Consumer Goods

Failure: Kashi

  • CAN376343
  • 12 Pages
  • October 2014
  • Consumer Goods
Summary
Brands can significantly benefit from developing an in-depth understanding of the reasons for the success and failure of new product launches or marketing campaigns. This case study identifies how Kashi saw sustained decline following a GMO scandal and lawsuit, multinational ownership revelations, and a lack of parent-company focus which jarred with the brand's wholesome image.


Synopsis
- Use Canadean Consumer's selection of successful and failed product launches and marketing campaigns from across the globe to inspire innovation.

- Reduce the risk of failure by learning from brands/products that have underperformed: failed innovation can severely impact profit and reputation.

- Understand the relevant consumer trends and attitudes that drive and support innovation success.

- Obtain a broader appreciation of the fast-moving consumer goods industry by gaining insights from both within and outside of your sector.

ReasonsToBuy
- Why is Kashi considered an interesting case of failure?

- What consumer insight underpins this failure?

- Which consumer trends has this product innovation failed to successfully latch onto?

- What can I learn from the failure of Kashi?

Key Highlights
Kashi was founded in 1984, bought by Kellogg's in 2000, and found to contain GMOs in October 2011, challenging the "nothing artificial" tagline the brand had adopted. The ensuing lawsuit has seen Kashi refocus its brand and Kellogg's take a step back in terms of product governance.

Increasingly savvy consumers mean that brands are no longer able to hide behind unclear marketing terms, despite them being in line with consumer demands.
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