Kellog case study presentation

MO. AMIR KHAN

• Established in 1906, by Will Keith Kellogg.

• Top Most Cereal companies in the world.

• Had global footprints by 1990’s, present in over 180countries now.

• Revenue stream of more than 13 billion USD.

• One of the first companies to print nutritionallabeling.

• Mission Statement:

"quality products for a healthier world"

• It has marketed its product in more than 160countries of the world.

• 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.

Over confidence & ignorance of cultural

aspects.

lack of understanding of Indian consumer

behavior & habits.

premium pricing policy.

• Kellogg initially launch cornflakes, wheatflakes and basmati rice flakes the otherwords chocos biscuits and trosties.

• In 2000, some more products werelaunched like crispy ,cocoa frosties andhoney crunch.

• Launching of an older product ‘mazza’ inthree new Indian flavors, mango elaichi,coconut kesar and rose.

• Introduction of new 60gm pouches and500gm packs which reduces 20% of itsprice/kg.

• Keeping in , the nutritional needs, the ironwas added to its products to meet forimportance in a healthy diet.

HERE A COMPANY DESIGN A PRODUCT TO MEET A NEED IN MARKET -

STAGES OF PRODUCT LIFE CYCLE ARE :-

1. Launch :-many product do well whenthey are first brought out and nutrigrains was no exception from launch in1997 it was immediately successful.

2. Growth :- it maintained growth in saleswith new development of flavor andformat. It does not have to spendmoney on new machines. The marketposition of “nutri- grain” also changedfrom “missed breakfast” to “all day”healthy snacks.

3.MATURITY:-successful products attractother competitor bus to start sellingsimilar products. Some variants struggles ,while some grew but could not halt theoverall decline.

4.Saturation:-the market in “full” better andcheaper competing products have cometo market by mid 2004, nutri grain faceddecline sales in a growing market.

5.Decline:-at this point Kellogg's have todecide whether to let product die or use.

• Kellog contains a large variety of foods asbreakfast alternatives and ready to eat foods.

• Entered aligned food category to make upfor the loss in the Corn Flakes segment

• Launched special products for strategicsegmentation of the consumers owing to thebetter understanding of the Indian Consumer– E.g. Chocos for kids, K special for women, All

Bran for mid aged women etc.

Product of Kellogg's in

India

MAJOR COMPETITORS IN INDIA

COMPETITORS

• The quality of the products.

• Meeting health requirements at the serviceclass people and the school kids.

• Provide healthy products made withcereals and corns, etc.

• High prices.

• Unavailability in small cities andtowns.

• Doesn’t match the Indian taste.

• Meet the health requirements of thebusy peoples.

• Due to variety, have a great market inIndia.

• The traditional foods of the countriesin which Kellogg wanted to launch itsproduct.

• Being not very successfully launchedit has been a great alternative forIndia’s breakfast.

• Consumed by a large population andreached their homes due to its varietyand healthy products.