Kellogg's: How Kellogg's Thinks About DTC and E-Retail


Kellogg's: How Kellogg's Thinks About DTC and E-Retail

This week on the pod, we were lucky to host Joe Harper and Jordan Narducci from the world-famous Kellogg's company.

The Takeaways:

🗣 DTC is an innovation channel

When Kellogg’s develops new products, they can invest millions into the process.

Implementing a test-and-learn strategy of smaller scale batches of experimental products on digital channels makes room for innovation by reducing risk for the company.

They can test the flavors and formats, get the message right, and optimize. By the time they bring it to market, they’ve got a higher chance of success.

Using a $5–10K budget, Kellogg’s will concept test a new product with Facebook Ads.

The ad directs shoppers to their site, asking a series of questions about the upcoming product.

Kelloggs can measure time on site, bounce rate, and create A/B testing opportunities.

These data points guide their product development and de-risk their investment.

Through DTC-style testing, they can go to market confident in their innovations – they’ve already consulted the consumer before getting the retailer involved.

🤝 Build a custom B2B channel

Kellogg’s is also using innovation strategies to get its product into retail stores

They’ve seen significant success with a custom B2B eCommerce platform catered to small businesses.

This strategy focuses on mom-and-pop shops too small to warrant regular attention from a Kellogg’s salesperson.

Through their new Salesforce platform, Kellogg’s can communicate with smaller businesses directly and optimize offerings in a personalized way.

Through the platform, Kellogg’s curates product recommendations for small businesses based on their size and region. The platform also has a tool that helps small businesses optimize their shelves.

This B2B platform has initiated a massive improvement in sales for the small businesses – a win-win for the mom and pop shops and Kelloggs.

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