INTRODUCTION

HOW IT ALL BEGAN?

It all began on February 19; 1906.That was the date that William Keith Kellogg filed the papers that officially incorporated the Battle Creek toasted corn flakes company. Now of course we know it as Kellogg’s and they have been bringing out their best to consumers around the world ever since.

The Kellogg’s philosophy-that improved health-has driven everything they do since the days of William Keith Kellogg and his Battle Creek sanatorium.The popularity of his new ‘corn flakes’ cereal, discovered almost by accident in 1876,encouraged William to set up the Kellogg company, now the most successful cereal manufacturer in the world.

FOUNDATIONS OF AN EMPIRE:

The Kellogg’s story starts way back in Battle Creek sanatorium, Michigan USA, in the 1870’s.Set up by brothers will Keith Kellogg and Dr.John Harvey Kellogg, it was founded on a deep belief that ‘you are what you eat…’ and plenty of fresh air, exercise and a strict ban on caffeine, tobacco and meat.

In 1876, in pursuit of a breakfast food that was at once wholesome and half-way pleasant to eat (a rarity in those days).Dr.John had a ‘Eureka’ moment!

While experimenting with different ways to cook and crush wheat to make it more palatable without losing its goodness, he inadvertently ran a batch of cooked wheat through the rollers that had been standing around for a day or so.

And out of the other side came…Kellogg’s corn flakes! (Or at least a prototype version.)Testing their new discovery on their patients confirmed that here indeed was the delicious, nutritious breakfast the brothers had been seeking.

When orders starting coming for the new flakes from patients, they knew they were onto a good thing and set up a separate company to manufacture their cereal under the name Sanitas.

But it wasn’t until 1898 that Kellogg’s corn flakes as we know them appeared and in 1902 will Keith made the momentous decision to leave the ‘san’ and set up full time in cereal production.

THE 50s, 60s AND 70s:

By the 1950s, Kellogg’s introduced a new range of products to cater for the differing tastes within family…but without compromising its principles of health, balance and nutrition.The most successful, frosties is still with us today.Over the subsequent decades, the company, and its products went from success to success.In 1978, forty years after the first Kellogg’s UK factory was established in Manchester manufacturing Kellogg’s Corn Flakes, Rice Krispies and All-bran, a second was opened in Wrexham; at the time, one of the most progressive and modern food production plants in the world.In the meantime, the company continued expanding its information programmes for schools, health organization, and consumers, and established a dedicated consumer affairs department that today replies to thousands of enquiries a year about the Kellogg Company’s products and practices.

INTO BUSINESS:In 1906, W.K. decided to risk a portion of his hard earned capital on his first advertising campaign, with spectacular results.One full-page advert in the ladies’ home journal boosted sales to 2,900 cases per day and by 1909 the small company in Battle Creek was producing and selling one million cases per year.

Among many innovations W.K. made that were later to be accepted wholesale by the food industry was an insistence on consistency and quality control.Not just that, he also led a relentless campaign for improvement and innovation in his products.

Drawing on previous experience as a nutritionist, he printed healthy eating advice on his packs as well as recipe ideas and product information. Seems nothing out of the ordinary now, but in its day it was revolutionary.

Going one step further in 1923, he hired a full time home economist to develop recipes and spread the word about healthy eating to consumers and schools-the start of a company tradition of providing the latest information about diet, nutrition and health that persists to this today.

By 1930, almost 60 years after his initial, accidental discovery that led to Kellogg’s corn flakes, W.K. decided to ‘put something back’ and set up the W.K. Kellogg foundation.

Dedicated to the principle of guidance and self-help, the foundation is still going strong today. In fact, it is one of the world’s largest philanthropic institutions, funding projects in health, educatin, agriculture, leadership and youth worldwide.

THE FOUNDER’S LEGACY:W.K. Kellogg’s original vision of health and nutrition for everyone continues to drive the company at the very top level.

It was among the first producers to voluntarily list the amounts of sugar in its products. And in more recent years Kellogg’s was one of the first in the food business to print guideline daily amounts(GDAs) on the front of the packs-showing clearly the percentage of the amount of the recommended intake of calories,sugar,fat,saturates and salt for each portion of product.

