Kellogg’s Strategy In Indian

Market

KELLOGG’S Strategy in Indian Market.

• Presented By Simi Samkutty (41) Pratiksha Rane (42) Jayashree Prabhu (43) Amit Jain (44) Manas Bendre (45) Sagar Thakur (46)

History• Birth of Wheat

Flakes • 1906, W.K. Kellogg

entered the cereal business

• Formation of Battle Creek Toasted Cornflake Company

History

• Kellogg opened its first foreign cereal facility in 1914 in Canada.

• Renamed KELLOGG’S company in 1922.

• Worldwide Expansion by 1938.

Kellogg’s in India

• Launched in Sep 1994.

• Reason for Entering Indian Market.

Kellogg’s in India• The Indian market, posed

several Challenges :-

Cultural factors and eating habits

Easy availability of low-priced traditional breakfast

Low awareness

PRODUCTS

Kellogg’s Existing Products

Recent Launches

Kellogg’s Snacks

Kellogg’s Biscuits

PRICE

PRICING• At introduction price of products were high.

-Indian consumption pattern

• Later they launched their no.1 product of U.S. i.e.

corn flakes

- skimming price

- Indians less concern about quality

than quantity .

Pricing strategy

• Localized the entire raw and packing material

requirement, saving import duty .

• Reduced transportation cost .

• Distribution network .

• Overheads were reduced .

• Deploying Oracle 11i based ERP system .

• Wide range of products compared to competitors .

• Offers brand differentiated pricing .

KELLOGGS KELLOGGS

- SPECIAL-K - CHOCOS - ALL BRANN

- FROSTIES

HIGH LOW PRICE PRICE KELLOGGS

- CHOCO SMACKS

LOW NUTRITION

HIGH NUTRITION

PROMOTION

• Nutrition to fun-filled flavors .• Consumer promotions 25-

crore media-spend.• Promotion in Schools and

Health Clubs in Eastern India.

• launches Diwali gift packs for kids

• Advertising.• Internet Marketing

• Distributed free samples of cornflakes• Heavy advertising of chocos in 1996• .Kellogg's' mobile contest to promote Chocos• Biscuit promotion:-initial communication

about chocos was theme based .• Chocos Biscuits :25% extra is spent on

Consumer Position 5% extra on Trade promotions.

Digital & online Advertising.

• .

PLACE

Distribution• Kellogg’s gives its Distributors a margin of 5% and

12% to its retailers. Whereas the competitors give a margin of 10-15% to its distributors .

• Set up a distribution network with storage hubs in all the key states of the country (18 clearing and

forwarding agents) serving over 200 distributors providing a good reach.

Channels of Distribution

• . Manufacturers

C&F

Stockist

Retailers

Consumers

LEVERAGE OF BRANDLEVERAGE OF BRAND ANDAND

BRAND EXTENTIONBRAND EXTENTION

BRANDING

What is Brand? “Brand is a name,term,symbol,design or

combination of them which is intended to identify goods & services & to classify them from those of competitors.”

Component of Brands:- 1) Attributes: - 4) Culture: - 2) Benefits: - 5) Personality:- 3) value: - 6) Users:-

INDUSTRY ANALYSIS5 players in Indian market:-1) Kellogg's2) Mohan's3) Champion Oats & Gold crunch4) Murgin's5) Bagrry

TARGET SEGMENT 1) Kellogg's -

Premiums segment 2) Others- Middle & lower income (economy product)

2007-2008

YR MARKET SHARE

19982000

53% MORE THAN 55%

MORE THAN 66%

75% -81%

Market share of Kellogg's cornflakes Brand

Problems in Kellogg's marketing

• The biggest mistake which the company committed was that it expected to change the Indian breakfast habit

• Product Defects: crispy flakes were not available.

• Positioning mistakes:“health product” image instead of its successful “fund-and-taste”. Higher prices gave the brand a “premium image”.

.

• Pricing mistakes: The product was highly priced. So, the product became unattainable for the average Indian.

• Faulty Distribution: The company focused only on the premium and middle level retail stores for its distribution. This decision put a large section of the Indian population out of its reach.

STRATEGY

E G M E N T A T I O N

A R G E T I N G

O S I T I O N I N G

I F F E R E N T A T I O N

E G M E N T A T I O N

A R G E T I N G

O S I T I O N I N G

IFFERENTIATION

Webliography

www.google.comwww.kelloggs.comwww.wikipedia.com