Tuesday, January 25, 2011

Feedback

With a new year there have been several new cereals that have hit the market, none of which are that exciting, in my opinion. In any case, what caught my attention is not the cereals themselves, but what I saw on a box of new Kellogg's Crunch Nut cereal.

Prominently displayed on one of the side panels is a box soliciting feedback: "Tell us what you think about this cereal" along with a website where a consumer can complete a short survey about their impressions of the cereal and how it was purchased.

On the one hand this is not completely new. Feedback notices have been used for years by cereal and other food manufacturers. But, typically these were small and inconspicuous, and related more to customer service issues. This new effort by Kellogg suggests that there is a greater desire to hear directly from consumers. If the responses are taken seriously it could mean better cereals and buying experiences. We hope.

Despite the positive nature of this, I am also somewhat puzzled. A couple of weeks ago I questioned why major cereal companies were not taking more advantage of social networking in their relationships with consumers. This would have been a great way to get even better feedback, by engaging in a conversation. I understand they want a well-controlled survey to provide quantitative data, but so much more could be gained by developing connections with people through Facebook and Twitter. Then a much more complete feedback loop would be in place, benefiting both the company and consumers. Another example of where the big companies are trying, but often a few steps behind.

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Thursday, January 20, 2011

Innovation through research

Followers of this blog will know that I believe the future of cereal will hinge on innovation. There are many ways for companies to stand out from their competitors and that can include ingredients, cereal forms, packaging, marketing, etc. But, with the ongoing rise in health awareness by consumers, innovative nutrition research that leads to "functional foods" is another area that holds great promise.

Nutritional innovation in cereals is not new, but there may be signs this is increasing. For example, Kellogg recently announced funding of research at a Belgian university into cereal-derived prebiotics. The use of prebiotics and probiotics (both of which enhance intestinal microflora) is not new in cereal, but the fact that Kellogg is pouring money into this is significant. According to Vice-President Margaret Bath, "this is the first time that in its hundred-year history that Kellogg's is financing fundamental university research".

Of course, it is yet to be seen whether this research results in real innovation for consumers, but it may be the initiative that cereal companies need to take for long-term success.

(Source: Kellogg and BakeryandSnacks.com)

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Friday, January 14, 2011

Cereal and social networking

I recently came across an interesting website called Where's the Cap'n, created by a passionate lover of Quaker Cap'n Crunch. Along with a Facebook page and Twitter account this Cap'n fan is on a campaign to get Quaker to establish a social networking presence for Cap'n Crunch. Apparently this is a genuine "grassroots campaign" (and not a marketing ruse) as the claim is "No brand affiliation, independent movement".

Apart from one's opinion as to whether this is a worthy cause or just a waste of time, it does raise the question about the role of social networking in marketing cereals. If cereal is comfort food and consumers have passionate relationships with some cereal brands, why aren't cereal companies using social media more?

As I observe the social networking landscape I notice the following: 1) Most major cereal companies are doing very little in this medium; 2) There are exceptions, such as during the launch of Wheaties Fuel, but even in that case it has diminished significantly; and 3) Startup and specialty cereal companies appear to be leveraging social media more aggressively since they have less access to mass advertising.

In a highly competitive marketplace establishing relationships with consumers is essential. Will the big cereal companies get more involved in social media, or will they also fall behind in this aspect of innovation?

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Monday, January 10, 2011

Hi-tech cereal boxes

Last week all the buzz was about the Consumer Electronics Show in Las Vegas, the massive trade show for companies showing off the latest computers, mobile phones, gadgets, etc.

Amidst all the big names, some smaller companies were demonstrating their technologies, including Fulton Innovation. Utilizing their ecoupled inductive charging they demonstrated the possibility of retail packaging that can blink or light-up helping you identify products on the shelf. It's an intriguing concept, but do we need to have the cereal aisle light-up like a Christmas tree everytime we walk down it?

