Kellogg’s in India
2nd assignment
INSTRUCTORES:
Victor Centeno
Ana Sofia Rodrigues
Question:
1. Why would Kellogg need to move into non-breakfast segment?
2. What is your suggested Positioning Statement?
1. Why would Kellogg need to move into non-breakfast segment?
There are, increasingly, large global companies. There are several means to adapt to new
markets. Although they sell products with the same brand, they can modify other
dimensions, such as packaging, product composition, integrated services, prices in order to
become more attractive to local customers.
The entry of Kelloggs in India faced huge challenges. The Indians eating habits are based
on their religion and tradition, they not included cereal for breakfast. This meal had its own
custom which result a combination of social, cultural and family traditions.
The acceptance of a new view of dietary pattern imply a mindsets changing, joining efforts
in order to implement an idea able to offer new consumer opportunities.
India should be seen as a set of interconnected market rather than a single large market.
This approach allows us to understand that commercial success in India is achieved by
implementing a number of commercial strategies based on regional culture.
In this way you may be have access to opportunities, which require a coherent strategy to
deal with changes in consumer expectations and distribution characteristic requirements of
each region. Since it is important to be realistic regarding the true scale of their existing
product and service opportunities, we must take into account that the Indian consumers are
more sensitive to price than, for example, consumers in the U.S..
Therefore, a detailed market research is required to ensure that their products, including
packaging and marketing are tailored to the preferences, local tastes and respond correctly
to the expectations and the consumer needs. In this sense, in order to attract customers, the
company produced small packages marketed at a lower price (25 US cents).
Despite look to the purchasing power, this was not the only Kelloggs focal point. The
brand, in order to find the change, objectified awareness of the Indian population for your
product itself. After identifying the points to be improved or developed, developed a plan
of action using as a home base the responses to the needs. Thus, created Basmati rice
flakes and mango-flavored cereal. The company has sought to show that a portion of corn
flakes had the same nutritional value like traditional breakfast.
