FROSTED FLAKES Situation Analysis

Yoji Suzuki

Table of Contents

Situation Analysis 1.1. Executive Summary……………………………………………………………………3 ​ ​ 1.2. Introduction…………………………………………………………………………… 3 ​ ​ 1.3. Company/Brand History……………………………………………………………… 3 ​ ​ 1.4. Product Evaluation……………………………………………………………………. 5 ​ ​ 1.4.1. Background 1.4.2. Product Features 1.4.3. Product Advantages 1.4.4. Product Disadvantages 1.4.5. Product Promotion 1.4.6 Product Evaluation Conclusion 1.5. Consumer Evaluation………………………………………………………………….7 ​ ​ 1.5.1. Product Buyers 1.5.2. Product Non-buyers 1.5.3. Where to buy Frosted Flakes 1.5.4. Health-Conscious Consumers 1.5.5. Product Usage 1.5.6. Conclusion 1.6. Competitive Evaluation………………………………………………………………..11 ​ ​ 1.6.1. Competition Overview 1.6.2. Direct Competition: Cheerios 1.6.3. Competition Weaknesses 1.6.4. Competition Strengths 1.6.5. Competitive Analysis Conclusion 1.7. Communication Environment Evaluation…………………………………………….15 ​ ​ 1.7.1. Market Trends 1.7.2. On the Decline 1.7.3. New Cultural Trends 1.7.4. Frosted Flakes Shakes 1.7.5. Social Media 1.7.6. Fitness Focus 1.7.7. Social Media Complications 1.7.8. Conclusion 1.8. S.W.O.T……………………………………………………………………………….18 ​ ​ 1.8.1. Strengths 1.8.2. Weaknesses 1.8.3. Opportunities 1.8.4. Threats 1.8.5. S.W.O.T Conclusion

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1.1 Executive Summary

Throughout the first half of the Spring 2018 semester, Team One - Eye of the Tiger explored secondary research regarding the history and current status of Kellogg’s Frosted Flakes. After delving into various case studies, the company website, and market research, the team determined the product’s history, main competition, and market environment.

Upon research, the team discovered the 66-year-old brand’s iconic Tony the Tiger mascot has led to its success in advertising. Looking at sales, it is clear that the main competition is General Mills’ Cheerios. Since the brand is lacking in social media, it was determined there is a large opportunity for this in marketing. The sugary-sweet taste of Frosted Flakes remains one of its main features, which could contribute to consumers’ attitudes regarding the health of the brand. After investigation, the team has constructed three research questions that will guide the primary research in Phase II of the situation analysis.

1.2 Introduction

This Phase I Analysis focuses on Kellogg’s Frosted Flakes. Using research of secondary data by Team Eye of the Tiger, a situation analysis and market research study focused on college students were conducted to explore the various features behind Frosted Flakes’ marketing. This analysis includes company and brand history, product evaluation, consumer evaluation, communication environment evaluation, a S.W.O.T. analysis, and research questions the team devised to frame Phase II of the research.

The goal throughout Phase I is to research the extensive background of Frosted Flakes, understand the product and consumer market, explore the communication environment, and familiarize the team with the overall brand. By the end of this analysis, the team can develop research questions to lead into Phase II: primary research of Frosted Flakes communication campaigns to the college market. This analysis allows the team to understand where to begin the research journey.

1.3 Company & Brand History

Kellogg’s Corn Flakes recipe was born in 1894, after a failed attempt, led by W.K. Kellogg, to make granola. After he accidentally flaked wheat berry, he continued to experiment until the first recipe for Kellogg’s Corn Flakes was created (Kellogg’s History). W.K. teamed up with his ​ ​ brother, and they introduced their newly discovered Corn Flakes to the public in 1898. Eight

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years later, Battle Creek Toasted Corn Flake Company was founded. The first year bore success for the new company, where they turned out over 100,000 pounds of flakes. A 10 oz box cost 15 cents. For every 60 cents worth of flake production, Toasted Corn Flake Company made $12 in profit. (Kellogg’s History). ​ ​ ​

