CASESTUDY

Summary: 

Summary

PowerPoint Presentation: 

The case analyzes the causes that led to the failure of the Kellogg breakfast cereal brand in the Indian market. The case examines the measures the company adopted on the marketing front to rectify its mistakes and at the efficacy of these measures. A Failed Launch: In April 1995, Kellogg India Ltd. (Kellogg), received unsettling reports of a gradual drop in sales from its distributors in Mumbai. There was a 25 percent decline in countrywide sales since March 1995, the month Kellogg products had been made available nationally. Kellogg was the wholly-owned Indian subsidiary of the Kellogg Company based in Battle Creek, Michigan. Kellogg Company was the world's leading producer of cereals and convenience foods, including cookies, crackers, cereal bars, frozen waffles, meat alternatives, pie crusts, and ice cream cones

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. Founded in 1906, Kellogg Company had manufacturing facilities in 19 countries and marketed its products in more than 160 countries. The company's turnover in 1999-00 was $7 bn. Kellogg Company had set up its 30"' manufacturing facility in India, with a total investment of $30 mn . The Indian market held great significance for the Kellogg Company because its US sales were stagnating and only regular price increases had helped boost the revenues in the 1990s. Launched in September 1994, Kellogg's initial offerings in India included cornflakes, wheat flakes and Basmati rice flakes. Despite offering good quality products and being supported by the technical, managerial and financial resources of its parent, Kellogg's products failed in the Indian market. Even a high-profile launch backed by hectic media activity failed to make an impact in the marketplace. Meanwhile, negative media coverage regarding the products increased, as more and more...

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SWOT ANALYSIS

STRENGTHS: 

STRENGTHS Kelloggs launched new products which had Indian flavor Chocos and Frosties had total I ndianised flavor which was adopted by masses Mazaa was positioned as a tasty, nutritional breakfast cereal for families and was not a premium product. Available in Family Pack and Small 500gm packets

WEAKNESS: 

WEAKNESS Premium Pricing Banked heavily on the quality of its crispy flakes that became soggy by pouring into hot milk Lacked understanding of the Indian Culture for the product therefore the taste of did not suit the Indian market Positioned and Focused as a healthy product Kelloggs did not have an impressive advertising campaign

OPPORTUNITES: 

OPPORTUNITES Focus more on Marketing and promotion so that the product has a great brand recall and people become regular customer of the product Kellogg's can diversify into more product category Kellogg's can have mass distribution channel so that product is available at every retail store

THREATS: 

THREATS Competition from Mohan's cornflakes as it has position itself as a mass product. Sales of other product launched like chocos and Frosties can cannibalize the sales of the parent Brand that is of Kelloggs .

CONCLUSION: 

CONCLUSION Kelloggs changed its strategy from a fun filled brand in western country to a breakfast cereal with Indianising flavor to suit the needs of the Indian consumers. They adopted different marketing strategy by changing the 4Ps Product- Choco Chip Biscuit, Chocos , Frosties , Mazza Price- Mazza was introduced in 60gm pouches, priced at Rs 9.50. It did not position Mazza in the premium segment so as to cater to mass segment. Place- Mumbai to Delhi and other parts of the country. Promotion- Kellogg attempted to Indianise its campaigns instead of simply copying its international promotions. In April 1997, Kellogg launched µThe Kellogg Breakfast Week,' a community-oriented initiative to generate awareness about the importance of breakfast.