kellogg’s strategy in indian market. kellogg’s strategy in indian market. presented by simi...
DESCRIPTION
History Birth of Wheat Flakes 1906, W.K. Kellogg entered the cereal business Formation of Battle Creek Toasted Cornflake CompanyTRANSCRIPT
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Kellogg’s Strategy In Indian
Market
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KELLOGG’S Strategy in Indian Market.
• Presented By Simi Samkutty (41) Pratiksha Rane (42) Jayashree Prabhu (43) Amit Jain (44) Manas Bendre (45) Sagar Thakur (46)
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History• Birth of Wheat
Flakes • 1906, W.K. Kellogg
entered the cereal business
• Formation of Battle Creek Toasted Cornflake Company
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History
• Kellogg opened its first foreign cereal facility in 1914 in Canada.
• Renamed KELLOGG’S company in 1922.
• Worldwide Expansion by 1938.
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Kellogg’s in India
• Launched in Sep 1994.
• Reason for Entering Indian Market.
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Kellogg’s in India• The Indian market, posed
several Challenges :-
Cultural factors and eating habits
Easy availability of low-priced traditional breakfast
Low awareness
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PRODUCTS
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Kellogg’s Existing Products
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Recent Launches
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Kellogg’s Snacks
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Kellogg’s Biscuits
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PRICE
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PRICING• At introduction price of products were high.
-Indian consumption pattern
• Later they launched their no.1 product of U.S. i.e.
corn flakes
- skimming price
- Indians less concern about quality
than quantity .
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Pricing strategy
• Localized the entire raw and packing material
requirement, saving import duty .
• Reduced transportation cost .
• Distribution network .
• Overheads were reduced .
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• Deploying Oracle 11i based ERP system .
• Wide range of products compared to competitors .
• Offers brand differentiated pricing .
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KELLOGGS KELLOGGS
- SPECIAL-K - CHOCOS - ALL BRANN
- FROSTIES
HIGH LOW PRICE PRICE KELLOGGS
- CHOCO SMACKS
LOW NUTRITION
HIGH NUTRITION
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PROMOTION
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• Nutrition to fun-filled flavors .• Consumer promotions 25-
crore media-spend.• Promotion in Schools and
Health Clubs in Eastern India.
• launches Diwali gift packs for kids
• Advertising.• Internet Marketing
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• Distributed free samples of cornflakes• Heavy advertising of chocos in 1996• .Kellogg's' mobile contest to promote Chocos• Biscuit promotion:-initial communication
about chocos was theme based .• Chocos Biscuits :25% extra is spent on
Consumer Position 5% extra on Trade promotions.
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Digital & online Advertising.
• .
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PLACE
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Distribution• Kellogg’s gives its Distributors a margin of 5% and
12% to its retailers. Whereas the competitors give a margin of 10-15% to its distributors .
• Set up a distribution network with storage hubs in all the key states of the country (18 clearing and
forwarding agents) serving over 200 distributors providing a good reach.
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Channels of Distribution
• . Manufacturers
C&F
Stockist
Retailers
Consumers
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LEVERAGE OF BRANDLEVERAGE OF BRAND ANDAND
BRAND EXTENTIONBRAND EXTENTION
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BRANDING
What is Brand? “Brand is a name,term,symbol,design or
combination of them which is intended to identify goods & services & to classify them from those of competitors.”
Component of Brands:- 1) Attributes: - 4) Culture: - 2) Benefits: - 5) Personality:- 3) value: - 6) Users:-
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INDUSTRY ANALYSIS5 players in Indian market:-1) Kellogg's2) Mohan's3) Champion Oats & Gold crunch4) Murgin's5) Bagrry
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TARGET SEGMENT 1) Kellogg's -
Premiums segment 2) Others- Middle & lower income (economy product)
2007-2008
YR MARKET SHARE
19982000
53% MORE THAN 55%
MORE THAN 66%
75% -81%
Market share of Kellogg's cornflakes Brand
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Problems in Kellogg's marketing
• The biggest mistake which the company committed was that it expected to change the Indian breakfast habit
• Product Defects: crispy flakes were not available.
• Positioning mistakes:“health product” image instead of its successful “fund-and-taste”. Higher prices gave the brand a “premium image”.
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.
• Pricing mistakes: The product was highly priced. So, the product became unattainable for the average Indian.
• Faulty Distribution: The company focused only on the premium and middle level retail stores for its distribution. This decision put a large section of the Indian population out of its reach.
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STRATEGY
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E G M E N T A T I O N
A R G E T I N G
O S I T I O N I N G
I F F E R E N T A T I O N
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E G M E N T A T I O N
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A R G E T I N G
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O S I T I O N I N G
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IFFERENTIATION
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Webliography
www.google.comwww.kelloggs.comwww.wikipedia.com
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