Toasted Corn Flake Company increased their advertising budget, resulting in growth for the company . In 1905, they were producing $150,000 in sales, which increased substantially with the help of the successful Winkers campaign. Despite the company’s success, a rift formed ​ ​ between the two Kellogg brothers, causing a court case that lost the trademark “Kellogg Toasted Corn Flake Company.” The company was renamed “Kellogg Company,” which is more inclusive, since Kellogg was now home to “Krumbles” and “Bran Flakes” (Our History is Yours). Kellogg’s expansion into Canada and Australia helped increase sales, post WWI. Between the late 1920s and ‘30s, the company’s sales jumped from $4.3 million to $5.7 million a year.

Success continued under company President Watson H. Vanderploeg who served until 1957. Due to the continued focus on advertising and modernization plans, new plants were created throughout the U.S. and globally, increasing net fixed assets from $6.6 to $20.6 million. Kellogg’s sat as the world’s largest cold cereal manufacturer, and produced 35 percent of the world’s cold cereal (Kellogg’s History).

Throughout the 1950’s, some of Kellogg’s most notable types of cereal were born. Among them were Corn Pops, Cocoa Krispies, Frosted Flakes, and Special K, which was the first ever high protein cereal offered to customers from any brand. The creation of Frosted Flakes also saw the creation of Tony the Tiger (Kellogg History, 2016). Over the next 30 years, Kellogg’s introduced a more nutritional advertising technique, which they still use today, and also a new emphasis to “on-the-go foods.” Their shift in focus to on-the-go foods bore success, as Pop-Tarts became the company’s top selling product (Markel, 2017).

The company continued its growth by purchasing Keeblers Food Company in 2001, which helped diversify their brand. “Snack foods” now makes up 32 percent of Kellogg’s products (Kellogg History, 2016). While Kellogg saw a net income increase of 13 percent up to $694 million in 2016, the company saw a revenue drop of 4 percent, down to $13 billion. Moving forward, one of Kellogg’s main focuses is shifting away from their “old reliable cereal lines.” This is because they are not producing needed sales due to a health conscious consumer base. Kellogg’s is looking to expand and reposition their brands moving forward (Kellogg Company at a Glance, 2016).

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1.4 Product Evaluation

1.4.1 Background Kellogg’s introduced their company’s first sugary cereal to the world in 1952, with Frosted Flakes. Along with their product addition, the company welcomed the brand’s iconic mascot, Tony the Tiger, to the game. For 66 years, Tony’s orange face has smiled at consumers on the brand’s blue box. The cereal’s original name was Kellogg’s Sugar Frosted Flakes. In 1983, as America was becoming more health-conscious, the company dropped “sugar” from the label, and left consumers with what they know today: Frosted Flakes (Kellogg, 2016). The well-known voice of Tony the Tiger, Thurl Ravenscroft, was heard by audiences for more than 50 years as it proudly stated the brand’s slogan, “They’re gr-r-reat!” This catchphrase can still be heard today within the brand’s commercials. (IMDB, 2018)

1.4.2 Product Features Beginning with one original flavor, Frosted Flakes has expanded over its 66 years in production; now with four flavors, the product offers a variety of options to its consumers, ultimately expanding its audience range. These flavors are original Frosted Flakes, Cinnamon Frosted Flakes, Chocolate Frosted Flakes, and Frosted Flakes with Marshmallows. All four of these break-out brands feature Tony the Tiger on their boxes, continuing with the famous icon brand recognition. (Kellogg’s Products, 2016)

While focusing on the original flavor, Kellogg’s Frosted Flakes, the cereal offers consumers a sugary breakfast crunch that can be enjoyed from the cardboard box, or on the go in a smaller, portable container. This portable design makes the cereal easy to enjoy in quick settings. Its ingredients leave breakfast-lovers with sweet milk in the bowl. Frosted Flakes not only stands out from its competitors because of its brand trustworthiness and notability, but also because of its sugary delight. As their company website mentions, “The corn makes it crunch. The sweet milk makes it Gr-r-reat!” (Kellogg’s Frosted Flakes cereal, 2016)

