Journey of Kellogg’s in India
Challenges, brand proposition and strategy
                By Srija Asthana
Introduction
●   Kellanova (formerly known as the Kellogg Company) is an American multinational food manufacturing company
    headquartered in Chicago, Illinois, US, founded in 1898.
●   Kellogg’s in India was founded in 1994.
●   It has product offerings under six main categories:
                                                                       Breakfast     All day favourites   Snacks
                         Kids           Family            Adult
●   As of December 2023, Kellogg’s is one of the largest players in the Indian breakfast cereal market, with a share of
    over 75%.
Overview
        Consumer                    Kelloggs’ entry                                                 Strategy and
    behaviour towards                in the Indian                Challenges faced                   solutions
     breakfast in India                 market
 - Lack of strong breakfast   - Corn Flakes, positioned     - Savoury, freshly made items   - Change in target group
 culture                      as a healthier breakfast      preferred over cold breakfast
                              option                        meals                           - Repositioning as mid meal
 - Traditional breakfast                                                                    for children
 items                        - “No matter how you start    - Higher price point (30%
                              your day, start it with       costlier than other             - Addressal of iron deficiency
 - Negative perception of     Kellogg’s”                    alternatives)                   through its product offerings
 ready-to-cook meals
                              - Emphasis on nutritional     - Lack of perception of         - Product extensions: Weight
 - Shift in preferences       benefits                      breakfast as a nutrient rich    management, local flavours
                                                            meal
                              - Positioned as a cold milk
                              meal                          - Cold milk leading to soggy
                                                            cereal not well received
Positioning of Kellogg’s at the time of launch in India
                                             ●   Emphasis on health benefits
       01   Corn Flakes - flagship brand      ●
                                             ●
                                                 Advantages over traditional Indian breakfasts
                                                 Crispiness
            “Jaago jaise bhi, lo Kellogg’s
       02   hi”
                                             ●   Attempt to incorporate Kellogg’s products as a daily
                                                 staple
                                                  Reasons for the initial failure
In the 1990s, nutrition was not viewed as an                                      Kellogg’s products were priced at
  essential component for breakfast by the                                         30% higher rates than the other
             Indian consumers.                                                          available alternatives
                                               Deep rooted reach of                                                       Lack of disposable
                                               traditional breakfasts                                                          income
        Nutrition                                                                           Price factor
                                                                                                                      The average Indian consumer, especially the
                                           The Indian Economy was newly liberalised.
                                                                                                                       middle class target group, did not possess
                                            The concept of traditional breakfasts had
                                                                                                                                  disposable income
                                             been in practice for many generations
                Changes made for repositioning
Change in target              First brand to tackle           Product              Rebranding
   audience                      iron deficiency                trials
Kellogg’s Chocos introduced     Launched ‘Iron Shakti’ to   Extensive sampling   Removal of the rooster from
and positioned as mid-day       address iron deficiency          campaigns        its advertisements
meals, instead of breakfast
for children
        Brand proposition going forward
 Reposition itself as the go to                                   Develop a new range of
caretaker of all things nutritious                               products that cater to the
       and easy to avail                                        lifestyle of the urban youth
        A brand that cares                                       Target the urban youth
                                     Target a specific ailment                                  Instant nutrition and well-being
                                                                                                 Extensive campaigns
                               Base a product line tackling a                                  propagating the nutritional
                                     specific ailment                                              value of its products
Thank you