Post on 15-Jul-2015
Presented by-:
Bhanu Priya Patidar
Neelima Mishra
Prateek Jhawar
Rahul Gandhi
Presented By :Bhanu Priya Patidar (IB1412103)
Global Marketing
Global marketing is the process of adjusting a company’s marketing strategies to adapt to condition in other countries.
Established in 1906 & founded by “Will Keith Kellogg”
Product is manufactured in 18 countries & marketed in more
than 180 countries around the world.
It is the world’s leading producer of cereal & leading producer
of convenience foods in which includes cookies, crackers,
toster, pastries, cereal bars, fruit flavour, snacks, frozen waffles
& vegetarian foods.
Stay Focused, Going Further
Vision: To enrich and delight the world
through foods and brands that matter.
Purpose: Nourishing families so they can
flourish and thrive.
Kellogg`s IndiaIn 1994
Kellogg’s entered in india in 1994.
Products offered in india : corn flakes, wheat flakes, basmati rice
flakes
Kellogg India is a 100 per cent subsidiary of Kellogg’s
Company, USA, and is the largest player in the Indian
breakfast cereal market.
“The research founded that their only rivals are traditional indian
foods like idlis & vadas.” - this statement was given by “Denis
Avronsord” (M.D. of kellogg’s india.)
Transforming the Indian breakfast cereal market
• The per capita consumption of breakfast cereals was as low
as 2 gm per annum against 5 kg per annum globally.
• The Indian ready-to-eat-cereal market, clearly, posed several
challenges:
Cultural factors and eating habits – population not used to
processed foods
Easy availability of low-priced traditional breakfast
Low awareness about processed foods and calorie
requirements
Kellogg India has been taking various initiatives to
overcome the low awareness of breakfast cereals
• Sustained brand-building through advertising and
investment behind key brands.
• Global association between Kellogg Company and the
movie Spider Man 2
• Active interface with opinion leaders – the government,
independent agencies, schools etc.
• Adopting brand names- ‘Shakti’, meaning power.
Customising products for India
New positioning – level of Iron & Vitamin intake.
A Competitive Advantage
They are the industry leader in the level of advertisinginvestment with over $1 billion(Rs.6,000 cr.) globally. Themarketing team is given 9% of Kellogg’s net sales to usefor advertising their brands.
They also have created a program called “Great Ideas.”
Sales of 2014 is $14.6 billion(Rs.87,600 cr.) globally.
Presented By:Neelima Mishra(IB1412110)
MARKETING MIX
New Product
Concept
Less variety
Not Indianized
Premium pricing
Product
segmentation
More variety
Indianized
Penetration pricing
1995 2015
PRODUCT
PRICE
MARKETING MIX
Localized
Ad campaign
Nationalized
Better advertising
strategy
1995 2015
PLACE
PROMOTION
SWOT ANALYSIS
SWOT ANALYSIS
STRENGTHS:
Kellogg’s flexibility and adaptability towards consumer needs
Customization of products
History of changing food habits globally
WEAKNESSES:
If even the consumers liked the taste, the product was too
expensive initially
Initially product was not adopted to the Indian taste or Indian
traditional food habits.
SWOT ANALYSIS
OPPORTUNITIES:
Introduction of new trend with nutritional value in breakfast
Changing work-life demanding processed foods
Less competition
Scope for entering untapped markets
THREATS:
Cultural factors and eating habits – population
not used to processed foods
Low awareness about processed foods and
calorie requirements
Price sensitive customers
Presented By:Prateek Jhawar(IB1412136)
WHY TO GO FOR KELLOGG’S?
=
Communication Strategy
Give away free gifts with packs of chocos.
eg. Glowing stickers with Rs.10 pack of
chocos.
Marketing Strategy
Traditional Indian breakfast
Kellogg’s Cereals and Nestlé's Maggie
Indian breakfast gives the child 85% , the rest 15% of the nutrients come from Kellogg.
Repositioning- for people who want to lose weight.
Priced packs at Rs10/-
Advertising strategy
‘Jaago Jaise Bhi, lo Kellogg’s hi’
Yoga instructor to kathakalidancer attributing their morning energy and fitness to Kellogg's
Introduction of new cereals (Chocos, frosties etc.) forced to look at alternate product categories to make up for bad performance of breakfast cereals.
PROMOTIONAL STRATEGY
By mid-1995, the company had covered 60 schools in the
metros.
In March 1996, the company offered specially designed 50
gm packs free to shoppers at selected retail stores in Delhi.
This was followed by a house-to-house sampling exercise
offering one serving sachets to housewives in the city.
Business Strategy
• To grow the cereal business – there are now 40 different cereals.
• To expand the snack business – by diversifying into convenience foods.
• To engage in specific growth opportunities.
Presented By:Rahul Gandhi(IB1412154)
Markets are divided into market segments and there are six key segments to the Kellogg market, as shown:
Tasty Start - the cereals that most people will eat to begin their day. Kellogg's brands include Kellogg's Corn Flakesand variations, such as Kellogg's Crunchy Nut.
Simply Wholesome. These are 'good for you' brands, such as Kellogg's Fruit 'n' Fiber
Shape Management. Brands that can enable customers to manage their weight or shape, such as Kellogg's Special K.
Segmentation
Mum Approved. Those that mothers see as being good for their children, such as Kellogg's wheat flaks.
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.
Target Market
•Chocos launched in India in September 1996.
•Targeted at Kids with mascot monkey “Jose”
•Chocos were wheat scoops coated with
chocolate.
Kellogg’s India Target Market
Positioning A healthy, nutritious, convenient & easy - to –
prepare.
Developing a taste for grain based foods in the morning.
Different Sku’s(Stock Keeping Unit) – 500 gm family pack, Rs.10 pack of each variant.
Worked on Better Positioning – Iron Shakti.
Now positioned as ‘Fun-&-Taste-&-Health’.
Kellogg’s Special K Diet – Women health.
Over confidence and ignorance of cultural
aspects.
Lack of understanding of Indian consumer
behavior and habits.
Premium pricing policy.
Reasons for downfall
In a nutshell we have seen that the main reasons for Kellogg's downfall in India was the westernisation of its products and high prices.
The indianisation of its products helped Kellogg's in penetrating the market.
The reduction in prices also helped Kellogg’s improve its standing in the market.
Conclusion