SAKSHI GUPTA

PGP30048

SEC-B

THE COMPANY : KELLOGG’S• Kellogg brothers established this brand in 1906

• They are world’s leading breakfast cereal manufacturer since 1938

• It has opened manufacturing plants in 19 countries and sells in more than 160 countries

• It has wide range of cereal products: Kellogg Corn Flakes, Rice Krispies, Special K, Fruit and Fibre, as well as the Nutri-grain Cereal Bars.

• Kellogg’s entered in india in 1994.• Products offered in india : corn flakes, wheat flakes, basmati rice flakes • The research founded that their only rivals are treditional indian foods

like idlis & vada’s.” - This statement was given by “Denis Avronsord” (m.D of kellogg’s india.)

• Over confidence & ignorance of cultural aspects. • Lack of understanding of indian consumer behaviour &

habits. • Premium pricing policy.

KELLOGG’S IN INDIA

KELLOGG’S FAILURE IN INDIA

PRODUCT FAMILY

PRODUCT EXTENTION Kellogg’s Musli Chocos

Special K

Corn flakes are a popular breakfast cereal manufactured through the treatment of

corn. It has widest range and is the most popular among all the line

Kellogg’s Special K consists of delicious crunchier flakes with goodness of wheat and rice. It is 98% fat free and a source of fibre. Moreover, Kellogg’s Special K is fortified with 8 essential nutrients like vitamins A, C and B vitamins including folic acid.

Kellogg’s Chocos is the great breakfast cereal for both mom and kids. While kids love its yummy chocolaty taste, and have fun with the way Kellogg’s Chocos turns milk super-duper chocolaty. Moms can feel relieved that they’ve given their child a nourishing breakfast because Chocos is now made with whole grain, provides fibre and is fortified with 11 essential vitamins and minerals.

Every bite is an explosion of flavour, a real treat for your taste buds. Made with an exquisite mix of ingredients from around the world, it’s a divinely delicious start to the day. Every bite is just as nourishing as it is tasty. So go on indulge yourself.

Original

PRODUCT CATEGORY SIZE

2006 2010 20140

2

4

6

8

10

12

14

16

Growth in Cornflakes Market

Cornflakes

CAGR 21%

CAGR 24%

MARKET SHARE

1995 1998 2000 20100

10

20

30

40

50

60

70

Market Share in Cornflakes Market

Kellogg's Competitors

KELLOGG’S: GROWTH PATH

Source: Economic Times Source: Kellogg’s Website

• Kellogg’s India has been growing at a scorching pace since 2010

• It recently launched Heart-to-Heart oats, bran wheat flakes, and Chocos and Honey Loops made with whole grain

• It expanded its distribution footprint by 50% over the last three years

• It has also building a factory in Sricity, Andhra Pradesh, signaling renewed confidence in the Indian market at a time its parent company is seeing stagnant growth

PRODUCT• 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.

PLACE• Healthy breakfast Kellogg’s will use the already established distribution

network that kellogg’s uses for all its products.

• This comprises of a

producer>wholesaler>retailer>customer chain

retailers are nearly all medium to large supermarket chains in India.

PRICING

• Super brands like Kellogg's can charge a premium because of the strength of the brand and product quality

• They face tough competition from the local manufacturers which offer similar product at low pricing

• However the quality and variety Kellogg’s offer offsets the other offerings by different manufacturers.

PROMOTION• The new product will need to be ‘pushed’ into the market with aggressive advertising on a number

of media. The target consumer’s awareness of the product will be enhanced by strong images and concepts relating the product to health, fitness and a sense of status

• The media used will be:TV: during lifestyle programs and during prime time. To launch the product appearances of advertisements during the popular show “big brother”.Magazines & Newspapers : lifestyle, focusing on women magazines in particular. Examples include: cosmopolitan, cleo and woman’s day.

• During the introduction phase of the product sales promotion activities will try to get the customer to buy Kellogg’s. These activities include samples offers in supermarkets and competitions.

MARKET SEGMENTATIONGEOGRAPHIC SEGMENTATION• Kellogg’s primary segmentation is geographic as it offers product as per the

region it is catering to .

• In India it has different product offering whereas in USA where cornflakes form a major part of the breakfast it has much wider offering

• In India Kellogg’s has limited offering based on the lifestyle and cultural aspects

TARGET SEGMENT • Kellogg’s targets health-conscious consumers with brands such as special K

and kellogg’s musli

• Kellogg's targeted their audience into adults and children with this semi-sweet offering.

• The free bowling appeals more to their target audience of adults than it does to children.

• It tries to address audience through age differentiation, offering being Honey chocos for children, oats Cornflakes for adults

PROMOTIONAL STRATEGIES FOR TARGET AUDIENCE• Fun & taste & health benefit

• 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

COMPETITORS

• THE RESEARCH FOUNDED THAT THEIR ONLY RIVALS ARE TREDITIONAL INDIAN FOODS LIKE IDLIS & VADA’S.” - THIS STATEMENT WAS GIVEN BY “DENIS AVRONSORD” (M.D OF KELLOGG’S INDIA.)

