The Kellogg Company is the biggest ready to eat cereal manufacturer in the world. Today company produce more than 40 different cereals .it has plant in 19 countries .market its product in more than 180 countries. The company cereal products are generally marked under the Kellogg name .it s founder Dr. John Harvey Kellogg and his brother William keith Kellogg invented the cornflake in 1894. Kellogg’s India is a 100% subsidiary of Kellogg Company, USA and it’s beg player in the Indian breakfast cereal market .Kellogg has invested over US$ 30 million. Kellogg entered India with Cornflakes in 1991 india.it s set up and invested in a Greenfield manufacturing plant for cereal at Tajola (Mumbai).when Kellogg come in India the per capita consumption of breakfast cereal was 2 gram per annum against 5 kg per annum globally. Kellogg’s launched in Sep 1994 offering with cornflakes, wheat flackes and basmati rice flakes .Kellogg offering good quality product but failed in Indian market.
Culture factors and eating habit
Easy availabity of low priced traditional breakfast
Low awareness about processed food and calorie required
Price sensitive customers
People tried the new cereal
Without more research launch new product
Indian culture problem is Indian like to add sugar to their milk .the rice and wheat versions did not do well because sugar could not easily dissolve in cold milk which it not sweet good for Indian. In Indian Kellogg could not positioning in India because its advertisement and promotion initial on the health aspects of the product. So Indian thinks wrong aspect for Kellogg’s It s price very much according to Indian middle class person because Indian have many option for breakfast. In 1990 mostly Indian not want compulsory took break fast. Kellogg without research lunch new product because its first product was Corn flakes.it, s sales not good but Kellogg launch new product was Wheat flakes, frosties, Rice...
Please join StudyMode to read the full document