Kellogg’s Strategy In Indian Market

KELLOGG’S Strategy in Indian Market. Presented By Simi Samkutty (41)‏ Pratiksha Rane (42)‏ Jayashree Prabhu (43)‏ Amit Jain (44)‏ Manas Bendre (45)‏ Sagar Thakur (46)‏

History Birth of Wheat Flakes 1906, W.K. Kellogg entered the cereal business Formation of Battle Creek Toasted Cornflake Company

History Kellogg opened its first foreign cereal facility in 1914 in Canada. Renamed KELLOGG’S company in Worldwide Expansion by 1938.

Kellogg’s in India Launched in Sep Reason for Entering Indian Market.

Kellogg’s in India The Indian market, posed several Challenges :-  Cultural factors and eating habits  Easy availability of low- priced traditional breakfast  Low awareness

PRODUCTS

Kellogg’s Existing Products

Recent Launches

Kellogg’s Snacks

Kellogg’s Biscuits

PRICE

PRICING At introduction price of products were high. -Indian consumption pattern Later they launched their no.1 product of U.S. i.e. corn flakes - skimming price - Indians less concern about quality than quantity.

Pricing strategy Localized the entire raw and packing material requirement, saving import duty. Reduced transportation cost. Distribution network. Overheads were reduced.

Deploying Oracle 11i based ERP system. Wide range of products compared to competitors. Offers brand differentiated pricing.

KELLOGGS KELLOGGS - SPECIAL-K - CHOCOS - ALL BRANN - FROSTIES HIGH LOW PRICE PRICE KELLOGGS - CHOCO SMACKS LOW NUTRITION HIGH NUTRITION

PROMOTION

Nutrition to fun-filled flavors. Consumer promotions 25- crore media-spend. Promotion in Schools and Health Clubs in Eastern India. launches Diwali gift packs for kids Advertising. Internet Marketing

Distributed free samples of cornflakes Heavy advertising of chocos in 1996.Kellogg's' mobile contest to promote Chocos Biscuit promotion:-initial communication about chocos was theme based. Chocos Biscuits :25% extra is spent on Consumer Position 5% extra on Trade promotions.

Digital & online Advertising..

PLACE

Distribution Kellogg’s gives its Distributors a margin of 5% and 12% to its retailers. Whereas the competitors give a margin of 10-15% to its distributors. Set up a distribution network with storage hubs in all the key states of the country (18 clearing and forwarding agents) serving over 200 distributors providing a good reach.

Channels of Distribution. Manufacturers C&F Stockist Retailers Consumers

LEVERAGE OF BRAND AND BRAND EXTENTION

BRANDING What is Brand? “Brand is a name,term,symbol,design or combination of them which is intended to identify goods & services & to classify them from those of competitors.” Component of Brands:- 1) Attributes: - 4) Culture: - 2) Benefits: - 5) Personality:- 3) value: - 6) Users:-

INDUSTRY ANALYSIS 5 players in Indian market:- 1) Kellogg's 2) Mohan's 3) Champion Oats & Gold crunch 4) Murgin's 5) Bagrry

TARGET SEGMENT 1) Kellogg's - Premiums segment 2) Others- Middle & lower income (economy product)‏ YR MARKET SHARE % MORE THAN 55% MORE THAN 66% 75% -81% Market share of Kellogg's cornflakes Brand

Problems in Kellogg's marketing The biggest mistake which the company committed was that it expected to change the Indian breakfast habit Product Defects: crispy flakes were not available. Positioning mistakes:“health product” image instead of its successful “fund-and-taste”. Higher prices gave the brand a “premium image”.

. Pricing mistakes: The product was highly priced. So, the product became unattainable for the average Indian. Faulty Distribution: The company focused only on the premium and middle level retail stores for its distribution. This decision put a large section of the Indian population out of its reach.

STRATEGY

E G M E N T A T I O N A R G E T I N G O S I T I O N I N G I F F E R E N T A T I O N

E G M E N T A T I O N

A R G E T I N G

O S I T I O N I N G

IFFERENTIATION

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