Consumer Behavior

How Kellogg's failed and

won in India
Name Roll number
Samarth Tewari 081
Kirtika Sahu 056
Naman Agarwal 060
Shivendra Pratap Singh 072
Pooja Kumari 065
Ujjwal Kaushal 073
Introduction

 Kellogg’s Company products are relished around the world, of which -Kellogg’s Corn
Flakes®- has been a part of the starting meal of the day for many for more than 100
years
 Kellogg’s is an MNC working headquartered in US
 It produces cereals and convenience goods
 Products are marketed and sold in almost 180 countries
Segmentation

 Psychographic Segmentation: -
 Value and Belief – Make people shift from their daily “hot” breakfasts to
cereals
 Personality & Self Concept – Make the product a staple good for highly
innovative risk takers
 Lifestyle – Kellogg's aimed at changing the life style of Indians.
Targeting

 The company targeted Highly Innovative Risk Takers as the product

was in introduction stage of PLC
 Low Dogmatism
 Company wanted to make the product a Staple good
 Other directed as social character
Q1. Identify the factors for failure of
Kellogg's in India
 Kellogg’s believed that it is going to introduce the new breakfast
product, heavily on the quality of its crispy flakes. But pouring hot milk
on the flakes made them soggy.
 Kellogg's failure was the fact that the taste of its products did not suit
Indian breakfast habits
 The prices of its products was too high than the nearest competitors
like the Bagrry’s Meusli .
 Kellogg's initial offerings in India included cornflakes, wheat flakes and
Basmati rice flakes.
 When Kellogg Company entered India, the per capita consumption of
breakfast cereals was as low as 2 gram per annum against 5 kg per
annum globally.
HURDLES IN INDIAN MARKET AS A NOVICE

 Cultural factors and eating habits – population not used to processed

foods.
 Easy availability of low-priced traditional breakfast.
 Low awareness about processed foods.
 Indian breakfast was not nutritious and that Indian breakfast was not
very good for health.
 Price sensitive customers.
Q2. Analyze steps taken to correct the
same?
 Kellogg’s launched in India with corn flakes, wheat flakes and basmati
rice flakes, but it failed.
 Then Kellogg’s launched Frosties (sweet, sugar-coated flakes) in 1997,
and it was a great success for the company.
 Kellogg’s reduced the price of their products and began to offer a wider
range of product sizes to appeal to different customers.
 The company launched the individual packs also which got more
popularized. Brand Extension in which they have changed the form of
the product.
 Messaging of the product was also revised in order to promote the
cereals as a fun product rather than just a healthy one.
 This strategy may have worked better than the brands prior attempt to
portray the traditional Indian breakfast as unhealthy.
 Strategies of attitude change (Altering consumer attitudes)
 Now they have targeted sensation seekers and variety novelty seekers
as they have done line extension
Q3. Recommend further steps to be taken by
Kellogg's to improve its competitive position.

 Stronger Marketing and Promotion

 Product placement to grab maximum attention
 Perceptual Blocking to fix (Road Blocking)
 Kellogg’s should target cosmopolitan consumers (Value Delivery)
 As we saw before the company was targeting Safety and Security
Needs of the people as per Maslow’s hierarchy of Needs. (Healthy)
 Strategies of attitude change (Altering consumer attitudes) Pista, local
flavors
 Stimulus Generation through Brand Extension for further shelf
presence (should further enter into ready to eat segment)
 Positioning
 CFR
 Market view- Healthy , ready to eat breakfast (to ease the process of
preparing breakfast in the morning)
 Target Audience - Group of customers who are health conscious
 POP: *Category- flakes and cereal*Competitive- Bagrry’s Muesli
 POD:* Deliverable
 The brand Re-Positioned itself in the Indian market in the late 90s to
better suit the tastes and references of the Indian consumers.
THANK YOU!!