Kellogg’ Biiiies S$ Cornflakes in India: Inga Platf Connects orm that Mothers know what they want and when; we can‘ ug” the Head of Marketing at Kellopy’s 1, \ struggling to find an appropriate ce 2 dd growth, The brand was globally accepted: Foggled to find a suitable place in censure owth strategy. pi 0 1 Push our offering to them without giving them a reason clarified. The Kellogg’s cornflakes marketing t platform for the brand to increase sales and en| ed but its journey in India has been bumpy. They 's heart and mind, and again they were rethinkiny v BREAKFAST Marker In INDIA The breakfast cereal market in India was pegged at Rs, 12 billion in 2014, an almost 15% gr} Rs, 10.4 billion in 2013, and was expected to grow at a CAGR of 13% over the five-year p fowing product categories. Among hot cereals, oats had gained the highest popularity regis 1 339 growth in 2014.1 Cereal was not a popular breakfast item for Indians, and hence, the market was domina\ temational brands from Kelloggs and Pepsico. Bagry’s India Ltd and Mohan Meakin we! nly two Indian players in the market. Kellogg's India Ltd had the first-mover advantage at ie undisputed market leader with 37% value share in 2014 2 Regional players had a comp} over bigger brands because of their robust distribution network. Competition also ste| m other FMCG chains that did not necessarily have packaged breakfast as their core pj ready-to-eat players like MTR and Britannia with its range of ready-t 1a, These products provided consumers with healthy options that w. fering for example, ia, porridge, and poh quick but also healthy.> Towarps BREAKFAST ‘al, average middle-class Indian family counterparts. Breakfast was always co st habits (brunch) in India, for U like flattened rice flakes (chivda/| thas in northern India along wi} the earlier days, women. Brapay f the cultural norm SONSUMER BEHAVIOR have the culture of breakfast. A typic: a regular basis like their western Oe it was popularly called. Breakfa: towards hot, cooked regional items, (dalia) and pds ‘ase the south.’ In "eat meals were not part ofee * we eee oe oie , ae wi a ae rer a ~ a arent SORBET SHE eR eee! HOTS DRA DL RRENS es eeeec ares CPST wk 8 Raeny a eT ORT Hew wh WOR wm RRATBS'S sun nd MBA ONSET tele’ pote LAI WTAE Sa AAR DTD OT US. THC TUTPTT padiesipresence RTS ES SPdian. Noweres, MH dhe THs, MRA Ww Qe When HS ROIS aval when General Mills rt as thorebae, the Sompany Su cial Corea] LONSTMIN, ead) th DN PHBA aN ave Be . epee A RUNG LOTTA BS 2 POLE © ae AE TRAN TN HOPTTNTTN OE over 250 million, x SS Sd GRNR. Wm WA, de wer thro spre RD TASENATTNAT TNT, THeCE POMS TACT Kollage’s deo 5 daetbiaag rater ine Veen’, Goer Flakes, 1h India. “Bven if Re Sl NTS THY ROT Hare D LAL martes than US Decne Ao Reena Lek Exchange tr yaaa? > Posmonne at Lawns dads ake anwaeRen wee PNTHANAT Oe The “Fun and WASTE” — —e a Re a athe Indian 2 SOHAL he heal placiorm, thus oPHaswiNy: — SorencAMROR 2 OosuMEN Thar Traditional Sy mE Weare Soepfates were a goad Ghaice. This: ‘ omen Wee NO. Natoma’ & coral as a Dreklast Rem * Dorre Bind Hing Re NAC FES Che Brand Dar cereal WS Kreg vl Didi carey wah Dent Wahinnn GAME ‘— Nehoiy's Gon On | jnitial salen were AP mal sal ve Wt . ce se wore WW THO Far tlhe Tran Stats janes were lew Another barrier 7 SOT He lakes wae Almont 10H alin t allt AO) REL LOE any ‘experaive | WUNe high price! A S00 gears be couked or #eeved differently: forty wreabfAat anialien ihe \eltoves tre wien eee Feil av SUNKAY OF KpECtal oe real TRA TSACUa IN cern Ce eee our wate vee a ua a es tl, com abe syyra brandl promixe, Or yh milk whieh made e eTuphania on erlary Makes failed allow! V the heels at ea Coritlakes eopgys This further aiturect | jr bicaklant optlon wax dare HUNUOUE Uinimp ‘ ne ndleent vettleally Opportte to wh Prewlve sales, Kellogg's realised tt othe wpe 7 Ng sroalelant was aull hot home moins Sehestions of indisns heve Geaniestt ave! What Kellogg's was ollering Wat readlysio, au heavy-as-ameal, and savory carer tt gait ne « ny . best served with cold milk, and bland an jy carly 1926, defending the company! Y'® procuey ‘! Hui vot here Co change breakfast ang Nab whites Dee ATS ee Hoan ve workd a healthy, nuteltouy, convenient, andl easy-to-prepare eter a to eeoueal Hating Habit LLWAN NOL [ABE A queation of provi dng. ny cue Oia Bias but alvo develgnit providing a better alternative to traditional breaklast eq al f fi i 8 4 taste for grainsbased foods in the morning’!