Figure 1: Portable Frosted Flakes Container

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One serving size of Frosted Flakes is ¾ of a cup. Within this serving are 110 calories, containing zero calories from fat. There are zero grams of fat in the cold cereal. Also included are 150 milligrams of sodium, and 10 grams of sugar. It contains vitamins A, C, D, B6, and B12, as well calcium and iron. (SmartLabel, 2018)

1.4.3 Product Advantages Frosted Flakes has provided its consumers with various advantages throughout its brand lifetime. One large benefit is its major player status in its industry; Frosted Flakes is one of the top four selling ready-to-eat cereal brands in the United States. (Grocery Headquarters, 2017) Factors that contribute to this position are the brand’s iconic design, brand reliability, and its nostalgia factor.

Figure 2: Sales of Leading Ready-to-eat Cereal Brands (Statista, 2017)

Frosted Flakes employs a major tool in the success of their brand: Tony the Tiger. His cartoon image appears on each box of cereal, allowing buyers to recognize the product before they can see the name.

It can be assumed that adult customers remember eating this cereal in their childhood. As customer age progresses, consumers can return back to this brand as a memorable taste from their youth. If a parent trusted the brand enough to feed it to his or her child, the child is likely to continue to trust the brand as he or she grows older. Without change or any major health

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scandals, Frosted Flakes has remained a trustworthy brand throughout its brand lifetime.

1.4.4 Product Disadvantages The increasing health-conscious market can hurt the sales of Frosted Flakes. While consumers become more aware of the sugary aspect of the product, the idea of healthier options may sway their buying habits. Kellogg’s created Frosted Flakes Reduced Sugar to combat this health issue with more health-conscious consumers.

Also, the product takes itself out of the equation for those who have a gluten allergy. Frosted Flakes contains malt, an ingredient that comes from barley. Barley may contain gluten, which removes it from the diet of gluten-free customers. (Kellogg’s Open for Breakfast, 2015)

1.4.5 Product Promotion Frosted Flakes is promoted through television and YouTube advertisements as well as social media such as Twitter and Facebook. Television advertisements center around athletic children and often include the brand’s mascot, Tony the Tiger. The advertisements target children and families. Advertisements often show athletic children playing outside or participating in a sport. Teamwork and athleticism are often the main themes of the advertisements. In the commercials, Tony the Tiger often states, “They’re gr-r-reat!”

1.4.6 Product Evaluation Conclusion The popular breakfast cereal Frosted Flakes has garnered the love of its consumers, both the young and the young at heart. Since the brand’s creation in 1952 in Battle Creek, Michigan, the product reaches consumers on an international level. Their invention of various flavors not only expanded their audience, but also showed consumers their versatility and willingness to adapt. Consumers trust this brand, for it has stayed true to its design, and has not undergone major scandals. The brand stands out among its off-brand competition, for no other imitations can rival the genuine sugary-sweet crunch that Frosted Flakes offers.

1.5 Consumer Evaluation 1.5.1 Product Buyers Frosted Flakes has been one of America’s favorite sugar-coated cereals since its arrival with Tony the Tiger in 1952. Although the purpose of the mascot tiger is to attract children, in reality, parents are the target audience. This is because they are the ones purchasing the cereal. Tony the Tiger is meant to represent energy mixed with a positive attitude. Frosted Flakes advertisements

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are centered around young, healthy, and athletic children who are with their parents. (Cellania, 2013) The sugary flake cereal created a mascot that would attract children’s attention, which would result in parents buying the cereal to keep young ones happy. Frosted Flakes Consumers: Cheerios Consumers: Social Media Usage in Last 7 Days Social Media Usage in Last 7 Days by Full-Time College Students by Full-Time College Students

Figure 3 (Simmons Social Media, 2015) Figure 4 (Simmons Social Media, 2015) ​

Upon research the lifestyles of Frosted Flakes’ college student buyers, Simmons described the demographic’s social media usage statistics. Over half of Frosted Flakes’ college-aged consumers visited social media three at least three times a day for the past seven days. This is slightly less than their competitor’s numbers for the same category. This fact demonstrates the importance of social media to the products’ consumers. Promotion on social media serves as a wonderful opportunity for Frosted Flakes, considering their social media is lacking in posts.

