How Kellanova’s Clean Room is Revolutionizing Targeting and Boosting Sales for Special K
In the competitive cereal market, even well-established brands like Special K can face significant challenges. Kellanova, the company behind this iconic cereal, experienced a concerning decline in sales and market penetration last year. With Special K’s premium price indexed at a staggering 145% higher than the rest of its category, sales plummeted while consumer consideration aligned closely with that of private-label brands. It was clear that a strategic overhaul was necessary to rejuvenate interest in this 70-year-old brand.
Tackling the Challenge Head-On
In response, Kellanova’s marketing team sought innovative solutions to revitalize Special K’s performance. They partnered with LiveRamp to leverage their clean room technology, a transformative tool designed for privacy-conscious data collaboration. This strategic move aligns with the shift in the industry towards seeking deeper consumer insights without compromising privacy (Learn more about clean rooms here).
Louise Cotterill, Kellanova’s Global Senior Director of Insights and Intelligence, emphasized the importance of clean rooms for enhancing targeting: “Improving our targeting is one of the big areas we identified as having a measurable impact in our work and our connection with the consumer.”
From Demographic-Based to Data-Driven Insights
Traditionally, Kellanova relied on generic demographic data and used a singular creative approach for Special K’s marketing. However, by integrating postcode-level Circana data with a staggering 20 million addressable records from Experian, Kellanova shifted towards a more nuanced understanding of consumer behavior.
Cotterill urged, “How do we segment and identify consumers and go beyond demographics into their purchase behavior, historical behaviors, and competitor buying behaviors?” This pivot allowed Kellanova to gain insights on household compositions and preferences, leading to the identification of two core consumer groups:
- Loyal buyers who needed encouragement to make another purchase.
- Brand lovers who only bought discounted Special K and required a nudge for full-priced purchases.
Armed with these insights, Kellanova tailored its messaging, crafting targeted calls to action that resonated deeply with each group, propagating them across popular social platforms like Meta and YouTube.
Unleashing Brand Lift and Behavior Change
In the fast-paced world of consumer packaged goods, traditional marketers often depended on assumptions to gauge campaign effectiveness. Kellanova’s clean room initiative transformed this paradigm.
“With the clean room, we can partner with retailers and see exactly who made a purchase,” Cotterill explained. This closed-loop measurement fosters increased confidence in their marketing tactics.
The immediate benefits became clear: Special K experienced a remarkable 9% sales lift among price-conscious consumers who had previously strayed from the brand. More impressively, these consumers, who typically favored private-label products, demonstrated that strategic marketing—rather than simple price cuts—could effectively lure them back. Additionally, loyal customers re-engaged with the brand, driving a jaw-dropping 36% sales increase through premium-priced purchases.
Kellanova also implemented a consideration impact study to measure long-term shifts in consumer behavior. While traditional demographic targeting showed no significant improvement, the clean room methodology revealed a three-fold increase in consideration lift, far surpassing industry averages. The remodeling of their marketing strategy took just three months, a remarkable turnaround.
Transforming Marketing Processes: Faster and More Effective
The success of Special K’s campaign illustrates Kellanova’s ability to harness LiveRamp’s clean room technology for sophisticated targeting and enhanced business results. With a blend of in-house data scientists and external partners, Kellanova has accelerated its campaign development timeline from several months to just three to four weeks.
“The analysis, business intelligence, and audience building are performed in-house, but we work closely with creative and media partners,” Cotterill noted. This collaborative approach bridges the gap between data insights and actionable creative strategies.
Expanding the Clean Room Strategy
The promising outcomes have led Kellanova to replicate the clean room strategy across its entire portfolio and into diverse markets. However, Cotterill acknowledges that a one-size-fits-all solution is unrealistic. "The more rigorous the data rules, the more applicable the work is elsewhere," she said. Kellanova intentionally targets challenging markets to ensure scalability and adaptability.
Kellanova’s innovative approach to leveraging clean rooms is not just a game-changer for Special K, but a testament to what can be accomplished when technology and strategy converge. As they navigate the evolving landscape of consumer behavior, Kellanova stands poised to redefine marketing effectiveness for their iconic brands.
In conclusion, Kellanova is leading the way in revitalizing marketing strategies through data-driven insights, proving that with the right tools and partnerships, even the most established brands can rejuvenate their presence in the market. For brands struggling with similar challenges, Kellanova’s journey offers a compelling blueprint for growth and success in today’s dynamic marketplace.
