Case Study about Marketing Planning of Kelloggs

1. Insights of Marketing Strategy
Planning
By Mihir Upadhyay

2. Objective
• To understand how the Marketing Strategic
Planning Decisions are made, with the help of
some Case Studies.

3. Case Study of …

4. Who is Kelloggs ?
• Established in 1906 founded by Will Keith Kellogg
• Products manufactured in 18 countries and marketed in more
than 180 countries around the world.
• World's leading producer of cereal and a leading producer of
convenience foods, including cookies, crackers, Toaster
pastries, cereal bars, fruit-flavored snacks, frozen waffles, and
vegetarian foods.
• Post liberalization, Major reason to come in India was Per
Capita Consumption was just 2 gms of Breakfast Cereals
against the World average of 5 gms in 1993-94

5. Launch of Kellogg’s India
• Full back up from the Parent brand - $65 mn
• Supported by the technical, managerial
and financial resources of its parent Co.
• High-profile launch
• Backed by hectic media activity
• Our only rivals are traditional Indian foods
like idlis and vadas."
- Denis Avronsart, Managing Director,
Kellogg India in 1994 Press Conference.

6. • Kellogg did lot of home work and launched
its products in India. They had the best
products, packaging and their marketing
strategy was excellent.
• The advertising campaign was handled by
a leading Indian advertising agency.
Launch of Kellogg’s India

7. What should be the RESULT ?
• April 1995, 25% decline in sales in comparison to last month.
• Despite offering good quality products Kellogg's products
failed in the Indian market.
• Slowly & Gradually people stopped buying the products and
the sales were stagnant.
• Only 2% of the Buyers were repeated buyers while 98% were
new buyers.
• This was a SHOCK for the Brand and eventually reputation of
a BIG Brand like Kellogg’s was at stake !

8. Where were they WRONG ?
• Over Confidence & Ignorance of the Cultural Aspects, they wanted
to CHANGE the basic culture of Indian Breakfast (Heavy) to Cereals
(Very Light).
• Ignored the basic taste of Indians (Sweet, Hot Milk Vs Tasteless,
Cold Milk) – Lack of understanding of consumer behaviour
• Premium Pricing Policy ( Rs. 21/- ) against Rs. 16/- of Mohun’s
Flakes.
• Banked heavily on Crispness which was ZERO as Indians used it
with Hot Milk.
• They advertised : “Indian Breakfast is not too healthy to eat, go for
healthy” --- ABSOLUTELY WRONG MOVE !

9. REVIVING the Kellogg’s Image
• Focused on HABIT Marketing.
• Immediately changed their Target from Parents to Child.
• Brought their BEST products to INDIA, Chocos & Frosties.
• In September 1996, Chocos was launched.
• In April 1997, Frosties was launched.
• Later on they also changed the Mascot of Ballu
(A Comic Series Character) to Jose

10. • The success of these 2 variants took even Kellogg’s by
surprise and sales picked up significantly.
• They immediately followed it by launch of Chocos
Breakfast & Cereal Biscuits.
• They made their distribution more stronger to reach
out to more families.
• Indianise the Taste with more varieties in Chocos Stars &
Moon , Chocos DUET, Chocos SNACKS.
New Product Launches

11. S-T-P Analysis & Promotion Mix
• Tasty Start - the cereals that most people will eat to begin their day. Kellogg's
brands include Kellogg's Corn Flakes and variations, such as Kellogg's Crunchy
Nut. – ( Sakshi Tanvar)
• Shape Management. Brands that can enable customers to manage their weight
or shape, such as Kellogg's Special K. - (Lara Dutta)
• Mum Approved. Those that mothers see as being good for their children, such
as Kellogg's wheat flaks. - (Karishma Kapoor)
• Kid Preferred. The brands that children themselves prefer, such as Kellogg's
Frosties, Kellogg's Chocó's and Honey Loops.
• Inner Health. These are the brands that help people with digestion, such as
Kellogg's All-Bran and Kellogg's Heart to Heart Oats.

12. • Kellogg’s
• Pepsico’s Quacker Oats
• Mohun’s Meakins
• Bagrry’s
• Tasty Treat (Big Bazaar)
• Heinz Complan
• Amway
• Saffola Oats
• Nestle Corn flakes

13. Current Scenario of 2013-14
• Total Breakfast Cereal Industry is 800 cr in
India.
• This Industry is growing with 20% every year.
• Kellogg’s India have just registered a
landmark sales of Rs. 500 cr !
• Kellogg’s is right now enjoying 70% of the
total Market Share of India…

14. • www.economictimes.com
• www.google.com
• www.timesofindia.com
• www.slideshare.com
• http://summertrainingreports.blogspot.in
• Various News Articles
• Online Journels