KELLOGGS INDIAN EXPERIENCE

Case study with focus on Consumer Behavior

presented by

Kanika(62022) Meenu(62029) Pratik(62039) Rukmani(62045) Shourya(62055) Vikas(62063)

Fore School of Management, WMG XV

HISTORY
founded as Battle Creek Toasted Cornflake Company in 1906

by Will Keith Kellogg

renamed as Kellogg Company in 1922 headquartered in Michigan, USA

TODAY
manufacturing facilities in 19 countries

its Market reach is over 180 countries

with 2007 sales of nearly $12 billion, Kellogg company is worlds leading producer of packaged cereal products

CONSUMER EATING HABITS IN INDIA

typical average middle class Indian family doesnt have breakfast on a regular basis those who do have their breakfast consume milk, biscuits, bread, butter, jam or local food preparations

tea is a staple item in breakfast

kids are encouraged to drink milk instead of tea

CONSUMER EATING HABITS IN INDIA

BREAKFAST CEREAL MARKET - INDIA

estimated market size Rs.250 - 300 crores cornflakes comprises 60-65 % of the cereal breakfast market Kellogg's has a 70% market share

others have a combined 30% market share

BREAKFAST CEREAL MARKET COMPETITION

Weetabix

Mohan Meakins: Mohuns

Bagrrys Frito-Lay's: Quaker KCLs: Murginns

TVC ANALYSIS
mental performance is a key need in India

initially tried to change food habits of parantha and idli-vada loving Indians in a very direct manner
from Jago Jaise bhi, lo Kelloggs hi, when the main focus was on getting the brand on the breakfast table to the latest Dimag chalega nahi, daudega a shift can be seen, where the latent need of mental performance in India is being highlighted paradigm shift from heavy breakfast to nutritional breakfast is Kellogg s goal

Despite impressive growth in the consumption of breakfast cereals the market has not yet stabilized. There are kinks in the consumption level and aberrations(not normal beyond usual expectation) in the growth rates and fluctuating trend in evidence.

TARGET AUDIENCE
primary target audience is the Indian housewife in the high and middle high-income households mainly in her role as mother specifically women in the age group 25-45, in the metros, with an SEC A profile. actual consumers would be the entire family but the purchase decision often reside with the mother buyers: parents, older adults where do they want to buy: neighborhood grocery stores / supermarket influencers: kids

TARGET AUDIENCE

Personality Traits of TA
high on innovativeness low on dogmatism, open minded (more likely to prefer innovative products to established or traditional alternatives) receptive to messages that lay stress factual differences, product benefits social character is inner directed (consumers rely on their own values or standards in evaluating new products), responsive to information content of an ad high on OSL, willing to try new product, seeking purchase related information as high on NC also seek variety and novelty in products

POSITIONING BY KELLOGGS
when Kelloggs entered Indian markets in 1994, it positioned itself on the health platform, highlighting the nutritional values of the brand this was done keeping in mind that, at that point of time 40 per cent of Indians were below the age of 18 this age group has been traditionally Kelloggs prime target consumer as children need the right nutrition for their growth ads were positioned so as to strike a chord with mothers who needed to be convinced to buy the brand

POSITIONING BY KELLOGGS
later Kelloggs India shifted its positioning from nutrition to fun-filled flavours in 1996 the Chocos brand was heavily advertised. initially to encourage the consumer to try the product various sales promotion techniques were also used Jago Jaise bhi, lo Kelloggs hi punch line was used for getting the brand on the breakfast table

CHOCOS BISCUITS
was launched in 1998 specifically for the Indian market, with an intention to drive volumes and reap in quick profits for the cereal company pegged at Rs 5 per pack, Chocos Biscuits was an extension to its already existing cereal brand under the same name and was meant primarily for children Kellogg's had limited itself to the up market outlets with its premium priced cereals till then, and biscuits was a different kind of distribution network focussed on the mass this lead to a self-limiting proposition from operational standpoint as well its image in the market was not in tune with its action . Kelloggs got volumes in sales but there were no profits

Through our communication we almost questioned the age-old Indian tradition of taking a heavy breakfast, says Kellogg India managing director Anupam Dutta. Trying to change food habits isnt easy anywhere, least with parantha and idli-vada loving Indians, but it helped if you have the over 100-year old, iconic global cereal brand Kelloggs by your side. the companys road-ahead in India, from just cereals to convenience foods, snacks and health management products.

Paradigm shift from heavy breakfast to Nutritional breakfast

The key issue remains the product quality, taste as well as how healthy it is.

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.

TRENDS
Breakfast Items: An adage recommends us to eat 'breakfast like a king and dinner like a pauper', which is why companies are looking at manufacturing healthy breakfast items. The focus has now shifted from aloo-parathas to maida-free items. The cereals business is one arena which at present is going great guns. "The consumer trend has grown towards more healthy eating habits,

PRODUCT PORTFOLIO AT KELLOGGS

Kelloggs India offers a host of low-fat breakfast cereal options for children, adults and all family designed to meet their specific needs Kellogg's Corn Flakes and its range of six variants deliver on this benefit to all members of the family through its unique Iron Shakti, Kellogg's Chocos and its three variants deliver by combining the goodness of whole-wheat in a chocolate taste along with Calcium Shakti, specifically targeted at children as consumers, combining nutrition with taste Kelloggs Special K target urban women positioned as a health management alternative Kelloggs Kpak is a single-serve cereal pack is being marketed as an evening, after school snack. It is also a low-price entry point for new customers to become a part of Kellogg's family.

Change in strategy and a move from core to other segments will increase salience across categories. The cereal market, growing at a steady 20%, needs new formats.

Kellogg's brand challenge at the time of entering India (1994) and now
Kelloggs entered India, breakfast practice of Indian consumers was the biggest challenge. With emphasis on our communication we tried to question the age-old tradition of hot and home-made breakfast. In a way we promised to offer a healthy and a lighter substitute to heavy meal-like breakfast. We also did a lot of research and followed Indian consumer mind. Education and being intelligent is significantly important for Indian consumers. Therefore, we launched our flagship corn flakes brand which enhanced mental performance. Later, we also witnessed that consumers were taking flakes with warm milk. We tried to fit in the unique culture but we could not change the attitude of consumers. We then moved on and started offering more nutritional products.

For example, Kellogg's entered the Indian market after liberalization in the 1990s. The first challenge the company

KELLOGGS IN HINDSIGHT
Kellogg's has ushered in a shift in Indian breakfast habits and adapted its line of cereal flavors to meet the Indian palate but the price of the product still restricts consumption to urban centers and affluent households Kellogg's products are still priced more than 25 per cent above its primary competitor

How Often Do They Purchase? Kids cereal are purchased roughly 18 times a year Who consumes the goods? Kids under 18 Kelloggs target market: kids 8-11 years old For health products like breakfast cereals the target population is mainly the urban populace and that too at the A+ and A level or sometimes even catering to a particular gender in case of Kelloggs special K

let me startle you by saying that Cereals are gaining more popularity among calorie/health-conscious middle-aged and sick elderly people (who find cereals easier to eat/digest). Youngsters have a liking for other local/spicier food. adds Kellogg's Dutta.