Presented By:-

Deepmala Sanghi
 Founded by W. K. Kellogg in1906.

 Head office - Battle Creek, Michigan.

 The world's leading producer of cereals and convenience foods, including

cookies, crackers, cereal bars, frozen waffles, meat alternatives, piecrusts,
and ice cream cones.

 Manufacturing facilities in 19 countries and marketed its products in more than

160 countries.

 In 1980s, the company had reached an all-time peak, commanding a

staggering 40 per cent of the US ready-to-eat market from its cereal products
alone.

 In1990s Kellogg’s began to struggle - its nearest rivals General Mills

increased the pressure with its Cheerios brand.

 In 1990s looked beyond its traditional markets in Europe and the United
States in search of more cereal eating consumers.
 Kellogg's established its subsidiary in India, September 1994,
- Initial offerings cornflakes, wheat flakes and Basmati rice
flakes with US $65 million.

 New concept of eating breakfast cereal in India.

 Despite offering good quality products and being supported

by the technical, managerial and financial resources of its
parent, Kellogg's products failed in the Indian market.

 Without doing any further research of the market - introduced

to Kellogg’s Wheat Flakes, Frosties, Rice Flakes, Honey
Crunch, Special K and Chocos Chocolate Puffs – none of
which have managed to replicate the success.
• 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
• Slow erosion of their U.S. market share
in the past few years.
• Follower in Pricing Strategy.

• High Prices
• International expansion is the biggest area for
growth of Kellogg’s.
• 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.
 MarketShare

cornflakes
m ohun
privateplayers

10

20

70
 Mohan Mekean, Quaker Oats and Private
Labels are using price competition and
product proliferation to erode Kellogg’s
share of the market.
 Competitors
High

Kellogg
PRICE/QUALITY/IMAGE

Quaker
Mohan Oats
Mekean

Private
Label
Low

Brand Cereals
LINE/MANUFACTURING PRODUCT MIX
• To know the reasons behind the failures of
Kellogg’s Cornflakes in India.

• Attitudes and Perception of Customers

towards Cornflakes.
“Kellogg's is the brand
that is still Struggling
in India!”
• Sample Unit: - Kalkaji and Greater Kailash
• Time: - Evening
• Sampling Method: -Convenient
• Sample Size: -50
• Statistical Tool: - SPSS

Sources of data:-

• Primary data – Questionnaire

• Secondary data – Internet and case studies
1. What you usually have in your breakfast?

Which_Brkfst

Dalia 2

Milk+Biscuit 8

Bread+Butter 4

Milk+Paratha
W

20
B
s
k
_h
ic
r
t
f

Milk+Fruit 7

Cornflex 9

0 5 10 15 20
Frequency
2. Has Cornflakes ever been a part of your
breakfast?
– Yes
– No

Part_of_Brkfst

No 66
B
P
o
s
k
_
a
r
f
t

Yes 34

0 10 20 30 40 50 60 70
3. Which brand of Cornflakes you have heard of?
• Mohan
• Kellogg’s
• Any other, Please specify……………

Brand_of_Crnflex

Other 6

Both 28

Kellogg's 54
C
B
o
d
n
x
e
_
a
r
f
l

Mohan 12

0 10 20 30 40 50 60
Percent
4. Which brand of Cornflakes do you prefer to eat?
• Mohan
• Kellogg’s
• Any other, Please specify……………

Brand_You_Prefer

Other+Kellogg's 6

Both 10

Kellogg's 64
B
P
Y
u
o
d
n
e
_
a
r
f

Mohan 20

0 10 20 30 40 50 60 70
P
erc
ent
5. Where did you came to know about it, in case
you are aware of Kellogg’s Cornflakes?

• TV Commercials .Shopkeepers
• Print Ads .Hoardings
• Family .Others, Please Specify………………….
• Friends
Information_Source

MoreThanOne 26

Friends 2

Family 10
S
u
e
cm
o
In
i_
a

Print Ads
r

10
t
f

TVComer 52

0 10 20 30 40 50 60
6. Have you ever tried Kellogg’s Cornflakes?

• Yes
• No

Evr_Tried_Kellogg

No 20
K
E
g
o
d
T
e
_
v
r
l
i

Yes 80

0 20 40 60 80
Percent
7. Do you still have Kellogg’s Cornflakes?

• If yes, how long you have been using it………………………………

• If no, reasons for not using it……………………………………….…

Still_havin_kellogg

7
0

60

5
0

4
0
P
n
c
e

6
6
r
t

3
0

2
0

1
0 2
0
14

0
Yes No n
oanswe
r
S
till_ha
vin_kellogg
8. What are the factors that induce you to try
Kellogg’s Cornflakes?

………………………………………………………
………………………………………
There are many factors and forces that induce people to try Kellogg’s,
some of them are listed below:-
• -It is healthy and tasty.
• -Attractive ads.
• -Light and non-oily.
• -Full of proteins.
• -Good Quality.
• -Tasty
9. Have you ever seen any Print or TV Ads of
Kellogg’s Cornflakes?

