Kellogg’s Company born in 1906 by Will Keith Kellogg.
W.K. persuades John Harvey to start a commercial cereal
business initially called the Battle Creek Toasted Corn Flake
Headquarter is in Battle Creek, Michigan, United States.
Kellogg company is the world’s leading producer of cereals
convenience foods, including cookies, crackers, cereal bars etc.
Kellogg had manufacturing facilities in 19 countries and
marketed its products in more than 160 countries.
In 1909 The company introduced its second product
to the public, Kellogg's Toasted Rice Flakes.
In 1994 Kellogg’s company came into Indian market.
Kellogg’s offering products to india such as corn flakes,
wheat flakes, basmati rice flakes.
Despite offering quality products Kellogg's products
failed in the indian market.
Major competitors for Kellogg’s in India is the following
REASONS TO FAIL IN INDIAN
Kellogg’s flakes made for cold milk which does not
suits Indians taste.
If Kellogg’s flakes will put in hot milk, it will become
soggy and taste won’t be good.
Therefore Kellogg’s products did not suit indian
CHALLENGES FACED BY KELLOGG
Price Sensitive customers.
Easy availability of low-priced traditional breakfast.
Indians always boiled 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.
1. What were the reason behind poor performance of
Kellogg in the initial stages? Do you agree that a poor
entry strategy was responsible for the company’s
problems? Give reasons to support your answers?
Ans. Yes, we agree with this statement.
Traditional Indian foods
2. Analyze Kellogg’s efforts to revamp its marketing mix
and comment on the initiatives taken regarding each
elements of the marketing mix?
Product: Launched Chocos and Frosties based Indian
customer preferences. Later diversified into different
Price: Introduced the 500gm family pack which brought
down the price per kg by 20%. Mazza introduced in
60gm pouches, priced at Rs 9.50.
Place: Kellogg’s increased its outlets from 30000 to
40000 to make available its products everywhere.
Promotion: Kellogg’s increased its focus on promotion
to induce people and to create awareness. Therefore
they visited schools and distributed samples and
conducted programs in Chennai, Delhi, and Mumbai to
educated about importance of breakfast and health.
3. Do you think the Company’s decision to launch
biscuits and snacks was a right one? Give reason for your
Ans. Yes, according to our group Kellogg’s decision is
right one. Because product line is very important for any
company for stability. With single product no company
can be stabled for longer time in uncertain market.
Therefore they should have products portfolio so they
could make profit from any one product.