ESTABLISHED IN 1906 & FOUNDED BY “WILL KEITH KELLOGG”
PRODUCT IS MANUFACTURED IN 18 COUNTRIES & MARKETED IN MORE THAN 180 COUNTRIES AROUND THE WORLD.
IT IS THE WORLD’S LEADING PRODUCER OF CEREAL & LEADING PRODUCER OF CONVENIENCE FOODS IN WHICH INCLUDES COOKIES, CRACKERS, TOSTER, PASTRIES, CEREAL BARS, FRUIT FLOVOUR, SNACKS, FROZEN WAFFLES & VEGETARIAN FOODS.
KELLOGG’S IN INDIA:
KELLOGG’S ENTERED IN INDIA IN 1994.
PRODUCTS OFFERED IN INDIA : CORN FLAKES, WHEAT FLAKES, BASMATI RICE FLAKES
“ THE RESEARCH FOUNDED THAT THEIR ONLY RIVALS ARE TREDITIONAL INDIAN FOODS LIKE IDLS & VADA’S.” - THIS STATEMENT WAS GIVEN BY “DENIS AVRONSORD” (M.D OF KELLOGG’S INDIA.)
FAILURE OF KELLOGG’S IN INDIA:
OVER CONFIDENCE & IGNORANCE OF CULTURAL ASPECTS.
LACK OF UNDERSTANDING OF INDIAN CONSUMER BEHAVIOUR & HABITS.
PREMIUM PRICING POLICY.
POLITICAL - The government has the food acts and there is also ACFM (Association of Cereal Food Manufacturers) which deal specifically on cereal issues. Economic – The success is due to high usage but still threaten by the traditional breakfast. There are still opportunities to grow. Socio-cultural – Initial target was school student but grew the to whole family members. The eating habit has evolved. Technological Factors – The major player are seeking to diversify more and the production process is highly computerized. Environment – The players are proactive in CSR ( Corporate Social Responsibility) and do sponsor a lot of event relating to diet. Legal – EU ( European Union ) legislation regarding health, ingredients, labeling and storage. This legislation includes the Food Labeling Regulations and there is ACFM also and CEEREAL. PESTEL ANALYSIS:
Product: This element relates to how the company offers meets the changing needs and wants of customers. The growth in healthier lifestyles creates opportunities for Kellogg's to increase the number of products for this segment.
Price: The amount a company charges for its product is important in determining sales. Super brands like Kellogg's can charge a premium because of the strength of the brand and product quality.
Place: Where customers can purchase the product is also an important factor in determining sales. If a brand like Special K is not stocked in supermarkets where most purchases are made, sales will be lost.
Promotion: Communicating the availability of a product is essential. Kellogg's uses promotional media like TV advertising & promotion like sampling.
Markets are divided into market segments and there are six key segments to the Kellogg market, as shown on the diagram:
Tasty Start - the cereals that most people will eat to begin their day. Kellogg's brands include Kellogg's Corn Flakes and variations, such as Kellogg's Crunchy Nut.
Simply Wholesome. These are 'good for you' brands, such as Kellogg's Fruit 'n' Fiber
Shape Management. Brands that can enable customers to manage their weight or shape, such as Kellogg's Special K.
Mum Approved. Those that mothers see as being good for their children, such as Kellogg's wheat flaks.
Kid Preferred. The brands that children themselves prefer, such as Kellogg's Frosties, Kellogg's Chocó's and Honey Loops.
Inner Health. These are the brands that help people with digestion, such as Kellogg's All-Bran and Kellogg's Heart to Heart Oats.