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Kellogs

By | August 2008
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Product and Brand Management
Case Study: Kellogg’s Indian Experience

Submitted by: Sanchit Jain
Roll No. – 95
PGDM-II

Ans 1. Yes, the poor entry stage was responsible for Kellogg’s problems in Indian launch. The main reasons for poor performance are as follows:

1.Product Defects:
a.Indians like to have hot or lukewarm milk unlike their western counterparts. On pouring hot milk, the flakes used to become soggy and did not taste good. So, the primary strength on which Kellogg banked (i.e. crispy flakes was not available) b.Indians like to add sugar to their milk. However, the sugar did not dissolve well in cold milk. So, having the flakes even with cold milk did not find many customers. c.The taste of its products did not suit Indian breakfast habits which included milk, biscuits, bread, jam, butter, idlis, paranthas, etc.

2.Positioning mistakes:
a.Advertisements and promotions gave the product a “health product” image instead of its successful “fund-and-taste” positioned in the United States. So, it catered to a narrow market. b.Higher prices gave the brand a “premium image”. However, it did not help as even the high end consumers failed to perceive any extra benefits form the brand.

3.Pricing mistakes:
a.The product was highly priced at Rs. 21 per 100 gms, way above its main competitor Mohun Cornflakes at Rs. 16.50 for the same quantity. Another brand, Champion, was selling at half the price. So, the product became unattainable for the average Indian consumer.

4.Faulty Distribution:
a.The company focused only on the premium and middle level retail stores for its distribution. This decision put a large section of the Indian population out of its reach.

The biggest mistake which the company committed was that it expected to change the Indian consumer habits rather than adapting according to them.

Ans. 2 Following were the various efforts made by Kellogg’s to revamp its marketing mix:

1.Product:
a.The...

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