• TOUGH COMPETITION FROM MOHUN’S CORNFLAKES

• IT ALSO FACES COMPETITION FROM OTHER SUBSTITUTE READY TO MAKE BREAKFAST SNACKS LIKE MTR’S IDLI, VADA, DHOKLA , NESTLE’S MAGGI

POINTS OF DIFFERENCE• KELLOGG’S HAS DIFFERENTIATED ITSELF ON THE BASIS OF VARIETY IT

OFFERS

• IT HAS ALSO OFFERED PREMIUM QUALITY AS DIFFERENTIATED FROM IT’S DIRECT COMPETITOR

• KELLOGG’S HAS DIFFERENT OFFERING CATERING TO DIFFERENT NEED OF DIFFERENT PEOPLE IN TERMS OF AGE, CHARACTER STICKS AND REQUIREMENTS

POINTS OF PARITY • KELLOGG’S HAS THE FIRST MOVER ADVANTAGE

• ITS CATERS TO READY TO MAKE OR QUICK PREPARATION NEED AS OTHER SNACKS TAKE ON

COMPETITIVE FRAME OF REFERENCE

Kellogg’s

Breakfast SnackHealth Benefits

Ease of Making

MTR

Nestle

Low High

•Characterise the competitive frame of reference of the brand extension•Characterise the points of parity•Characterise the point(s) of difference; Isolate the crucial point of difference

APPENDIX

• KELLOGG'S® ALL BRAN®: WHEN YOUR DIGESTIVE SYSTEM IS NOT OKAY, EVEN THE SMALLEST THINGS CAN BE MAKE YOU FEEL TIRED AND IRRITABLE. KELLOGG’S ALL BRAN IS HIGH IN FIBRE. FIBRE CAN HELP KEEP YOUR DIGESTIVE SYSTEM CLEAN, SO YOU FEEL HAPPY INSIDE. AND, WHEN YOU FEEL HAPPY INSIDE, IT SHOWS OUTSIDE!

• KELLOGG'S® CHOCOS®: KELLOGG’S CHOCOS IS THE GREAT BREAKFAST CEREAL FOR BOTH MOM AND KIDS. WHILE KIDS LOVE ITS YUMMY CHOCOLATY TASTE, AND HAVE FUN WITH THE WAY KELLOGG’S CHOCOS TURNS MILK SUPER-DUPER CHOCOLATY. MOMS CAN FEEL RELIEVED THAT THEY’VE GIVEN THEIR CHILD A NOURISHING BREAKFAST BECAUSE CHOCOS IS NOW MADE WITH WHOLE GRAIN, PROVIDES FIBRE AND IS FORTIFIED WITH 11 ESSENTIAL VITAMINS AND MINERALS.

• KELLOGG'S® CORN FLAKES: IT’S A NOURISHING, WHOLESOME BREAKFAST AT ITS VERY BEST. MADE FROM REAL NATURAL CORN, WITH IRON AND 8 ESSENTIAL VITAMINS INCLUDING A, C AND B-GROUP VITAMINS, IT OFFERS THE BALANCED COMBINATION OF NOURISHMENT AND GREAT TASTE. SO START YOUR FAMILY'S DAY WITH A BOWL OF WHOLESOME GOODNESS AND WATCH THE HAPPINESS SPREAD.

• KELLOGG'S® HONEY LOOPS: A LOOPY, CRUNCHY MULTI GRAIN* CEREAL DIPPED IN HONEY. A BOWLFUL OF THIS IRRESISTIBLY DELICIOUS BREAKFAST CEREAL EVERY MORNING GIVES CHILDREN TO ENERGY TO KICKSTART THE DAY. SO GO AHEAD AND LOOP THE EXCITEMENT FOR YOUR KIDS EVERY DAY.

• KELLOGG'S® MUESLI: EVERY BITE IS AN EXPLOSION OF FLAVOUR, A REAL TREAT FOR YOUR TASTE BUDS. MADE WITH AN EXQUISITE MIX OF INGREDIENTS FROM AROUND THE WORLD, IT’S A DIVINELY DELICIOUS START TO THE DAY. EVERY BITE IS JUST AS NOURISHING AS IT IS TASTY. SO GO ON INDULGE YOURSELF.

• KELLOGG'S® OAT BITES: GIVE YOUR TASTE BUDS A LITTLE TEASE EVERY MORNING WITH KELLOGG’S OAT BITES. IT’S A BREAKFAST CEREAL THAT’S QUICK TO MAKE, BUT TAKE YOUR TIME ENJOYING IT. GOOD NUTRITION AT ITS DELICIOUS BEST, NOW THAT’S A GREAT WAY TO START THE DAY!

• KELLOGG'S® OATS: IN TODAY’S FAST PACED LIFESTYLE WHERE WORK STARTS BUT NEVER ENDS, WHERE SOMETIMES LUNCH IS EATEN DURING DINNER AND EXERCISE USUALLY MEANS CHANNEL SURFING; OUR POOR HEART’S HEALTH NEEDS TO BE TAKEN CARE OF. THAT'S WHY, START THE DAY THE HEALTHY WAY, WITH KELLOGG'S OATS*. IT'S EASY TO MAKE, TASTY AND NUTRITIOUS. *AS PER EFSA: OAT BETA-GLUCAN HAS BEEN SHOWN TO LOWER/REDUCE BLOOD CHOLESTEROL. BLOOD CHOLESTEROL LOWERING MAY REDUCE THE RISK OF (CORONARY) HEART DISEASE. AS PER USFDA: 3 G OF SOLUBLE FIBRE FROM OATS AS PART OF A DIET LOW IN SATURATED FAT AND CHOLESTEROL, MAY REDUCE THE RISK OF HEART DISEASE.

• KELLOGG'S® SPECIAL K®: KELLOGG’S SPECIAL K CONSISTS OF DELICIOUS CRUNCHIER FLAKES WITH GOODNESS OF WHEAT AND RICE. IT IS 98% FAT FREE AND A SOURCE OF FIBRE. MOREOVER, KELLOGG’S SPECIAL K IS FORTIFIED WITH 8 ESSENTIAL NUTRIENTS LIKE VITAMINS A, C AND B VITAMINS INCLUDING FOLIC ACID.

https://www.youtube.com/watch?v=ThxjVGZXt8Ehttps://www.youtube.com/watch?v=_OmJ9mL_4AMhttps://www.youtube.com/watch?v=nxhmwOnGBA4