The Kellog's India Story

3.  India an opportunity land
 Newly opened economy for the West
 Attractive huge population base, over 950 million inhabitants
 New, unexplored, untapped market
 Invested 65 million INR initially
 Launched iconic brand Corn Flakes as the first offering in 1994
 Had a 53% market share on the 150 million INR Indian market
 Cereal breakfast segment was growing at 4-5% annually

4.  Cereal based breakfast ???
a new concept for Indians
 Major investment in Consumer Education or Learning
 Traditional, deep rooted breakfast habits
 Indians are used to hot/lukewarm servings
 Corn Flakes in hot/warm milk tend to be soggy
OR

5.  Promising early sales turned out to be one-off
novelty purchases
 Product was too expensive (33% more pricy)
 Unwillingness to bow down on price
pressures
 More product launches despite low pick up.
 Lack of market research before launch
 Too Bad Indianization of products- Mazza
 Mango elaichi, Coconut, Rose etc.

6. Strength
Opportunities
• Addressing
Consumer Needs • Trend setter
• Product range • Changing Lifestyle
• Product Innovation • Untapped new
• Adaptability & market
Flexibility

7.  „Multinational corporations must not start with the assumption
that India is a barren field,‟ C K Prahalad
 „It was just clumsy cultural homework,‟ Titoo Ahluwalia, Chairman ORG MARG
 „You cannot change the taste buds that were developed more than
a thousand years ago,‟ Wahid Berenjian, MD, US Pizza
 „The society is much stronger than any company or product‟ Wahid
Berenjian, MD, US Pizza

8.  High Prices
 Probably overestimated the amount of premium that customers were willing
to pay for quality and the foreign tag.
 Lack of Optimized or Indianized flavors
 Mistook India for one, single, homogenous market
 Underestimated the efforts they would have to put in to create
a strong distribution and retail chain.
 Kellogg‟s was blinded by numbers, it saw the huge population
of India but purchasing power parity is not the same.
 Corn Flakes seems like a long haul product. Involves new habit
creation and consumer learning

9. The initial failure did not deter the breakfast
food giant. But a Re Look at
Product Mix
Re positioning
Adaptations
Revised Communication Strategies
Promotional Strategies

10.  Introduced new variants from its vast product line of the West, to
make up for the bad performance of the star brand – Corn Flakes
 Entered aligned food category to make up for the loss in the Corn
Flakes segment
 Introduced energy bars, biscuits etc.
 Launched special products for strategic segmentation of the
consumers owing to the better understanding of the Indian
Consumer
 E.g. Chocos for kids, K special for women, All Bran for mid aged women
etc.

11.  New positioning Fun & Taste & Health
 Indianized product names – e.g. Iron-Shakti
 Generating familiarity with the masses
 Touching upon general passion for scholastic excellence in India
 Launched different SKU‟s catering the varied Indian
Consumers
 Family pack
 Smaller pack
 One time use pack @ Rs.10/-
 Identified the nutritional need and launched products
accordingly
 Extra Iron Shakti
 Special K diet for weight management
 Chocos for kids in different shapes and styles, reassuring the fun
element
 All Bran Wheat Flakes for a fiber rich diet

12.  Catchy Phrases
 “jaago jaise bhi, lo Kelloggs hi”
 “Andar se khush , to bahar se khush”
 “Shuruaat sahi to din sahi”
 Attributing to the daily energy of the whole family
 Focused initially on communicating the nutritional
value
 Currently educating consumer about varied recipes
 Popular health conscious celebrity brand ambassador
 Lara Dutta, Karisma Kapoor, Sakshi Tanwar
 Currently emphasizing more on convenience and fun

14.  Mass Advertisements – Nice array of TVC‟s aired on
prime time.
 Direct Promotions –
 Consumer awareness campaigns
 Reaching out to schools etc.
 Discounts / Offers – Continuously used
tool, introduced new range variants of product this
way
 Exploiting the growing involvement of kids in
purchasing behavior.
 Attractive Packaging
 Creation of mascots for
variants, popular among Kids in the
west

15.  The new campaign „Shuruaat Sahi Toh Din Sahi‟
 Sakshi Tanwar to endorse, stereotyping the
present day homemaker
 It brings forth the emotional payoff that a
mother and wife may experience after having
provided her family with a Kellogg‟s Corn Flake
breakfast.
 The move comes along with the new
positioning, which empowers every homemaker
to customize Kellogg‟s Corn Flakes to suit her
family‟s preferences and set them up for a great
day.
 An attempt to bring an element of „Fun‟

16.  Karisma Kapur to endorse
 Kellogg‟s Chocos Rs 10 pack as the
evening snack option
 Positions as a preferred option among
mothers as a kid snack
 Highlights nourishment, taste and SMALL
PACK
 It aims to drive differentiation, both
functionally and economically
 An attempt to address a market research
finding that Indians prefer it as Snacks

17.  „Happy Inside, Happy Outside‟
 for women to play their many roles with ease, they
need to feel good from the inside.
 targets Indian women between 35 to 40 years
 prone to digestive irregularity due to considerable
impact of hormones, poor eating
behavior, insufficient exercise, hectic lifestyle
 The Kellogg's All Bran TVC is based on a very real
insight that women relate with instantly-
when your digestive system is not working smoothly you
might feel irritable. It was this simple thought that we brought to life in
the commercial. A mundane request from the husband seems like a
huge task for her and results in irritation which is depicted as a silent
scream.

18.  Brand Image: Quality, Variety, Distribution
 Customer based brand equity changed from „costly‟ to
„Quality‟
 Brand Identification: high; logo is well recalled by consumers
 High TOMA
 First mover advantage.
 Strongest brand recognition and advertising recollection of all
the cereal manufacturers
 Kellogg‟s is the undisputed market leader in the particular
segment

19.  Entry to Indian market was probably before time
 Early fall out did not deter the focus of Kellogg‟s
team, fought back in the Indian market
 Improved the earlier mistakes by understanding Indian
Consumer and growing needs
 Constantly used mass communication tools to enhance
consumer learning
 Brand name synonymous with the category itself
 Need for convenience food rising and so is the revenue

20.  Maintain the continuous product innovation
 Enhance its distribution network
 Enormously growing category (20% CAGR)
 Segment growth is owed partly to the efforts of Kellogg‟s
 Increased Health Consciousness and Awareness
 Approach fitness centers and clinics for promotional activity
E.g. Talwalkar‟s, Fitness One, VLCC etc.
 2nd generation of consumers evolving
 Should approach schools and educational Institutions for promotion
 Should develop affinity to this consumer class

21.  To attract „KIDS‟ - the biggest influencer‟s -
 Popularize various brand mascots in shopping malls and cinema commercials
(max. attention)
 Provide brand mascot merchandize for kids as freebies during festive season
 Conduct promotional activity with mascots in theme parks and adventure parks
This will engage consumers and also associate “fun” with the brand
 To attract Women / Home Makers
 Encourage experimentation with the product
 Associate with some cookery shows, chefs for special episodes
E.g. Master Chef India, Sanjeev Kapoor
This will also satisfy the variety seeking nature of the consumers
 Roll out some nutritious finger food snack item for Kids.
 Do market research to know the pulse of the consumer for product
innovation

22. Kellogg India to take a second shot at
localizing its India portfolio
Set to launch pudina, tomato and garam
masala for its oats range to take on
Quaker oats from PepsiCo
Expert Say "The breakfast cereal category works more for consumers with global palettes... so whether
localized variants will be a growth driver for this category will depend on how consumption patterns evolve.”