Advertising during the recession – The Kellogg’s way.

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When talk began of the recession we were loathe to mention it on this blog bar a few posts trying to encourage everyone to continue marketing during it. We felt that blogging about it was just ‘feeding the panic’ and would help no one! However, we’re missing out on a few lessons from history if we don’t at least do a few posts.

We have another short blog tomorrow about advertising stategies during previous reccessions but for now you can read a little more at:

We’re interested in finding out how companies can shine during slower times and how it is possible to position your business to take advantage of everyone elses caution at this time. We want to demonstrate:

  • Who cut back the budget and lost?
  • Who had a ‘no expense spared’ attitude and won?

Kellogg’s and Post

Kellogg’s and Post we neck and neck prior to the ‘great recession’ of the 1930’s. At the onset of the recession they chose opposite marketing strategies with opposite results.

cerealsPost Cereals was founded by C.W Post in 1895.  Post was an American breakfast cereal and food manufacturer whose first product was ‘Grape Nuts’ which is still available today.

Kellogg’s Cereals was founded in 1906 by W.K.Kellogg. The company began by selling their Toasted Corn Flakes which we all know and love or not, we’ve all tried.

To market or not

In the 1920’s, Kellogg’s and Post were at the forefront of the breakfast cereal market. When the Depression arrived on everyone’s doorsteps in the 1930’s, Kellogg’s wisely decided to continue advertising while Post cut their advertising budget. When the better times came along Kellogg’s came out shining and are still one of the major ceral companies in the world today. According to their website:

Kellogg Company (NYSE:K) is the world’s leading producer of cereal and a leading producer of convenience foods…

What we can learn

So, the moral of this story is that (scary as it may seem to continue advertising during bad economic times) it really does put you in a great position later! Consumers will be aware of your brand and it will seem to be stable brand due to the fact that they have appeared to have the budget to market throughout the quieter periods.

If you stand still you could end up losing out to a competitor who has the foresight to fight through these tough times and keep the brand awareness alive. If you fail to plan you plan to fail. 🙂

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