Success factor of Kellogg Company in Indian market

Overview American multinational company founded in 1906 by Will Keith Kellogg; HQ- Battle Creek, Michigan, US

World’s leading producer or cereals & convenience Manufacturing units in 19 countries and marketing in more than 160

countries around the world Entered the Indian market in Kellogg India- 100 per cent subsidiary of Kellogg’s Company, USA &

largest player of cereals in Indian markets

Challenges faced while entering Indian market

Initial low per capita consumption Cultural differences- difference in taste palette from west Price sensitive consumers Availability of low priced, wide range of traditional foods

Success factors Innovative & customized marketing & brand buildingo Strategic brand building through advertising & investment on key

brandso School contact programs with independent agencies &

governmento Adoption of local brand name likes “iron shakti”o Packaging as effective market tool; for brand recognition & on-

shelf differentiationo Image building through recycle & reuse, health awareness

programso Emphasis on sales promotion- distribution of free samples,

discount on bulk purchase, free goodies, promotion of Kellogg health week etc

Efficient supply chain networko Local sourcing of raw & packaging material- inducing low cost of

production & packagingo Manufacturing unit near biggest cereal market- low transportation

costo Well defined distributor network- 18 C&F agents serving to more

than 200 distributorso Large number of retailing shops for detailed reacho Emphasis on lesser inventories & better service levels

Customized products for Indian market Positioning as “fun& taste with nutrition” Pricing- price volume packages, small packages to induce impulse

purchasing Constant emphasis on quality & innovation