3. THE COMPANY : KELLOGG’S
• Kellogg brothers established this brand in 1906
• They are world’s leading breakfast cereal manufacturer since
1938
• It has opened manufacturing plants in 19 countries and sells in
more than 160 countries
• It has wide range of cereal products: Kellogg Corn Flakes, Rice
Krispies, Special K, Fruit and Fibre, as well as the Nutri-grain
Cereal Bars.

4. • Kellogg’s entered in india in 1994.
• Products offered in india : corn flakes, wheat flakes, basmati rice flakes
• The research founded that their only rivals are treditional indian foods like idlis &
vada’s.” - This statement was given by “Denis Avronsord” (m.D of kellogg’s india.)
• Over confidence & ignorance of cultural aspects.
• Lack of understanding of indian consumer behaviour & habits.
• Premium pricing policy.
KELLOGG’S IN INDIA
KELLOGG’S FAILURE IN INDIA

5. PRODUCT FAMILY

6. PRODUCT EXTENTION
Kellogg’s Musli Chocos
Special K
Corn flakes are a popular breakfast cereal
manufactured through the treatment of corn. It
has widest range and is the most popular
among all the line
Kellogg’s Special K consists of
delicious crunchier flakes with
goodness of wheat and rice. It
is 98% fat free and a source of
fibre. Moreover, Kellogg’s
Special K is fortified with 8
essential nutrients like vitamins
A, C and B vitamins including
folic acid.
Kellogg’s Chocos is the great breakfast cereal
for both mom and kids. While kids love its
yummy chocolaty taste, and have fun with the
way Kellogg’s Chocos turns milk super-duper
chocolaty. Moms can feel relieved that they’ve
given their child a nourishing breakfast because
Chocos is now made with whole grain, provides
fibre and is fortified with 11 essential vitamins
and minerals.
Every bite is an explosion of
flavour, a real treat for your
taste buds. Made with an
exquisite mix of ingredients
from around the world, it’s a
divinely delicious start to the
day. Every bite is just as
nourishing as it is tasty. So go
on indulge yourself.
Original

7. PRODUCT CATEGORY SIZE
0
2
4
6
8
10
12
14
16
2006 2010 2014
Growth in Cornflakes Market
Cornflakes
CAGR 21%
CAGR 24%

8. MARKET SHARE
0
10
20
30
40
50
60
70
1995 1998 2000 2010
Market Share in Cornflakes Market
Kellogg's Competitors

9. KELLOGG’S: GROWTH PATH
Source: Economic TimesSource: Kellogg’s Website
• Kellogg’s India has been growing at a
scorching pace since 2010
• It recently launched Heart-to-Heart
oats, bran wheat flakes, and Chocos
and Honey Loops made with whole
grain
• It expanded its distribution footprint
by 50% over the last three years
• It has also building a factory in Sricity,
Andhra Pradesh, signaling renewed
confidence in the Indian market at a
time its parent company is seeing
stagnant growth

10. PRODUCT
• Introduced new variants from its vast product line of the west, to make up for the bad
performance of the star brand– corn flakes
• Entered aligned food category to make up for the loss in the corn flakes segment
• Introduced energy bars, biscuitsetc
• Launched special products for strategic segmentation of the consumers 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.

11. PLACE
• Healthy breakfast Kellogg’s will use the already established distribution network that kellogg’s
uses for all its products.
• This comprises of a
producer>wholesaler>retailer>customer chain
retailers are nearly all medium to large supermarket chains in India.

12. PRICING
• Super brands like Kellogg's can charge a premium because of the strength of the brand and
product quality
• They face tough competition from the local manufacturers which offer similar product at low
pricing
• However the quality and variety Kellogg’s offer offsets the other offerings by different
manufacturers.

13. PROMOTION
• The new product will need to be ‘pushed’ into the market with aggressive advertising on a number of
media. The target consumer’s awareness of the product will be enhanced by strong images and
concepts relating the product to health, fitness and a sense of status
• The media used will be:
TV: during lifestyle programs and during prime time. To launch the product appearances of
advertisements during the popular show “big brother”.
Magazines & Newspapers : lifestyle, focusing on women magazines in particular. Examples include:
cosmopolitan, cleo and woman’s day.
• During the introduction phase of the product sales promotion activities will try to get the customer to
buy Kellogg’s. These activities include samples offers in supermarkets and competitions.

