2. CONTENT
1. INTRODUCTION
How the company entered India
The purpose of the case study
2. BACKGROUND
3. THE LAUNCH
4. PROBLEMS FACED
5. IMPACT
6. LESSONS LEARNED
7. CONCLUSION
3. INTRODUCTION
โข MNC that specializes in breakfast cereals and snacks
โข Founded in 1906 by W.K. Kellogg
โข HQ - Michigan USA
โข Manufacturing facilities in 19 countries.
โข Market in 160 countries to 180+
4. 1. How the company entered India?
Global presence
Indian market
large population
strategic market
2. The purpose of the case study.
Examine the challenges
understand the reason
strategies adopted
5. BACKGROUND
โข Indian breakfast market and consumer preferences.
(Diverse and complex, middle class, local and familiar flavours , idlis,
parathas, healthy food )
โข Challenges Kellogg's faced when launching in India
Awareness and demand
Pricing
Distribution
Product localization
Established players
6. THE LAUNCH
โข Launched in 1994 , 30TH MANUFACTURING facility in India
โข Initial offerings in India included cornflakes, wheat flakes and basmati rice flakes
โข Offering good quality products
โข Supported by the technical, managerial and financial resources of its parent,
โข March 1995, Kellogg faced 25% decline in sales
7. PROBLEMS FACED
โข FAILED IN INDIAN MARKET
1. Lack of understanding of the Indian market and consumer
preferences
2. High pricing
3. Distribution challenges
4. Cultural barriers
5. Competition
8. IMPACT
โข The impact of the failed launch on Kellogg's and its reputation
FINANCIAL
REPUTATION
COMPETITOR ADVANTAGE
BRAND IMAGE
9. LESSONS LEARNED AND THINGS THE COMPANY
COULD HAVE DONE DIFFERENTLY.
โข Conduct thorough market research
โข Adapt products to local preferences
โข Price products appropriately
โข Build a strong distribution network
โข Build brand awareness
โข Be adaptable
10. CONCLUSION
โข Importance of understanding local markets
โข Success in one market does not mean success in another.
โข Willing to adapt to local preferences