Today, Kellogg’s is still one of the most influential and innovative brands in the world, producing more than 40 different cereals with plants in 19 countries, marketing its products in more than 160 countries and employing 26,000 people in its worldwide organization. Company Profile:Kellogg is a publicly traded company headquartered in Battle Creek, Michigan.Kellogg products are manufactured in 18 countries and marketed in 180 countries around the world. Kellogg company operates through four business units: Kellogg north America, Europe, Latin America and Asia Pacific

With 2010 sales of more than $12 billion, Kellogg Company is the world’s leading producer of cereal and a leading producer of convenience foods, including cookies, crackers, toaster pastries, cereal bars, frozen waffles and vegetable-based meat alternatives

Kellogg company operations:

2010 net sales $12.4 billion2010 net income attributable to Kellogg company $1.2 billion2010 shareholder return -1%2010 diluted earnings per share $3.302010 cash flow $534 million2010 operating costs $10.407 billion2010 capital expenditures $474 million

2010 income taxes $502 million

Countries where its products are marketed 180

Countries where its products are manufactured 18

Manufacturing facilities 50+

2010 community investments $31.9 millionApproximate employee numbers by region:North America 17500

Latin America 4000

Europe 7000

Asia pacific 2500

Total31000

Proposition & Positioning:A healthy, nutritious, convenient & easy - to - prepare alternative to traditional breakfast eating habits. Developing a taste for grain based foods in the morning. Decided focus on premium and middle-level retailers. Because could not maintain uniform quality service to large no. of shops. But this put large sections of Indians out of reach. Refocused on Fun-&-taste Positioning. Gave away free gifts with packs of chocos.eg. Glowing stickers with Rs. 10 pack of chocos.Reduction in Price - brought down price per kg by 20%. Different Sku·s 500 gm family pack, Rs.10 pack of each variant. Worked on Better Positioning Iron Shakti. Iron Shakti importance to the level of iron and vitamin intake. Now positioned as Fun-&-Taste-&-Health·.Advertising Campaigns Jaago Jaise Bhi, lo Kellogg’s hi.Yoga instructor to kathakali dancer attributing their morning energy and fitness to Kellogg’s .Introduction of new cereals (Chocos, frosties etc.) forced to look at alternate product categories to make up for bad performance of breakfast cereals.Kellogg’s Breakfast WeekNew positioning level of iron & vitamin intake.Kellogg’s Special K Diet Women health.1995 53% market share of Rs. 150 million breakfast cereal market.2000 65% market share of Rs. 600 million market. Improved prospects - Shift in Positioning, Increased consumer promotions, enhanced media budget continued to have image of Premium brand.

PRODUCTS:All-branAll-bran barAll-bran chocolate barAll-bran golden crunchAll-bran

Bran flakesBran flakesBran flakes sultana bran

Choco pops:Choc ‘N’ rollCoco PopsCoco Pops Coco RocksCoco Pops Coco Rocks BarsCoco Pops Moon & StarsCoco Pops Snack Bar

Corn flakes:Choco CornflakesCorn Flakes

Crunchy nut:Crunchy NutCrunchy Nut Bites NutCrunchy Nut Clusters Milk Chocolate CurlsCrunchy Nut Nutty

Elevenses:Elevenses Ginger BakesElevenses Cherry Oat BakesElevenses Choc Chip BakesElevenses Golden Oat BakesElevenses Oat Cookie Chocolate ChipElevenses Oat Cookie RaisinElevenses Raisin Bake

Fibre plus:Fibre Plus Chocolate & Almond BarFibre Plus Milk Chocolate Bar

Frosties:FrostiesFrosties Cereal & Milk Bars

Fruit n Fibre:Fruit n FibreFruit WindersFruit Winders-StrawberryFruit Winders-Strawberry & AppleFruit Winders-Strawberry & Blackcurrant

Hot Oat Krumbly:Hot Oat Krumbly FruitHot Oat Krumbly Original

Krave:KraveKrave Chocolate CaramelMilk Chocolate Krave

Mini Max:Mini MaxMini Max Chocolate

Nutri-Grain:Nutri-Grain Soft Bake AppleNutri-Grain Soft Bake BlueberryNutri-Grain Soft Bake RaspberryNutri-Grain Soft Bake Strawberry

Optivita:Optivita Berry Oat Crisp Optivita Nut Oat CrispOptivita Raisin Oat Crisp

