Kelloggs Indian

Experience

Presented by- Group 9
Sristi Roy
Lokkesh Kumar
Saikat Kumar Biswas
Ravi Vaghanani
Praharsh Dixit


Introduction
Kellogg, the worlds leading producer of cereals and convenience foods,
marketed its products in 160+ countries with manufacturing facilities in
19 countries.

Kellogg entered the Indian market in 1994 by offering cornflakes, wheat
flakes and basmati rice flakes but failed despite technical and financial
support.

Its main rivals are traditional Indian foods like idlis and vadas.




Reasons for Kelloggs Failure
Banked heavily on crispy flakes.

Lack of understanding of Indian consumer behaviour and habits.

The focus was initially based only on health aspects, which made them
move away from fun-and-taste positioning.

Ignorance of cultural aspects.



Premium Pricing Policy
Initially focussed only on the premium and the middle-level retail
stores.
Rooster image associated with Kellogg brand.

Continued
Launched two of its highly successful brands
1) Chocos (September 1996)
2) Frosties (April 1997)
Also launched Mazza Series in August 1998

Re Launch
Refocused on Fun-&-taste Positioning.
Reduction in Price - brought down price per kg by 20%.
Different Packets 500 gm family pack, 60 gm pack for Rs 9.50 of
each variant.
Gave away free gifts with packs of certain variants.
eg. Pencil boxes, water bottles along with products.


Change in strategies

Strength
1. Offers good quality of products.
2. Kelloggs flexibility and adaptability
towards consumer needs.
3. Established brand in breakfast cereal
market globally.


Weakness
1. It failed to understand the tastes of
Indian consumers initially.
2. The products were priced high initially.


Opportunities
1.Indias breakfast cereal market was
untapped.
2. Lack of time increases the consumption
of readymade food.


Threats
1. Local competitors.
2. Traditional breakfast habit.
3. Price dominated consumers.


SWOT
ANALYSIS
4Ps Analysis

Product
1. Products were
initially
concentrated only
on health aspects.
2. Product
segmentation
3. Introduced
more variants
with local
flavours.






Price
1. Introduced 60
gm packets apart
from 500 gm.
2. Replaced
Glossy cardboard
packaging with
pouches.
3. Family pack
brought down
price by 20%.





Place

1. Increased
outlets from
30,000 to 40,000
in 1998.
2. Nationalised
the product






Promotion
1. Positioned itself
as Fun and Taste
cereals.
2. Launched
Chocos biscuits for
brand awareness
3. Campaigns
depicting cross
section of
individuals
4. Free pencil box,
bottles, etc.




Market Penetration
strategy
1. Campaigned to convert nonusers to users.
2. Attracted users of competitors products
by offering pencil-boxes, water bottles,
lunch boxes along with the product.

Product development
strategy
1.It launched products like Chocos and
Frosties.
2.It launched products with different variants
Market Development
Strategy
1. More manufacturing units set up in India.
2. Advertisement depicting cross section of
individual attributing FITNESS factor to
Kellogg.

Diversification Strategy
1. Decided to develop new product line such
as snacks and biscuits.


Ansoff
model
The main reason for Kellogg's failure in India was that it failed to
understand the breakfast habits of Indians and that the price of its
products was too high initially.
The indianization of its products helped Kellogg in penetrating the
market.
The reduction in prices also helped Kellogg improve its standing in the
market.

Conclusion
Thank You!
Questions??