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WELCOMEKelloggs Indian Experience

TOPICKellogg's was founded as the Battle Creek Toasted Corn Flake Company on February 19, 1906.The company produced and marketed the hugely successful Kellogg's Toasted Corn Flakes and was renamed the Kellogg Company in 1922.Kellogg Company was the worlds leading producer of cereals and convenience foods inlcuding cookies, crackers, cereal bars, and ice cream cones. Kellogg Company had set up its 30th manufacturing facility in India, with a total investment of $30 million.In 2012, Kellogg's became the world's second-largest snack food company (after Pepsico) by acquiring the Pringles potato crisps brand from Procter & Gamble for $2.7 billion in a cash deal.

Introduction of KelloggsFirst Kelloggs Package

Kelloggs initial offerings in India included cornflakes, wheat flakes and Basmati rice flakes launched in september 1994.According to analysis, out of every 100 packets sold, only two were being bought byregular customers; with the rest 98 being first-time buyers.Converting these experimenters into regular buyers had become a major problem for the company.Meanwhile, negative media coverage regarding the products increased, as more and more consumers were reportedly rejecting the taste.By September, 1995, sales had virtually sagnated.A FAILED LAUNCHKellogg realized that it was going to be tough to get the Indian consumers to accept its products.Kellogg banked heavily on the quality of its crispy flakes. But pouring hot milk on the flakes made them soggy.Indians always boiled their milk unlike in the west and it consumed it warm.When Kellogg flakes put in hot milk, it was not sweet enough because the sugar did not dissolve easily in cold milk.A major reason for Kelloggs failure was the fact that the taste of its products did not suit Indian breakfast habits.THE MISTAKESIndian people did have breakfast, consumed milk, biscuits, bread, butter, jam, and local food like idlis, parathas etc.The Companys advertisements and promotions initially focused only on the health aspects of the product.Kellogg had moved away from its successful fun-and-taste positioning adopted in the US.Another reason for the low demand was deemed to be the premium pricing adopted by the company.Kellogg products were clearly priced way above the product of its main competitor.Kellogg had also decided to focus only on the premium and middle-level retail stores.Kellogg decided to launch two of its hoghly successful brands Chocos in September 1996 and Frosties in April 1997 in India.The success of Chocos and Frosties also led to Kelloggs decision to focus on totally Indianising its flavors in the future.Tge decision to reduce prices seemed to be a step in the right direction.Kelloggs advertising had not been impressive in the initial years. Apart from JAGO JAISE BHI, LO KELLOGGS HI the brand had no long term business lines.SETTING THINGS RIGHT

In April 1997, Kellogg launched THE KELLOGG BREAKFAST WEEK a community- oriented initiative to generate awareness about the importance of breakfast.

Kellogg also Increased its focus on promotions that sought to include people to try their product and targeted schools across the country.

The company also offered free pencil-boxes, water bottels, and lunch boxes with every pack

Kelloggs also began working towards a better postioning plank for its products.In 1995, Kellogg had a 53% share of the Rs. 150 million breakfast cereal market.Kellogg also launched Krispies Treat an instant sanck targeted at children.Priced on the lower side at Rs 3 and Rs 5, the productwas positioned to compete against the products in the impulse snacks category.By 2000, the market size was Rs 600 million and Kelloggs share had increased to 65%.THE RESULTSTHANK YOU