about recent developments in the cereal industry to expand the brand. Since researching Kellogg's was a project of mine for a recent class, I was particularly interested to see what information the article had for the development of the cereal company. According to Reyes, profits have risen steadily since 2002 and are higher than ever in January through October 2005.

This is led by a development into healthy cereal lines, as Kellogg has put $15 million into a new Yogurt Bites product that will be marketed heavily, along with a Special K Fruit & Yogurt creeal. This is a big jump in health food cereals, which appears to be the big new market with all of the health (and weight) conscious Americans.

While this marketing strategy differs from their line for children, it does show how clearly products are marketed to different groups, despite all of it being cereal given to customers in boxes. The marketing and branding of these boxes, however, reflect the pervasiveness of cereal companies to produce products that reach almost every demogaphic.

Any thoughts?