Baby boomers were the original target demographic for Frosted Flakes, as well as the largest generation of the United States up to that point. Millennials have since surpassed them as the largest generation, and have brought many changes to the market of cold cereal. A rise in obesity has driven many consumers to focus on healthy living. Cereal is not often seen as healthy, especially when it is laden with sugar, like Frosted Flakes. Millennials are often on the move, and cite cereal’s lack of portability as a major reason why they choose not to purchase (Mintel 2018). This lack of desire to buy cold cereal is causing a decline in overall sales for the once most popular breakfast option. However, Millennials are fans of nostalgia, which is driving sales for some nostalgic foods like Frosted Flakes. (Meyer, 2017)

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1.5.2 Product Non-buyers Frosted Flakes College Student Consumption Cheerios College Student Consumption ​ by Gender in the Last 7 Days by Gender in the Last 7 Days

Figure 5 (Simmons Demographic Profile, 2015) Figure 6 (Simmons Demographic Profile, ​ ​ 2015)

Men between 18 and 24 focus largely on taste when making food purchases (Meyer, 2017). Therefore, they are not as health conscious regarding nutritional value as women of the same age, who generally place more importance on healthy eating. Upon research via Simmons, it was discovered that more female college students have eaten the competitor’s product (Cheerios) in the last seven days than have eaten Frosted Flakes. However, more male college students have consumed Frosted Flakes in the last seven days than the competitor’s product. Perhaps this trend reflects a female’s attention to dietary attributes; Frosted Flakes contains more sugar than Cheerios, resulting in the health-conscious consumers’ choice of Cheerios consumption. Purchasing and consuming Frosted Flakes can create a feeling of splurging or indulging due to the high cost and high sugar content.

1.5.3 Where to Buy Frosted Flakes According to the Frosted Flakes’ website, only the original flavor of the cold cereal is available in popular grocery stores, such as Walmart and Target (Kellogg’s Where to Buy, 2017). However, Chocolate and Cinnamon Frosted Flakes can be bought through Amazon, at prices comparable to in-store purchases. Even Frosted Flakes with Marshmallows is available through this medium, but at $11.85 for a 13.6 ounce box, its availability is limited (Frosted Flakes Kellogg’s with Marshmallows n.d.).

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Cereal Consumption, by Age: June 2017

Figure 7: Cereals Eaten in the Past Year by 18+-year-old Internet Users (Mintel, 2017)

1.5.4 Health-Conscious Consumers Even though cold cereal sales are currently at $10 billion annually in America, sales have decreased by 30 percent in the past 15 years. (Ferdman 2016) Millennials are not eating cereal as often as when they were young; however, they have reportedly enjoy the cold cereal as a snack as opposed to older adults, who eat it as a meal. Heavily sweetened cereals are not as popular as they once were. Adults, specifically 18-34 year olds, are shifting to healthy cereals, with lightly sugared cereals the most popular choice. Millenials with children are more likely to consume heavily sweetened cereals, like Frosted Flakes, because they are frequently in the kitchen with their children.The above graph shows the results of a 2017 survey conducted by Mintel on internet users 18+ concerning cereals eaten in the past year. Those who eat healthier products, ​ such as high-fiber cereal or granola, are more likely to report increased consumption of these

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cereals, while those who choose to consume more sweetened cereals are less likely to admit to increasing consumption. Consumers of sugary cereals think of these products as an indulgence or a treat (Mintel 2017). ​ ​

1.5.5 Product Usage Breakfast continues to be the most skipped meal of the day. Cold cereal, which has traditionally been considered a breakfast meal, is now being eaten throughout the day for lunch, dinner, or a snack. Consumers are continually in a hurry, with limited time to sit for breakfast every morning. This has led to a rise in popularity for convenient snacks that can be eaten on the go, such as cereal bars, resulting in a negative impact on the cold cereal industry (Darby 2016). However, consumer psychographics show that Millennials turn to sweetened cereals like Frosted Flakes when they want a snack or treat. They also receive nostalgic enjoyment while eating the cereals of their childhood (Mintel 2017). Eating Frosted Flakes as a treat allows consumers to think of it as more than just a breakfast cereal; it becomes a late-night snack or a mid-morning pick-me-up.

