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

Cereal based breakfast ???
a new concept for Indians
Major investment in Consumer Education or Learning
Traditional, deep rooted breakfast habits
Indians are used to hot/lukewarm servings
Corn Flakes in hot/warm milk tend to be soggy
OR
Promising early sales turned out to be one-off
novelty purchases
Product was too expensive (33% more pricy)
Unwillingness to bow down on price
pressures
More product launches despite low pick up.
Lack of market research before launch
Too Bad Indianization of products- Mazza
Mango elaichi, Coconut, Rose etc.


Strength

Addressing
Consumer Needs
Product range
Product Innovation
Adaptability &
Flexibility


Opportunities

Trend setter
Changing Lifestyle
Untapped new
market


Multinational corporations must not start with the assumption
that India is a barren field, C K Prahalad

It was just clumsy cultural homework, Titoo Ahluwalia, Chairman ORG MARG

You cannot change the taste buds that were developed more than
a thousand years ago, Wahid Berenjian, MD, US Pizza

The society is much stronger than any company or product Wahid
Berenjian, MD, US Pizza
High Prices
Probably overestimated the amount of premium that customers were willing
to pay for quality and the foreign tag.
Lack of Optimized or Indianized flavors
Mistook India for one, single, homogenous market
Underestimated the efforts they would have to put in to create
a strong distribution and retail chain.
Kelloggs was blinded by numbers, it saw the huge population
of India but purchasing power parity is not the same.
Corn Flakes seems like a long haul product. Involves new habit
creation and consumer learning



The initial failure did not deter the breakfast
food giant. But a Re Look at
Product Mix
Re positioning
Adaptations
Revised Communication Strategies
Promotional Strategies
Introduced new variants from its vast product line of the West, to
make up for the bad performance of the star brand Corn Flakes
Entered aligned food category to make up for the loss in the Corn
Flakes segment
Introduced energy bars, biscuits etc.
Launched special products for strategic segmentation of the
consumers owing to the better understanding of the Indian
Consumer
E.g. Chocos for kids, K special for women, All Bran for mid aged women
etc.
New positioning Fun & Taste & Health
Indianized product names e.g. Iron-Shakti
Generating familiarity with the masses
Touching upon general passion for scholastic excellence in India
Launched different SKUs catering the varied Indian
Consumers
Family pack
Smaller pack
One time use pack @ Rs.10/-
Identified the nutritional need and launched products
accordingly
Extra Iron Shakti
Special K diet for weight management
Chocos for kids in different shapes and styles, reassuring the fun
element
All Bran Wheat Flakes for a fiber rich diet
Catchy Phrases
jaago jaise bhi, lo Kelloggs hi
Andar se khush , to bahar se khush
Shuruaat sahi to din sahi
Attributing to the daily energy of the whole family
Focused initially on communicating the nutritional
value
Currently educating consumer about varied recipes
Popular health conscious celebrity brand ambassador
Lara Dutta, Karisma Kapoor, Sakshi Tanwar
Currently emphasizing more on convenience and fun




Mass Advertisements Nice array of TVCs aired on
prime time.
Direct Promotions
Consumer awareness campaigns
Reaching out to schools etc.
Discounts / Offers Continuously used tool,
introduced new range variants of product this way
Exploiting the growing involvement of kids in
purchasing behavior.
Attractive Packaging
Creation of mascots for variants,
popular among Kids in the west
The new campaign Shuruaat Sahi Toh Din Sahi
Sakshi Tanwar to endorse, stereotyping the
present day homemaker
It brings forth the emotional payoff that a
mother and wife may experience after having
provided her family with a Kelloggs Corn Flake
breakfast.
The move comes along with the new positioning,
which empowers every homemaker to customize
Kelloggs Corn Flakes to suit her familys
preferences and set them up for a great day.
An attempt to bring an element of Fun
Karisma Kapur to endorse
Kelloggs Chocos Rs 10 pack as the
evening snack option
Positions as a preferred option among
mothers as a kid snack
Highlights nourishment, taste and SMALL
PACK
It aims to drive differentiation, both
functionally and economically
An attempt to address a market research
finding that Indians prefer it as Snacks

Happy Inside, Happy Outside
for women to play their many roles with ease, they
need to feel good from the inside.
targets Indian women between 35 to 40 years
prone to digestive irregularity due to considerable
impact of hormones, poor eating behavior,
insufficient exercise, hectic lifestyle
The Kellogg's All Bran TVC is based on a very real
insight that women relate with instantly-
when your digestive system is not working smoothly you
might feel irritable. It was this simple thought that we brought to life in
the commercial. A mundane request from the husband seems like a
huge task for her and results in irritation which is depicted as a silent
scream.
Brand Image: Quality, Variety, Distribution
Customer based brand equity changed from costly to
Quality
Brand Identification: high; logo is well recalled by consumers
High TOMA
First mover advantage.
Strongest brand recognition and advertising recollection of all
the cereal manufacturers
Kelloggs is the undisputed market leader in the particular
segment

Entry to Indian market was probably before time
Early fall out did not deter the focus of Kelloggs team,
fought back in the Indian market
Improved the earlier mistakes by understanding Indian
Consumer and growing needs
Constantly used mass communication tools to enhance
consumer learning
Brand name synonymous with the category itself
Need for convenience food rising and so is the revenue

Maintain the continuous product innovation
Enhance its distribution network
Enormously growing category (20% CAGR)
Segment growth is owed partly to the efforts of Kelloggs
Increased Health Consciousness and Awareness
Approach fitness centers and clinics for promotional activity
E.g. Talwalkars, Fitness One, VLCC etc.
2
nd
generation of consumers evolving
Should approach schools and educational Institutions for promotion
Should develop affinity to this consumer class

To attract KIDS - the biggest influencers -
Popularize various brand mascots in shopping malls and cinema commercials
(max. attention)
Provide brand mascot merchandize for kids as freebies during festive season
Conduct promotional activity with mascots in theme parks and adventure parks
This will engage consumers and also associate fun with the brand
To attract Women / Home Makers
Encourage experimentation with the product
Associate with some cookery shows, chefs for special episodes
E.g. Master Chef India, Sanjeev Kapoor
This will also satisfy the variety seeking nature of the consumers

Roll out some nutritious finger food snack item for Kids.
Do market research to know the pulse of the consumer for product
innovation


Kellogg India to take a second shot at
localizing its India portfolio
Set to launch pudina, tomato and garam
masala for its oats range to take on
Quaker oats from PepsiCo
Expert Say "The breakfast cereal category works more for consumers with global palettes... so whether
localized variants will be a growth driver for this category will depend on how consumption patterns evolve.