Other Brands:Country storeHoney LoopsJust RightLuxury MuesliRiciclesStart

Pop-Tarts:Pop-Tarts Chocotastic

Pop-Tarts Strawberry Sensation

Rice Krispies:Rice KrispiesRice Krispies Cereal & Milk BarsRice Krispies Multi-Grain ShapesRice Krispies SquareRice Krispies Squares Chewy MarshmallowRice Krispies Squares Chocolate & CaramelRice Krispies Squares Crazy ChocRice Krispies Squares Rocky RoadRice Krispies Squares Totally ChocolateyTotally Chocolatey Orange

Wheats:Frosted WheatsRaisin Wheats

Special K:Special K Mini Breaks Caramel FlavourSpecial KSpecial K Bar Double ChocolateSpecial K Bars-ChocolateSpecial K Bars-Peach & ApricotSpecial K Bliss Bar MintSpecial K Bliss Creamy Berry CrunchSpecial K Clusters HoneySpecial K Clusters StrawberrySpecial K Dark Chocolate Chewy BarSpecial K Fruit and NutSpecial K Milk Chocolate Chewy BarSpecial K Mini Breaks ChocolateSpecial K Mini Breaks LemonSpecial K Mini Breaks OriginalSpecial K Nut Clusters & AlmondsSpecial K Oat & HoneySpecial K Peach & ApricotSpecial K Red BerriesSpecial K Red BerrySpecial K Strawberry & ChocolateSpecial K Yoghurty

INDIAN EXPERIENCE:

In India Kellogg’s is a mighty brand. Its cereals have been consumed around the globe more than any of its rivals. Sub-brands such as Corn Flakes, Frosties and Rice Krispies are the breakfast favourites of millions. In the late 1980s, the company had reached an all-time peak, commanding a staggering 40 per cent of the US ready-to-eat market from its cereal products alone. By that time, Kellogg’s had over 20 plants in 18 countries world wide, with yearly sales reaching above US $6 billion. However, in the 1990s Kellogg’s began to struggle. Competition was getting tougher as its nearest rivals General Mills increased the pressure with its Cheerios brand. Kellogg’s management team was accused of being’ unimaginative’, and of ‘spoiling some of the world’s top brands’ in a 1997article in Fortune magazine. In core markets such as the United States and the UK, the cereal industry has been stagnant for over a decade, as there has been little room for growth. Therefore, from the beginning of the 1990s Kellogg’s looked beyond its traditional markets in Europe and the United States in search of more cereal-eating consumers. It didn’t take the company too long to decide that India was a suitable target for Kellogg’s products. After all, here was a country with over 950 million inhabitants, 250 million of whom were middle class and a completely untapped market potential. In 1994, three years after the barriers to international trade had opened in India; Kellogg’s decided to invest US $65 million into launching its number one brand, Corn Flakes. The news was greeted optimistically by Indian economic experts such as Bhagirat B Merchant, who in 1994 was the director 156 Brand failures of the Bombay Stock Exchange. ‘Even if Kellogg’s has only a two percent market share, at 18 million consumers they will have a larger market than in the US itself,’ he said at the time. However, the Indian sub-continent found the whole concept of eating breakfast cereal a new one. Indeed, the most common way to start the day in India was with a bowl of hot vegetables. While this meant that Kellogg’s had few direct competitors it also meant that the company had to promote not only its product, but also the very idea of eating breakfast cereal in the first place. The first sales figures were encouraging, and indicated that breakfast cereal consumption was on the rise. However, it soon became apparent that many people had bought Corn Flakes as a one-off, novelty purchase. Even if they liked the taste, the product was too expensive. A 500-gram box of Corn Flakes cost a third more than its nearest competitor. However, Kellogg’s remained unwilling to bow to price pressure and decided to launch other products in India, without doing any further research of the market. Over the next few years Indian cereal buyers were introduced to Kellogg’s Wheat Flakes, Frosties, Rice Flakes, Honey Crunch, All Bran, Special K and Chocos Chocolate Puffs – none of which have managed to replicate the success they have encountered in the West. Further more, the company’s attempts to ‘Indianize’ its range have been disastrous. Its Mazza-branded series of fusion cereals, with flavours such as mango, coconut and rose,

