Kellogg’s in India
Why would Kellogg need to move into non-breakfast segment?
The text informs us that “Kellogg’s started as a small manufacturer of breakfast food and has never lost that initial focus”. So how can we understand this change into a nonbreakfast segment? It is quite simple, Kellogg´s is re-positioning Special K has a healthy food product in relation to General Mills breakfast cereal. This change of positioning was not only an adaptation to the new reality of the markets needs but it was also a necessary move for the company. Although Kellogg’s sales had been increasing greatly over time they still weren’t market leaders, and General Mills was still increasing its market share. Integral cereal is a healthy product. With this, Special K could grow in to an entire new market as meal or meal’s substitute and no longer be circumscribed to breakfast. This understanding led to the launching of the “Kellogg’s Special K Diet” which included eating a Special K product 2 meals a day (breakfast and other one).
Of course that Special K was supposed to continue to be sold with the purpose of being eaten in the morning but now it was more than that, it was to be seen as a healthy meal. That meal could be breakfast, but it could also be any other. It could inclusively be used as a snack (cereal are a healthier alternative to cookies and sandwiches, for instance). Kellogg’s understood that the market was evolving, that people no longer required just tasty, practical meals. Health was becoming an important issue in people’s choices. When concerning food, everything that could help or led to a weight loss was becoming a first choice for many people, especially women.
This change implies moving to a completely different market, with different needs and cares. In the breakfast food, especially cereal, the main concerns were taste and practicability. Breakfast food targets the whole family, and although health issues are taken into account, they don’t make for a...
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