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Kellogg Upgrades Loyalty Program: Bypasses Product Codes - Analyst Blog

Kellogg CompanyK) has enhanced its Family Rewards Program as part of its sales boosting initiative. Members will no longer have to enter the product codes while buying, thus making the shopping experience easier.

Moreover, other U.S. Kellogg brands are now participating in Kellogg's Family Rewards. These brands include Pringles, Murray and Murray Sugar Free cookies, Kellogg's Origins cereal, Keebler Ready Crusts pie crusts, and Cheez-It Crunch'D.

Kellogg's Family Rewards Program is an important part of the company's sales boosting strategy. It drives customer engagement with and loyalty toward the brands they buy. Per market research firm Nielsen, more than 60% of U.S. households base their purchase decisions on the loyalty programs offered by the company.

The research also reveals that customers find it difficult to redeem the points on their loyalty cards. This has been duly addressed by Kellogg's loyalty program. The upgraded technology will link Kellogg's Family Rewards with U.S. retailer frequent shopper cards and add the points to the respective cards, thereby eliminating the need for codes..

Kellogg has been struggling to grow sales over the past two years, mainly due to weak performance by cereals in its developed markets and U.S. snacks businesses as a result of lower demand.

In order to improve its sales performance, the company is investing in brand building including digital media, consumer promotions and traditional advertising. It is also investing in in-store capabilities like sales forces of its struggling businesses - cereals and snacks. Moreover, it is channeling funds toward product and packaging innovation as well as reformulation of many existing products to meet the rapidly changing views of consumers regarding health and wellness.

Kellogg has a Zacks Rank #3 (Hold). Better-ranked food stocks are B&G Foods Inc. BGS , Campbell Soup Company CPB and McCormick & Company, Incorporated MKC . All three stocks carry a Zacks Rank #2 (Buy).

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CAMPBELL SOUP (CPB): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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