failed to make a lasting impression. Acknowledging the relative failure of these brands in India, Kellogg’s has come up with a new strategy to establish the company’s brand equity in the market. If it can’t sell cereal, it’s going to try and sell biscuits. The news of this brand extension was covered in depth in the Indian Express newspaper in 2000: The Company has been looking at alternate product categories to counter poor off take for its breakfast cereal brands in the Indian market, say sources. Meanwhile, the Kellogg main stay – breakfast cereals – has seen frenzied marketing activity from the company’s end. The idea behind the effort is to establish the Kellogg brand equity in the market.’ The company is concentrating on establishing its brand name in the market irrespective of the off take. The focus is entirely on being present Culture failures 157and visible on the retail shelves with a wide range of products,’ explains a company dealer in Mumbai. As per the trade, Kellogg India has disclosed to the dealers its intention of launching more than one new product onto the market every month for the next six months. These rapid-fire launches were supported with extensive ‘below-the-line’ activity, such as consumer offers on half of Kellogg’s cereal boxes. Although most of the biscuit ranges have so far been a success with children, due in part to their low price, Kellogg’s is still struggling in the cereal category. Although the company tried to be more sensitive to the requirements of the market, through subtle taste alterations, the high price of the cereals remains a deterrent. According to a study conducted by research firm PROMAR International, titled ‘The Sub-Continent in Transition: A strategic assessment of food, beverage, and agribusiness opportunities in India in2010,’ the price factor will restrict Kellogg’s from further market growth.’ While Kellogg’s has ushered in a shift in Indian breakfast habits and adapted its line of cereal flavours to meet the Indian palate, the price of the product still restricts consumption to urban centre’s and affluent households,’ the study reports. Kellogg’s tough ride in India has not been unique.

Culture failures 159One of the reasons why Kellogg’s and these other brands’ passage to India was not smooth was because they had been blinded by figures. The Indian population may be verging on 1 billion, but its middle class accounts for only a quarter of that figure. However, a 1996 survey conducted by the Indian National Council on Applied Economic Research in Delhi found that the sub-continent’s ‘consumer class’ numbers are around 100 million people at the most, and that buying habits and tastes vary greatly between the Indian regions. .As a result, only those companies which are in tune with India’s many cultural complexities can stand a chance. . One of the companies which has managed to get it right is Unilever. However, the conglomerate has had ahead start on those Western companies which entered the market after 1991.Indeed, Unilever’s soap and toothpaste products have been available in India since 1887, when the sub-continent was still the crown jewel of the British Empire. The secret to Unilever’s longevity in India is distribution. Hindustan Lever Limited (Unilever’s Indian arm) has products available in a staggering total of 10 million small shops throughout rural India. As for Kellogg’s, it

remains to be seen whether its move into other product categories, such as snack food, will be able to help strengthen its brand. The dilemma that it may face is that if it becomes associated with biscuits rather than cereals, core products like Corn Flakes could become a marginal part of the company’s brand identity in India.’ Kellogg’s is caught in a bind,’ one Indian brand analyst remarked in India’s Business Line newspaper. ‘It realizes that cornflakes can make money only in the long haul, so it needs a product which will give it some accelerated growth and the tonnage it is desperately looking for. However, its area of strength worldwide lies in breakfast cereal and not in the snack food category.’ However, other impartial Indian commentators are more optimistic about Kellogg’s future prospects within the sub-continent. Among those who believe Kellogg’s will eventually succeed is Jagdeep Kapoor, the managing director of Indian marketing firm Samiska Marketing Consultants. ‘With every product offering, Kellogg’s chances improve based on its learning in the Indian market,’ he says. Only time will tell.

BRAND PROBLEMS FACED BY KELLOGGS:

