KELLOGG’S CONFLAKES

INTRODUCTION

 Established in 1906 founded by Will Keith Kellogg

 Products manufactured in 18 countries and marketed in more than 180 countries

around the world.

 World's leading producer of cereal and a leading producer of convenience foods.

 Post liberalization, Major reason to come in India was Per Capita Consumption
was just 2 gms of Breakfast Cereals against the World average of 5 gms in 1993-
94.
 CONSUMER BEHAVIOUR TOWARDS
BREAKFAST
 Breakfast is an essential part of an Indian household and therefore holds immense
opportunity for marketers.
 About 90% of the respondents consumed traditional food when they were below 18 yrs. of
age.
 About 53.3% of the respondents consumed traditional food when they were in 18 - 25 yrs.
of age.
 About 14.81% of the respondents were consuming traditional food when they were in 26 –
35 yrs. of age.
 The transition of breakfast pattern from traditional to modern has been seen clearly has
startedin the age group of 18- 25 years.
 Among the modern breakfast dishes, the respondents consumed bread, fruits and
juices were the maximum followed by egg and cereals because all these dishes
were very easy to cook and consume
 KELLOGG’S ENTRY IN INDIA
 Kellogg’s had reached peak sales occupying a 40% market share in the U.S.

 The company had its presence in 18 countries and over 20 plants worldwide with
sales over $6 billon.

 Kellogg target Indian market as their sales in US were stagnated and india,because
of its huge population.

 Post liberalization, company entered in India in 1994.

 POSITIONING AT LAUNCH
 Kellogg’s cornflakes were positioned on the "fun and taste”
and emphasized on crispiness of its flakes.
 Products offered in India: Corn flakes, Wheat flakes and
rice flakes
 When Kellogg’s entered in India emphasizing on
nutritional benefits of the cereal.
 The tagline ”Jaago jaise bhi,lo Kellogg's’ hi” however, did
not find much credibility with household.
 Despite offering good quality products Kellogg’s products
failed in Indian market.
 Slowly and gradually after the initial excitement wore off, repeat purchases were
few.
 Ignored basis taste of Indians ( sweet, hot milk vs tasteless, cold milk) lack of
understanding consumer behavior
 Indian were not looking for thicker and crispier flakes with iron and vitamin.
REPOSITIONING & PRODUCT EXTENSION

 Moved its concentration from guardians to youngster.

 Dispatched its best items in India like Chocos and Frosties.

 Both these variations are showcased as snacks, not as

breakfast.

 Fulfil nutrition requirement of youngster blend of fun with

taste.

 For Indianizing its oat run Kellogg’s dispatch "Mazza“.

 In 1999 the "iron shakti" cornflakes zeroed in on the supplement worth and iron
insufficiency in youngsters.

 This turned into the differentiator and deals expanded by 17%.

 By doing this, Kellogg had moved away from its "fun and taste" picture to
"nutritious and fun" snacks for kids.

 This situating had given Kellogg’s "Wellbeing item" picture.

CHOCOS & FROSTIES

I. Chocos -

Kellogg’s launched Chocos in India in September 1996.

Chocos were wheat scoops covered with chocolate.

Kellogg’s with the assistance of chocos focused on youngsters.

They presented 50gms of the little bundle to draw in the client

to attempt it.
II. Frosties-

Kellogg’s’ launched frosties in India April 1997.

Frosties had sugar icing on singular pieces.

It is devoured as late morning snacks.

 SPECIAL K: GET INTO SHAPE

 Kellogg’s launched “Special K” as weight management cereal in 2008.

 It was positioned as a low-calorie weight control meal.
 This was again not categorized as breakfast item but a complete meal.
 Kellogg’s brand extension strategy helped to increase its relevance across
categories.
 They made changes in their global positioning to appeal Indian consumers.
 They knew incorrect positioning was the reason behind brand failures.
 CURRENTLY ALL PRODUCTS OF
KELLOGG’S

 Corn Flakes.
 Crunchy Granola.
 Chocos
 Oats.
 Muesli.
 Special K
 All Bran
• Oats.
• Muesli.
• Special K
• All Bran
CORNFLAKES ADVERTISE
 Q1. WHAT WAS THE POSITIONING FOR KELLOGG’S
CORNFLAKES AT THE TIME OF LAUNCH?
 Offer healthy, nutritious, convenient and easy to prepare cereal meal.

 Develop a taste for grain-based foods in the morning.

 Emphasized on the crispiness of flakes compared to other cereals.

 Used Tagline to reinforce- “Jaago Jaise bhi,lo Kellogg’s hi”

 Only appealed to cater to the upper middle class & the upper class Crispy lakes
failed due to traditional breakfast habits in India.
 2. A) WHY WAS THE BRAND NOT SUCCESSFUL?

• As the initial sales were good but the repeat

purchase were few
• It was served with hot milk
• Targeted market was not ready to adapt
• Taste over health
 Q2 (B) WHAT CHANGES WERE MADE TO THE
POSITIONING?

•Introduced snack variants for Kids like Chocó’s and

Frosties.
•Worked on better positioning- “ Iron Shakti” and
“Calcium Shakti”
•Different Stock keeping Unit -500 g family pack, Rs
10 of each variant.
•Positioned as “4 pm munches” with Chocó’s among
kids.
•Positioned as “Low Calorie weight control meal.”
•New Positioned as “Fun-&-Taste-&-Health”.
 QUESTION 3- WHAT DO YOU THINK SHOULD BE
THE BRAND PROPOSITION GOING FORWARD?

 A brand proposition is a concept that highlights the unique identifying features of an

organization.
 It’s not your slogan, your tagline, or even your logo.
 Brand selling proposition is about convincing your audience about solving problem.
 Kellogg’ can introduce various shapes in cereals for kids.
 They can sign athlete as a brand ambassador.
 Kellogg’s can introduce product for weight gain for thin people.
 Kellogg’s can also focus on breakfast of old aged people.
 CONCLUSION

 Kellogg's was able to use a number of business tools in order to successfully re-
launch the Nutri-Grain brand.

 Kellogg’s used tools like the product life cycle and the marketing mix.

 Kellogg's was able to see that it was underperforming in the market, although
Nutri-Grain fitted its strategic profile with a healthy, convenient cereal product.
 Finally, when Kellogg's checked the growth of the re-
launched product against its own objectives, it had met all
its aims to:

1. Reposition the brand through the use of the marketing

mix

2. Return the brand to growth

3. Improve the frequency of purchase

4. Introduce new customers to the brand.

5. Nutri-Grain remains a growing brand and product within

the Kellogg's product family.
THANK YOU