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India an opportunity land

Newly opened economy for the West

Attractive huge population base, over 950 million inhabitants

New, unexplored, untapped market

Invested 65 million INR initially

Launched iconic brand Corn Flakes as the first offering in 1994

Had a 53% market share on the 150 million INR Indian market

Cereal breakfast segment was growing at 4-5% annually

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Cereal based breakfast ???

a new concept for Indians

Major investment in Consumer Education or Learning

Traditional, deep rooted breakfast habits

Indians are used to hot/lukewarm servings

Corn Flakes in hot/warm milk tend to be soggy

OR

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Promising early sales turned out to be one-off

novelty purchases

Product was too expensive (33% more pricy)

Unwillingness to bow down on price

pressures

More product launches despite low pick up.

Lack of market research before launch

Too Bad Indianization of products- Mazza

Mango elaichi, Coconut, Rose etc.

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Strength

Addressing

Consumer Needs

Product range

Product Innovation

Adaptability

Flexibility

Opportunities

Trend setter

Changing Lifestyle

Untapped new

market

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Multinational corporations must not start with the assumptionthat India is a barren field, C K Prahalad

It was just clumsy cultural homework, Titoo Ahluwalia, Chairman ORG MARG

You cannot change the taste buds that were developed more than

a thousand years ago, Wahid Berenjian, MD, US Pizza

The society is much stronger than any company or product WahidBerenjian, MD, US Pizza

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High Prices

Probably overestimated the amount of premium that customers were willingto pay for quality and the foreign tag.

Lack of Optimized or Indianized flavors

Mistook India for one, single, homogenous market

Underestimated the efforts they would have to put in to create

a strong distribution and retail chain.

Kelloggs was blinded by numbers, it saw the huge population

of India but purchasing power parity is not the same.

Corn Flakes seems like a long haul product. Involves new habit

creation and consumer learning

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The initial failure did not deter the breakfastfood giant. But a Re Look at

Product Mix

Re positioning

Adaptations

Revised Communication Strategies

Promotional Strategies

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Introduced new variants from its vast product line of the West, to

make up for the bad performance of the star brandCorn Flakes

Entered aligned food category to make up for the loss in the Corn

Flakes segment

Introduced energy bars, biscuits etc.

Launched special products for strategic segmentation of theconsumers owing to the better understanding of the Indian

Consumer

E.g. Chocos for kids, K special for women, All Bran for mid aged women

etc.

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New positioning Fun & Taste & Health

Indianized product namese.g. Iron-Shakti Generating familiarity with the masses

Touching upon general passion for scholastic excellence in India

Launched different SKUs catering the varied IndianConsumers

Family pack

Smaller pack

One time use pack @ Rs.10/-

Identified the nutritional need and launched productsaccordingly

Extra Iron Shakti Special K diet for weight management

Chocos for kids in different shapes and styles, reassuring the funelement

All Bran Wheat Flakes for a fiber rich diet

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Catchy Phrases

jaago jaise bhi, lo Kelloggs hi Andar se khush , to bahar se khush

Shuruaat sahi to din sahi

Attributing to the daily energy of the whole family

Focused initially on communicating the nutritionalvalue

Currently educating consumer about varied recipes

Popular health conscious celebrity brand ambassador Lara Dutta, Karisma Kapoor, Sakshi Tanwar

Currently emphasizing more on convenience and fun

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Mass AdvertisementsNice array of TVCs aired on

prime time.

Direct Promotions Consumer awareness campaigns

Reaching out to schools etc.

Discounts / OffersContinuously used tool,introduced new range variants of product this way

Exploiting the growing involvement of kids in

purchasing behavior.

Attractive Packaging

Creation of mascots for variants,

popular among Kids in the west

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The new campaign Shuruaat Sahi Toh in Sahi

Sakshi Tanwar to endorse, stereotyping thepresent day homemaker

It brings forth the emotional payoff that amother and wife may experience after having

provided her family with a Kelloggs Corn Flakebreakfast.

The move comes along with the new positioning,which empowers every homemaker to customize

Kelloggs Corn Flakes to suit her familyspreferences and set them up for a great day.

An attempt to bring an element of Fun

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Karisma Kapur to endorse

Kelloggs Chocos Rs 10 pack as theevening snack option

Positions as a preferred option amongmothers as a kid snack

Highlights nourishment, taste and SMALLPACK

It aims to drive differentiation, bothfunctionally and economically

An attempt to address a market researchfinding that Indians prefer it as Snacks

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Happy Inside, Happy Outside

for women to play their many roles with ease, theyneed to feel good from the inside.

targets Indian women between 35 to 40 years

prone to digestive irregularity due to considerableimpact of hormones, poor eating behavior,insufficient exercise, hectic lifestyle

The Kellogg's All Bran TVC is based on a very real

insight that women relate with instantly-when your digestive system is not working smoothly you

might feel irritable. It was this simple thought that we brought to life inthe commercial. A mundane request from the husband seems like ahuge task for her and results in irritation which is depicted as a silentscream.

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Brand Image: Quality, Variety, Distribution

Customer based brand equity changed from costly to

Quality

Brand Identification: high; logo is well recalled by consumers

High TOMA

First mover advantage.

Strongest brand recognition and advertising recollection of all

the cereal manufacturers

Kelloggs is the undisputed market leader in the particular

segment

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Entry to Indian market was probably before time

Early fall out did not deter the focus of Kelloggs team,

fought back in the Indian market

Improved the earlier mistakes by understanding Indian

Consumer and growing needs

Constantly used mass communication tools to enhance

consumer learning

Brand name synonymous with the category itself

Need for convenience food rising and so is the revenue

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Maintain the continuous product innovation

Enhance its distribution network

Enormously growing category (20% CAGR)

Segment growth is owed partly to the efforts of Kelloggs

Increased Health Consciousness and Awareness Approach fitness centers and clinics for promotional activity

E.g. Talwalkars, Fitness One, VLCC etc.

2ndgeneration of consumers evolving

Should approach schools and educational Institutions for promotion

Should develop affinity to this consumer class

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To attract KIDS - the biggest influencers -

Popularize various brand mascots in shopping malls and cinema commercials(max. attention)

Provide brand mascot merchandize for kids as freebies during festive season

Conduct promotional activity with mascots in theme parks and adventure parks

This will engage consumers and also associate fun with the brand

To attract Women / Home Makers Encourage experimentation with the product

Associate with some cookery shows, chefs for special episodes

E.g. Master Chef India, Sanjeev Kapoor

This will also satisfy the variety seeking nature of the consumers

Roll out some nutritious finger food snack item for Kids.

Do market research to know the pulse of the consumer for productinnovation

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Kellogg India to take a second shot at

localizing its India portfolio

Set to launch pudina, tomato and garam

masala for its oats range to take on

Quaker oats from PepsiCo

Expert Say "The breakfast cereal category works more for consumers with global palettes... so whether

localized variants will be a growth driver for this category will depend on how consumption patterns evolve.

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