Kellogg's Positioning Strategy in India

            


Details


Case Code : CLMM015
Publication date : 2005
Subject : Marketing Management
Industry : Fast moving consumer goods (FMCG)
Length : 03 Pages
Price : Rs. 100

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Key words:

Kellogg, Cereals, Convenience Foods, Middle-class Indian Family, Indian Breakfast Habits, Health Platform, 'Fun-and-Taste' Positioning, Frosties, Chocos, Mazza Series, Breakfast Cereal Market, Consumer Patterns

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.


 


Abstract:
ICMR India ICMR India ICMR India ICMR India RSS Feed

Kellogg, the wholly owned Indian subsidiary of the U.S based Kellogg company, entered the Indian market in September 1994 with an initial offering of cornflakes, wheat flakes and Basmati rice flakes. But its products failed in the Indian market. The caselet examines the reasons behind the failure of the company's marketing strategy. The caselet discusses the changes made to the product and its positioning that helped Kellogg in improving its sales and market share in India.

Issues:

   Positioning strategies of FMCG companies
   Design and implementation of global marketing strategy
   Need for understanding consumer behavior

Introduction

Kellogg, the wholly owned Indian subsidiary of the U.S based Kellogg company, entered the Indian market in September 1994 with an initial offering of cornflakes, wheat flakes and Basmati rice flakes.

Kellogg offered good quality products and was supported by the technical, managerial and financial resources of its parent, the world's leading producer of cereals and convenience foods. But its products failed in the Indian market. Even a high-profile launch backed by hectic media activity failed to make an impact in the marketplace.

Kellogg banked heavily on the quality of its crispy flakes. But it had not taken into account the fact that Indians always boiled their milk unlike in the West and consumed it warm or lukewarm...

Questions for Discussion:

1. What were the reasons behind the poor performance of Kellogg in the initial stages? Do you agree that a poor entry strategy was responsible for the company's problems? Give reasons to support your answer.

2. Is the company's repositioning of its products on the nutrition/fun platform a step in the right direction?

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