The decision that changed Kellogg's forever (+ 9 tangible tactics)
In the 1920’s, Post was the category leader in the ready-to-eat cereal game.
In the 1930’s, Kellogg’s was moving in and created competition in the market.
At the time, breakfast cereal was still a relatively new concept.
People didn’t really understand ‘ready-made’ cereal.
At the time people were eating oatmeal, cream of wheat, and sometimes even salted meat and pickles for breakfast - which was wreaking havoc on their digestive systems.
So, when the Great Depression hit, no one had the playbook for how to continue growing consumer demand when community confidence (and resources) were drying up
Post did what most do when presented with uncertainty - they ruthlessly cut expenses, and pulled back on marketing.
But, you can’t cost cut your way to success.
These measures may help you survive, but they won’t help you thrive.
On the other side, Kelloggs doubled it’s marketing spend, diversified it’s media channels, and aggressively pushed it’s new offering - Rice Krispies.
Within a few years, even as the rest of the economy was hurting, Kellogg’s profits had risen almost 30 percent and it had become what it remains today…
The market leader.
Here’s the even bigger point to drive home.
Because of that single proactive decision back in the 1930’s - and the increased market position, it has lead to, not millions, but billions, of increased sales over the past 90 years.
This is the experience of compound growth (I spoke about it in this article here)
Fast forward to today, and Kelloggs have some of the most iconic cereals and breakfast foods - many of which have fond memories in our yesteryears.
Coco Pops
Rice Krispies
Frosted Flakes
Fruit Loops
Special K
All Bran
Mini Wheats
Eggos
Pop Tarts
Post has one brand I can recognise;
Raisin Bran.
Now I’m not saying that any of these are great products, or that I’m a cereal expert.
Quite the opposite really
Most of them are actually devoid of any real nutritional value,
… but for the context of this story, and my personal view points aside - let’s admit Kellogg’s created an absolute machine when it came to marketing, and generating profits in difficult times.
Can you imagine if you had a product or service that actually HELPED people and improved their life, coupled with marginally better marketing?
The growth potential would be truly phenomenal.
We need to step back and understand that we are on a long term journey with our businesses, and we need to adjust our view as such.
In our lifetimes there will likely be multiple peaks and valleys - we must always be vigilant in preparing for ‘the unexpected’
Now, I’m not advising for a second that you should overcommit on marketing and advertising - in fact - I highly recommend you read the article I’ve linked here to see a more sensible approach.
Invest based on a clear understanding of the profitability of each client, and the levers you must pull to inch those profits higher.
I have nine points listed below about how you can make strides with very little spend (if any).
How you choose to react to whatever happens 'next' will have an impact on your business in the coming months, years, and decades to come.
When you reduce your efforts - you lose ‘share of mind’ which costs you current, and future sales.
Increasing your ‘share of voice’ keeps you firmly nestled in the pocket of your consumers mind that they’ve reserved for your category of business.
Don’t give up that space now, because when the time comes for them to use that product or service, they typically go for the convenient, first to mind option that they trust
People don’t compare options nearly as much as we expect them to.
Here’s nine ways to do this;
Make your existing clients feel important, valued, and supported. Proactively reach out to all of them with a supportive plan, and keep the lines of communication open, and remove the taboo around finances. Create regular touchpoints and make note of the changes in their situations. Their opinion of you matters more than ever.
Write out all of your opportunities (pen and paper, it makes a difference). Start with former clients that may need help, prospects in the pipeline, strategic partners, cold leads, personal and professional networks (I’ll be providing a worksheet for this in one of my next articles)
See where you can help others, even if it’s in the form of free advice for now, get them into your ecosystem, and remarket to them with valuable content.
Use this information to finetune your customer profiles based on where they’re at right now – you can create marketing material from this. If they’re thinking it, so is the rest of your market.
Get FOCUSSED on Providing Solutions - not Selling Products & Services. What does your Market really NEED at this time - invest in new ways to reach them. Do NOT make lazy decisions around this.
Develop Offers that cater to both sides of the market. Create lower ticket items to get people across the line. It’s easier to make a single sale customer into a long term client, than it is to make a lead or an enquiry into a single sale.
Curate your presence online, be consistent. 3-4 x per week on the major platforms, a 1 x per week on your blog, and email marketing channels – use this time to educate and give valuable information.
Be part of their solution – this will pass eventually, but people won’t forget who helped them in a time of need.
Do NOT fear monger, play into hyper-negative narratives, nor overuse the talk about the pandemic itself. People are already starting to delete those emails, and scroll past those posts. Go deeper, acknowledge the problems associated with it, but start future pacing solutions as the market begins to shift to thinking about how to thrive on the other side.
Lastly, a piece of advice that has served me extremely well.
Control your Inputs as these MAJORLY affect your Outputs.
If all you’re digesting is social media comment threads, conspiracy theories, and debates about ‘not having enough’ - you are not allowing space in your mind to be focused, creative, or solution orientated.
Any marketing you do externally, will mirror your conversations internally, whether you’re conscious of it or not.
Social distancing is an absolute gift in separating yourself and disengaging from negative sources and people that you may have previously not had control over having them in your environment.
Stay connected to optimists and opportunists.
As many humanists have been quoted as saying - look at this as the great Correction - this is a time for us to go inside - physically, mentally, and emotionally - to embrace connection and community in a different way.
There is advantage in every piece of adversity, for those that seek it, and actively step towards it.
Hope this helps
Zac