Staff Reporters
Jan 21, 2011

Kellogg unveils plan to boost global marketing

GLOBAL - Kellogg is shaking up its marketing processes as it investigates more consistent ways of working among its 400-strong global marketing force.

Kellogg moves to reevaluate its global marketing arrangements.
Kellogg moves to reevaluate its global marketing arrangements.

Following a worldwide procurement pitch in which 10 providers participated, the cereal company has appointed specialist Brand Learning to lead a marketing capability project aimed at embedding common working processes across Kellogg's territories.

The various teams operate under a largely decentralised model. It is hoped the initiative will give the marketing discipline a more strategic role in driving business growth.

Initially, Brand Learning will develop and lead 'masterclasses' for Kellogg's portfolio directors, 100 senior marketers who are each responsible for a group of brands. The plan will subsequently be expanded to the entire marketing force.

Mark Baynes, chief marketing officer at Kellogg, said he expected the project to enhance its marketing capabilities and commercial performance.

He said, "We (are aiming) to create a team inspired, equipped and enabled to drive stronger returns in this increasingly complex consumer landscape."

Harriet de Swiet, the Brand Learning group account director who runs the Kellogg account, said, "The speed of marketing has changed so much that, if you are going to work with global brands, you need people who are all on the same agenda."

In November, Kellogg posted third-quarter net earnings of US$338 million, a 6 per cent fall on the same quarter a year ago. Net sales declined 4 per cent to US$3.2 billion. The company blamed the performance on increased competition in its core cereal category.

Total reported operating profit in the quarter decreased 5 per cent to US$541 million, driven primarily by lower net sales and increased advertising investment.

At the time, David Mackay, Kellogg Company's chief executive, admitted the figures were "disappointing" and pledged to roll out "strong commercial plans and higher levels of innovation" in 2011.

Kellogg is not the first global brand to re-examine its international marketing practices.

Ford has developed a similar transformation plan, 'One Ford', which aims to engender a more consistent approach to its marketing.

This will result in cross-regional campaigns. Ford has denied this will result in a compromise on the quality of its local marketing output.

This article was first published on marketingmagazine.co.uk.

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