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Kellogg, Microsoft Team Up

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With an eye toward putting a byte in breakfast, Microsoft Corp. and Kellogg Co. are joining together for an estimated $20 million holiday promotion that links 16 ready-to-eat cereals with at least as many similarly targeted CD-ROM titles from Microsoft.
The promotion, which offers on-pack rebates and purchase-with-purchase offers, will be touted via TV ads that break this week as well as freestanding inserts and in-store efforts.
A series of 10- and 15-second tags for existing spots plus two 30-second TV ads dedicated to the promotion were created by Kellogg agency Leo Burnett, Chicago. Advertising is tagged, "Feed your mind while you feed your body," and features such animated Kellogg icons as Tony the Tiger and Dig 'Em scanning the various titles on the computer.
Although offering CD-ROMs specifically as a value-added offer for consumers is new for Kellogg in the U.S., the company last year tied in successfully with Nintendo of America and Microsoft's Windows software to offer holiday savings to its customers.
To maximize the effectiveness of the co-promotion, which will appear on roughly 80 million cereal boxes, Kellogg and Microsoft have linked CD-ROM offers with cereals that attract similar demographics. For example, on-pack offers for Frosted Flakes include a $5 rebate on Microsoft Golf 3.0 and a purchase offer for Dinosaurs, Fine Artist or Explorapedia Nature for $4.99 plus three Kellogg proofs of purchase. Raisin Bran offers a $10 rebate on Flight Simulator and a purchase-with-purchase offer for Oceans, Soundbits Musical Instruments and Explorapedia People titles.
Kellogg also will mention the offers in newspaper inserts for its cereals and in point-of-purchase materials now through the end of the year.