VS.
In June of 2005 Advertising Age showed that Cheerios sales completely dominated the sales of poor Tony the Tiger!
It seems that the reign of “Tiger Power” was pretty much over by the time these statistics were posted. In the end Tiger Power made a small $3.4 million, compared to Cheerios $550 million. That is such a huge huge huge difference that I can’t even get over it. It seems that Cheerios is a sort of staple in the household that can’t be replaced and can’t be changed.
Kellogg’s plan to keep trying to compete with General Mills seems to be one of adding more marketing. But what I think seems to be the problem is that Cheerios is a legend, and frankly I think that Tony goes with Frosted Flakes and that’s where he belongs. If people associated him with too many things then people will start to get confused.
A disappointed Kellogg’s retail exec stated that, "I don't think they've made a case for people to switch from Cheerios," he said. "I'd call it Tiger Pooper." That seems like an extremely bold and disappointed statement to be coming from the producing company! I’m somewhat in shock that they were not more diplomatic in their approach to discussing it.
Below is the chart sales and it is just unbelievable to see the difference. Tiger Power did not even have enough sales to cover their advertising initiative of $7.1 million.
GENERAL MILLS SALES
Cheerios $290 million
Honey Nut Cheerios $246 million
KELLOGG SALES
Tiger Power $3.4 million
This article is important in my argument because it shows that different companies can’t really reinvent each other’s products. General Mills tried the same sort of thing with Fruity Cheerios, and although their success was much bigger than tiger powers, it still could not touch the Fruit Loop giant at Kellogg’s. Companies need to stick to what they make best and not try and confuse their consumers by trying to outdo each other. I think this is the perfect example of this sort of behavior and it seems almost silly to me.
It seems that the reign of “Tiger Power” was pretty much over by the time these statistics were posted. In the end Tiger Power made a small $3.4 million, compared to Cheerios $550 million. That is such a huge huge huge difference that I can’t even get over it. It seems that Cheerios is a sort of staple in the household that can’t be replaced and can’t be changed.
Kellogg’s plan to keep trying to compete with General Mills seems to be one of adding more marketing. But what I think seems to be the problem is that Cheerios is a legend, and frankly I think that Tony goes with Frosted Flakes and that’s where he belongs. If people associated him with too many things then people will start to get confused.
A disappointed Kellogg’s retail exec stated that, "I don't think they've made a case for people to switch from Cheerios," he said. "I'd call it Tiger Pooper." That seems like an extremely bold and disappointed statement to be coming from the producing company! I’m somewhat in shock that they were not more diplomatic in their approach to discussing it.
Below is the chart sales and it is just unbelievable to see the difference. Tiger Power did not even have enough sales to cover their advertising initiative of $7.1 million.
GENERAL MILLS SALES
Cheerios $290 million
Honey Nut Cheerios $246 million
KELLOGG SALES
Tiger Power $3.4 million
This article is important in my argument because it shows that different companies can’t really reinvent each other’s products. General Mills tried the same sort of thing with Fruity Cheerios, and although their success was much bigger than tiger powers, it still could not touch the Fruit Loop giant at Kellogg’s. Companies need to stick to what they make best and not try and confuse their consumers by trying to outdo each other. I think this is the perfect example of this sort of behavior and it seems almost silly to me.
That is an interesting blog. I say it is interesting because personally I prefer Frosted Flakes over Cheerios. I guess I am one of the small contributors to that tiny, itty, bitty 3.4 million dollar revenue. This is somewhat surprising to me because I know that both companies have a great number of consumers, I just did not realize it was such a big difference. I know that one of the major cereal companies is pulling Michael Phelps’ picture from all of their boxes because of his recent drug scandal. I believe it is Kellogg’s but I am not entirely sure. Anyway, they are giving all of the boxes with his picture on it to those in need. This sounds like a good deed but when I got to thinking about it, it kind of sounds like they think a drug user on a cereal box is ok for those who have no choice but not for those who do. This might be an aspect you can use for a paper or a blog project. Just thought I would give the idea.
ReplyDeleteThis isn't surprising at all! Cheerios is no doubt at household fav, but it also has the health factor. Cheerios are a long time "healthy" option for people of all ages, and when I think tony the tiger, I think sugar. Kellog's shoud have used some better marketing strategies before bringing this "copy" to the market. I feel bad for Kellog's but in this healthy day in age, i don't think they stand a chance, and that is very evident by their sales.
ReplyDeleteAlso, I have never seen or heard an advertisement for the new Kellog's brand cheerios. LIke the editor said, if i had a reason to switch, I probably would. But, on other hand, i really see no hope for the company because cheerios will always be an American tradition for people of all ages!
Considering General Mills, at least lately, have been aiming their Cheerios advertisements at adults who aspire to be healthier. Frosted Flakes, on the other hand, are more aimed towards kids, and attempting to make it sound like kids will become stronger, faster, or whatever if they eat that cereal- even though Frosted Flakes is loaded with heaps of health depleting sugar. At least Cheerios can be purchased plain, without the extra sugar content. That is probably a huge reason why Cheerios are purchased more than Frosted Flakes. After all, the parents do most of the grocery shopping, right? If Kellog wanted to step it up to par with General Mills and their top-notch Cheerios, then they may have to try and reach out to adults more with their advertising. Maybe they should try to make some “Frosted Flakes that will lower your cholesterol!” At least with that they could try to match up with General Mills.
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