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Established in 1906 founded by Will Keith Kellogg and headquartered in Battle Creek, Michigan Products manufactured in 18 countries and marketed in more than 180 countries around the world. With projected annual sales of over $9 billion, Kellogg Company is the worlds leading producer of cereal and a leading producer of convenience foods, including cookies, crackers, toaster pastries, etc.

VISION : TO BE THE FOOD COMPANY OF CHOICE MISSION : TO DRIVE SUSTAINABLE GROWTH THROUGH THE POWER OF OUR PEOPLE BY BETTER SERVING THE NEEDS OF OUR CONSUMERS, CUSTOMERS AND COMMUNITIES

Sustainable Growth

Manage for cash

GROW CEREAL EXPAND SNACKS

Kellogg India is a 100 per cent subsidiary of Kelloggs Company, USA, and is the largest player in the Indian breakfast cereal market. It entered into India post-liberalization in 1994. Kellogg India has over 100 employees and has invested over US$ 30 million. Kelloggs Corn Flakes was the first product it introduced in India

The Indian ready-to-eat-cereal market posed several challenges:

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Cultural factors and eating habits population not used to processed foods Easy availability of low-priced traditional breakfast Low awareness about processed foods and calorie requirements Price sensitive customers

Premium pricing policy Lack of understanding of indian consumers behaviour and habits Treated as a novelty Competition from traditional breakfast items.
Our only rivals are traditional Indian foods like idlis and vadas."

- Denis Avronsart, Managing Director, Kellogg India.

Marketing and brand-building

- Sustained brand-building through advertising and investment behind key brands. - Adopting brand names that appeal to the Indian consumer such as Shakti, meaning power. - Using packaging as an effective marketing tool, for brand communication and on-shelf differentiation

- Introducing a limited edition Kelloggs Chocos Spider Man 2 web designed cereal which is part of the global association between Kellogg Company and the movie Spider Man 2. - Conducting school contact programmes and having active interface with opinion leaders CFTRI, the government, independent agencies etc. - Image building through recycling and reusing, improving access to health and human services in local communities.

Improving supply chain network - Localized the entire raw and packing material
requirement. In addition it has adopted single sourcing strategy. - 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. - Located its manufacturing plant at Taloja, near Mumbai in the state of Maharashtra.

- Optimising overheads by giving distributors larger

responsibility for sales - Deploying Oracle 11i based ERP to enhance supply chain transparency leading to lesser inventories and better service levels. Other locally developed systems help monitor stocks and movement on a daily basis.

Customizing products for India - Kellogg India has widened its product portfolio and expanded its range to include Frosties, chocolateflavoured scoops and taste variants of Corn Flakes. Strong support from parent - Kellogg India receives technology inputs (in customising products to suit the Indian nutritional profile, developing packing material for India, manufacturing process etc.) from its parent.

STRENGTHS - Control 42%of global market share for cereal, which is more than triple the market share of any of their competitors. - They have the strongest brand recognition and advertising recollection of all the cereal manufacturers

WEAKNESSES - Premium pricing strategy

OPPORTUNITIES - Kellogg can continue to slowly diversify, while still remaining in their core business area, which will increase their profitability. - If they can develop a better pricing strategy and guarantee lower prices, they can reduce costs while increasing their market share.

THREATS - Increasing competition from substitute brands and more companies coming out with cereal products.

The Indian cereal market in India today is worth Rs. 500 crores Growth projected at 20% annually Kellogg India holds about 70% of the market share

Kelloggs India has widened its product portfolio and expanded its range. It has also adapted its products to address the local need gaps. Consumer is the king is well understood by this company.

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Kellogg Global website Research papers Google Wikipedia

By : Rohan Bansal Roll No. 5 Pragnesh Navadia Roll No. 30 Shobhit Mishra Roll no. 29 Amit Satwani Roll No. 38 Bian Rajpopat Roll No. 34 Drasti Doshi Roll No. 13 Sneha Pallavi Roll No. 31

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