Presented By:-

ANIL.V.BELAVADI
 KELLOGG ’ S
Ø Founded by W. K. Kellogg in February 19, 1906.
Ø
Ø Head office - Battle Creek, Michigan.
Ø
Ø The world's leading producer of cereals and convenience foods, including cookies,
crackers, cereal bars, frozen waffles, meat alternatives, piecrusts, and ice cream
cones.
Ø
Ø Manufacturing facilities in 19 countries and marketed its products in more than 160
countries.
Ø
Ø In 1980s, the company had reached an all-time peak, commanding a staggering 40
per cent of the US ready-to-eat market from its cereal products alone.
Ø
Ø In1990s Kellogg’s began to struggle - its nearest rivals General Mills increased the
pressure with its Cheerios brand.
Ø
Ø In 1990s looked beyond its traditional markets in Europe and the United States in
search of more cereal eating consumers.
 KELLOGG’S INDIA

Ø Kellogg's established its subsidiary in India, September 1994,



Ø 30th manufacturing plant in India with $30million

Ø
Ø New concept of eating breakfast cereal in India.
Ø
Ø Despite offering good quality products and being supported by
the technical, managerial and financial resources of its
parent, Kellogg's products failed in the Indian market.
Ø
Ø Without doing any further research of the market - introduced
to Kellogg’s Wheat Flakes, Frosties, Rice Flakes, Honey
Crunch, Special K and Chocos Chocolate Puffs – none of
which have managed to replicate the success.
 SWOT
ANALYSIS
 STRENGTHS

• Control 42% of global market share for

cereal, which is more than triple the market
share of any of their competitors.

•

• They have the strongest brand recognition and

advertising recollection of all the cereal
manufacturers
•
 WEAKNESSES

• Slow erosion of their U.S. market share in

the past few years.
•

• Follower in Pricing Strategy.



• High Prices
•
 OPPORTUNITIES
• International expansion is the biggest area for
growth of Kellogg’s.
•

• Kellogg can continue to slowly diversify, while still

remaining in their core business area, which will
increase their profitability.
•

• If they can develop a better pricing strategy and

guarantee lower prices, they can reduce costs while
increasing their market share.
•
THREATS
Market Share

cornflakes
mohun
private players

10

20

70
 THREATS
•
Ø Mohan Mekean, Quaker Oats and Private
Labels are using price competition and
product proliferation to erode Kellogg’s
share of the market.
 Competitors

High
Kellogg
PRICE/QUALITY/IMAGE

Moha Qua
n ker
Mekea Oats
n
Priv
ate
Lab
Low el

Brand Cereals
LINE/MANUFACTURING PRODUCT MIX
 PROMOTIONAL
CAMPAIGNS TILL NOW
AIN REASONS FOR ITS FAILUR
• Taste of its products did not suit Indian
breakfast habits
•
• Kellogg’s believed that its brand equity carried
forward from the West would mirror its
success in India.


• Its advertisements and promotions focused

initially on the health aspects of the product
• Pricing is believed to play a dominant role in the
demand for any product
•
• A Business Today report said that like other
Multinational Companies, Kellogg had fallen
into a price trap.
•
• Difficult for the larger population to get its
products.
•
• Did not have packs of different sizes to cater for
the needs of different consumers
•
 Lesson from Kellogg’s
• Don’t underestimate local competitors
•
• Remember that square pegs don’t fit into round holes.
•
• Don’t try and make consumers strangers to their
culture
•
• Proper research should be done in the market
•
 RECOMMENDATIO
for Indian consumer,NS
Ø Price Affordability: Price has always been a very big factor
they are very price conscious. High
price is one of biggest weakness of this product.
Ø
Ø Taste: Respondent says that its taste changes when it is
taken with milk. So taste factor need to be taken care of.
Taste should be such that it makes good combination with
milk.
Ø
Ø Target Audience: Elder people are the biggest consumers of
cornflakes based on the research. so its target audience
should include elder people too.


Ø Research: Before entering into the market proper analysis of

the market should be done