1.5.6 Conclusion Millennials are often blamed for the dying markets of different products in the U.S. However, they are the generation creating new ideas. Consumers between 18 and 34 are constantly on the move, seldom taking the time to sit for breakfast (Mintel 2017). This creates a new opportunity to market cereal products, like Frosted Flakes, as a quick snack to be eaten any time of day. This requires understanding the importance of utilizing social media platforms such as Facebook, Twitter, and Instagram, to reach the target audience (Meyer 2017). The rise of obesity has shifted many consumers from purchasing heavily sweetened cereals like Frosted Flakes, contributing to the negative impact in the cereal market (Peltz 2016). On the other hand, Millennials continue purchasing the sweet cereal for the nostalgia, treating Frosted Flakes as a sweet treat or snack. Millennials are not killing the cold cereal industry, rather they are contributing to the evolution of the cold cereal market (Darby 2017). If Kellogg’s is able to seize the opportunity, the potential growth could see product innovations for the Frosted Flakes cereal line.

1.6 Competitive Evaluation

1.6.1 Competition Overview Kellogg’s Frosted Flakes major competitors are General Mills’ Cheerios. Honey Nut Cheerios and Post Honey Bunches of Oats are currently the leading cold cereals on the market after private label cereals. The chart below shows the sales (in millions) of ready-to-eat cereal brands.

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Figure 8: 2017 Sales of Ready-to-Eat Cereal Brands in U.S. (Statista, 2017) ​ ​

Above, Figure 8 shows that in 2017, private label cereal sales were at $656.7 million, General ​ ​ Mills’ Honey Nut Cheerios sales were $496.6 million, Post Honey Bunches of Oats were $404.9 million, and Kellogg’s Frosted Flakes sales were $400.1 million. This data puts Frosted Flakes in roughly third place in name-brand cereals for 2017 (Statista, 2017).

1.6.2 Direct Competition: Cheerios The direct competition for Frosted Flakes is General Mills Cheerios. The most popular variety of the cereal, Honey Nut Cheerios, has an easily recognizable mascot, Buzz the Bee. With 17 flavors, Cheerios also has more variety than Frosted Flakes, ranging from plain and whole grain Cheerios, to seasonal flavors like pumpkin.

With these added flavors, Cheerios appeals to healthier consumers as well as people that love seasonal products. Cheerios also has options for customers on the move, with Cheerios breakfast bars.

Certain varieties of Cheerios are gluten-free, which appeals to a market that Frosted Flakes cannot reach. Gluten-free diets and gluten allergies are incredibly prevalent in today’s world, giving Cheerios a major advantage to cereals that contain gluten.

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Cheerios costs about $3.50 for an 9 oz box, costing less than Frosted Flakes, which appeals to cost-conscious customers.

Cheerios has a much more active Twitter and Instagram than Frosted Flakes, posting almost daily with graphics and art that feature Cheerios and appeal to millenials and college students. Frosted Flakes does not have a specific Twitter, however, Tony the Tiger does have a Twitter but has not posted since October 2017. Frosted Flakes has not posted on their Instagram since August 2017.

Full-Time College Students Comparing Honey Nut Cheerios & Frosted Flakes

Figure 9: Full-Time College Students eating Honey Nut Cheerios vs. Frosted Flakes (Simmons, 2015)

Figure 9 shows how full-time college students serve as a target audience for both Honey Nut ​ Cheerios and Frosted Flake. From this report it was found that college students eat Cheerios 31% more than the general population, and Frosted Flakes 20% more, positioning the two brands as competitors in the market. In the last seven days, 26.7% of college students said to have eaten Honey Cheerios, and only 16.1% said to have eaten Frosted Flakes.

