Kellogg’s Corn Flakes Presented by Nishant dubey Sunil joshi Khushboo udeshi Richa kankaria Vaibhavi oza Tina wadhwani Mangalik joshi
Facts from the Case• Food Products manufacturing company based in Battle Creek, Michigan, USA.• Having varieties of ready to eat foods.
• Doing supportive activities like grain milling and carton printing as well.• Kellogg International handling business outside of USA and Canada.• Kellogg having good presence outside of USA.• Kellogg’s Corn Flakes is the Premium product.
Present Marketing• Company’s own Sales team, broker and distributor arrangements.• Emphasis on Consumer’s knowledge regarding nutrition in the product• Health of consumers is in priority
Building a Brand• Promotion is just one element of the marketing mix called by 4 ’Ps. Key elements:• Consumer: who can be encouraged to purchase by an attractive and exciting offer.• Advertising: the consumer promotion needs to be brought to the publics attention with a strong message.• Trade: Kellogg needs them to support the promotion. Shops and other sales outlets should know the advertising is coming, so they can buy in enough stock and benefit from the promotion by displaying point-of-sale material.
• first targeted families• The second event was aimed at adults and involved just one brand - Kelloggs Crunchy Nut• familiar characters (Tony the Tiger and Coco Monkey) with Star WarsTM
Q) Should the product itself(cornflakes) be standardized or adapted for world market ?
Standardization or Promotion• Corn Flakes are quite possibly the dullest, soggiest, and least appetising breakfast cereal known to man• large amount of promotions placed on the boxes, such as "Please Buy Them” and "If You Buy Them There May Or May Not Be A Winning Ticket Inside The Box", along with "Free Cereal Inside" (which is surprisingly successful, considering that this is not advertising a gift or anything, merely the fact that if you buy this product, you will receive the product, and that is in most cases, a minimum requirement for a box of cereal) and "50% Off Your Next Trip To The Cardiff Dairy Farming Museum”. How this promotion works is anyones guess, as there are actually no cows in Cardiff, and the museum is free anyway.• "spokey-dokeys" - bicycle wheel attachments
Q) Should the brand andtrademark Kelloggs Corn Flakes and the familiar red script be uniform in all markets ?
Branding – India v/s World• Firstly, Indians have always preferred their milk hot.• Cultural dimensions of India – Packaging & Pricing• Convincing consumers about the highly nutritional contents of the corn flakes.• Extremely strong cultural values• Globalization may be an increasing trend, but regional identities, customs and tastes are distinct as ever
• Quality is Defined by the Buyer• Global brand – Worldwide use of a name, term, sign, symbol (visual and/or auditory), design• The Brand name – encompasses the years of advertising, good will, quality evaluation, product experience, and other beneficial attributes the market associates with the product.
A promotion will affect all parts of Kellogg business including:• Sales - both to the consumer and to the trade• Marketing - all the elements of the marketing mix• Packaging - the designs for promotional packs, inserts and other parts of the promotion need to be supplied• Legal - this does not just involve making sure the promotion is legal, but also handling the contracts for the various agencies and partners that help the business with the event• Quality - any free gifts or other promotional items have to be tested for quality and safety• Supply Chain - Kellogg needs to make sure that it has enough stock to keep the trade supplied when demand increases. This could mean building up stocks in response to the forecast change in demand• Finance - the event has to be budgeted for. Finance will also carry out predictions and feed back information on the effectiveness of the event through the changes in sales value before and after.
Promotional team is responsible for:• Communicating appropriately with all other areas of the business and external bodies.• Developing original, creative, innovative and exciting ideas that will attract the attention of consumers.• Delivering the event, ensuring all parts are working together in an effective way and each part is launched and supported at the right time and in the right place.• Getting the flow of promotional stock into and out of stores on time - this is critical to an events success.
Q) What is the appropriatepackaging for foreign markets ?
Packaging in foreign markets:International marketers need to take into account thefollowing factors for deciding appropriate packaging invarious international markets;• changes in climates across countries• lengthy & difficult transportation• lengthy periods on shelves• varying sizes of packaging• different consumer preferences in packaging
• some standardization needed to make theproduct recognizable• growing environmental consciousness• different cost pressures
Q) What is an appropriate labeling strategy for world market ?
Labeling strategy for world markets: International marketers also need to design appropriate labeling for various markets, to cater for the market differences as well as to adhere to regulations.• different languages of foreign markets• information details to be provided• instructions for use
• different price or currencies• different promotions• consumer preferences in various markets (color, wording style etc..)• rules and regulations of foreign countries