GROUP NO- 06 GROUP NAME- ARTIFICE beyond inspiration NAME ASHISH PIPARA ROHIT RAJ NITISH ANAND JAY

MEHTA DEBOBRIYO MUKHERJEE LAKHWINDER SINGH PRITESH VAGDA RAJIV KUMAR AAMIR HASHMI GOBIND PRASAD GUDU ROLL N0.43 44 38 30 34 26 57 55 20 17

1. What were the reasons behind the poor performance of Kellogg s in India in the initial stages? Do you agree that a poor entry strategy was responsible for the company s problems? Give reasons to support your answer. AnswersThere were basically four major issues which lead to the poor performance of Kellogg s in India in the initial stages. They are as followsy Taste:1. The taste of Kellogg's product did not match Indian breakfast habit. 2. An average Indian family consume milk, biscuits, bread, butter or local homemade food (idlis, parathas, etc.) 3. Indians always boiled their milk and add sugar to it but when Kellogg's flakes put in hot milk they become soggy and did not taste good. y Positioning:1. Initially Kellogg's have positioned their product as a health product which was a fundamental departure from the successful 'fun and taste' adopted in the U.S. 2. This positioning had given the brand a 'health product' image instead of the fun/health product. Pricing:1. Premium pricing of the product was another reason for low demand in Indian market. 2. The price of kellogg's product (Rs. 21 for 100 gm) was clearly above the price of its main competitor, Mohan Cornflakes (Rs. 16.50 for 100 gm). 3. Kellogg's tried a dollar-to-rupee pricing for its product. Distribution:1. Kellogg's decided to focus only on the premium and middle-level retail stores. 2. Company believed that it could not maintain uniform quality of service if it offered its product at a larger number of shops. 3. This decision put large section of the Indian population out of its reach.

Yes we agree that a poor entry strategy was responsible for the company s problems due to following facts-

I. Kellogg s had been blinded by figures. II. The company forget that they were entering into an emerging economy with strong cultural roots and essentially a very low price breakfast industry. competition. Ex- bread, milk, idli-dosa depending upon the reason. III. Kellogg s thoughts that their brand equity carried from west would mirror its success in India. IV. Kellogg s forget the facts that globalization may be an increasing trend but regional identities, customs and taste are distinct as ever. 2. Analyse Kellogg s efforts to re-vamp its marketing mix. Answers:Step 1: 1. Kellogg's decided to launch two of its highly successful brand in India Choco's (September 1996) Frosties (April 1997) 2. Brands were even consumed as snacks and led to the launch of Chocos Breakfast Cereal Biscuits and hence sales picked up significantly. 3. The success of Chocos and Frosties led to the total Indianaisation of the Company s flavor in future which resulted in the launch of MAZZA series in August in three local flavors i. Mango Elaichi ii. Coconut Kesar iii. Rose Step 2: 1. Kellogg's reduced the price of their product by reducing its cost of production. 2. Mazza series was not positioned in the premium segment of the market. 3. The glossy cardboard packaging was replaced by poaches. Step 3: 1. Kellogg's saw advertising as vital tool in promoting its brand. 2. Kellogg's Indianite, its campaign instead of copying its international promotion. 3. The rooster was missing in Kellogg's advertisements in India. 4. The advertisement also suggested that cornflakes could be taken with curd, honey and banana.

Step 4: 1. Kellogg's launched The Kellogg's Breakfast Week a communityoriented initiative to generate awareness about the importance of breakfast and also launched a lot of other health related programs. 2. Kellogg's identified distribution as another key area in order to increase its penetration in the market. 3. In 1995, Kellogg's had 30,000 outlets which was increased to around 40,000 outlets by 1998. Step 5: 1. Kellogg's also began working towards a better positioning plan for its products. 2. They found that Indians give less importance to the level of IRON and VITAMIN intake and looked at the quantity, rather than the quality, of the food consumed. 3. Kellogg's Chocos and Frosties brand were repositioned as funfilled brands. 3. Do you think the company s decision to launch biscuits and snacks was a right one? Give reasons for your answer. AnswersYes, To gain brand equity in the Indian market and gain profits through more cost effective solutions and market acceptable products. Kellogg's introduced small packs priced at Rs 3 and Rs 5, the product is was instant snack targeted at children. Even as the company is unwilling to part with details, dealers and stockists in Mumbai felt that the product will compete with chocolates in the snacking category such as Nestl s Munch, Britannia's Checkers and Cadbury's Perk among others. The company is concentrating on establishing its brand name in the market irrespective of the off take. The focus is entirely on being present and visible on the retail shelves with a wide range of products. The product had been positioned as the country's first fortified breakfast biscuit and added the launch would help strengthen its market leadership position in the breakfast foods business. The idea behind the effort is to establish the Kellogg brand equity in the market The revelation that Chocos cereal, which was supposed to be consumed with cold milk was being eaten straight out of the box by both kids and adults.

Kellogg's was, with the launch of Chocos cereals, moving away from its core plank of health and nutrition. Kellogg s declared in 2010 to comeback and trying to firmly position it once again in the health sector. Biscuits were enjoyed in the country as a breakfast food item. Strategy-wise, Kellogg's has made a smart move. The reason behind Kellogg's entry into the biscuit mart is an attempt to leverage the Chocos brand equity A large part of research in the Indian context has shown that biscuits are viewed as nutrition and energy providers. Further they are perceived to be much better than unhealthy junk food. Kellogg's is obviously hoping that the biscuits can hitch a ride on the Chocos brand equity.

Field Work Survey

We have surveyed two product covers Cereal & Oats by visiting two stores. a) Kirana Shop - Thorath General Store b) Supermarket - Reliance fresh. Following observations are made. Interviewing Methods 1. Personal Yes 2. Telephonic N/A 3. Email N/A

Name of store

Sample Size

Ratio
(Kelloggs Vs Others)

Kelloggs Products
Kellogg's Corn Flakes Ready to

Competitor Products

Crunchy Muselli, Thorath Kirana Govt colony 2 Bandra (E), Mumbai 60:40 Muselli, Special K, oats; Quaker Oats; Real almond, Saffola Oats Honey Crunch; Kelloggs Choco s;. Kellogg's Corn Flakes Original, Strawberry, Real Reliance fresh Santacruz(W), Mumbai 4 65:35 almond, Honey Crunch; Kelloggs Choco s; Ready to Eat Oatbites, All Bran Wheat, Extra Muselli, Special K EuroGarden - Corn Flakes , Museli, Wheat Flakes, Choco Mania Wheat Bran Oats - Kesar Oats, Strawberry Oats; Bagrrys Crunchy Muselli, White oats, Wheat Eat Oatbites, All White oats, Wheat Bran Wheat, Extra Bran; Champion

Original & 2-3 Flavors & Special Grain and oats Flavour; Kellogg s Fruit Loops; Mini Wheats; Kelllogg s Raisin Bran; Kelloggs Crunchy Nut Golden Honey.

Bran;Weetabix Cereal, Oatibix, AllBran; Champion oats; Quaker Oats; Saffola Oats; Britannia Classic oats, Daily Diet Cornflakes;

Terms Used i. Sample Size a) Kirana Shop: 2 Employees b) Supermarket: 4 Employees ( 3 Staff, 1 Floor manager)