KELLOGG’S INDIAN

EXPERIENCE PRESENTED BY:-

ADITYA TOSHNIWAL
ARCHIT
KHANDELWAL
JOYJIT PAUL
PALLAVI SARAWGI
REICHA VEDIC
SUDIPTO GHOSH
SUMMARY
 In 1994, three years after the barriers to
international trade had opened inIndia,
Kellogg’s decided to invest US $65
million into launching its number one
brand, Corn Flakes.
 However, the Indian sub-continent found
the whole concept of eating breakfast
cereal a new one.
 While this meant that Kellogg’s had few
direct competitors it also meant that the
company had to promote not only its
product, but also the very idea of eating
breakfast cereal in the first place.
SUMMARY
 The first sales figures were encouraging,
and indicated that breakfast cereal
consumption was on the rise. However,
it soon became apparent that many
people had bought Corn Flakes as a
one-off, novelty purchase.
 Furthermore, the company’s attempts to
‘Indianize’ its range have
beendisastrous. Its Mazza-branded
series of fusion cereals, with flavours
such as mango, coconut and rose, failed
to make a lasting impression.
STRENGTHS
 Kellogg’s flexibility and adaptability
towards consumer needs
 Customization of products
 History of changing food habits globally

WEAKNESSES
 If even they liked taste, the product was
too expensive initially
 Even attempt to indianize the product
failed to make a lasting impression
 Initially product was not adopted to the
Indian taste or Indian traditional food
habit
 Wrong evaluation of projection in market
demand.
OPPORTUNITIES
 Introduction of new trend with nutritional
value in breakfast
 Changing work-life demanding processed
foods
 Less competition
 Scope for entering untapped markets



THREATS
 Cultural factors and eating habits –
population
 not used to processed foods
 Easy availability of low-priced traditional
breakfast
 Blinded by the population figures of India
 Low awareness about processed foods
and
 calorie requirements
 Price sensitive customers

 OPPORTUNITY
MATRIX

SUCCESS SUCCESS
PROBABILITY PROBABILITY
HIGH HIGH LOW
LOW
HIGH HIGH
STRATEGY

MARKETING
MARKETING

STRATEGY
LOW LOW

1997
1995
 THREAT
MATRIX
CONSUMER ACCEPTANCE CONSUMER ACCEPTANCE

HIGH HIGH LOW

LOW
HIGH HIGH
SERIOUSNESS

SERIOUSNESS
LOW LOW

1997
1995
MARKETING MIX

 1995  1997
 

PRODUCT  New Product  Product

Concept segmentation
 Less variety  More variety
 Not Indianized  Indianized
 

PRICE  Premium  Penetration

pricing pricing

MARKETING MIX

 1995  1997

PLACE  Localized  Nationalized

 

 

PROMOTION  Ad campaign  Better

advertising
strategy

conclusion


 In a nutshell we have seen that the main

reasons for Kelloggs failure in India was the
westernisation of its products and high
prices.


 The indianisation of its products helped

Kelloggs in penetrating the market.


 The reduction in prices also helped Kelloggs

improve its standing in the market.

Lessons from Kellogg’s
 Do your homework. Why did Kellogg’s
cereals have a tough ride in India? ‘It
was just clumsy cultural homework,’
 Don’t underestimate local competitors.
 Remember that square pegs don’t fit into
round holes.
 Don’t try and make consumers strangers
to their culture.