Introduction
This project report talks about the steps taken by Kellogg’s in India that went wrong and how the strategies adopted by it failed to establish Kellogg’s as a brand in India. It also talks about the strategies it should have followed to get success in Indian market.
Kellogg’s is world known leader on branded breakfast cereal products. Over the time it has successfully been able to bring a corn flakes into eating habits of people of many countries.
In 1991 Indian government removed the barriers to international trade. In 1994 Kellogg’s ventured into Indian market with its most successful product – corn flakes, to repeat the success story it witnessed in west. At that time Kellogg’s had captured 40% US’s ready-to-eat market in breakfast …show more content…
Less Variety: Indians are used to variety. They have a varied menu for their breakfast. Asking them to have same corn flakes daily was sort of going against cultural.
3. Improper market research: Kellogg’s had performed amazingly in west and other parts of world. So in over confidence a proper market research was not done to check what population’s views about the corn flakes are, what price they think is justified, and what price competitor is offering etc.
4. Wrong Positioning: Kellogg’s was not properly positioned. Kellogg’s was priced very high and it was available in packing of 500gms and above. This made it a product for high income class people only. These people form small portion of Indian population. They should have targeted middle and upper middle class people who are sophisticated, educated and health conscious. They form a large market. But with such price it was a premium image that was unattainable for an average Indian.
5. Distribution: Kellogg’s took decision to distribute only on the premium and middle level retail stores. The reason behind this was to maintain a uniform quality of service. But Kellogg’s ignored the fact that in this process a large section of population will not reach its product.
Issues in 4Ps of marketing of Kellogg’s in …show more content…
Advertising and promotion – Kellogg’s understood that there is need to promote corn flakes as tasty and fun food product rather than just a healthy product. It also understood that it should connect with average class Indians also. It realised its mistake of showing Indian food as non-nutritional. Use of some celebrity can also be helpful. Promotion should also focus to create the awareness of having breakfast and avoiding oily meals in morning.
4. Reduced Prices – As Kellogg’s realised that it is priced way too high than traditional homemade breakfast items and its competitors, it also reduced the cost of production to finally reduce the price of Kellogg’s in market. With smaller sachets price reduction combined perfectly to make it feasible for all.
5. Give Indian touch to the Kellogg’s products – In order to connect more to people and to make it more populaar Kellogg’s launched its Mazza range that has flavours like Mango Elaichi coconut kesar and rose. Chocos and frosties were the other flavours that became popular. With such flavours also available corn flakes was started to be used as snacks also. This helped to increase the
This project report talks about the steps taken by Kellogg’s in India that went wrong and how the strategies adopted by it failed to establish Kellogg’s as a brand in India. It also talks about the strategies it should have followed to get success in Indian market.
Kellogg’s is world known leader on branded breakfast cereal products. Over the time it has successfully been able to bring a corn flakes into eating habits of people of many countries.
In 1991 Indian government removed the barriers to international trade. In 1994 Kellogg’s ventured into Indian market with its most successful product – corn flakes, to repeat the success story it witnessed in west. At that time Kellogg’s had captured 40% US’s ready-to-eat market in breakfast …show more content…
Less Variety: Indians are used to variety. They have a varied menu for their breakfast. Asking them to have same corn flakes daily was sort of going against cultural.
3. Improper market research: Kellogg’s had performed amazingly in west and other parts of world. So in over confidence a proper market research was not done to check what population’s views about the corn flakes are, what price they think is justified, and what price competitor is offering etc.
4. Wrong Positioning: Kellogg’s was not properly positioned. Kellogg’s was priced very high and it was available in packing of 500gms and above. This made it a product for high income class people only. These people form small portion of Indian population. They should have targeted middle and upper middle class people who are sophisticated, educated and health conscious. They form a large market. But with such price it was a premium image that was unattainable for an average Indian.
5. Distribution: Kellogg’s took decision to distribute only on the premium and middle level retail stores. The reason behind this was to maintain a uniform quality of service. But Kellogg’s ignored the fact that in this process a large section of population will not reach its product.
Issues in 4Ps of marketing of Kellogg’s in …show more content…
Advertising and promotion – Kellogg’s understood that there is need to promote corn flakes as tasty and fun food product rather than just a healthy product. It also understood that it should connect with average class Indians also. It realised its mistake of showing Indian food as non-nutritional. Use of some celebrity can also be helpful. Promotion should also focus to create the awareness of having breakfast and avoiding oily meals in morning.
4. Reduced Prices – As Kellogg’s realised that it is priced way too high than traditional homemade breakfast items and its competitors, it also reduced the cost of production to finally reduce the price of Kellogg’s in market. With smaller sachets price reduction combined perfectly to make it feasible for all.
5. Give Indian touch to the Kellogg’s products – In order to connect more to people and to make it more populaar Kellogg’s launched its Mazza range that has flavours like Mango Elaichi coconut kesar and rose. Chocos and frosties were the other flavours that became popular. With such flavours also available corn flakes was started to be used as snacks also. This helped to increase the