* jan consumers dle not perceive ‘ + fos and Gene oA pe Latta the Kellogg's differentiators relevant. They were not loo brthicker and crlypter flake r Bete and pier 9 with tron and vitamin, They sought basi health and taste which faditional (ood and other competitor brands were also fulbilling, aw Kivew thar ah fe Was o FeMUll of aneall pureha © IHLal exeliement wore atl wre me REPOSITIONING AND Propuct EXTENSIONS Hellogy's sow that Indian households were dificult o target and moved thet focus ( RI He lounch of wo of tts highly successful International brands, Chocos in September 19} sril 1997, Chocos were wheat scoops coated with chocolate, while Frosties hac} Hrosiles in Aj rosties addressed the shortoomlngs of plain cereals because on ing on individual flakes, 1 Ady-sweetenedt which sweet sitioned as breakfast {tems b health, Now the mother was lirement 1 the milk when {tls ‘added to the bowl, Both these variant ut as snack (tems On the urged to give Chovos : w ve variants found feet tn the market and urge Ne ene wan aa R tried targeting families oi aya Mazza cereals were av! “The variant did nob proposition of tun andl taste as a micheal snack to full ny 999, Kellogg’ irient value ofyaa Care us attempe to Imply that the traditi ho Indian housewife rather Ind Jt fur breakfast for kicls coupled with goodness of he communication. [Cremoved from all tts advertisements In ools across the country, hoppers at select reall sto an the brand!’s previo oe aiate whieh made t r a nutritious: arn was me was ROT NU dane WAS gery abOUn, epusieee positioning, Kellogg's also changed t x ‘s globally ciation with Kellogg's gl patents product trial by targeting seh 0 gm packs to s! y aut specially designed 50 gm p cate bee stfering ‘one-serve sachets to housewives in the city. ‘ oe ca ‘ompany knew that very few Indians had breakfast and they ¢9 He ein 1997, they launched the "Kellogg Breakfast Week” in i. ee onted initiative to create and increase awareness. The henna a oo vere about the prevention of anemia an iron deficleney a aoe eernion workshops to educate tndividuals and tami. 18 ° Xcthe brand had subssegmented the market and offered specific customized the relevant proposition, its agency, ]WT, wanted to identify the triggers that et move towards this category. Their research suggested that though Kellogg's was | they were consumed by the entire family, They also found that healthy aft large consumer need. Lastly, women in India were becoming more health cons an integral focused! on int wanted to get into shape Using these insights, Kellogg's launched Kellogg's multi-grain, fortified comil taste buds. Advertisements also began showing adults eating the cereal, rath children alone, The assault on the aftermoon-snack segment was led by Cho already popular with children, who were their key consumers for “4 pm mi communication offered the Chocos variant as a nutritious substitute for chips ar > Speciat K: Get into SHAPE In 2008, Kellogg's launched their $1.5 billion “Special K” brand as a weigl targeted at women (25-44 years) who wanted to keep in shape. Itwas pos weight control meal. This was again not categorized as breakfast item Consultants pointed out that Kellogg's’ brand extension strat helped to it across categories. [twas a player in the Rs 500. aa “rore convenience foods market, turn, was part of the R: i te aa Indian needs indian market is head at Doge iy brand failures: Kelloggs Kane en at attic ailures. Kello, sh . Confident on th calinenc © delivering the promiseKellogg's Corntia kes in India: Finding a Platform that Connects 10.7 gxpress Foods Pye Ltd * ‘avee’s Products India Lid 1.07 Ma pantaloon Retail India Led eS eae OG re —— Good Barth Foods COMET Sie ie 3 ‘ oa " . . 0.10 0.10 = 15.20 ¥ . . Total 16.68 14.43 12.03 8.84 100.00 100.00 100.00 ys Corn Flakes Kell sent cou 208 ‘elloge - ogg India Lad 33.43 30.79 28.20 26.69 grry's India Ltd 14.06 15.43 16.49 17.36 Frito-Lay India 10.07 10.50 11.28 12.46 Mohan Meakin Lid 7.20 7.02 6.99 6.99 Marico Lid 1.44 3.62 5.06 6.09 GlaxoSmithKline 0.32 1.98 3.81 5.50 Consumer Healthcare Ltd logg’s Chocos Kellogg India Lid 2.28 213 2.02 1.95 Avesta Good Earth 1.52 1.65 1.73 1.78 Foods Pvt Ltd Hindustan 1.58 1.60 1.62 1.64 Vegetable Oil Corp Ltd Kellogg's Mueslix Kellogg India Ltd 1.45 1.49 1.52 1.52 yess Foods Express Foods Pvt 1.27 1.36 1.42 1.46 Lid ’s Frosties Kellogg India Ltd 0.92 0.87 0.82 0.77 Private Label Other Private Label 0.06 oe ol oA Nees 0.26 0.26 0.26 0.25 Products India Lid ais me oe 0.0 ‘at Pantaloon a Retail India Ltd louse Breakfast Cereal Good Earth Foods area _ ani - 1 100.00 100.00 100.00 100. a fotal : ns sre Euromonitor International from official statistics, trade associations, pre pany store checks, trade interviews, trade sourcesAtuest = Onher RTE Ceneals Serakion Conrail : Seurcr: Euncemomitor International from trade associations, copay mesmarch, trade interviews, trade sources > QUESTIONS 1. What was the positioning for Kellogg's cornflakes at the time of lau 2. Why was the brand mot successful? What changes were made to the p ® you think should be the brand proposition going forward? 3. Whar do