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Figure 10: Most Eaten Brands of Cold Cereal in Last 7 Days (Statista, 2017)

Figure 10 shows that from 2014 to 2017 Cheerios is Frosted Flakes biggest competitor in terms ​ of most eaten brands of breakfast cereal. It is evidenced by this graph: both brands being in the top 4 most consumed brands, which puts Frosted Flakes in direct competition with Cheerios for a bigger market share. (Statista, 2017)

1.6.3 Competition Weaknesses A major weakness of Cheerios is that original Cheerios are not sweet. The Cheerios brand is not as a appealing to children and young adults as Frosted Flakes.. Cheerios’ and Honey Nut Cheerios’ boxes are muted in comparison to Frosted Flakes bright blue and orange design.

Figure 11 (Kellogs Frosted Flakes Cereal, n.d.) | Figure 12 (Cheerios Honey Nut Cereal, n.d.)

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The images above show the differences between the boxes of cereal. The Frosted Flakes mascot is much larger, and the bright blue box stands out.

Cheerios created controversy when they had to recall more than 1.8 million boxes of gluten-free cereal that may have contained wheat in 2015 (Wattles, 2015). This potentially damaged ​ ​ customer trust.

1.6.4 Competition Strengths Cheerios has been successful in appealing to eco-conscious, green consumers with their #BringBackTheBees campaign, which removes Buzz the Bee from cereal boxes in order to create awareness of decreasing bee populations. As part of this campaign, Cheerios includes a package of seeds in each box to encourage pollination (#BringBackTheBees, 2017).

Cheerios has a larger share of the cold cereal market than Frosted Flakes, with Honey Nut Cheerios taking 5.7 percent of the market and Cheerios taking 2.9 percent, for a combined 8.6 percent of the market.

Frosted Flakes, on the other hand, only has a 4.6 percent share of the market. Figure 8 shows the ​ ​ market share of various brands in the cold cereal market in 2017 (Statista, 2017).

1.6.5 Competitive Analysis Conclusion While Frosted Flakes shines in mascot recognition and sweet flavor that appeals to children and teenagers, the college student market is not as drawn to Cheerios. Cheerios has active social media and healthy diverse options, while Frosted Flakes has limited options and an inactive Twitter and Instagram. Frosted Flakes has not had any major controversies, such as Cheerios’ gluten-free cereal recall. In 2017, Cheerios was Frosted Flakes’ major competitor and had control of 4 percent more of the cold cereal market than Frosted Flakes.

1.7 Communication Environment Evaluation

1.7.1 Market Trends Market trends for the brand are strong, with Kellogg’s claiming 28 percent of the market share. Frosted Flakes brought in $400 million dollars in 2017, slightly behind General Mills’ Honey Nut Cheerios with $404 million (Grocery Headquarters n.d.). From 2014 to 2017, Frosted Flakes has been the third most popular cereal, with an average of 39 million people admitting to eating the cereal in the past seven days (Statista 2017).

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Nets Sales of the Kellogg Company worldwide from 2004 to 2016

Figure 13: (Statista 2017).

1.7.2 On the Decline However, the cereal market is on a downward trend, as shown above in Figure 13. Sales are declining from $9.5 billion in 2012 to $8.7 billion in 2016. Kelloggs follows this trend, with net sales of the company’s brands declining by just over $1 billion from 2013 to 2016. This is a drastic change over the previous four years, when Kellogg’s saw a net increase in sales of over $2 billion.

1.7.3 New Cultural Trends Kellogg’s is combatting this by focusing on new markets, changing the cultural trend of when Frosted Flakes is eaten. Over half of Millennials say that cereal should be more portable, with over two thirds of Millennials also expressing a need for more filling cereals (Mintel 2018). Kellogg’s targeted this market specifically, by opening a Cereal Cafe at Times Square in New York City. Aiming for college students and other Millenials who are visiting or living in New York City, Kelloggs offered customizable cereal bowls featuring popular brands like Frosted Flakes. The bowls are priced between $6.50 and $7.50, and allow customers to pick various fruits and dairy products to go with the sweet treats (Kelter 2016). By doing this, Kellogg’s is capitalizing on a cultural trend among consumers 18 to 34. Young adult consumers, such as

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college students, are more likely to eat sweetened cereals as a snack or dessert than as a breakfast item (Mintel n.d.). These consumers value taste higher than other attributes, giving Frosted Flakes an advantage over non-sweetened cereals like Cheerios.

