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Student Project On Kellogs India
Posted By: sbegl03* on 10/19/2005 10:04 AM (CST) 125 Points
i am doing a project on the kellogs indian experience, we were given some information in a handout by the ICFAI ECCH collection. we are expected to do more research on it and answer 3 questions in detail on it (3000 words) but i cant find any info on the net and when i e mailed kellogs they had nothing for me either.
Q1 What were the reasons behind the poor performance of kellogs in the initial stages? do u agree that a poor entry strategy was responsible for the companys problems? give reasons
Q2 Analyse kelloggs efforts to revamp its marketing mix and comment on the initiatives taken regarding each element of the marketing mix.
Q3 do u think the companies decision to launch biscuits and snacks was a right one? give reasons

Posted by: Puru Gupta Accepted Answer
10/23/2005 11:02 AM (CST)
sbegl03,
It is always appreciated to include your name in the profile. It atleast helps me in calling you with some name, rather than "sbegl03" :-). Just a personal thought.

I do not have much insight into the Kelloggs strategy, but here are a few first hand pertinent thoughts that come to my mind -

Kellogg's entered India soon after liberalization in India, post 1991 reforms. I t set up a wholly-owned subsidiary and invested in a greenfield manufacturing plant for
cereals. Source.
But the sales of its rice-based and wheat-based flakes did not rise. Reason?
a) The price points were high to begin with, which did not position it in the snacks mid-meal category
b) The flakes did not gel with the Indian consumption pattern, thereby leading to misplaced positioning, confusing the consumer, and declining sales.
c) The Product was very different (sweetless), whereas Indians preferred slightly sweet content

Gradually, the consumption patterns evolved, and Kellogg's customized its product portfolio to reposition itself. In 1996, it launched Chocos and Frost ies pre- sweetened flakes.

There was another mistake that Kellogg's did. It did not know its target segment well. So, it finally narrowed down its target segment to Children. Even when it offered to children, there was no "excitement" flavor added to it, nothing exciting about the product. So not many bought the concept.
But, when it introduced Chocos biscuits, it instantly connected with the younger consumers, earning a higher brand name. This was subsequently leveraged to reintroduce its core product - Wheat-based flakes, in different flavors.

Currently, Kelloggs has introduced many products to cater to its target segment - children in 3-12 age-group, ensuring higher recall and brand name for itself.

Finally, to answer your queries comprehensively, here is a useful link on brand Failures, one of which is "Kellogg's in India"
Brand Failures
This explicates the need to enter India, reasons for its failures, the apprehensions and the risks involved. Refer to page 153. A great read.

Hope this helps!
Regards,
Puru
 
Posted by: carrie77 Moderator Response
10/28/2005 7:22 AM (CST)
Hello all. I am closing this question since there has been no activity in over a week. We do this to reward the contributions of participants in a timely manner + to give increased visibility to the newer questions.

Thanks for participating!
Carrie (Production Editor)
 
Posted by: lkbj007* Member Response
4/14/2007 5:31 AM (CST)
hi all

my name is Lokesh im a student i just wanted u to tell me that is there any indian product which got succeed in International market and which indian products couldnt succeed in International market.

i 'll greatfull to you for your answers

thank you
 


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