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ESTABLISHED IN 1906 & FOUNDED BY WILL KEITH KELLOGG

PRODUCT IS MANUFACTURED IN 18 COUNTRIES & MARKETED IN MORE THAN 180 COUNTRIES AROUND THE WORLD.

IT IS THE WORLDS LEADING PRODUCER OF CEREAL & LEADING PRODUCER OF CONVENIENCE FOODS IN WHICH INCLUDES COOKIES, CRACKERS, TOSTER, PASTRIES, CEREAL BARS, FRUIT FLOVOUR, SNACKS, FROZEN WAFFLES & VEGETARIAN FOODS.

COMPANY PROFILEKELLOGGS 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 & VADAS. - THIS STATEMENT WAS GIVEN BY DENIS AVRONSORD (M.D OF KELLOGGS INDIA.)

KELLOGGS IN INDIAProduct: This element relates to how the company offers meets the changing needs and wants of customers. The growth in healthier lifestyles creates opportunities for Kellogg's to increase the number of products for this segment. Price: The amount a company charges for its product is important in determining sales. Super brands like Kellogg's can charge a premium because of the strength of the brand and product quality. Place: Where customers can purchase the product is also an important factor in determining sales. If a brand like Special K is not stocked in supermarkets where most purchases are made, sales will be lost. Promotion: Communicating the availability of a product is essential. Kellogg's uses promotional media like TV advertising & promotion like sampling.

Marketing MixVision:To enrich and delight the world through foods and brands that matter.Purpose:Nourishing families so they can flourish and thrive.We are a company of promise and possibilities. Each day represents a fresh opportunity to share Our Vision, live Our Purpose.By being mindful and committed to these ideals, we uphold our founders dedication to people and their well-being. And we promote an environment where we can push beyond boundaries and across borders to create foods and brands that help to fuel the best in everyone everywhere.It is this belief that brings us together and sets us apart.

Stay Focused, Going Furtherhttp://www.kelloggcompany.com/en_US/our-vision-purpose.html5As a leading food producer of best-loved brands, we know that a strong commitment to diversity and inclusion is vital to our global business success.With approximately 31,000 employees worldwide and with products manufactured in 18 countries and marketed in 180 countries across six continents, Kellogg truly is a multinational, multicultural company.A Competitive AdvantageOur focus on diversity enables us to build a culture where all employees are inspired to share their passion, talents and ideas. They become part of a team that works to better serve the needs of our diverse consumers by delivering fresh thinking, product innovations and quality brands. In addition, thanks to technology, demographic shifts and worldwide connectivity, we live in a world where change occurs at a rapid clip. For Kellogg to be a part of, and ahead of, that change, we know we must continue our progress in diversity and inclusion allowing us to bring our best to people all around the world every day.

Making a Difference

http://www.kelloggcompany.com/en_US/making-a-difference.html6With 2014 sales of $14.6 billion globally, Kellogg Company is the worlds leading cereal company; second largest producer of cookies, crackers and savoury snacks; and a leading North American frozen foods company.1,600 foods, produced in 18 countries, marketed in more than 160 countries

Fact sheethttp://www.kelloggcompany.com/en_US/corporate-responsibility.html7BackgroundWith projected annual sales of over US$ 9 billion, Kellogg Company, USA, is the worlds leading producer of cereal and convenience foods. Founded and headquartered in Battle Creek, Michigan. Kellogg Company manufactures products in 18 countries and markets products in more than 160 countries around the world.Kellogg India is a 100 per cent subsidiary of Kelloggs Company, USA, and is the largest player in the Indian breakfast cereal market. Kellogg India has over 100 employees and has invested over US$ 30 million.Kelloggs Indiar.search.yahoo.com/_ylt=AwrSbjYXXutU8_EAa0e7HAx.;_ylu=X3oDMTE0bGticGFlBHNlYwNzcgRwb3MDNQRjb2xvA2dxMQR2dGlkA1ZJUElOMDJfMQ--/RV=2/RE=1424739991/RO=10/RU=http%3a%2f%2fwww.ibef.org%2fdownload%2fKellogg_India.pdf/RK=0/RS=pGL7NiFpMAEDM06UGxzNlPmy_fc-8When Kellogg Company entered India, the per capita consumption of breakfast cereals was a low 2 gm per annum against 5 kg per annum globally. The Indian ready-to-eat-cereal market, clearly, posed several challenges: Cultural factors and eating habits population not used to processed foods Easy availability of low-priced traditional breakfast Low awareness about processed foods and calorie requirements Price sensitive customers Kellogg India has been steadily overcoming these and has contributed to the rapid growth of the breakfast cereal market in the country.Transforming the Indian breakfast cereal market

