KELLOGG’S INDIAN EXP ERIENCE
Prepared by: Amruta Pawar Anuja Ingole Mithila Rane Monika Jain Ria Gokharu Sharvari Dighe
The Kellogg Company is a multinational food manufacturing company headquartered at Battle Creek, Michigan, United States. Kellogg’s was founded as the Battle Creek Toasted Corn Flake Company on February 19, 1906. Kellogg’s Company manufactures products in 18 countries and products are marketed in 180 countries. Kellogg’s was launched in India in September 1994.
REASONS FOR POOR PERFORMANCE/MISTAKES COMMITTED BY KELLOGG’S 1. Failure to understand Indian Consumer- Kellogg’s failed to understand the Indian
Consumer. Indian Consumer was habituated to having traditional breakfast like Parathas and didn’t enjoy the cereal. Indian consumer was accustomed to have hot milk for breakfast. But when Kellogg’s corn flakes were put in hot milk they became soggy. Consumer did not like cornflakes in cold milk. Moreover, consumers did not like the taste of Kellogg’s. 2. Bad Positioning Strategy- The advertisements and promotions of Kellogg’s only focused on the Health aspects. They did not focus on the fun and taste aspects. There is a common perception – ‘Healthy Products do not taste good.’ This is the reason it failed. 3. Poor Pricing Strategy- It was priced very high as compared its competitors. Dollar to Rupee strategy was adopted. So consumers found it very costly and considered it as a Premium Product. 4. Wrong Target Market- Due to poor pricing strategy Kellogg’s lost out on Mass consumers.
REVAMPING MARKETING MIX
a. b. c. d. e. f. g. h. i. Launch of Chocos and Frosties Indianising the Flavors. Innovative Promotions Strategies Effective Sales Promotion Strategies. Better Positioning Strategies. Enhancing of Media Budget. Focusing on Nutrition and carrying out Campaigns like, ‘Kellogg Breakfast Week’. Tie ups with Indian Dieting association for creating health and nutrition awareness. Free Samples distributed in schools and to housewives.
COMMENTING ON THE INITIATIVES TAKEN FOR MARKETING MIX
Kellogg’s had failed to understand the consumer and had adopted poor advertisement and marketing strategies. Therefore, they were facing problems in the Indian Market. This is the reason they adopted new strategies. Kellogg’s took a very good step by reducing price of the product. They changed the packaging thereby reducing price. They came up with innovative advertisement strategies and positioned their product as Healthy and Tasty. They introduced new flavours which were suitable to the Indian consumers. Kellogg’s also reduced the pack size and came up with pouches. It came up with family packs. This time Kellogg’s targeted at the mass consumers. They eliminated all the causes of their failure. Kellogg’s improved the distribution channel and made their products available nationwide. This gave them higher market share and good amount of profits. Kellogg’s launched snacks and biscuits. The awareness drives and campaigns initiated by them, gave them Brand Awareness. On the whole, Kellogg’s did a very good job as far as Marketing of the product is concerned.
LAUNCH OF BISCUITS AND SNACKS
Yes, to gain brand equity in the Indian market and gain profits through more cost effective solutions and market acceptable products. Kellogg's introduced small packs priced at Rs 3 and Rs 5, the product is was instant snack targeted at children. Even as the company was unwilling to part with details, dealers and stockiest in Mumbai felt that the product will compete with chocolates in the snacking category such as Nestles Munch, Britannia's Checkers and Cadbury's Perk among others. The company was concentrating on establishing its brand name in the market irrespective of the off take. The focus was entirely on being present and visible on the retail shelves with a wide range of products. The product had been positioned as the country's first fortified breakfast biscuit and added the launch would help strengthen its market leadership position in the breakfast foods business. The idea behind the effort was to establish the Kellogg brand equity in the market The revelation that Chocos cereal, which was supposed to be consumed with cold milk was being eaten straight out of the box by both kids and adults.
doc_305801514.docx
Prepared by: Amruta Pawar Anuja Ingole Mithila Rane Monika Jain Ria Gokharu Sharvari Dighe
The Kellogg Company is a multinational food manufacturing company headquartered at Battle Creek, Michigan, United States. Kellogg’s was founded as the Battle Creek Toasted Corn Flake Company on February 19, 1906. Kellogg’s Company manufactures products in 18 countries and products are marketed in 180 countries. Kellogg’s was launched in India in September 1994.
