This document provides an overview of Kellogg's entry into and experience in the Indian market. It discusses how Kellogg's products initially failed in India in the 1990s due to a lack of understanding of Indian consumer behavior and culture. However, Kellogg's later found success by launching variants targeted at kids like Chocos and focusing on Indian flavors. The document also analyzes Porter's Five Forces for the Indian cereal market, noting competition from substitutes and new entrants while discussing Kellogg's strategies around suppliers and customers. By 2010, Kellogg's had grown to hold 70% of India's 500-crore cereal market.
3. Company Facts Established in 1906 founded by Will Keith Kellogg Products manufactured in 18 countries and marketed in more than 180 countries around the world. World's leading producer of cereal and a leading producer of convenience foods, including cookies, crackers, Toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and vegetarian foods. Post liberalization, company entered India in 1994.
11. Indian Experience Our only rivals are traditional Indian foods like idlis and vadas." - Denis Avronsart, Managing Director, Kellogg India. Products offered in India Corn Flakes, Wheat flakes, Basmati rice flakes. April 1995, 25% decline in sales in comparison to last month. Despite offering good quality products and being supported by the technical, managerial and financial resources of its parent, Kellogg's products failed in the Indian market. High-profile launch backed by hectic media activity failed to make an impact in the marketplace.
12. Reasons for Failure Over confidence and ignorance of cultural aspects. Lack of understanding of Indian consumer behavior and habits. Premium pricing policy. Banked heavily on crispy flakes.