r.search.yahoo.com/_ylt=AwrSbjYXXutU8_EAa0e7HAx.;_ylu=X3oDMTE0bGticGFlBHNlYwNzcgRwb3MDNQRjb2xvA2dxMQR2dGlkA1ZJUElOMDJfMQ--/RV=2/RE=1424739991/RO=10/RU=http%3a%2f%2fwww.ibef.org%2fdownload%2fKellogg_India.pdf/RK=0/RS=pGL7NiFpMAEDM06UGxzNlPmy_fc-9Innovative marketing and brand-buildingKellogg India has been taking various initiatives to overcome the low awareness of breakfast cereals Sustained brand-building through advertising and investment behind key brands. Introducing a limited edition Kelloggs Chocos Spider Man 2 web designed cereal which is part of the global association between Kellogg Company and the movie Spider Man 2 Conducting school contact programmes and having active interface with opinion leaders the government, independent agencies etc. Adopting brand names that appeal to the Indian consumer such as Shakti, meaning power Using packaging as an effective marketing tool, for brand communication and on-shelf differentiation Image building through recycling and reusing, improving access to health and human services in local communities. Kelloggs works with organisations and programs with proven results that improve lives around the countryFactors for success

r.search.yahoo.com/_ylt=AwrSbjYXXutU8_EAa0e7HAx.;_ylu=X3oDMTE0bGticGFlBHNlYwNzcgRwb3MDNQRjb2xvA2dxMQR2dGlkA1ZJUElOMDJfMQ--/RV=2/RE=1424739991/RO=10/RU=http%3a%2f%2fwww.ibef.org%2fdownload%2fKellogg_India.pdf/RK=0/RS=pGL7NiFpMAEDM06UGxzNlPmy_fc-10Price sensitive customers necessitated a constant focus on cost reduction and supply chain efficiency enhancement in India. Kellogg India has taken several initiatives in this area: Localised the entire raw and packing material requirement, saving import duty. In addition it has adopted single sourcing strategy achieving scale efficiencies. Located its manufacturing plant at Taloja, near Mumbai in the state of Maharashtra, which is the largest market for breakfast cereals in the country thereby optimising transportation cost 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

Efficient supply chain network

r.search.yahoo.com/_ylt=AwrSbjYXXutU8_EAa0e7HAx.;_ylu=X3oDMTE0bGticGFlBHNlYwNzcgRwb3MDNQRjb2xvA2dxMQR2dGlkA1ZJUElOMDJfMQ--/RV=2/RE=1424739991/RO=10/RU=http%3a%2f%2fwww.ibef.org%2fdownload%2fKellogg_India.pdf/RK=0/RS=pGL7NiFpMAEDM06UGxzNlPmy_fc-11 Optimising overheads by giving distributors larger responsibility for sales, thus bringing down the strength of its internal sales forceDeploying Oracle 11i based ERP to enhance supply chain transparency leading to lesser inventories and better service levels. Other locally developed systems help monitor stocks and movement on a daily basisr.search.yahoo.com/_ylt=AwrSbjYXXutU8_EAa0e7HAx.;_ylu=X3oDMTE0bGticGFlBHNlYwNzcgRwb3MDNQRjb2xvA2dxMQR2dGlkA1ZJUElOMDJfMQ--/RV=2/RE=1424739991/RO=10/RU=http%3a%2f%2fwww.ibef.org%2fdownload%2fKellogg_India.pdf/RK=0/RS=pGL7NiFpMAEDM06UGxzNlPmy_fc-12Over time Kellogg India has widened its product portfolio and expanded its range to include Frosties, chocolate-flavoured scoops and taste variants of Corn Flakes. Kellogg India also adapted its products to address the local need gaps. For example it enhanced its focus on iron and calcium fortification with products like Iron Shakti (meaning iron power) and Calcium Shakti.Customising products for India

r.search.yahoo.com/_ylt=AwrSbjYXXutU8_EAa0e7HAx.;_ylu=X3oDMTE0bGticGFlBHNlYwNzcgRwb3MDNQRjb2xvA2dxMQR2dGlkA1ZJUElOMDJfMQ--/RV=2/RE=1424739991/RO=10/RU=http%3a%2f%2fwww.ibef.org%2fdownload%2fKellogg_India.pdf/RK=0/RS=pGL7NiFpMAEDM06UGxzNlPmy_fc-13Kellogg India receives technology inputs (in customising products to suit the Indian nutritional profile, developing packing material for India, manufacturing process etc.) from its parent. Within the larger management and strategic framework, Kellogg India has the flexibility to adapt its operational strategy suited to the local environmentStrong support from parent

r.search.yahoo.com/_ylt=AwrSbjYXXutU8_EAa0e7HAx.;_ylu=X3oDMTE0bGticGFlBHNlYwNzcgRwb3MDNQRjb2xvA2dxMQR2dGlkA1ZJUElOMDJfMQ--/RV=2/RE=1424739991/RO=10/RU=http%3a%2f%2fwww.ibef.org%2fdownload%2fKellogg_India.pdf/RK=0/RS=pGL7NiFpMAEDM06UGxzNlPmy_fc-14Kellogg India has been leveraging Indian managerial talent by moving Indian managers to other countries. The Indian team also manages neighbouring countries like Sri Lanka, Bangladesh and Nepal.Leveraging the India Advantage

