This case is all about the Nutria – Grain. It made by Kellogg Company which is a brand of breakfast cereal and breakfast. Kellogg company is one of world leading producer of breakfast cereals and convenience food. Its aim is to maintain its position which it earn. In 2007, it was Britain’s biggest selling grocery brand, with sales figure more than $550 million. It’s brand are basically Rice krispies, special K and Nutri – Grain which are recognized by household names around the world. Its brand has its own characteristic which is snap, crack and pop. Kellogg also involve in Corporate Social Responsibility. It divide its overall market in SIX segment which are ‘Taste Start’, ‘Simple Wholesome’, ‘Shape management’, ’Inner health’, ‘Kid preferred’ and ‘’ Mum Approved’. Each brand of this product hold its own competitive market.
When Kellogg recognized that there was a problem with Nutri – Grain brand and it immediately used business tools to find out the problem and solution. Its overall ain was to re-launch the brand and return its growth in its market which it acquired in previous.
Product life cycle this product life cycle show how sales of the product change over time. The above picture show the five stage of product life cycle of Nutri – Grain that are LAUNCH, GROWTH, MATURITY, SATURATION and DECLINE. 1) LAUNCH: - Nutri – Grain was lunch in 1997 which become successful and gain 50% of market share of cereal bar in 2 years. 2) GROWTH: - Nutri – Grain was promoted and well known every where. To maintain the growth it introduce product with new development of flavor and format in 2002. The market position of Nutri – grain also subtly changed from ‘missed breakfast’ product to an ‘all-day’ health snack. 3) MATURITY: - this is third stage where the product is maturity and it known by every where so the changes of arrival of compitator of same product is higher. This is the same happen in case of Nutri – Grain but it didn’t develop product of Nutri- Grain but in other brand. Its competitor was All bran bars and Alpen Bars which chipped aways Nutri – Grain’s market position. 4) Saturation: - this is fourth stage when the product become decline because of different competitor and compitation. If we unable to develop our product then product become decline this can happen in same case of Nutri – Grain. It found that its sales decline whist the market continued to grow at rate of 15%. 5) Decline: - this is the stage when Kellogg take decision because its product start decline and losing market position.

Strategy use of the product life cycle

Identify problem and Finding solution
To identify the problem Kellogg hire different researcher specialist to identify what was the problem, that why the sales of Kellogg decline. It was problem with market or the product or both? Later it found that customer tastes had also changed and people missed breakfast and because of this there is increase need of snack product. Then Kellogg had two strategy one is either product diversification or product development. But diversification required huge amount of money so they focus on changing the product to meet the market need.
There are several issues are: - 1) Brand message wasn’t strong enough. 2) Other product for eg. Minis had taken focus away from the core business. 3) Sales taken place by promotional pricing not strength of the brand. 4) Core product of Nutria – Grain Soft Bake and Elevenses between them represented over 80% of sales but received a small proportion of advertising and promotion budget.

After recognized the problem it can develop the solution of re-brand and re-launch the product in 2005. 1) It looked at the core features of new brand image of nutria – grain, which is unique in nature and it is only product of this kind that is baked. 2) Researcher found that, market was a group termed ‘Realistic group’. 3) Decide to re-focus investment on the core product. 4) New packaging. 5) Improved pricing structured for stores and supermarket was development.
Re-launch focused on the four parts of marketing mix: Product, Price, Place and promotion
As a result the Soft Bake Bar sales growth, with increment of 50% sales. The Nutri – Grain brand achieved a retail sales growth rate of almost three time that of the market and most important, growth was maintained after the initial re-launch.