Case Study Presentation on

“Kellogg’s Indian Experience”

Presented By:
Ayush Singh(18202020)
Neerja Nayak(18202030)
Priyanka Kumari(18202043)
Sameer Panigrahi(18202047)
Santanu Kumar Behera(18202050)
Smruti Mohapatra(18202058)
Introduction to Kellogg’s
Vision
 To enrich and delight the world through food and brands that matter.

Purpose
 Nourishing families so they can flourish and thrive.

About Kellogg’s

Founder – Mr. Will Keith Kellogg

Year – 1906
Head Quarter – Battle creek, USA
CEO – Mr. John A. Bryant
Kellogg’s- The Indian Story
 Introduction In India – 1994
 1st Managing Director – Mr. Denis Avronsart, Kellogg’s India
 Current Managing Director – Mr. Mohit Anand, Kellogg’s India
 Initial Investment– USD 30 Million

Reasons for initial failure in India

Cereal based breakfast was a new concept for Indians.
Traditional deep rooted breakfast habits.
Indians are used to luke warm servings.
Product was too expensive(33% more pricy).
Unwillingness to bow down on price pressures.
Lack of market research before launch.
 Marketing mix – 4P’s of Kellogg’s
1. Product
Products means the actual product or service that the company offers to its consumers. People do not buy products,
they buy the expectation of benefits.

2. Price
Price provide revenue. Kellogg's has always faced problems for Price in India as Indian masses couldn't afford its
products.

3. Place
Kellogg’s had decided to focus only on premium and middle level retail stores .

4. Promotion
Kellogg’s was mainly focusing on promotion based on the health and nutrition of the customer base. It has started

promoting its grain based foods as alternatives.

SWOT analysis of Kellogg’s
1. Strength 3. Opportunity
 High global market share.
 Globalization
 Strong brand
 Large Product Line  Increased disposable income

 Continuous Research to reduce cost  Advent of television advertising

2. Weakness 4. Threat
High Price
 Private Label brands
Unsuitable for Indian Lifestyle
Declining sales  Local competitors

Bad relation with Supermarkets  Cultural factor and eating habits

 Porter’s 5 forces model for
Kellogg’s
1. Degree of Rivalry: (High)
 Face a stiff competition in Indian market- From local players and From Nestle.

2. Bargaining Power of Buyers: (High)

 Supermarkets are continuously asking for higher margins.

3. Bargaining Power of Suppliers: (Low)

 Raw materials are sourced from the local market. Hence the supplier bargaining power is low.

4. Threat of Substitutes: (High)

 Other ready to eat and packaged food products are more popular among Indian consumers. E.g. Maggie noodles are more
preferred since they are served hot.

5. Threat of New Entrants: (High)

 Multinationals like Heinz, Nestle etc. have entered in Indian market owing to its potential growth.
ANSOFF matrix for Kellogg’s
Product
Existing New

Market
Existing

Product
Penetration Development
Market

Market
New

Development Diversification
 BCG matrix for Kellogg’s
High MARKET SHARE Low

High
GROWTH RATE

Stars Question Marks

Low

Cash Cows Dogs

 Conclusion
 Kellogg’s market share increased from 53%(in 1995) to 62%(2017) as it
worked on its shortcomings.

 The key derivable from it’s modifications can be :-

i) Shift In positioning
ii) Increased customer promotions
iii) Enhanced Media Budget

 Introduction of new products :- Crispix Banana

Crispix Chocos
Froot loops
Honey Crunch
 New product “Impulse snacks” at Rs. 3 to 5 unit packs.