Presented By:-

ANIL.V.BELAVADI

Founded by W. K. Kellogg in February 19, 1906.

Head office - Battle Creek, Michigan.

The world's leading producer of cereals and convenience foods, including cookies, crackers, cereal bars, frozen waffles, meat alternatives, piecrusts, and ice cream cones.

Manufacturing facilities in 19 countries and marketed its products in more than 160 countries.

In 1980s, the company had reached an all-time peak, commanding a staggering 40 per cent of the US ready-to-eat market from its cereal products alone.

In1990s Kellogg’s began to struggle - its nearest rivals General Mills increased the pressure with its Cheerios brand.

In 1990s looked beyond its traditional markets in Europe and the United States in search of more cereal eating consumers.

KELLOGG’S

Kellogg's established its subsidiary in India, September 1994,

30th manufacturing plant in India with $30million

New concept of eating breakfast cereal in India.

Despite offering good quality products and being supported by the technical, managerial and financial resources of its parent, Kellogg's products failed in the Indian market.

Without doing any further research of the market - introduced to Kellogg’s Wheat Flakes, Frosties, Rice Flakes, Honey Crunch, Special K and Chocos Chocolate Puffs – none of which have managed to replicate the success.

SWOT ANALYSIS

• Control 42% of global market share for cereal, which is more than triple the market share of any of their competitors.

• They have the strongest brand recognition and advertising recollection of all the cereal manufacturers

• Slow erosion of their U.S. market share in the past few years.

• Follower in Pricing Strategy.

• High Prices

• International expansion is the biggest area for growth of Kellogg’s.

• Kellogg can continue to slowly diversify, while still remaining in their core business area, which will increase their profitability.

• If they can develop a better pricing strategy and guarantee lower prices, they can reduce costs while increasing their market share.

OPPORTUNITIES

20

70

10

cornflakes

mohun

private players

Market Share

THREATS

Mohan Mekean, Quaker Oats and Private Labels are using price competition and product proliferation to erode Kellogg’s share of the market.

THREATS

High

Low

PR

ICE

/QU

AL

ITY

/IM

AG

E

LINE/MANUFACTURING PRODUCT MIX

Competitors

Brand Cereals

Kellogg

Quaker Oats

Private Label

Mohan Mekean

PROMOTIONAL CAMPAIGNS TILL NOW

• Taste of its products did not suit Indian breakfast habits

• Kellogg’s believed that its brand equity carried forward from the West would mirror its success in India.

• Its advertisements and promotions focused initially on the health aspects of the product

MAIN REASONS FOR ITS FAILURE

• Pricing is believed to play a dominant role in the demand for any product

• A Business Today report said that like other Multinational Companies, Kellogg had fallen into a price trap.

• Difficult for the larger population to get its products.

• Did not have packs of different sizes to cater for the needs of different consumers

Lesson from Kellogg’s• Don’t underestimate local competitors

• Remember that square pegs don’t fit into round holes.

• Don’t try and make consumers strangers to their culture

• Proper research should be done in the market

Price Affordability: Price has always been a very big factor for Indian consumer, they are very price conscious. High price is one of biggest weakness of this product.

Taste: Respondent says that its taste changes when it is taken with milk. So taste factor need to be taken care of. Taste should be such that it makes good combination with milk.

Target Audience: Elder people are the biggest consumers of cornflakes based on the research. so its target audience should include elder people too.

Research: Before entering into the market proper

analysis of the market should be done

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