Warm milk, frosty reception Kellogg’s may have had problems when marketing in certain foreign territories such as India, but the company has also come unstuck on its home turf, most notably with its Cereal Mates product. The idea was simple. Cereal Mates were small boxes of Kellogg’s cereal packed with a container of milk and a plastic spoon. The advantage of the product was equally straightforward. Namely, convenience. An increase in working hours in the United States, combined with the rise in fast-food chains, led Kellogg’s to believe that there was a demand for an ‘all-in-one’ breakfast product. To maximize Cereal Mates’ chances of success, the line included the four most powerful Kellogg’s brands in the US – namely Corn Flakes, Frosted Flakes (Frosties), Fruit Loops, and Mini Wheats.However, despite Kellogg’s best efforts, the Cereal Mates brand proved a major flop, and in1999, the year Kellogg’s rival General Mills took over as the United States’ number one cereal maker, the product was pulled from the shelves. The reasons why Cereal Mates failed to win over consumers are various, and have been dissected by various journalists and marketing professionals. Here are some of the main factors behind Cereal Mates’ brand failure: Factor one: warm milk. As each container of milk was ‘aseptically packaged,’ it didn’t need refrigeration. However, consumers didn’t like the idea of warm milk. Factor two: cool milk. In order to accommodate for the consumer’s preference for cool milk, Kellogg’s eventually decided to place Cereal Mates in refrigerators to imply that consumers should have the milk cold. However, as Robert McMath, president of New Product Works and author of What Were They Thinking?, has observed, this led to even more confusion. ‘This decision inevitably caused a problem in that Cereal Mates was not in a location where you would generally expect to find breakfast cereal. The expense of trying to re-educate the consumer to look for cereal in the dairy case proved too enormous – way beyond, apparently, what Kellogg’s wanted to spend on selling the new line,’ writes McMath.Factor three: advertising. As if the consumer wasn’t confused enough,

Kellogg’s complicated matters further with the advertising campaign for Cereal Mates. The TV ads featured young kids helping themselves to the product, while their parents lay snoring contentedly in bed. However, the packaging of the product was far from child-friendly, and if they left their kids to help themselves, the parents would have probably been crying (or at least getting cross) over spiltmilk.Factor four: the taste. Even when picked up from a refrigerator, the product was often consumed at work or away from home. In other words, when the milk was warm and tasted terrible. Factor five: the price. Retailing at way over a dollar, Cereal Mates was considered too expensive by many consumers. These factors, working in conjunction, caused the Cereal Mates brand to fail. And so, after two years on the shelves (or in refrigerators), Kellogg’s pulled the plug on the product. However, there may be one more reason why Cereal Mates failed to spark a revolution in breakfast habits. As a convenience food, it simply wasn’t convenient enough. A February 2000 article in Newsweek (‘Crunch time at Kellogg’), looked at the changing demands for breakfast products, and the consequences for the cereal company. Americans’ hectic new morning routine is wreaking havoc on Kellogg Co. Killer commutes (nearly an hour round trip in many cities) leave no time to fix even the simplest breakfast. Getting out the door is equally challenging for the 64 percent of families in which both parents work. More Americans than ever simply skip breakfast, according to new data from NPD Group, an eating-habits researcher. ‘People wish they could just get breakfast injected into them on the run,’ says Gerald Celente, editor of the Trends Journal, a marketing-industry newsletter. Cereal Mates may have enabled people to take their cereal with them, but they still had to pour the milk over it, and spend valuable time eating the cereal with a small spoon. As Keith Naughton concluded in the article above, Breakfast Mates ‘failed to catch on because it was impossible to eat while driving.’ Indeed, where Kellogg’s has had success in the convenience food market it is with breakfast bars such as Nutri-grain. Unlike Cereal Mates, these bars can be consumed in seconds, and on the move. Moreover, they don’t involve warm milk. Lessons from Kellogg’s Cereal Mates Consumers don’t like warm milk on their cereal. OK, I think we’ve established that one. Don’t mix your messages. On the one hand, Cereal Mates was an ‘eat anywhere’ product. On the other, Kellogg’s was implying it needed to be stored in a refrigerator. Sell the brand in the right place. Cereal Mates was, essentially, a cereal rather than a milk product. Consumers would have therefore expected to see it on the shelves next to the other cereal products. Be the best in at least one thing. As a cereal product Cereal Mates failed because there were tastier and equally healthy alternatives. As a convenience product it failed because breakfast bars proved to be a faster, more flexible option. Don’t price too high. Consumers did not expect to pay as much as they did for a four ounce box of cereal.

AWARDS AND RECOGNITIONS: In 2010, Kellogg was voted Canada’s “Most Trusted Brand of

Breakfast Cereal” in a survey conducted on behalf of Reader’s Digest Canada.

Kellogg Canada earned the No.2 spot in the 2010 corporate reputation Survey conducted by Leger marketing and published in marketing magazine. The Top 100 rankings are based on a corporate reputation survey of 1500 Canadians.

In the U.K., Kellogg ranked second on the TNS Corporate Reputation Index for 2010.this index assesses companies on their business success, favorability, trustworthiness and product/service quality. The research found that even those who do not purchase their products strongly admire their brand.