• Yes
• No

Print_TV_Ad

No 10
A
V
P
d
T
n
_
r
t
i

Yes 90

0 20 40 60 80 100
P
erc
ent
10. What all factors you can recall from those
advertisements?

………………………………………………………………
………………………………………………………………
………………………………

Factors and things they can recall:-

• Cock on the box of Kellogg’s cornflakes.

• Taste with health.
• Morning Break Fast.
• Nutrition.
• Good flavor and Quality.
• Cartoon character (The Bear).
• Light and Healthy.
• Iron Shakti.
11. Who prefers the most to eat Kellogg’s Cornflakes
in your family?
• Children
• Youngsters
• Middle age
• Elders

c
hid
ren

5
0

4
0

3
0
P
n
c
e

4
8
r
t

2
0

3
2

1
0 2
0

0
y
es n
o n
oan
swe
r
c
hid
ren
 youngsters

no answer 20

no 32
g
n
u
o
te
rs
y

yes 48

0 10 20 30 40 50
Percent
 middleage

noanswer 20

no 50
g
a m
id
le

yes 30

0 10 20 30 40 50
Percent
 elders

no answer 20

no 64
ld
s
re

yes 16

0 10 20 30 40 50 60 70
Percent
12. Any suggestions you want to give for Kellogg’s
Cornflakes?
………………………………………………………………………………………
………………………………………………………………………

Su
g g
estion

No
tGiv
e n 6
6
S
n
o
g
u
s
e
t
i

G
iv
e n 34

0 1
0 2
0 30 4
0 50 6
0 70
P
erc
ent
• Milk, parathas, bread, biscuits are the some of the things
people have in there breakfast. People are not really fond of
cornflakes.

• Maximum People have heard about Kellogg’s cornflakes,

which mean people are well aware of the products of
Kellogg’s.

• Most of the people have seen Kellogg’s TV commercials and

they are aware of it. This shows that advertising campaign
more or less successful in creating awareness about
Kellogg’s.
• People are induced to try the product, as many as 80%
of the people have tried Kellogg’s. But people
discontinue eating it and there is no repeated purchase
of the product. Reasons are its high price and taste.

• On advertising front Kellogg’s has been successful in

communicating that cornflakes are light, healthy and
full of nutrients. Advertisements are also attractive as
people can easily recall its ad as 90% of the people
have seen Kellogg’s ads.

• People can easily recall what its ad want to convey like

cock on the box, taste and health, light and nutritious,
quality.

• People of all age group take cornflakes.

 Changing the perception of customers.
 Maintain Top of the mind awareness.
 Highlighting features and ingredients of
Kellogg’s.
 Family orientation.
Complete Family with the Elders
(Upper & Middle Class)

Healthy and Nutritious Food.

Print, TVC’s & Internet to grab the

attention of whole family.

Through out the year but

specially in beginning and
in between Summers .

More Frequently before &

during Summer Vacations.
Price
 Kellogg’s Family is the Healthy Family.

 Nutritious @ Great Indian Taste.

 Carbohydrates+ Calcium+ Iron+ Proteins+

Minerals+ Vitamins = Kellogg’s Family =
Healthy Family
 Cock to Alarm Clock: To make the advertisement realistic we have
changed the concept of “COCK TO ALARM CLOCK”. Gone were
the days when cocks used to make people awake. We have
replaced cocks by Alarm Clock.

 Family Orientation: As the time is changing, people have become

more health conscious day by day. By emphasizing on its features
&ingredients, we can promote it as ‘Family Food’.

 Morning as well as Evening: Kellogg’s advertisement emphasis on

morning breakfast but we can also promote it as evening meal. As
most people feel hungry when they return back from their work.
Kellogg’s cornflakes can substitute evening meal as it is better and
healthier which is also light.
 Print Media Advertisement

 TV Commercial Advertisement

 Radio Advertising

 Internet Advertising
 Price Affordability: Price has always been a very big factor
for Indian consumer, they are very price conscious. High price
is one of biggest weakness of this product.

 Taste: Respondent says that its taste changes when it is

taken with milk. So taste factor need to be taken care of.
Taste should be such that it makes good combination with
milk.

 Target Audience: Elder people are the biggest consumers of

cornflakes according to our research. so its target audience
should include elder people too.
 Scope of the research was narrow.
 Limited sample Size.
 Covered limited Geographical area.
Kellogg’s Tomorrow