This PPT shows all the aspects of Kellog's while entering into the Indian Market, why they got failed in India, how to overcome, their mission and vision and products.

1. Kellogg's Indian
Experience

2. Introduction
• Kellogg was the firstly owned Indian
subsidiary of the Kellogg company in Battle
Creek, Michigan.
• Kellogg company was the worlds leading
producer of cereals and convenience foods ,
including cookies ,crackers, Cereal bars and ice
creams .
• Founded in 1906 ,Kellogg's Company had
manufacturing facilities in 19 countries an
marketed its products in more than 160
countries.

3. • Launched in September
1994,Kelloggs initial offerings in
India included cornflakes and
basmati rice flakes.
• Its turnover in 1999 was 7 Billion
• Kellogg company had set up its
30 th manufacturing facility in
India with an investment of US$
30 million.

4. MOTTO
•Breakfasts for better
days

5. KELLOS
PORTFOLIO
BRANDS

6. Vision and
mission

7. Cereal
Industrie In
India
Today the breakfast cereal industry in India is
worth Rs. 500 crores. 80% of the business is
cornflakes and the rest is imparted by Oats,
Muesli and Wheat Porridge. Kellogg’s has a
market share of 70% valued at Rs.350 crores.
The industry was pegged at Rs. 150 crores
course back in 1995 and the development
over past 15 years is just 8.4% per annum. It
has taken quite a while for Indians to accept
cereals for breakfast. The class is accepted to
be developing at 20% to 25% now.

8. Kellogg’s: How did they go
wrong?
• Kellogg’s entered India as a premium
product with high value.
Unfortunately, this strategy did not
succeed for a variety of reasons.
1.Taste of its products did not suit
Indian breakfast habits.
2.Positioning front
3.Premium pricing adopted by the
company

9. HOW DID
THEY COPE UP
WITH ABOVE
CHALLENGES?
To get more customers to attempt their
feature, they started Rs. 10 packs in 2010
(called Kpak). This additionally made them
expand conveyance. Needing a little shop to
keep a great box of Kellogg’s was strong,
however its more straightforward to place a
Rs. 10 pack.
Kellogg’s in addition concocted variants
to suit neighbourhood tastes; Mango,
Honey, and whatnot.
To addition a basic entrance into the
business, Kellogg’s first focused on
youngsters. Persuading children was much
more straightforward for them than swaying
grown-ups. All of the proposed moves have
surely encouraged Kellogg’s arrive at to this
position today.

10. Where is the rivalry?
• Cornflakes is 80% of the breakfast cereals
business and Kellogg’s manages the perch
here. The alternate major player in the
business sector is Mohan Meakin.
• Pepsi has Quaker oats not cornflakes.
• Marico has Saffola Oats however no
cornflakes.
• Britannia in addition has Oats and Muesli
however no cornflakes and cornflakes is a
400 crore business contrasted with 80-100
crore Oats.

11. Consumer
behaviour
• Before the product was nationally available in
march 1995, the demand from the Mumbai had
been encouraging.
• After year of its launch in Mumbai ,Kellogg had
acquired a 53% market share.
• And then company accelerated its national
expansion plans and launched the product in 60
cities in 15 month period.
• Kellogg also decided to focus on their premium
and middle level retail stores.

12. Setting Things Right
• Disappointed with the poor performance,
Kellogg decided to launch two of its highly
successful brands – Chocos (1996), Frostis
(1997) in India.
• And this made Kellogg's to realise Indian
consumers were consuming the products as
snacks.
• The success of Chocos and Frosties led to
Indianizing its flavours and resulted in the
launch of Mazza series in 1998 ,Mango Elaichi
,Coconut kesar and rose .
• Kellogg was careful not to repeat its earlier
mistakes ,it did not position Mazza in the
premium segment.
• The glossy cardboard packaging was replaced
by pouches, resulted in reducing the price.

13. Kellogg's advertising
• Kelloggs advertising had not been very impressive in
the initial years.
• “ Jago Jaise bhi, lo Kellogg's HI", the brand had no
long term baseline apart from this .
• One of its campaigns showed a cross section of
individuals ranging from a yoga instructor to a
kathakali dancer attributing their morning energy
and fitness to Kellogg.
• And this resulted that cornflakes could be taken
with curds, honey and banana.

14. • In April 1997, Kellogg launched ‘the Kellogg breakfast week’.
• The programme is all about the importance of breakfast .
• The program focused on prevention of anaemia and conducted a
series of nutrition workshops.
• And also initiatives to promote the awareness of the importance of
iron in the diet.

15. Promotions
• Kellogg identified distribution as
another major area in order to
increase its penetration.
• They targeted schools across country .
• In 1996,the company offered specially
designed 50 gm packs free to
shoppers.
• The company also offered free pencil
boxes, water bottles, and lunch boxes
with every pack.
• Dispensers offering the products were
also put up in petrol pumps, super
markets, airports.

16. Distribution
• Kellogg identified distribution as another
major area to increase its penetration.
• In 1995,kelloggs had 30,000 outlets, which
was increased to 40000 outlets by 1998.
• Considering coverage aspect, it had started
its plants in Mumbai and Andhra Pradesh .

17. Kellogg's Today
• In 1995 ,Kellogg had a 53% of the Rs.
150 million breakfast cereal market.
• It had been growing at 4-5% per
annum.
• By 2000, the market size was Rs. 600
million and Kellogg's share increased to
65%.
• Kellogg’s India have just registered a
landmark sale of Rs.500 Cr!
• Kellogg’s is right now enjoying 70% of
the market share in India.

18. THANK YOU