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Posted by: David Kiley on November 07, 2006
Kellogg has enjoyed nice success expanding the Special K brand. Among other things, its become almost a default product to buy for baby boomers when they get a bad cholesterol report from the doctor.
But as the food company readies a rollout of breakfast bars (good idea), and protein water (call the brand police), I think Kellogg will run up against what every ambitious consumer marketer eventually faces: a case of brand extension greed.
I’ve seen this movie before. Starbuck’s Jo magazine and CD burning stations, the $90,000 Volkswagen Phaeton, Everlast cologne, Coke Blak, Dell consumer electronics.
I can’t know that Special K water will flop. I haven’t even seen the advertising yet. And there have been some brand extensions, whose failure I would have bet the mortgage would fail, that have succeeded. Did anyone predict the success of Dannon bottled water?
But there is a mystique around vitamin and fortified water. And the big red Special K logo doesn’t quite cut it in my boomer circles. Now, if Kellogg undercuts the price of the hipper more happenin brands and products in this segment, they might just get somewhere. I can only imagine the mark-up on “vitamin” or “protein” water.
Good luck Kellogg’s. I think you’ll need it.
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