Name: Abdur Razik Khan

PRN no. 1062211878

Roll no. 21MBAIB050

Cross Cultural Relationship marketing

Case Study 2

SUMMARY
Kellogg's is a multinational company that has been operating in India since 1994. The company
entered the Indian market with its flagship product, Corn Flakes, but faced a number of
challenges in gaining acceptance from Indian consumers who were accustomed to traditional
breakfast options such as idlis, parathas, and poha. To overcome these challenges, Kellogg's
adopted a number of strategies, including promoting the health benefits of its products and
creating a range of flavors that would appeal to Indian tastes. The company also targeted younger
consumers by sponsoring popular television shows and launching a range of snack products such
as chocos and fruit loops.
Kellogg's India also focused on distribution by investing in a strong supply chain and partnering
with retailers to promote its products. The company also created a strong online presence,
partnering with e-commerce platforms to sell its products and using social media to engage with
consumers.
These strategies paid off, and Kellogg's India has become a major player in the breakfast cereal
market, with a wide range of products that cater to different tastes and preferences. The company
has also invested in innovation, developing new products such as oats, muesli, and granola that
appeal to health-conscious consumers.
Overall, Kellogg's India's success can be attributed to its ability to adapt to the Indian market by
understanding local tastes and preferences, investing in distribution and marketing, and
innovating to create new products that meet changing consumer needs.

QUESTION AND ANSWERS

Q1) Does it make sense for Nestle to focus its growth efforts on emerging markets? Why?
Ans :Yes, it makes sense for Nestle to focus its growth efforts on emerging markets. There are
several reasons why this strategy is advantageous:
1. Growing consumer demand: Emerging markets have a large and growing population,
which means that there is a significant potential for increased demand for Nestle's
products. These markets also have a rising middle class, which is driving demand for
high-quality and nutritious food products.
 2. Increasing purchasing power: As incomes rise in emerging markets, consumers have
more disposable income to spend on food products. Nestle's reputation for high-quality,
premium products can help it capture a share of this growing market.
3. Less competition: In many emerging markets, there are fewer established players in the
food industry, which can give Nestle an advantage in building its brand and market share.
4. Cost advantages: Nestle can benefit from lower production costs in emerging markets,
which can help it to offer products at competitive prices.
5. Diversification: Focusing on emerging markets can help Nestle to diversify its revenue
streams and reduce its dependence on mature markets, which may be more susceptible to
economic downturns.
Overall, focusing growth efforts on emerging markets is a smart strategy for Nestle, as it can
help the company to tap into growing demand, benefit from cost advantages, and diversify its
revenue streams.

Q2) What is the company’s strategy with regard to business development in emerging
markets? Does this strategy make sense?
Ans :Kellogg's strategy with regard to business development in emerging markets is to expand
its product offerings, invest in advertising and promotion, and forge strategic partnerships to
increase brand awareness and distribution channels. Specifically, Kellogg's has been investing in
product development to cater to local tastes and preferences. For example, in India, the company
launched a range of traditional Indian flavors such as mango and rose, while in Mexico, it offers
cereal with a chocolate flavor. Kellogg's has also been investing in advertising and promotions to
increase brand awareness, partnering with local celebrities and sponsoring sports events.
Additionally, Kellogg's has been forging strategic partnerships to expand its distribution
channels. For example, in China, Kellogg's has partnered with local companies to distribute its
products in supermarkets, online marketplaces, and convenience stores. Overall, Kellogg's
strategy in emerging markets makes sense because it allows the company to tap into growing
demand, benefit from cost advantages, and diversify its revenue streams. By investing in product
development, advertising, and promotions, as well as forging strategic partnerships, Kellogg's
can increase brand awareness and distribution channels, which can drive sales growth in
emerging markets. Furthermore, this strategy allows Kellogg's to cater to local tastes and
preferences, which is critical in emerging markets where consumers have diverse food
preferences.

Q.3) What was the most important factor that contributed to the initial failure of Kellogg’s
in India?
Ans :The most important factor that contributed to the initial failure of Kellogg's in India was the
lack of understanding of local tastes and preferences. Kellogg's entered the Indian market with its
flagship product, Corn Flakes, which was not well-received by Indian consumers who were
accustomed to traditional breakfast options such as idlis, parathas, and poha.
Kellogg's failed to adapt its product offerings to the local market, which led to low sales and
poor market penetration. In addition, the company faced challenges in distribution, as traditional
retail channels were not well-suited to selling breakfast cereals.
Furthermore, Kellogg's marketing strategy in India initially focused on promoting the health
benefits of its products, which did not resonate with Indian consumers who placed more
emphasis on taste and convenience.
Overall, the lack of understanding of local tastes and preferences was the most important factor
that contributed to the initial failure of Kellogg's in India. To succeed in India, Kellogg's had to
adapt its product offerings, distribution channels, and marketing strategies to cater to the diverse
tastes and preferences of Indian consumers.

Q4.) What could have been a better way to launch Kellogg’s in India?
1. Understanding the local market: Before entering the Indian market, Kellogg's could have
conducted extensive research to understand the Indian culture, consumer preferences, and
dietary habits. They could have then tailored their product offerings to suit the local taste.
2. Strategic partnerships: Kellogg's could have partnered with local companies to gain a
better understanding of the Indian market and to leverage their local expertise.
3. Product localization: Kellogg's could have customized their products to cater to the
Indian palate. They could have introduced new flavors and variations of their products
that would appeal to Indian consumers.
4. Marketing campaigns: Kellogg's could have created localized marketing campaigns that
would resonate with the Indian audience. They could have used social media, influencer
marketing, and other digital platforms to reach a wider audience.
5. Distribution channels: Kellogg's could have established a strong distribution network to
ensure that their products were easily available to consumers across India. They could
have partnered with local retailers and e-commerce platforms to reach a wider audience.
6. Pricing: Kellogg's could have adopted a pricing strategy that would appeal to the Indian
consumer. They could have priced their products competitively to attract price-sensitive
Indian consumers.
By adopting a localized approach and understanding the unique challenges of the Indian market,
Kellogg's could have launched their products successfully in India.
Q.5) What would be the way forward for Kellogg’s to grow in India?
Ans :To grow in India, Kellogg's can consider the following strategies:
1. Product innovation: Kellogg's can continue to introduce new products that cater to the
Indian market. They can develop new flavors and products that cater to the diverse tastes
and dietary habits of Indian consumers.
2. Localization: Kellogg's can focus on localization to further penetrate the Indian market.
This could include introducing more region-specific flavors and partnering with local
companies to develop products that are more suitable for the Indian market.
3. Digital marketing: Kellogg's can leverage the power of digital marketing to reach a wider
audience. They can focus on social media, influencer marketing, and other digital
platforms to connect with consumers and build brand awareness.
4. Distribution: Kellogg's can expand its distribution network by partnering with more
retailers and e-commerce platforms. This will help them reach a wider audience across
India.
5. Pricing: Kellogg's can adopt a pricing strategy that appeals to the Indian consumer. They
can offer discounts and promotions to attract price-sensitive consumers and make their
products more accessible.
6. CSR initiatives: Kellogg's can invest in corporate social responsibility initiatives in India.
This will help them build a positive brand image and connect with consumers on a deeper
level.
By focusing on product innovation, localization, digital marketing, distribution, pricing, and CSR
initiatives, Kellogg's can continue to grow in India and become a leading player in the Indian
breakfast market.