SUPPLIER DIVERSITY AWARDS:

2010 finalist, Michigan minority supplier development council-corporation of the year

Corporate 101-top companies for supplier diversity, MBNUSA magazine.

NEED FOR STUDY:

During 2010, concerns about obesity continued to increase, as reflected for example, in First lady Michelle Obama’s let’s move campaign to curb childhood obesity through calorie reductions and increased exercise. Approximately 20 percent of children in the U.S. are obese, while about one-third are overweight.

They believe that all foods have a place in diet, with balance and moderation, and when coupled with exercise, can be a part of a healthy lifestyle. Kellogg is playing a role in the Healthy Weight Commitment Foundation (HWCF),a coalition of more than 100 retailers, food and beverage manufacturers and non governmental organizations, among others. This first-of-its-kind initiative which Kellogg fully supports pledged in 2010 to remove 1.5 trillion calories from coalition members U.S. products by the end of 2015, using foods and beverages available in 2008 as a baseline.

Kellogg and other HWCF food manufacturers are pursuing calorie reduction goals by developing and introducing lower-calorie options, changing existing recipes where possible to lower calorie content, and reducing the portion sizes of existing single-serve products. Kellogg is helping to develop similar coalitions in other parts of the world.

In France, Kellogg has been a strong supporter of EPODE-the full name of which translates to “Together Let’s Prevent Childhood Obesity”-a public-private partnership that encourages healthier lifestyles. In 2003, EPODE now extends to nearly 1.8 million residents in 167 cities in France as well as 20 cities in Spain and eight in Belgium.

Obesity around the world:People over 15 years of age who are obese2005 400 million

2010 475 million

2015 (projected) 700 million

There are 17.6 million children under 5 years of age worldwide who are overweight.

SPECIAL K:

Special K is a lightly toasted breakfast cereal manufactured by the Kellogg Company. The cereal was introduced to the United States in 1956. It is made primarily from rice and wheat.

It is marketed primarily as a low-fat cereal that can be eaten to help one lose weight. It frequently has give-away offers for various health and fitness products or contains dieting information on the back of the box.

The diet that Special K advocates is called "The Special K Challenge." The goal of "The Special K Challenge" is to lose 6 pounds in 2 weeks. The diet is as follows: For meal number one you may have a serving of any Special K Cereal with 2/3 cup skim milk and fruit. For meal number two you may have a Special K Protein Meal Bar, a Special K Protein Shake, or another serving of Special K cereal with 2/3 cup skim milk and fruit. Meal number three can be eaten normally. Throughout the day one may consume two Special K snacks choosing from Special K Protein Snack Bars, Special K2O Protein Water Mixes, Special K Cereal Bars, Special K Crackers, or Special K Fruit Crisps. For additional snacks one may consume fruits and vegetables. Drinks may be consumed normally. It's a calorie-controlled meal plan that could help you to lose weight for either a special event, such as a birthday or wedding, or help achieve your goal weight by a certain date. It could also help you maintain your current weight and keep on track. Special K Personal Plan is all about getting one on the right track to help achieve a healthier shape. It's much better to take a long-term approach and set they self some realistic goals towards making changes to their day-to-day lifestyle. Using the online plan gives them all tools they need to help them make behaviour change that will last. After the plan, one should keep eating a healthy balanced diet, be aware of portion sizes and include regular activity in their day: brisk walking, cycling and swimming are great ways to help stay in shape! All of the meals in the Special K Personal Plan are designed by Kellogg’s nutritionists and dietitians to be healthy and nutritious, but they'll need to bear in mind that they all need different nutrients depending their age. Women and older girls need plenty of iron-rich foods like red meat, fish and fortified cereals. If your children are over the age of 5, they should be fine eating family food including lots of starchy foods, fruit and vegetables. But younger children need foods like full fat milk. If one’s Body Mass Index shows that they're already a healthy weight, then Kellogg’s recommend them choose the Special K Maintenance Plan. They’ll receive fabulous advice, ideas and support to help them maintain a slimmer them. There are 120 calories per serving of the Kellogg's Special K (serving size: 1 cup (31g/1.1oz)). The Kellogg's Special K is also low in fat (1% of Daily Value per serving) and fiber (4%).

