PREPARED BY:SHIVLING DHANGARKARTIK TANTRIABHISHEK MISHRARADHIKA BHANDLA

HISTORYKellogg’s Company born in 1906 by Will Keith Kellogg.

W.K. persuades John Harvey to start a commercial cereal business initially called the Battle Creek Toasted Corn Flake Company.

Headquarter is in Battle Creek, Michigan, United States.

Kellogg company is the world’s leading producer of cereals convenience foods, including cookies, crackers, cereal bars etc.

Kellogg had manufacturing facilities in 19 countries and marketed its products in more than 160 countries.

In 1909 The company introduced its second product to

the public, Kellogg's Toasted Rice Flakes.

In 1994 Kellogg’s company came into Indian

market.

Kellogg’s offering products to india such as

corn flakes, wheat flakes, basmati rice flakes.

Despite offering quality products Kellogg's

products failed in the indian market.

Major competitors for Kellogg’s in India is the

following things.

MAJOR COMPETITORS IN INDIA

COMPETITORS

REASONS TO FAIL IN INDIAN MARKETKellogg’s flakes made for cold milk which

does not suits Indians taste.

If Kellogg’s flakes will put in hot milk, it will become soggy and taste won’t be good.

Therefore Kellogg’s products did not suit indian breakfast habits.

Improper segmentation

Mismatch Positioning

Premium pricing

Improper Target

CHALLENGES FACED BY KELLOGG IN INDIAPrice Sensitive customers.

Easy availability of low-priced traditional breakfast.

Indians always boiled milk unlike in the West and consumed it warm or lukewarm . They also liked to add sugar to their milk.

Negative media coverage regarding the products increased and taste was not good.

QUETIONS1. What were the reason behind poor

performance of Kellogg in the initial stages? Do you agree that a poor entry strategy was responsible for the company’s problems? Give reasons to support your answers?

Ans. Yes, we agree with this statement. Wrong productWrong PriceTraditional Indian foods

2. Analyze Kellogg’s efforts to revamp its marketing mix and comment on the initiatives taken regarding each elements of the marketing mix?Ans.Product: Launched Chocos and Frosties based Indian customer preferences. Later diversified into different products.

Price: Introduced the 500gm family pack which brought down the price per kg by 20%. Mazza introduced in 60gm pouches, priced at Rs 9.50.

Place: Kellogg’s increased its outlets from 30000 to 40000 to make available its products everywhere.

Promotion: Kellogg’s increased its focus on promotion to induce people and to create awareness. Therefore they visited schools and distributed samples and conducted programs in Chennai, Delhi, and Mumbai to educated about importance of breakfast and health.

3. Do you think the Company’s decision to launch biscuits and snacks was a right one? Give reason for your answer.Ans. Yes, according to our group Kellogg’s decision is right one. Because product line is very important for any company for stability. With single product no company can be stabled for longer time in uncertain market. Therefore they should have products portfolio so they could make profit from any one product.

CONCLUSIONSTPMarketing Mix