CONSUMER BEHAVIOUR Tony the Tiger goes Global Kellogg Company has distribution in more than 150 countries

and yet is still unknown to half the worlds population. according to Arnold Langbo, Kelloggs CEO. Langbo plans to change that. Kellogg recently built a companyowned cereal plant in Latvia and currently has sales in Poland, Hungary and Czechoslovakia. It has also started construction on a plant in India and is entering China. However international expansion and the development of global brands will not be easy. To become more international, the firm recently reorganized into four divisions :North America,Latin America, Europe and Australasia. According to Langbo: The way we used to be organized, we were a US-based Multinational-a company with a big domestic business and, by the way,some international business. That was the way we were thinking; thats the way the organization was structured. Today, if you talk to customers in the UK, Canada, or Australia, they think of Kelloggs as being based in the U.K or Canada or Australia. Were global in organizational structure and business but also multidomestic. We now have a number of truly global brands (Frosted Flakes and Corn Flakes, with Froot Loopa and Rice Krispies close, and Frosted Mini-Wheats and Honey Nut loops moving rapidly).There used to be slight variations in our food around the world, but now youll recognize the product wherever you go. Expanding into many markets will involve more than trying to gain share from other cereal marketers. It will require altering longheld traditions: In Eastern Europe its going to he pretty slow because were going to have to go in there and literally create the habitmuch as we did in Germany 25 years ago or France 20 years ago. Cereal is a whole new breakfast concept for these people. However, they do eat breakfast in those countries, and they eat fairly substantial breakfasts. In Asia, consumers are used to eating something warm, soft, and savory for breakfastand were going to sell them something thats cold, crisp, and sweet or bran tasting. Thats quite a difference. The challenge is made greater by the presence of aggressive competition in many developed or develop-ing markets. Competition is particularly intense in Europe where Nestle and General Mills formed a joint venture called Cereal Partners Worldwide. Langbo characterizes the new competitor this way: They are a very formidable competitor with Nestles distribution strength and knowledge of the European market and General Mills technology and cereal marketing expertise. The result of the entry of the new competitor, which spent an estimated $35 to $50 million in advertising in the top six European markets, and the response of existing firms such as Kellogg was an increase in the growth rate of total cereal sales as well as share erosion among the weaker brands. Competition is strong even in some countries where consumption is low. For example, in Japan, with consumption at four bowls per year per person, compared to 10 pounds in the United States, there are more than 100 products fighting for shelf space.

According to Langbo, a global brand requires a core position strategy or product benefit that will work in multiple countries and local execution of that idea to reflect local attitudes. The key ideas for three of Kelloggs global or near-global brands are described by Langbo in the following paragraphs. Frosted Flakes Frosted Flakes is based on the concept of vitality. This idea originated in the United States but is a universal idea that both translates and travels well. Because the product has a special appeal to children, the cultural differences are not so pronounced. Tony the Tiger illustrates the vitality theme in a universally understandable manner. Tony is loved throughout the world symborizing appeals that are truly global. We use Tony and he vitality message everywhere from the United States to Taiwan in Argentina. Corn Flakes The basic positioning concept for Corn Flakes is simple, unadulterated food that tastes surprisingly good. This concept also has universal appeal. It is typically the first product we introduce in a new market, It is the foundation of our line, and it is the worlds most popular cereal. All-Bran The value proposition for All-Bran is the health benefits of fiber in the diet. This proposition does not have universal appeal without development. The concept of the value of fiber in the diet is new to many countries and is often resisted. In 1984, we began a massive campaign to countries where the benefits of fiber were not widely accepted. campaign varied across countries due to differences in the attitudes of local medical and nutritional professionals, specific diseases that were most on the minds of the local population, and local restrictions on health claims. However, the basic approach was to educate and support the medical and nutritional community in each country. We would sponsor symposia on dietary fiber. As a countrys experts became convinced of the value of fiber, they told their story in their academic press, the general press, and in public service announcements. Today, despite competition from many other high-fiber cereals., All-Bran is one of the top 15 cereals worldwide.

Questions
1. What type of innovation would cold cereal be to a country not accustomed to this type of food? 2. Conduct an innovation analysis based for cold cereal in China. 3. What values are involved in the consumption of product such as breakfast cereal? 4. What values would support and what values would harm the chances of Kellogg succeeding the cold cereal in the following countries? What other factors would be important? a. China b. Mexico c. Japan d. France 5. What nonverbal communications factors would be important in developing an advertising campaign for a cold cereal? 6. Develop a marketing program to market one of Kelloggs cold cereals in the following countries. a. China b. Mexico c. Japan d. France

7. Why does Tony the Tiger travel so well?