COMPANY PROFILE

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.

KELLOGGS IN INDIA
KELLOGGS 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.)

Marketing Mix
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 &

Stay Focused, Going

Further
Vision: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.

Making a Difference
As 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 Advantage
Our 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

Fact sheet
With 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

Kelloggs 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 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.

When Kellogg Company entered India, the per

Transforming the Indian breakfast cereal market

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

Factors for success

Innovative marketing and brand-building

Kellogg 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.

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 and
forwarding agents) serving over 200 distributors

 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

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.

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

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.

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.

Kellogg Company and Subsidiaries

CONSOLIDATED STATEMENT OF INCOME
(in millions)

(Results are
unaudited)

Quarter ended

December
January 3,
28,

Year ended

December
January 3,
28,

2015

2013

2015

2013

$3,514

$3,501

$14,580

$14,792

Operating profit
Income before
income taxes

-422

1,260

1,024

2,837

-479

1,214

825

2,606

Income taxes

-187

394

186

792

($293)

$819

$633

$1,808

($293)

$818

$632

$1,807

Net sales

Net income
Net income
attributable to
Kellogg Company

SEGMENTING
Launched 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.

Segmentation
Markets 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

 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.

TARGETING
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 flavorsMango Elaichi, Coconut kesar and Rose.

POSITIONING
The 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.

Marketing Mix

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

PROMOTIONAL STRATEGY
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.

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