1.7.4 Frosted Flakes Shakes In a similar twist of this cultural trend, Kellogg's has partnered with popular fast food restaurant Steak n Shake. The restaurant is known for adventurous and delicious milkshakes paired with their unique hamburgers, making the brand regionally popular east of the Mississippi River. Kellogg’s recognized the restaurant’s ability to make great milkshakes and paired this with the sweet crunch of cereal (Kelter 2017). The new milkshakes feature cereal toppings from the company, including Frosted Flakes. Sold for $3.89, the cereal milkshakes resulted in video reviews of the treat on YouTube, spreading brand awareness for the cereal (Steak n Shake 2017).

1.7.5 Social Media Kellogg’s covers many events through the use of social media. While the company’s handles do not usually become viral, their most recent coverage has proven popular. The tweet thread incorporates the brand mascot, Tony the Tiger, as a stuffed toy enjoying the 2018 Winter Olympics. Kelloggs’ Twitter account frequently uses #TeamKelloggs, #TeamUSA, and #GetsMeStarted. With these tweets, the brand is showing national support and current event awareness through their daily tweets. This social media campaign is multi-faceted, it increases brand awareness and knowledge among young adults, who are more likely to use social media. It also showcases Kellogg’s corporate social responsibility, by supporting Olympic athletes and displaying national pride.

1.7.6 Fitness Focus In another display of corporate social responsibility, Kellogg’s is unique in advertising to and partnering with professional athletes, even when their sweetened Frosted Flakes is the cereal advertised. No other company features athletes with all of their brands, including traditionally unhealthy sweetened cereals (Kellogg’s 2016). Kellogg’s capitalizes on the opportunity others miss out on to show that Frosted Flakes consumers can be healthy even if they choose to eat Frosted Flakes. This is especially effective among children, as it encourages them to play and be active. Kellogg’s is focusing on physical activity as a response to the global issue with obesity, and resulting trend toward healthier foods.

1.7.7 Social Media Complications Unfortunately, Kellogg’s falls short in other forms of social media, primarily with Instagram where the brand’s account hasn’t posted since 2017. This is a missed opportunity for Frosted

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Flakes, since Instagram would allow the brand to reach their market in a unique way, reaching college students on social media that they prefer. Even the Kellogg’s and Tony the Tiger Twitter accounts are lacking in updates, displaying a negative trend in the company’s social media presence. This opportunity can be capitalized on though, if Frosted Flakes turns its focus towards revamping its social media accounts.

1.7.8 Conclusion Despite a declining market, Frosted Flakes is a powerhouse in the world of cold cereals. Kellogg’s has cornered the market, with innovations that focus on the target market of college students. These include the creation of a new Cereal Cafe that emphasize the snackability of Frosted Flakes. However, the brand needs to revamp it’s largely inactive social media accounts in order to access college students effectively. Fortunately, Frosted Flakes’ consistent partnership with professional athletes fosters corporate social responsibility, echoing the change in cultural trends that focus more on healthy living.

1.8 S.W.O.T. Analysis

Kellogg's Company manufactures and markets Frosted Flakes, a ready to eat cereal brand. Consistent advertising, wide national presence, and public relations are the brand’s main strengths. Product recalls, health risks, and lack of social media presence are the brand’s areas of concern and weakness. In the future, Frosted Flakes may have opportunities such as transforming the brand into more than just cereal, and entering the health foods market. However, the threat of health regulations, consumer trends, and competitors, such as General Mills’ Cheerios, may affect growth and operations.

