This document provides an overview of Kellogg's entry into and experience in the Indian market. It discusses how Kellogg's products initially failed in India in the 1990s due to a lack of understanding of Indian consumer behavior and culture. However, Kellogg's later found success by launching variants targeted at kids like Chocos and focusing on Indian flavors. The document also analyzes Porter's Five Forces for the Indian cereal market, noting competition from substitutes and new entrants while discussing Kellogg's strategies around suppliers and customers. By 2010, Kellogg's had grown to hold 70% of India's 500-crore cereal market.

1. Porter Five Forces Analysis OnIndia

2. Porter Five Force Model

3. Company FactsEstablished in 1906 founded by Will Keith KelloggProducts manufactured in 18 countries and marketed in more than 180 countries around the world.World's leading producer of cereal and a leading producer of convenience foods, including cookies, crackers, Toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and vegetarian foods.Post liberalization, company entered India in 1994.

4. Kellogg`s India `S Kal In 1994

9. Established Products

11. Indian ExperienceOur only rivals are traditional Indian foods like idlis and vadas."- Denis Avronsart, Managing Director, Kellogg India.Products offered in India Corn Flakes, Wheat flakes, Basmati rice flakes.April 1995, 25% decline in sales in comparison to last month.Despite offering good quality products and being supported by the technical, managerial and financial resources of its parent, Kellogg's products failed in the Indian market. High-profile launch backed by hectic media activity failed to make an impact in the marketplace.

12. Reasons for FailureOver confidence and ignorance of cultural aspects.Lack of understanding of Indian consumer behavior and habits. Premium pricing policy.Banked heavily on crispy flakes.

13. Intensity of Competitive RivalryChocos launched in India in September 1996.

14. Targeted at Kids with mascot monkey “Jose”

15. Chocos were wheat scoops coated with chocolate.LauchedFrosties in India April 1997.

16. Frosties had sugar frosting on individual flakes

17. The success of these variants took even Kellogg by surprise and sales picked up significantly.

18. It was even reported that Indian consumers were consuming the products as snacks.Followed by the launch of Chocos Breakfast Cereal Biscuits.

19. The success of Chocos and Frosties also led to Kellogg's decision to focus on totally indianising its flavors in the future.

20. “Honey loop” being aggressively promoted in electronic and print mediaSustained brand-building through advertising and investment behind key brands.• Introducing a limited edition Kellogg’s Chocos Spider Man 2 “web designed cereal” • Conducting school contact programmes and having active interface with opinion leaders – CFTRI, the government, independent agencies etc.• Adopting brand names that appeal to the Indian consumer such as ‘Shakti’, meaning power• Using packaging as an effective marketing tool, for brand communication and on-shelf differentiation• Image building through recycling and reusing, improving access to health and human services in local communities

21. Total Indian Cereal MarketMarket of Rs.500 Crore

22. Various brands available Threat Of The Substitute Products/BrandsPepsico`sQuacker oat

23. Mohan Meakins

24. Bagrry`s