In this assignment , I presented why KELLOGG's failed in INDIA , what was the mistake they did , what is the remedies they can use .

1. Rid in India.
Made By Shivam Kumar Gupta.

2. Kellogg’s
Founded by Will Keith Kellogg in Battle Creek,
Michigan, in 1906
Has manufacturing plants in 19 countries
Sells in more than 180 countries
Offers more than 50 different products worldwide
Total revenue $ 12.4 billion in 2010
World’s leading producer of cereal and convenience
foods

3. First coming
in India
LAUNCHED IN SEPTEMBER
1994
HIGH PROFILE LAUNCH EXCITED MEDIA ACTIVITY
INVESTED MORE THAN $30
MILLION IN INDIA
COMPLETELY UNTAPPED
MARKET POTENTIAL
INTRODUCTION OF NEW
TREND WITH NUTRITIONAL
VALUE IN BREAKFAST

4. A Failed
Launch
25% decline in
countrywide sales
since March 1995
Consumers reportedly
rejected the taste
Expensive product
Wrong evaluation of
projection in market
demand
Less than 5% buyers
were regular
customers

5. Reason of
failure
Ignorance of cultural aspects
Lack of understanding of Indian consumer behavior
and habits
Premium pricing policy
Low/scattered availability
Flawed positioning

6. The Re-Launch
Launch two of its
highly successful
brands –
Chocos
(September
1996)
Frosties (April
1997)Also launched
Mazaa Series in
August 1998

7. The Second
Coming
REFOCUSED ON ‘FUN-&-TASTE’
POSITIONING.
REDUCTION IN PRICE - BROUGHT
DOWN PRICE PER KG BY 20%.
DIFFERENT SKU’S – 500 GM FAMILY
PACK, RS.10 PACK OF EACH VARIANT.
GAVE AWAY FREE GIFTS WITH PACKS
OF CHOCOS.
EG. GLOWING STICKERS WITH RS. 10
PACK OF CHOCOS.

8. Current Market Scenario
• Kellogg’s has more than 65% percent of market share of Rs.
600+ crore morning cereals market, where the current market
will more than double in next 4 years

9. SWOT
Strength
• Kellogg’s flexibility and adaptability towards
consumer needs
• Customization of products
• History of changing food habits globally
Weakness
• If even they liked taste, the product was too
expensive initially
• Product not adopted to the Indian taste or
Indian traditional food habit
• Wrong evaluation of projection in market
demand.
Threats
• Cultural factors and eating habits
• Population not used to processed foods
• Easy availability of traditional breakfast
• Blinded by the population figures of India
• Low awareness about processed foods and
calorie requirements
• Price sensitive customers
Opportunity
• Introduction of new trend with nutritional
value in breakfast
• Changing work-life demanding processed
foods
• Less competition
• Scope for entering untapped markets

10. SUGGESTIONS FROM NON- USERS
If portrayed as more
filling breakfast and
Indianised, Kellogg can
substantially increase
its consumer base in
India.

11. SUGGESTIONS FROM USERS
Users clearly pointed
out that taste is the
most important driver
to purchase cereals
after nutritional value

12. Lessons and Conclusion
THE HABIT BARRIER THE PRICE BARRIER
ADVERTISING PLAYS
AN IMPORTANT ROLE

13. Reffrences
Dr. Sunanda Jindal
Linkedin
Google