(Source CNet)

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Friday, December 31, 2010

Cereal Leftovers

As 2010 comes to a close it's time to clear out a collection of recent cereal related items that caught my attention but didn't make the cut for a full blog post.:

The Mommy Files on SFGate.com provide a fun llist of the "craziest breakfast cereals ever"

BBC looks at why eating breakfast at your office desk is not a good idea

Fooducate challenges Michelle Obama's belief that Honey Nut Cheerios is a healthy breakfast

Pediatrics journal publishes a study that makes the startling discovery that high-sugar cereals increase children's total sugar consumption. Brilliant!

babble evaluates the recent move by cereal companies to lower sugar content

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Post joins the bandwagon

We've been noting the increasing trend for healthier cereals, especially among those targeted to children. General Mills and Kellogg have been making changes in this direction in recent years, but now Post has announced reduced sugar for its Fruity and Cocoa Pebbles cereals. But, notably absent, are Alpha Bits and Golden Crisp, the latter in particular a cereal with over 50% sugar. So, does this represent a true philosophical shift for Post, or is it merely a public relations move?

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Thursday, December 30, 2010

New focus for Special K

It's that time of year again when we're feeling guilty about over-indulgence during the Holidays and pondering New Year's resolutions for better fitness and weight loss. It's no surprise then that Kellogg is again gearing up its marketing for Special K, its cereal positioned to help people (and women in particular) shed pounds.

Unlike previous years, however, this year's Special K approach is somewhat different. Instead of focusing on being another weight loss product, the theme is now "What will you gain when you lose". In other words, they are emphasizing the emotional benefits of reaching their weight loss goals, such as confidence and pride.

I have long questioned whether or not Special K could sustain itself as credible weight loss system. This latest move might be a step in the right direction. Be not fooled, however. Kellogg is still taking advantage of the anxiety many are facing about being overweight. That's still a big part of the message. In fact, in conjunction with this campaign they have launched an iPhone app to assist those following the weight loss program. But, the shift to emotional needs, might be a better long-term strategy which could make for stronger overall brand identity. Helping women feel good about themselves could be extended to other aspects of life such as work, motherhood, aging, etc. It will probably require, however, an even more overt move to feminize Special K. That could be risky, but might be what it takes for Special K to assure its prominence long-term.

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Saturday, December 18, 2010

McDonald's joining Starbucks with oatmeal

More evidence that oatmeal for breakfast is a growing trend:

According to the L. A. Times, McDonald's restaurants will begin selling a maple-flavored oatmeal mixture for $1.99 beginning this week. The cereal will also contain apples, raisins, cranberries and cream and will be served in a cardboard cup. McDonald's has probably seen the success that Starbucks has had selling oatmeal over the several years ago. Jamba Juice has also added it to their menu.

Oatmeal is a great comfort food, and gives McDonald's a new, healthy option for breakfast guests.

Will this contribute to a further surge for oatmeal and hot cereals in general?

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Tuesday, December 14, 2010

Weaning Kids Off Sugar

Sugar has been a mainstay in breakfast cereal for decades, but new developments this week suggest that its significance may be waning.

First, a new study from Yale's Rudd Center for Food Policy and Obesity (and reported in Time) reveals that children eat less sugar if they're allowed to sweeten the cereal themselves. This suggests that the high levels of sugar in many cereals may not be necessary to satisfy the sweet teeth of children.

Not likely a result of this study, but coincidentally General Mills has announced that they will continue to lower the amount of sugar in children's cereals to no more than 10 grams per service (source: StarTribune.com) This fulfills what they were promising exactly one year ago and is further indication of the growing awareness among consumers of health issues and the desire for more nutritious options.

Cereal is evolving.

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Thursday, December 09, 2010

Holy Crap?

In a crowded cereal marketplace the key is standing out.

Here's a bold attempt by a small Canadian company. Last year their company, HapiFoods, began selling a new, health oriented cereal. The "Holy Crap" response they received from consumers led them to use the name. And, now with some media exposure, they have sold thousands of this cereal, and another variety, Skinny B. In fact, they are weeks behind in production, and turned down an NBC Today Show appearance because they wouldn't have been able to handle the demand.

The cereal is a combination of chia, hulled hemp seeds, buckwheat, apples, cranberries, raisins and cinnamon. It is also free of wheat, gluten and lactose. While the cereal is somewhat novel, the packaging is far from innovative or exciting. But, the name itself is enough to garner attention. So far it's been working.

(Source: Toronto Star)

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