COMPARISON:

Company Net Revenue(in millions)

International revenue (as % of sales)

Gross margin (%)

Kellogg’s $10,906 32.6% 44.2%General Mills $12,442 17% 36%Kraft $34,356 32.4% 36.1%

How Special K Challenge Compares with Leading Weight-Loss Products Product Star Rating 2 or More Patented Ingredients Less Than $5 Shipping Testimonials Trial Offer Avesil (4.8) Flex Belt (4.7) N/A Nuphedrine (4.6) P90X (4.5) N/A Special K Challenge (4.0) Healthy Trim (3.1) Sensa (2.8) Quick Trim (2.6) The Special K Challenge was designed by Kellogg around their Special K breakfast cereal. According to Kellogg, the Special K Challenge will help you lose six pounds or 1 inch in two weeks.

The details of the plan are: eat two Kellogg’s meals for breakfast and lunch and then a healthy dinner. Breakfast can be either 1 cup of Special K cereal with 2/3 cup of skim milk or Special K Waffles with light syrup. Lunch can be the cereal again or the Special K Protein Meal Bar. You are to eat vegetables and fruit throughout the day as snacks and can drink any beverage as normal. You are also allowed two Special K Protein Snack Bars during the day.

The purpose of the diet is to reduce overall calories, which you would certainly do if two of your meals consisted of one cup of cereal. This diet plan is contrary to other plans such as the South Beach Diet or the G.I. Diet, which promote higher levels of proteins than this diet. The Special K Challenge is carbohydrate intensive which helps to put fiber into the diet but may not promote long term satiety or energy.

There is substantial feedback on the Special K Challenge across the internet and it is quite mixed. The majority of posters speak about being hungry all the time while on the diet. This may be due to the reduced protein. Protein makes the body feel fuller longer whereas carbohydrates raise blood glucose levels quickly and give an immediate boost but do not last as long.

Kellogg’s K is supposed to be eaten in place of two meals in the day, preferably the breakfast and lunch or dinner. Remember, it has to be eaten replacing the meals and not to be eaten along with it.

The entire logic is that the breakfasts we tend to ignore and in which we just eat some bread and tea or skip it altogether can be replaced by a Kellogg’s K which is rich in fibre and protein.

Also by eating Kellogg’s Special K instead of the rice, dal, roti with ghee and the desserts in the Lunch or Dinner, you replace meals 700 calories that a meal provides with 150 calories that a serving of Kellogg’s provided.

Essentially decreasing your intake is all that happens here. Consistently reducing approximately 1000 calories everyday leads to that weight loss.

Kellogg’s says:

-  Its 98% fat free

-  Fortified with Vitamin A, B and C

- Contains Protein and Fibre

- Contains just 149 calories

 Why it works?

-  It is convenient to carry, easy to manage, is well marketed.

Remember,one have to replace your 2 meals with it and not along with. Also try and not binge after eating the cereals. This will stop from getting the full benefits for the same.

The Kellogg's Special K two-week challenge can only be undertaken by those who are considered to be overweight, have a Body Mass Index (BMI) of over 25, are over eighteen, are not pregnant or breastfeeding or taking medication. Kellogg's does not recommend the Special K two-week challenge to anyone with a BMI of under 25; BMI can be checked on the Special K two week challenge website.Kellogg’s specify that this diet has to be supplemented with 30 minutes of moderate exercise every day.

Is it healthy?

It is nutritious and provides one with protein and fibre that they require.  But following it without exercise might lose the muscle weight in their body. One need good amount of aerobic exercise to supplement it.

It is a temporary fix:

One will lose 2 kilos in 2 week and even show off in their Cousin’s wedding, of course one eat everything at the wedding, then after the wedding the whole plan is forgotten and they are back to your same slightly ‘plump’ self.

Weight loss can be made permanent ifthey have a holistic plan which is customized for your needs, depending on your Body Mass Index, your family history, genetics, Cholesterol levels and activity level.

There cannot be an ‘ultimate’ plan that suits to all needs.

The Special K Challenge would also be rather expensive when compared to preparing your own meals at home. The protein bars are similar in price to many competitive products and range from $1.00 to $2.50 per serving. ADVANTAGES:•Easy to follow plan. •May reduce overall calories and produce short term weight loss.

DISADVANTAGES:•Expensive when compared to homemade food. •Does not provide long term guidance for weight management. •May not provide sustained energy or satiety. •Doesn’t boost the body’s metabolic rate.