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Cereal giant Kellogg is hoping to put a tumultuous year behind it,

with a dual push on prices and products that seems to be stirring

viewers’ interest.

Four 20-second executions by J Walter Thompson have been drawing

attention to the price cuts on popular cereals such as Frosties, Rice

Krispies and Optima. Busy mums are shown in the supermarket trying to

stop their youngsters filling their basket with treats they can’t

afford.

’Juggling the family shop isn’t easy, especially when you want them to

have their favourite. Now with Kellogg’s help you can,’ says the

voiceover.

The campaign, at number four in this week’s Adwatch, was followed in

late February by the launch of Chocolate Rice Krispies Squares, a coated

version of the marshmallow cereal bar introduced in 1997. A zany

30-second spot, by Leo Burnett, shows a man jiving around in his

underpants before being doused by a load of brown gunk.

’The price cuts campaign needed a look and a common theme, in a

situation everyone can relate to,’ says Sam Southey, JWT account

director. ’By using moving products and incorporating the brand equities

of the Kellogg’s characters we are reminding mum Kellogg’s is helping

her get the best for less.’

The Michigan-based manufacturer needs some good news after a year that

included boardroom bloodletting, a profits warning and controversy over

its ads. The UK breakfast cereal market grew by only 4.4% between 1996

and 1998, while retailers own brands’ surged 9% to take a one-third

share, according to Taylor Nelson Sofres Superpanel.

Kellogg’s top two executives left after nearly two decades, and

Jean-Louis Gourbin, formerly president of Kellogg Asia-Pacific, has been

brought in to rescue the European operation. A job cull is expected in

North America as part of an attempt to slash overheads and reverse the

15% decline in profits forecast for the year.

As a pioneer of breakfast cereals Kellogg still dominates the category,

holding its own against Nestle, Quaker, Weetabix and retailers’ own

brands.

It has dealt with the own-label challenge by maintaining a high price

differential.

But that only worked as long as the market continued to grow; recently

consumers have been deserting sugary processed foods in favour of

healthier alternatives. The price policy has seemed misguided, and

critics say the company has been slow to respond to changing

conditions.

Cuts now, however belated, bring it more in line with its rivals: a spot

check by Marketing showed the selected brands to be around 10% more than

Safeway equivalents, down from 30% previously.

The nutrition issue is proving harder to confront. A ’Serving the

nation’s health’ campaign launched a year ago to talk up the

weight-control benefits of cereals was attacked for exploiting

insecurities over anorexia.

However, the company says its research shows that the health pitch wins

sales, and it intends to follow up its price promotion with ads later

this year that educate parents about the nutritional value of breakfast

cereals.

Kellogg has also stepped up relationship marketing activity. Since 1996

it has been building its customer database through roadshows, web

marketing and prize draw incentives, and recently delivered a direct

mail shot to 1.5 million customers.