This document analyzes Kellogg's entry into and growth in the Indian market. It summarizes that Kellogg's entered India in 1994 but initially failed due to not understanding Indian consumer behavior and culture. It offered only western products at premium prices. However, Kellogg's was later able to grow its market share in India by introducing new product variants tailored to India, using different marketing strategies targeting various consumer segments, and establishing a distribution network. The document examines Kellogg's product portfolio and marketing approach in India.

1. BRAND EXTENSION ANALYSIS
SAKSHI GUPTA
PGP30048

2. .
• Kellogg brothers established in 1906
• Manufacturing plants in 19 countries
• Sells in 160+ countries
• It has wide range of cereal products:
• Kellogg Corn Flakes
• Rice Krispies
• Special K
• Fruit and Fibre
• Nutri-grain Cereal Bars.

4. KELLOGG’S IN INDIA
History, Evolution and Present

5. • Entered in India in 1994.
• Products offered in India
:
• corn flakes
• wheat flakes
• basmati rice flakes

7. • Over confidence & ignorance
of cultural aspects.
• Lack of understanding of
Indian consumer behaviour &
habits.
• Premium pricing policy
• Western Product
KELLOGG’S FAILURE IN INDIA

8. PRODUCT FAMILY

9. Kellogg’s Musli Chocos
Special K Original

10. 0
5
10
15
2006 2010 2014
Growth in Cornflakes Market
Cornflakes
CAGR 21% CAGR 24%
PRODUCT CATEGORY SIZE

11. KELLOGG’S: GROWTH PATH

12. MARKET SHARE
0
20
40
60
80
1995 1998 2000 2010
Market Share in Cornflakes Market
Kellogg's Competitors

13. Analysis
s

14. • Introduced new variants from its vast product line of the west, to
make up for the bad performance of the star brand – corn flakes
• Introduced energy bars, biscuits etc
Different offerings
Product

15. Place
Healthy breakfast Kellogg’s will use the
already established distribution network that
kellogg’s uses for all its products.
Producer Wholesaler Retailer Customer

16. Promotion
TV: during lifestyle programs and during prime time
Magazines & Newspapers : lifestyle, focusing on women magazines in
particular. Examples include: cosmopolitan, cleo and woman’s day

17. • Super brands like Kellogg's can charge a premium because of the strength of
the brand and product quality
• They face tough competition from the local manufacturers which offer similar
product at low pricing
• However the quality and variety Kellogg’s offer offsets the other offerings by
different manufacturers.
Price

18. What’s Your Message?Market Segmentation

20. EXTRA IRON SHAKTI FOR GROWING
CHILDREN
 Focus on protein intake
 Influenced by advertisements

21. ORIGINAL SUITING EVERYONE
 Health conscious
 Price sensitive/ Value for money
 Quality conscious

22. SPECIAL K DIET FOR WEIGHT
MANAGEMENT WOMEN
 Women nutritional needs are different
 Result Oriented
 Healthy Requirements

23. CHOCOS IN DIFFERENT SHAPES FOR
KIDS
 Fascinated by ads
 Taste preferences

24. ALL BRAN WHEAT FLAKES FOR A FIBER
RICH DIET FOR ADULTS
 Health Conscious
 Less Price sensitive
 Nutritional outlook

25. COMPETITOR ANALYSIS

28.  The price of
Competitor
brands
 The local
belongingness
of competitors

29. PRODUCT
HASIT
ALL?

30. POINT OF DIFFERENCE

31.  Kellogg’s has differentiated itself on the basis of variety it offers
 It has also offered premium quality as differentiated from it’s direct
competitor
 Kellogg’s has different offering catering to different need of different
people in terms of age, character sticks and requirements

33. PERCEPTUALMAP

35. THANK YOU