Strengths Weaknesses Consistent Brand Image No Gluten-free Alternative Wide National Presence Negative Health Perceptions Brand Equity

Opportunities Threats Healthy Foods Market Health Regulations Social Media Presence Competitors Consumer Trends

1.8.1 Strengths -Consistent Brand Image

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Frosted Flakes emphasizes consistent advertising through the use of Tony the Tiger in their advertising campaigns. Through the consistent use of Tony the Tiger, the brand has become synonymous with the mascot. This means that consumers will be able to identify the cereal brand without seeing the cereal, opening up many different ways to advertise to the audience that are not restricted to just displaying the product. Frosted Flakes has a consistent theme of health and sports in their advertising since the 1980s, solidifying their position as the ‘sport fuel’ type cereal synonymous with an active lifestyle in an effort to sever negative health connotations of sugary cereal.

The catch phrase “They’re gr-r-reat!” is now synonymous with the brand and recognizable, due to using it for 50 years.

-Wide National Presence Since it’s conception in 1952, Frosted Flakes has been advertised nationally for over 60 years. This consistent flow of national advertising has led to Frosted Flakes’ wide national presence. This has also created top of the mind awareness for a majority of consumers as Frosted Flakes has become synonymous with cereal.

-Brand Equity Tony the Tiger has been used as a vehicle for PR. An example can be drawn from the “Share your stripes” Campaign. This was Frosted Flakes’ social campaign to highlight good sportsmanship through sponsoring Little League Baseball, they produced inspirational videos and photographs.

1.8.2 Weaknesses *No Gluten-free Alternative The Kellogg’s Company does not offer a gluten-free version of their product. With growing awareness and concerns about gluten allergies in today’s society, consumers are pushing for gluten-free options of their favorite foods. Without offering this adjustment for its customers, Frosted Flakes is limiting its market potential. (Kellogg’s Open for Breakfast, 2015)

*Negative Health Perceptions As Frosted Flakes is a sugar-based cereal, health risks such as diabetes are a problem. Frosted Flakes has 15 grams of sugar per serving, whereas the national sugar serving recommended by

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the World Health Organization is 25 grams. This means that a serving of Frosted Flakes cereal is 60% of recommended daily sugar intake. (World Health Organization, 2018.)

1.8.3 Opportunities *Healthy Cereal Market Expansion in to the healthy cereal market could help Frosted Flakes be more competitive in the overarching cereal market. Competitors such as Cheerios have adopted healthy cereals, which mirror the success of the original flavor. A move in to healthy cereal may allow Frosted Flakes to gain market share in direct competition with Cheerios.

*Social Media Presence Due to Frosted Flakes’ fragmented social media, there is an opportunity for the brand to build social brand awareness.

1.8.4 Threats *Health Regulations Frosted Flakes must abide by laws and regulations set by the US Food and Drug Administration. The brand must incur significant costs to conform to these laws and regulations or face fines and penalties. The FDA may enforce new laws and regulations at any time, which may threaten operations due to the risk of fines and penalties.

*Competitors Competitors are a threat to Frosted Flakes, due to cereal typically being consumed once a day. This means that consumers do not need many different brands and competition in this area would result in the possibility that a competitor’s product in picked over Frosted Flakes. According to Figure 11, General Mills Cheerios and Honey Nut Cheerios have 4 percent more market share than Frosted Flakes. This indicates that the current market favors Cheerios. Frosted Flakes will have to innovative to increase their market share above Cheerios.

*Consumer Trends Frosted Flakes must watch for consumer trends due to the volatile nature of the consumer market. As Frosted Flakes is predominantly a sugary product, consumer trends such as health and fitness may result in a decrease of market share for Frosted Flakes.

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1.8.5 S.W.O.T. Conclusion As a result of consistent brand image and national presence, Frosted Flakes has long-standing recognition in the cold cereal market. This is offset by the brand’s weakness, primarily it’s negative perception among health-conscious consumers. Kellogg’s needs to reconcile this, in some way, in order to maintain its popularity and hold on to brand sales. Expansion in to the health cereal market is an excellent opportunity to do just that, and would also present Frosted Flakes with a new target demographic: young, active, and health-conscientious consumers. A more active social media presence would also help the brand accomplish this, but Kellogg’s must mind it’s competitors due to cereal being a breakfast food, which is typically consumed once a day.

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