KELLOGG INDIA

Background
With 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 19 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. 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 CFTRI, 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 country and forwarding agents) serving over 200 distributors providing a good reach Optimising overheads by giving distributors larger responsibility for sales, thus bringing down the strength of its internal sales force Deploying 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 basis.

Future plans
Kellogg 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.

Customising products for India

Over 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.

Transforming the Indian breakfast cereal market

When 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.

Efficient supply chain network

Price 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

Strong support from parent

Kellogg 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 environment.

Kellogg India: AT A GLANCE

Kellogg India: Largest player in the breakfast cereals market. 100 employees. Investments of over US$ 30 million Factors for success: Innovative marketing and brand-building. Efficient supply chain network. Customising products for India. Strong support from parent For Kellogg, India is: A source for managerial

Factors for success

Innovative marketing and brand-building
Kellogg India has been taking various initiatives to overcome the low awareness of breakfast cereals:

Leveraging the India Advantage

Kellogg 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.

talent and an important market Future plans, India: To continue its investment drive to grow the Indian breakfast cereal market

US COMPANIES IN INDIA