President and CEO David Mackay was among leaders from several high-profile food industry companies – including PepsiCo, Procter & Gamble, Unilever and SuperValu – who spoke at the Western Michigan University 2009 Food Marketing Conference, held Monday and Tuesday, March 23 and 24, in Kalamazoo, Mich.

"In these economic times, we need to bring more to the table than just great brands and marketing – we also need to ensure we are being thought leaders and partners to retailers," said David, who was keynote speaker Monday, March 23, at Western Michigan University's 2009 Food Marketing Conference.

WMU is located in Kalamazoo, Mich., about 25 miles west of Kellogg's Battle Creek headquarters. Its renowned Food & Consumer Package Goods Marketing program, now in its 50th year, has helped more than 300 current Kellogg employees begin their food marketing careers.

An audience of 300-plus retailers, manufacturers, food brokers, professors and students were in attendance for David's conference presentation, entitled "Leading and Winning in a Recessionary Environment." He began his remarks by grounding attendees in the realities of today's marketplace, which is plagued by rising unemployment rates and price inflation, along with declining property values and investment returns.

Although it's clear that consumers are changing their shopping habits to adjust to these realities, not all of the behavioral shifts are negative, David said.

"Many of these behaviors are positive, and we anticipate they will remain with the consumer post-recession," he noted. "On the positive side, people are buying healthier snacks, putting money into health and wellness, and eating at home more so they know they're eating healthier."

In fact, the recent trend toward more in-home consumption – driven primarily by consumers' heightened focus on price and value – is encouraging for retailers and food manufacturers alike, David pointed out.

"At Kellogg, we are in three of the 10 largest U.S. retail categories," he said, referring to ready-to-eat cereal, cookies and crackers. "Our marquee brands are key drivers of these important categories. We provide great-tasting meals at a reasonable price. To retailers, our strong brands are relevant and help them drive traffic and sales."

Our cereal brands, in particular, provide a tremendous value for consumers, he noted. For only 50 cents a bowl with milk, Kellogg cereals provide nutrition, convenience and great taste.

David highlighted some of the ways in which Kellogg is collaborating with our retailer partners to help drive sales in the current economic environment. For example, we are timing promotions to correspond with when consumers receive their paychecks.

"When paychecks arrive, consumers look for value pricing on multiple items and respond to programs like our Special K promotion, where they purchase five products for $15 and receive $5 back – that's five boxes of cereal for $10," he explained. "Retailers are also asking more creative merchandising solutions, such as our upcoming 'Power of K' promotion for back-to-school that includes $15 in coupons, a $10 mail-in rebate and a $70 rebate on a Dell computer."

Going forward into an uncertain economic future, retailers and manufacturers such as Kellogg need to continue working together to better understand shopper insights and how to target consumer needs, David stressed.

"Working with our customers, we will continue to lead in this dynamic environment," David concluded. "We are confident that strong branded players like Kellogg will help the industry thrive, despite the challenging economic conditions."