14. MARKET SEGMENTATION
GEOGRAPHIC SEGMENTATION
• Kellogg’s primary segmentation is geographic as it offers product as per the region it is
catering to .
• In India it has different product offering whereas in USA where cornflakes form a major part of
the breakfast it has much wider offering
• In India Kellogg’s has limited offering based on the lifestyle and cultural aspects

15. TARGET SEGMENT
• Kellogg’s targets health-conscious consumers with brands such as special K and kellogg’s
musli
• Kellogg's targeted their audience into adults and children with this semi-sweet offering.
• The free bowling appeals more to their target audience of adults than it does to children.
• It tries to address audience through age differentiation, offering being Honey chocos for
children, oats Cornflakes for adults

16. PROMOTIONAL STRATEGIES FOR TARGET
AUDIENCE• Fun & taste & health benefit
• indianized product names – e.G. Iron-shakti
• generating familiarity with the masses
• Touching upon general passion for scholastic excellence inindia
• Launched different sku‟s catering the varied indian consumers
• Family pack
• smaller pack
• One time use pack @ rs.10/-
• identified the nutritional need and launched products accordingly
• Extra iron shakti special k diet for weight management
• Chocos for kids in different shapes and styles, reassuring the fun element
• all bran wheat flakes for a fiber rich diet

17. COMPETITORS
• THE RESEARCH FOUNDED THAT THEIR ONLY RIVALS ARE TREDITIONAL INDIAN FOODS LIKE IDLIS &
VADA’S.” - THIS STATEMENT WAS GIVEN BY “DENIS AVRONSORD” (M.D OF KELLOGG’S INDIA.)
• TOUGH COMPETITION FROM MOHUN’S CORNFLAKES
• IT ALSO FACES COMPETITION FROM OTHER SUBSTITUTE READY TO MAKE BREAKFAST SNACKS LIKE
MTR’S IDLI, VADA, DHOKLA , NESTLE’S MAGGI

18. POINTS OF DIFFERENCE
• KELLOGG’S HAS DIFFERENTIATED ITSELF ON THE BASIS OF VARIETY IT OFFERS
• IT HAS ALSO OFFERED PREMIUM QUALITY AS DIFFERENTIATED FROM IT’SDIRECT COMPETITOR
• KELLOGG’S HAS DIFFERENT OFFERING CATERING TO DIFFERENT NEED OF DIFFERENT PEOPLE IN TERMS OF
AGE, CHARACTER STICKS AND REQUIREMENTS

19. POINTS OF PARITY
• KELLOGG’S HAS THE FIRST MOVER ADVANTAGE
• ITS CATERS TO READY TO MAKE OR QUICK PREPARATION NEED AS OTHER SNACKS TAKE ON

20. COMPETITIVE FRAME OF REFERENCE
Kellogg’s
Breakfast Snack
Health Benefits
Ease of Making
MTR
Nestle
Low High

21. •Characterise the competitive frame of reference of
the brand extension
•Characterise the points of parity
•Characterise the point(s) of difference; Isolate the
crucial point of difference

22. APPENDIX

23. • KELLOGG'S® ALL BRAN®: WHEN YOUR DIGESTIVE SYSTEM IS NOT OKAY, EVEN THE SMALLEST THINGS CAN BE MAKE YOU
FEEL TIRED AND IRRITABLE. KELLOGG’S ALL BRAN IS HIGH INFIBRE. FIBRE CAN HELP KEEP YOUR DIGESTIVE SYSTEM CLEAN,
SO YOU FEEL HAPPY INSIDE. AND, WHEN YOU FEEL HAPPY INSIDE, IT SHOWS OUTSIDE!
• KELLOGG'S® CHOCOS®:KELLOGG’S CHOCOS IS THE GREAT BREAKFAST CEREAL FOR BOTH MOM AND KIDS. WHILE KIDS
LOVE ITS YUMMY CHOCOLATY TASTE, AND HAVE FUN WITH THE WAY KELLOGG’S CHOCOS TURNS MILK SUPER-DUPER
CHOCOLATY. MOMS CAN FEEL RELIEVED THAT THEY’VE GIVEN THEIR CHILDA NOURISHING BREAKFAST BECAUSE CHOCOS IS
NOW MADE WITH WHOLE GRAIN, PROVIDESFIBRE AND IS FORTIFIED WITH 11 ESSENTIAL VITAMINS AND MINERALS.
• KELLOGG'S® CORN FLAKES: IT’S A NOURISHING, WHOLESOME BREAKFAST AT ITS VERY BEST. MADE FROM REAL NATURAL
CORN, WITH IRON AND 8 ESSENTIAL VITAMINS INCLUDING A, C AND B-GROUP VITAMINS, IT OFFERS THE BALANCED
COMBINATION OF NOURISHMENT AND GREAT TASTE. SO START YOUR FAMILY'S DAY WITH A BOWL OF WHOLESOME
GOODNESS AND WATCH THE HAPPINESS SPREAD.

