2. “Expanding a brand into a new market isn't
just about translating the tagline. The best
Expandingto succeedinto a newlocal tastes
way a brand is to study market isn't just
about translating closely”.
the tagline. The best way to
succeed is to study local tastes closely
3. "Our only rivals are traditional Indian foods like idlis
and vadas."
- Denis Avronsart, Managing Director, Kellogg India.
4. Strong Confidence
Kellogg is a past master at the art, having fought
and won against
croissant-and-coffee in France,
biscuits in Italy and
noodles in Korea."
5. CHALLENGES FACED BY KELLOGG
INDIA
• Cultural factors and eating habits – population
not used to processed foods
• Easy availability of low-priced traditional
breakfast
• Low awareness about processed foods and
calorie requirements
• Price sensitive customers
• Kellogg India has been steadily overcoming these
and has contributed to the rapid growth of the
breakfast cereal market in the country.
6. Cont..
• Indians always boiled their milk unlike in the
West and consumed it warm or lukewarm.
They also liked to add sugar to their milk
• Negative media coverage regarding the
products increased and taste was not good.
• The rice and wheat versions did not do well.
• In fact, some consumers even referred to the
rice flakes as rice corn flakes.
7. SEGMENTING
• Launched in September 1994, Kellogg's initial
offerings in India included cornflakes, wheat
flakes and Basmati rice flakes
• They first lunched their products in Mumbai
8. TARGETING
• To caters the mass market but they only caters to
the A-Class towns or the more affluent
consumers.
• Disappointed with the poor performance, Kellogg
decided to launch two of its highly successful
brands - Chocos (September 1996) and Frosties
(April 1997) in India.
• This resulted in the launch of the Mazza series in
August 1998 - a crunchy, almond-shaped corn
breakfast cereal in three local flavors - ‘Mango
Elaichi,' ‘Coconut Kesar' and ‘Rose.'
9. POSITIONING
• The company's advertisements and
promotions initially focused only on the
health aspects of the product.
• In doing this, Kellogg had moved away from its
successful ‘fun-and-taste' positioning adopted
in the US.
• Analysts commented that this positioning had
given the brand a ‘health product'
image, instead of the fun/health plank that
the product stood on in other markets.
10. PRODUCT MIX
Kellogg
BISCUITS KELLOGG'S SPECIAL K CORN FLAKES
OATS ALLBRAN
CHOCOS CINNAMON PECAN ALMOND & HONEY HEART TO HEART WHEAT
GLUCOSE RED BERRIES REAL STRAWARRY RICE
CHOCOLATE CREAM ORIGINAL ORGINAL
BADAM VANILLA ALMOND MANGO
PISTA CRANBERRIES
CASHEW FRUITS
BLUEBERRY
11.
12. Promotion
• Kellogg also increased its focus on promotions that sought to
induce people to try their product and targeted schools across the
country for this. By mid-1995, the company had covered 60 schools
in the metros.
• In March 1996, the company offered specially designed 50 gm
packs free to shoppers at select retail stores in Delhi.
• This was followed by a house-to-house sampling exercise offering
one-serving sachets to housewives in the city.
• The company also offered free pencil-boxes, water bottles, and
lunch boxes with every pack.
• Plastic dispensers offering the product at discounted rates were
also put up in petrol pumps, super markets, airports etc.
15. SUMMARY
• Prices reduction
• Kellogg’s increase the retail packs of different sizes to cater the needs of
different consumers group
• Kellogg’s repositioned the product as tasty nutritious food
• Products were not positioned in premium categories
• Indianising the products
• Free samples in schools and to housewives
16. CONCLUSION
• Kellogg’s failure in India was a cultural failure.
• Kellogg’s business model was a recipe of disaster for Indian plates.
• Company’s initial strategy of causing FOOD HABBIT changes did them a lot of
damage.
• Though business now showing some positive growth but it is steal far behind its
global standards.
• Kellogg’s has still not found any answer for its biggest competitor HOME COOKED
FOOD.
• Globalization may be an increasing trend, but regional identities, customs and
tastes are distinct as ever.
• “Think GLOBALY Act LOCALY”
