Marketing in a recession: more focus on brand advertising and product enhancements

Here is another example to add to Jim’s blog entries this week about the value of increasing marketing spend during a recession: according to Flexnews, Kellogg’s reported that it is increasing its spending on advertising this year as a means of re-investment in its brands. Its spending in 2009 was already a massive 9% of its $12.6 billion in global net sales revenue, compared to an estimate of only 5% for its nearest competitor, and the company also reports that, with ‘deflation’ in media (ie reduced costs for using the media) then the value that they can get from that spending is enhanced. Chief Operating Officer John Bryant also said that, having tripled their spending on advertising in social media such as Facebook, they will continue to focus on this area. In order to convince customers of the added value from Kelloggs’ products there is also strong emphasis on renovating their portfolio of products to reflect the importance of nutrition and health. The company is working to reduce trans fatty acids, salt and sugar in foods and also identified the need to add fibre in its breakfast cereals, with studies showing that 9 out of 10 children in the US do not eat enough fibre in their diets.