Kraft Heinz And Kellogg Use New Data Capabilities To Compete With Private-Label Brands

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As they contend with increasing competition from private-label and low-cost products, major food companies are leveraging consumer data to sharpen their marketing emphasis in an effort to retain existing customers’ business and win over new ones.

The Michigan-based Kellogg Company, a multinational food manufacturer, claimed in a conference call with analysts on May 4 that eCommerce and other digital technologies have enabled it to personalize its marketing in a way that has never been possible before.

“The entire world of marketing has changed like it never has before,” CEO Steve Cahillane told investors. The real promise of one-to-one marketing that we’ve been talking about for so long is now a reality thanks to data and analytics that are more sophisticated than ever.

First-party data is more reliable and accessible than it has ever been, making it possible to target customers in ways that marketers have imagined for years. It’s a new day, and I think the outlook is extremely encouraging.

Cahillane pointed out that the firm has experienced “a little bit more private-label growth” and a trend toward “high discounters” in Europe, making it even more critical for the food giant to develop methods of getting its message out to customers.