24. • KELLOGG'S® HONEY LOOPS: A LOOPY, CRUNCHY MULTI GRAIN* CEREAL DIPPED IN HONEY. A BOWLFUL OF THIS
IRRESISTIBLY DELICIOUS BREAKFAST CEREAL EVERY MORNING GIVES CHILDREN TO ENERGY TO KICKSTART
THE DAY. SO GO AHEAD AND LOOP THE EXCITEMENT FOR YOUR KIDS EVERYDAY.
• KELLOGG'S® MUESLI: EVERY BITE IS AN EXPLOSION OF FLAVOUR, A REAL TREAT FOR YOUR TASTE BUDS. MADE
WITH AN EXQUISITE MIX OF INGREDIENTS FROM AROUND THE WORLD, IT’S A DIVINELY DELICIOUS START TO
THE DAY. EVERY BITE IS JUST AS NOURISHING AS IT IS TASTY. SO GO ON INDULGE YOURSELF.
• KELLOGG'S® OAT BITES: GIVE YOUR TASTE BUDS A LITTLE TEASE EVERY MORNING WITH KELLOGG’S OAT BITES.
IT’S A BREAKFAST CEREAL THAT’S QUICK TO MAKE, BUT TAKE YOUR TIME ENJOYING IT. GOOD NUTRITION AT ITS
DELICIOUS BEST, NOW THAT’S A GREAT WAY TO START THE DAY!

25. • KELLOGG'S® OATS: IN TODAY’S FAST PACED LIFESTYLE WHERE WORK STARTS BUT NEVER ENDS, WHERE
SOMETIMES LUNCH IS EATEN DURING DINNER AND EXERCISE USUALLY MEANS CHANNEL SURFING; OUR POOR
HEART’S HEALTH NEEDS TO BE TAKEN CARE OF. THAT'S WHY, START THEDAY THE HEALTHY WAY, WITH
KELLOGG'S OATS*. IT'S EASY TO MAKE, TASTY AND NUTRITIOUS. *AS PER EFSA: OAT BETA-GLUCAN HAS BEEN
SHOWN TO LOWER/REDUCE BLOOD CHOLESTEROL. BLOOD CHOLESTEROL LOWERING MAY REDUCE THE RISK OF
(CORONARY) HEART DISEASE. AS PER USFDA: 3 G OF SOLUBLE FIBRE FROM OATS AS PART OF A DIET LOW IN
SATURATED FAT AND CHOLESTEROL, MAY REDUCE THE RISK OF HEART DISEASE.
• KELLOGG'S® SPECIAL K®: KELLOGG’S SPECIAL K CONSISTS OF DELICIOUS CRUNCHIER FLAKES WITH
GOODNESS OF WHEAT AND RICE. IT IS 98% FAT FREE AND A SOURCE OFFIBRE. MOREOVER, KELLOGG’S SPECIAL
K IS FORTIFIED WITH 8 ESSENTIAL NUTRIENTS LIKE VITAMINS A, C AND B VITAMINS INCLUDING FOLIC ACID.

26. https://www.youtube.com/watch?v=ThxjVGZXt8E
https://www.youtube.com/watch?v=_OmJ9mL_4AM
https://www.youtube.com/watch?v=nxhmwOnGBA4