Advertising & Practical Thinking

The advertising profession is cold and cruel. The power of practical thinking is a perfect antidote.

Saturday, November 11, 2006

Megabrands and Minibrands.

Two giant companies are attacking the marketplace with two diametrically opposite strategies.

The Kellogg Company is creating a megabrand with Special K (
www.adage.com, November7) its cereal brand. Chocolate snacks (Special K Chocolatey Delight,) water (K20 Protein Water), snack bars, snack bites, and even watches that calculate calories burned (currently sold in the UK) are adorning the scarlet letter K.

Catering to different “need states,” Special K hopes to become the dominant global “diet” brand.

In the meantime, PepsiCo (
www.adage.com, November 9) is launching Fuelosophy, a high-energy protein drink line.

However, Pepsi does not want to be associated with this new brand, nor does it want it to be available at every retail outlet. Fuelosophy, a minibrand, will be available only at one chain, the “darling” retailer brand of a segment of consumers – Whole Foods.

Earlier this year, PepsiCo introduced the Sun Snacks organic line of sunflower-oil chips and cheese puffs, exclusively at Whole Foods.

Pepsi believes this is a unique test marketing strategy and will allow it to determine brand acceptance (success or failure) at a very low cost.

A tale of two companies. It is the megabrands of times, the minibrands of times.


Two very practical strategies.

1 Comments:

Anonymous Anonymous said...

Interesting angle!

6:29 AM  

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