Success factor of Kellogg Company in Indian market

Overview

American multinational company founded in 1906 by Will

Keith Kellogg; HQ- Battle Creek, Michigan, US
Worlds leading producer or cereals & convenience
Manufacturing units in 19 countries and marketing in more
than 160 countries around the world
Entered the Indian market in
Kellogg India- 100 per cent subsidiary of Kelloggs
Company, USA & largest player of cereals in Indian markets

Challenges
faced
while
entering
Indian
market

Initial low per capita consumption

Cultural differences- difference in taste palette from west
Price sensitive consumers
Availability of low priced, wide range of traditional foods

Success
factors

Innovative & customized marketing & brand building

o Strategic brand building through advertising &
investment on key brands
o School contact programs with independent agencies
& government
o Adoption of local brand name likes iron shakti
o Packaging as effective market tool; for brand
recognition & on-shelf differentiation
o Image building through recycle & reuse, health
awareness programs
o Emphasis on sales promotion- distribution of free
samples, discount on bulk purchase, free goodies,
promotion of Kellogg health week etc
Efficient supply chain network
o Local sourcing of raw & packaging material- inducing
low cost of production & packaging
o Manufacturing unit near biggest cereal market- low
transportation cost
o Well defined distributor network- 18 C&F agents
serving to more than 200 distributors
o Large number of retailing shops for detailed reach
o Emphasis on lesser inventories & better service levels
Customized products for Indian market
Positioning as fun& taste with nutrition
Pricing- price volume packages, small packages to induce
impulse purchasing
Constant emphasis on quality & innovation