Not many products have changed as little in the past 50 years as Rice Krispies. Even the 'Snap, crackle and pop' strapline has been around since 1932.
'If it ain't broke, don't fix it' might be the philosophy of brand owner Kellogg. However, in the 12 months to October 2010, the brand's value dropped 5.6%. In fairness, the sales of some other top-10 brands also tailed off, but none more so than Rice Krispies (see graph).
By contrast, Quaker Oatso Simple posted a sales surge of 23.6%.
Rice Krispies' recent campaign, 'Wonderfully simple', featured a familiar scene - kids listening out for the cereal's snap, crackle and pop. The soundtrack, Crazy World, was written specifically for the ad, but while it is a catchy, quirky tune, it hardly evokes the groundbreaking campaigns of Rice Krispies' earlier years. Back in the 60s, even the Rolling Stones showed their love of the brand (and making money, of course) by recording a jingle for it.
It is unfair, though, to say the brand is stuck in the past. Rice Krispies has worked hard to ensure it keeps up with concerns over healthy eating, for example, reducing its salt content by 30% last year despite already being eligible to advertise to children.
Is Rice Krispies in need of a bigger makeover? Or is it simply a legacy brand that falls in and out of favour? We asked Mars Petcare marketing director Gareth Helm, who spent nine years at Nestle Cereal Partners, and Dom Robertson, managing director at RPM, an experiential agency that works with major FMCG brands.
GARETH HELM - MARKETING DIRECTOR, MARS PETCARE
Good old Snap, Crackle and Pop were once mum's trusted allies and helped give kids the good stuff they needed. But the past few years of flip-flop performance only shows how this brand hasn't grown with the times.
Yes, it has harnessed health trends by focusing on rice grains, but telling me each bowl contains a gazillion grains is hardly a strong USP. I'd sooner buy own-label at nearly half the price or opt for a healthier wholegrain cereal.
There's simply no discernible difference between Rice Krispies and own-label, and there are tastier (and more filling) cereals out there.
In comparison, Shreddies, another kids' classic, has held its own. Great pricing at a touch over 30% more expensive than own-label and a wholegrain USP brought to life in TV ads and social media through the popular 'Nanas' campaign.
REMEDY
- Get the basics right. Either reduce the price or make sure it is no more than 30% higher than own-label.
- Pull the advertising. It's cute, it's nice, but I bet it doesn't sell any boxes. Instead, return the focus to winning the battle in-store. Create a strong off-shelf plan and get those packs noticed by replicating the style of Coco Pops' character packaging.
- Find something new. If boring wheat can become heart-friendly wholegrain, then surely rice can become some-thing special too. If not, come on Mr Kellogg, add some omegas or something and get us loving the humble rice grain.
- Try something new. It's a great brand so Snap, Crackle and Pop should re-engage us online with irreverent activity that gets us involved (and not baking rice cakes).
DOM ROBERTSON, MANAGING DIRECTOR, RPM
As a firm, decades-long, family favourite, it's a shame to see Rice Krispies losing market share. Supermarket own-label cereals have saturated the market and I don't think the Rice Krispies brand has been proactive enough to address emerging challenges - such as family appeal - in order to stand out.
Nowadays, brands targeting children need to appeal to the family unit, delivering something for everyone; Cheerios does this well. Furthermore, brands such as Weetabix and Shredded Wheat have tapped into the health market by suggesting different ways to enjoy the cereal and reaped the rewards of increased sales as a result.
In an increasingly health-conscious culture, brands have also boosted sales by promoting their brand's health benefits for the buyer as well as their children. Rice Krispies is a child-centric product: it relies on pester power rather than purchase consideration. This needs to change if it is to regain market share.
REMEDY
- Increase focus on health benefits or offer promotional activity around sports, or activities for parents and kids at weekends.
- Increase appeal to adults. For example, sell the packs in-store with a cookbook or activity book on how to entertain the kids with Rice Krispies.
- Rice Krispies' dial-up versatility, such as its use in cup cake recipes, may be detrimental to its key breakfast occasion. It needs to focus on its functional benefits at breakfast time.
- But if the brand is going to have such a strong focus on versatility, it could create cross-category promotions with baking/chocolate brands, coupled with in-store promotions, to really give the message more weight.