MKT622 – PRODUCT AND BRAND

MANAGEMENT
KELLOGG’S CORNFLAKES IN
INDIA
SUBMITTED TO:
LOVELY PROFESSIONAL UNIVERSITY
IN PARTIAL FULFILMENT OF REQUIREMENTS FOR
CONTINUOUS ASSESSMENT 2

Submitted By:
Albin Philip -

Talib Iqbal -
Raghu Beeram - 10
Kushboo Jamwal - 10
 TABLE OF CONTENTS

S.No Topic Name Page No.

1. Executive Summary 3

2. Problems 4-5

3. Solutions 6-7

4. Analysis 8-9

5. References 10
2
 EXECUTIVE SUMMARY

• In 1994 three years after the barriers to international trade had opened in India,
Kellogg’s decided to invest US $65 million into launching its no.1 product, corn flakes.
• However, the Indian sub-continent found a whole concept of eating breakfast cereal a
new one while this meant that Kellogg’ s had few direct competitors it also meant that
the company had to promote not only its product, but also the vary idea of eating
breakfast cereal in the first place.
• Furthermore, the companies attempt to ‘indianite’ its range have been disastrous. Its
“Mazza” branded series of fusion cereals, with flavors such as ‘Mango, Coconut &
Rose’ failed to make a lasting impression.
• “The research founded that their only rivals are traditional Indian foods like idly’s
and vada’s” – the statement was given by “Denis Avronsord” (MD of Kellogg’s India). 3
 PROBLEMS

PROBLEMS

Lack of
Over confidence and
understanding of Premium pricing Relied heavily on
ignorance of cultural
Indian consumer policy crispy flakes
aspects
behavior and habits

4
 PROBLEMS CONTINUED…

• In order to maintain quality Kellogg’s focus on premium and middle level retail stores. This decision
made it difficult for the larger population to get its products.
• Kellogg’s realized that it is going to be tough to get the Indian consumers to accept its products.
Kellogg’s banked heavily on the quality of its crispy flakes. But pouring hot milk on the flakes make
them soggy. Indian always boiled their milk unlike in the west and consumes it with warm or
lukewarm.
• Another problem is with the positioning made in Indian market. Its advertisements and promotions
focused initially on the health aspects of the product. In this doing, Kellogg’s had moved away from
its successful “ Fun & Taste ” positioning adopted in the US.
• Another reason for the low demand was deemed to be the premium pricing adopted by the
company. Due to the premium pricing problem forced by Kellogg’s , it tried a dollar to a rupee
pricing for its products , still it could not attract the mass consumer.

5
 SOLUTIONS

• In order to forge ahead, Kellogg’s decided to launch two of its highly successful
brands CHOCOS & FROSTIES in India. These brands were very successful and sales
picked up significantly.
• The success of CHOCOS & FROSTIES led to the total indianization of the companies
flavors “Mango Elachi” , “ Coconut Kesar” & “Rose”. After one year extensive
research to study consumer pattern in India.
• Kellogg’s was able to reduce by reducing its cost of production for example “Mazza”
was not position in the premium segment.

6
 SOLUTIONS CONTINUED…

• Kellogg’s saw advertising as a vital tool in promoting its brand. The cardboard
packaging was replaced by pouches which help in reducing the price. The rooster
that was associated with the Kellogg brand worldwide was missing from its
advertisements in India.
• This made it attempt to indianise its campaign instead of simply copying its
international promotion. A community oriented initiative to create awareness about
the importance of breakfast( Marketing Strategy ).

7
 ANALYSIS

Strength Weaknesses

Opportunities Threat

8
 ANALYSIS CONTINUED…

STRENGTHS
 Flexibility and adaptability towards
consumer needs.
 Customization of products.
 History of changing food habits globally.
WEAKNESSES
 Initially product was not adopted by the
Indian taste or Indian traditional food habits.
 If even they liked the taste, the product was
too expensive initially.
 Wrong evaluation of projection in market
demand.

OPPORTUNITIES
 Introduction of new trend with nutritional
value in breakfast.
 Changing work life demanding processed
food.
 Scope for entering untapped market.
THREATS
 Cultural factors and eating habits -
population is not used to processed foods.
 Price sensitive customers.
 Low awareness about processed food and
calorie requirements. 9

 Less competitors.
 REFERENCES

• http://www.Kelloggs.com/
• https://en.wikipedia.org/wiki/Corn_flakes
• https://en.wikipedia.org/wiki/Kellogg%27s
• https://www.marketing91.com/kelloggs-competitors/
• Reference book of marketing (case 10).

10