REASONS FOR POOR PERFORMANCE/MISTAKES COMMITTED BY KELLOGG’S 1. Failure to understand Indian Consumer- Kellogg’s failed to understand the Indian
Consumer. Indian Consumer was habituated to having traditional breakfast like Parathas and didn’t enjoy the cereal. Indian consumer was accustomed to have hot milk for breakfast. But when Kellogg’s corn flakes were put in hot milk they became soggy. Consumer did not like cornflakes in cold milk. Moreover, consumers did not like the taste of Kellogg’s. 2. Bad Positioning Strategy- The advertisements and promotions of Kellogg’s only focused on the Health aspects. They did not focus on the fun and taste aspects. There is a common perception – ‘Healthy Products do not taste good.’ This is the reason it failed. 3. Poor Pricing Strategy- It was priced very high as compared its competitors. Dollar to Rupee strategy was adopted. So consumers found it very costly and considered it as a Premium Product. 4. Wrong Target Market- Due to poor pricing strategy Kellogg’s lost out on Mass consumers.
REVAMPING MARKETING MIX
a. b. c. d. e. f. g. h. i. Launch of Chocos and Frosties Indianising the Flavors. Innovative Promotions Strategies Effective Sales Promotion Strategies. Better Positioning Strategies. Enhancing of Media Budget. Focusing on Nutrition and carrying out Campaigns like, ‘Kellogg Breakfast Week’. Tie ups with Indian Dieting association for creating health and nutrition awareness. Free Samples distributed in schools and to housewives.
COMMENTING ON THE INITIATIVES TAKEN FOR MARKETING MIX
Kellogg’s had failed to understand the consumer and had adopted poor advertisement and marketing strategies. Therefore, they were facing problems in the Indian Market. This is the reason they adopted new strategies. Kellogg’s took a very good step by reducing price of the product. They changed the packaging thereby reducing price. They came up with innovative advertisement strategies and positioned their product as Healthy and Tasty. They introduced new flavours which were suitable to the Indian consumers. Kellogg’s also reduced the pack size and came up with pouches. It came up with family packs. This time Kellogg’s targeted at the mass consumers. They eliminated all the causes of their failure. Kellogg’s improved the distribution channel and made their products available nationwide. This gave them higher market share and good amount of profits. Kellogg’s launched snacks and biscuits. The awareness drives and campaigns initiated by them, gave them Brand Awareness. On the whole, Kellogg’s did a very good job as far as Marketing of the product is concerned.
LAUNCH OF BISCUITS AND SNACKS
Yes, to gain brand equity in the Indian market and gain profits through more cost effective solutions and market acceptable products. Kellogg's introduced small packs priced at Rs 3 and Rs 5, the product is was instant snack targeted at children. Even as the company was unwilling to part with details, dealers and stockiest in Mumbai felt that the product will compete with chocolates in the snacking category such as Nestles Munch, Britannia's Checkers and Cadbury's Perk among others. The company was concentrating on establishing its brand name in the market irrespective of the off take. The focus was entirely on being present and visible on the retail shelves with a wide range of products. The product had been positioned as the country's first fortified breakfast biscuit and added the launch would help strengthen its market leadership position in the breakfast foods business. The idea behind the effort was to establish the Kellogg brand equity in the market The revelation that Chocos cereal, which was supposed to be consumed with cold milk was being eaten straight out of the box by both kids and adults.
doc_305801514.docx