Kellogg’s in India
Had manufacturing facilities in 19 countries
Marketed its product in more than 160 countries
Launched in 1994 in India with initial offerings of wheat flakes and rice flakes Had set up its 30th manufacturing facility in India with total investment of $30 million History of Kellogg’s in India:
In the 1990’s there was the desire by Kellogg’s to expand. Stagnating sales in the US strengthened this need
Launched in September 1994 Kellogg’s initial offerings in india included cornflakes, wheat flakes and Basmati rice flakes. Failed launch:
In April 1995, Kellogg’s received unsettling reports on gradual drops in sales from its distributors 25% decline in countrywide sales
Reasons for Failure in the Indian market
1. Positioning- positioned it as health product
2. Over confidence and ignorance of cultural aspects
3. Non understanding of indian consumer behaviour and habits 4. Premium pricing policy
5. Banked heavily on crispy flakes
6. In order to maintain quality Kellogg’s focused on premium and middle level retail stored which made it difficult for the larger population to purchase its products. 7. Despite offering good quality products and being supported by the technical, managerial and financial resources Kellogg’s products failed in the Indian market.
Correction of its mistakes
In order to forge ahead, Kellogg decided to launch two of its highly successful brands Choco’s (sept 1996) and Frosties( april 1997) in india 2.
Indianising the products
Products were not positioned in premium categories
The company introduced packs of different sizes to suit indian consumption patterns and purchasing power 6.
Kellogg’s saw advertising as a vital tool in promoting its brand 7.
Kellogg’s repositioned the product as tasty nutritious food 8.
It looked into distribution as an important area to improve its market...
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