r.search.yahoo.com/_ylt=AwrSbjYXXutU8_EAa0e7HAx.;_ylu=X3oDMTE0bGticGFlBHNlYwNzcgRwb3MDNQRjb2xvA2dxMQR2dGlkA1ZJUElOMDJfMQ--/RV=2/RE=1424739991/RO=10/RU=http%3a%2f%2fwww.ibef.org%2fdownload%2fKellogg_India.pdf/RK=0/RS=pGL7NiFpMAEDM06UGxzNlPmy_fc-15Kellogg Company views India as a very important market with a great future. Taking a longer-term perspective, Kellogg India is planning to continue its investment in communication of categories and brands to grow the breakfast cereal market.Future plans

r.search.yahoo.com/_ylt=AwrSbjYXXutU8_EAa0e7HAx.;_ylu=X3oDMTE0bGticGFlBHNlYwNzcgRwb3MDNQRjb2xvA2dxMQR2dGlkA1ZJUElOMDJfMQ--/RV=2/RE=1424739991/RO=10/RU=http%3a%2f%2fwww.ibef.org%2fdownload%2fKellogg_India.pdf/RK=0/RS=pGL7NiFpMAEDM06UGxzNlPmy_fc-16Quarter endedYear endedJanuary 3, December 28,January 3, December 28,(Results are unaudited)2015201320152013Net sales$3,514$3,501$14,580$14,792Operating profit-4221,2601,0242,837Income before income taxes-4791,2148252,606Income taxes-187394186792Net income($293)$819$633$1,808Net income attributable to Kellogg Company($293)$818$632$1,807Kellogg Company and SubsidiariesCONSOLIDATED STATEMENT OF INCOME(in millions)

http://newsroom.kelloggcompany.com/2015-02-12-Kellogg-Company-Reports-Fourth-Quarter-and-Full-Year-2014-Results-Provides-Guidance-For-2015-and-Changes-Its-Long-Term-Sales-Target?printable17Launched in September 1994, Kelloggs initial offerings in India included Cornflakes, wheat, flakes and Basmati rice flakes.They first launched their Products in Mumbai.Their segmented market is to replace other breakfast product to Kellogg's cereal.

SEGMENTINGMarkets are divided into market segments and there are six key segments to the Kellogg market, as shown:

Tasty Start - the cereals that most people will eat to begin their day. Kellogg's brands include Kellogg's Corn Flakes and variations, such as Kellogg's Crunchy Nut.

Simply Wholesome. These are 'good for you' brands, such as Kellogg's Fruit 'n' Fiber

Shape Management. Brands that can enable customers to manage their weight or shape, such as Kellogg's Special K.

Segmentation Mum Approved. Those that mothers see as being good for their children, such as Kellogg's wheat flaks.

Kid Preferred. The brands that children themselves prefer, such as Kellogg's Frosties, Kellogg's Choc's and Honey Loops.

Inner Health. These are the brands that help people with digestion, such as Kellogg's All-Bran and Kellogg's Heart to Heart Oats.

To caters the mass market but they only caters to the A-Class towns or the more affluent consumers.Disappointed with the poor performance, Kellogg decided to launch two of its highly successful Brands- Chocos (September 1996) and Frosties (April 1997) in India.This resulted in the launch of the Mazza series in August 1998-a crunchy, almond- shaped corn breakfast cereal in three local flavors-Mango Elaichi, Coconut kesar and Rose.TARGETINGThe companys advertisements and promotions initially focused only on the health aspects of the product.In doing this , Kellogg had moved away from its successful fun and taste positioning adopted in the US.POSITIONING Product: This element relates to how the company offers meets the changing needs and wants of customers. The growth in healthier lifestyles creates opportunities for Kellogg's to increase the number of products for this segment.

Price: The amount a company charges for its product is important in determining sales. Super brands like Kellogg's can charge a premium because of the strength of the brand and product quality.

Place: Where customers can purchase the product is also an important factor in determining sales. If a brand like Special K is not stocked in supermarkets where most purchases are made, sales will be lost.

Promotion: Communicating the availability of a product is essential. Kellogg's uses promotional media like TV advertising & promotion like sampling.

Marketing Mix

Kellogg also increased its focus on promotions that sought to induce people to try their products and targeted schools across the country for this. By mid-1995, the company had covered 60 schools in the metros.In March 1996, the company offered specially designed 50 gm packs free to shoppers at select retail stores in Delhi.This was followed by a house-to-house sampling exercise offering one serving sachets to housewives in the city. PROMOTIONAL STRATEGY

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