Case IV: Should Kellogg’s Launch Gluten-Free Products in India ?

Analysis:
Kellogg’s strategy in India:

• Focused on Indian consumer preferences (Corn flakes for Sweet and warm milk) and
therefore introduced Chocos and Frosties in India which were not only consumed as
cereals but also as snacks
• Launched customised products for Indian consumers such as Mazza series of corn
flakes in 3 different Indian flavours.
• Price strategy: Initially Indian consumers perceived Kellogg’s as a premium product.
Therefore Kellogg’s adapted to Indian market’s price sensitivity by (i) Localizing
packaging and raw material in order to reduce the cost, (ii) Introducing different
packaging sizes to suit the consumption patterns and purchasing power of Indian
consumers
• Repositioned itself as a healthy, tasty and fun filled brand
• Distribution Strategy: Established storage hubs in various Indian states which widen
its reach to consumers
• Promotion strategy: Promoted through media, press, posters, television, billboards
and internet. Came up with attractive slogans like “Jago Jaise bhi, lo Kellogg’s hi”,
“Naye saal ki shuruat, lo Kellogg’s se he”; Also, listed nutritional facts and other
Kellogg’s products on packaging. Added regional words to the product for local appeal.
• Expansion of consumer base: Worked with school and NGOs to create awareness
about iron deficiency problems in order to promote its new range of corn flakes with
iron and calcium

Product of Kellogg’s Competitors’ products Remarks

Corn Flakes Murginns: Corn Flakes Murginns: focus on affordability, 30%

Mohan Meakin: New Life Corn
Flakes
Chocos Murginns: Choko Poko, Choko
Cups
All Bran Murginns: Wheat Bran Flakes
Baggry’s: Bran Cereals
Nestle: Cheerio, Shreddies
reduced prices.
Mohan Meakin: Positioning in Lower end
of cereal segment and providing benefits
of 3 essential vitamins, whereas Kellog’s
offers 8 essential vitamins.
Murginns priced their products at 30%
lower price as compared to Kellogg’s
Nestle aimed to lower the sugar content
to cater to health conscious segment and
introduced green banner to denote
‘whole grain’ products.
Kellogg’s has a 100% whole grain
product.

Special K Murginns:Corn Flakes Natural Kellogg’s focuses on fat-free honey-

Honey coated flakes of wheat.
Murginns replicated the flavour profile.

IIM Ranchi PGDM 2018-20 Page 1 of 2 Marketing Management (Group 3)

Oats Bites Baggry’s: White Oats, Jumbo Bagrry’s has positioned itself as health
Oats, Oat Flour foods brand.
Nestle: Oats
Extra Muesli Murginns: Muesli Crunchy Nuts, Kellogg’s provided low sugar content in
Muesli Fruits its 3 variants.
Baggry’s: Muesli cereal
Honey Loops Murginns: Honey Rings

Heart-to Heart Marico: Saffola Oats
PepsiCo: Quaker Oats
Gluten-free Corn Savoureux Foods, Kalpana Udyog,
flakes Sai Food Products India
Marico positioned itself as 100% Natural
whole grain oats to help keep the heart
strong.
Pepsico promoted the brand with ‘Smart
Heart Challenge’
Kellogg’s has a similar positioning.
They are Indirect Competitors of
Kellogg’s as they are not present in the
gluten-free corn flakes market but can
venture in the same market in future.

Recommendations:

• Kellogg’s should launch Gluten free corn flakes as an extension of current product line
in the current breakfast cereal market as they have already established themselves in
Indian market. Also cereal has great growth potential in Indian market due to shift to
packaged breakfast cereals from cooked ,traditional Indian breakfast. Besides that due
to globalization, Indian consumer is now becoming more health conscious which will
widen the potential consumer base of Kellogg’s.
• If the product is launched for celiac sufferers, it would target only six to eight million
Indians suffering from the disease instead of overall Indian breakfast cereal
consumers. So there is no need to shrink the customer base. Also, there are many
competitors already present in niche celiac sufferers segment which will make difficult
for Kellogg’s to reap profits.
• Kellogg can promote gluten free product on the basis of its benefits such as increased
focus, weight loss, enhanced immune system , sharp memory and increased athletic
performance.

IIM Ranchi PGDM 2018-20 Page of 2 Marketing Management (Group 3)