Tag Archives: branding

Kellogg Buys RXBAR

Consumer taste trends are moving to healthy and natural foods.  Nutrition and energy bars are a still-growing industry segment that is particularly appealing to Millennials. Yet, many of the older, established CPG firms struggle to attract and retain sales from that market segment. What should a company do? While it can certainly develop new products, market adoption of the new products can take valuable time and development itself takes resources and money away from a company’s established products.

A fast way to enter a new market with a new product is through acquisition. Kellogg recently took just this approach and acquired the very trendy RXBAR nutrition bar brand for a cool $600 million. The four-year old company currently has built its sales up to about $120 million and has added a children’s bar line, also.

RXBAR is known for a “no B.S.” innovative spirit. The brand highlights its commitment to whole food, protein bars that contain simple ingredients. The bars are gluten-free, soy-free, and dairy-free, tapping into a growing food product segment. RXBAR has a distinctive package that clearly states ingredients on the front of each package. For example: “3 Egg Whites, 5 Almonds, 4 Cashews, 2 Dates, No B.S.”

Group Activities and Discussion Questions:

    1. Discuss the four primary marketing strategies: market penetration, market development, product development, and diversification.
    2. Show RXBAR Web site: https://www.rxbar.com/
    3. Video about the company story: https://youtu.be/aMFwfKThixA
    4. Which strategy did RXBAR use?
    5. Which strategy is Kellogg using?
    6. Divide students into teams. Have each team select one of the four different strategies and explain why that strategy could be used to market RXBAR.
    7. Have each team determine the marketing mix (4Ps) to support their strategy choice.
    8. Debrief the exercise.

Source: Buss, D. (2017, Oct. 9). Kellogg looks to “no B.S.” RXBAR for growth and inspiration. Brandchannel.com

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Draw that Logo!

Logos are a critical part of a branding portfolio. Logos are graphic marks or symbols that help to market specific products and companies. They can convey tone, feeling, energy, strength, and utility. Logos are also global in scope and help with cross-language marketing around the world. No matter where one is at in the world, certain logos are instantly recognizable.

We can all identify our favorite logos even if they are not on a package or are unnamed. For example, consider the swoosh, apple, golden arches, and more. (You can probably guess these companies from just the word description – even without seeing an image.)

However, being able to recognize a logo is quite different being able to draw it from memory. In a recent study, 156 people were asked to draw some of the most iconic logos from memory. The results were not good. But, being able to draw a logo is not as important as the consumers’ ability to recognise the logos.

In another study conducted for Ad Age, 1,296 brand experts and 2,201 consumers were asked their opinion of some of today’s best-known logo. Top choices from marketers and consumers (in order) were fairly similar:

Rank Marketers Consumers
1. Nike Coca-Cola
2. Apple Apple
3. Target Target
4. McDonald’s McDonald’s
5. Coca-Cola Gerber
6. FedEx Quaker
7. Walt Disney Google
8. Volkswagen Nike
9. Twitter Dunkin’ Donuts
10. BMW Planters

 

What’s your favorite logo?

Group Activities and Discussion Questions:

  1. Discuss the important role of branding and logos in marketing.
  2. Ask each student to write down the company name of their favorite logo (don’t tell them why yet).
  3. Then, have students go to the white board and try to draw that logo. What are the results compared to the actual logos?
  4. Next, show the Ad Age logo list to students. What are their opinions about the logos?
  5. Finally, for a product of their choice, have teams of students design a new logo for a product.

Source:  Advertising Age. (2017, Nov. 1). You like your logo, but do your consumers?; Schonbrun, Z. (2017, Nov. 13). Logo recall is not what you think. New York Times.

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Pizza Baby Registry

After the wedding, come the babies, right? Perhaps not always that way, but this is certainly the case for Domino’s Pizza. Nine months ago (!) the company started a wedding registry for guests who want to give the happy couple pizza parties and party food. Now that the wedding festivities are over, Domino’s still wants to remain involved in the new couple’s life by offering an online baby registry through Gugu Guru.

The new parents-in-waiting can create their own baby gift registry for Domino’s pizza, foods, and gifts, including:

  • Hormonal and Hangry pizza
  • The Gender Reveal pizza
  • Pregnancy food pack
  • ‘Dadchelor’ Party food
  • Baby goods such as onesies, mugs, tumblers, shirts (Pizza for Two), and more…

And for a limited time, Domino’s also has a big contest give-away for new parents to win pizza for a year, plus a line of baby and parent gifts.

What were you expecting?

Group Activities and Discussion Questions:

  1. Discuss pizza delivery in general.
  2. In which stage of the product life cycle is pizza delivery?
  3. Show the Domino’s baby registry: http://www.dominosbabyregistry.com/
  4. A brief video can be viewed at: https://youtu.be/N6eeNUQvPqc
  5. Next, divide students into teams.
  6. Have each team select a product or service that is in the mature stage of the product life cycle. What can be done to extend the life cycle and increase sales?

Source:  Domino’s Pizza (2017, Nov. 29)

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