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  • June 19th, 2024

Have a Quick Look at Kellogg’s Case Study

For Kellogg’s India came to be an extremely difficult market. The reason behind it is that it had to alter the infused eating tradition of customers. It has encountered different types of hard stages of life-cycle before becoming the decisive food in the breakfast grain type in India. At present, Kellogg’s is supposed to grab nearly 60-65 % of the breakfast grain market in India. The aggregate value of India’s breakfast grain market is about RS 400 crore. At the time of launching a new type of product, it was not so straightforward for Kellogg’s to build an unfamiliar company into the market of India where the nutrition patterns of the public alter after only several km. We are going to discuss the voyage of Kellogg’s from defeat to victory in this issue. 

Setting:

Kellogg’s is supposed to be one of the most prosperous companies based in the U.S. which is the best manufacturer of grain and amenity nutrition all over the world. The manufacturing of the products is done in 18 nations and they are sold in nearly 180 nations. This is an extremely well-known breakfast cereal company that is marketed in nearly 160 nations with sales worth more than $9 billion. When he took an entry into the market of India it utilized an identical marketing combination that it was utilizing in their international markets. 

Kellogg’s first took entry to the Indian market in 1994. It had to strive a lot to change the breakfast cereal market in India. It intended to change the breakfast patterns of Indian customers who generally preferred to have hot foods for breakfast. 

The company tried to change the conventional patterns of Indian customers to have Idli Dosas or paranthas as their breakfast and their eating patterns differed according to region. For example, the people of the northern region liked to have Paranthas but the people of the southern region liked to have Idlis, Vadas, and the people of the western region liked to have poha. Kellogg’s strives a lot to change the conventional breakfast habits of Indian customers instantly. The company intended that people should begin to have healthier breakfast cereals. It was very challenging for the company. 

Initial Mistakes:

Kellogg’s initial advertisements displayed that what the Indian people eating in their breakfast was not nutritious at all. This hit the emotion of the ordinary women of India who have been cooking and providing conventional breakfasts for years to households. There was a negative impact of the advertisements in the stand of significant groups of initiators and influencers in the Indian households. Moreover, the type of breakfast the people of India had were obtainable in different types at reasonable prices. But the price of Kellogg’s was quite high. That is why the company faced difficulties persuading people so that they can change their conventional breakfast patterns and use cereals as a substitute. 

Moreover, the company failed to comprehend why the Indian people have warm milk for their breakfast. On the contrary, you have to use cold milk for cornflakes or cereals. If the cornflakes are dipped into the warm milk the crispiness of the cornflakes will be lost. So, when you consume the milk it will not remain crispy anymore. But the company promises that the cornflakes will remain crispy while you will consume them. So, the comlanyvwillnnkt be able to keep its promise. The sales of Kellogg’s decreased because of all these issues. 

Indian Oriented Policies: A Reversal 

 Creative Commerce and Brand Building

Kellogg’s India was trying to take several steps to win over the low awareness of breakfast cereals. They are as follows: 

  • The company tried to make brand-building with the help of advertising and acquisition. 
  • The company arranged contact programs in academies and had a vigorous interface with idea executives–CFTRI, the government, independent agencies, etc.
  • The company introduced Kellogg’s Chocos Spider-Man 2 “web-designed cereal”. 
  • The firm took the trademark terms that attract Indian customers like ‘Shakti’ which means power. 
  • The company creates an impression with the help of recycling and reusing, enhancing entry to the fitness and human benefits in provincial areas. 
  • The company utilized packaging as a useful commerce device for trademark contact and on-shelf differentiation. 

Capable Supply Chain Web

Consumers who are conscious of price require a continuous concentration on price deduction and supply chain capability improvement in India. Kellogg has adopted the following measures in such areas: 

  • The company has made the whole raw and packing element requirement local. Thus it saves import costs. Moreover, the company has also taken a single sourcing policy gaining scale capabilities. 
  • The manufacturing plant of the company is situated at Taloja, near Mumbai in the state of Maharashtra. This is one of the biggest markets for breakfast grains in the nation and hence the transportation cost is optimized. 
  • The company has built a web with storage junctions in all the main states of the nation and it serves more than 200 distributors delivering a decent reach. 
  • The company gives the distributors more responsibility for sales to optimize overheads. In this way, it brings down the power of its internal sales pressure. 
  • The company deploys Oracle 11i-based ERP for enhancing supply chain clarity which leads to lower stocks and upgrade assistance. 

Customizing Derivatives for India

Kelloggs made the product portfolio of the company broad with time. It has extended its span to add chocolate-flavored scoops, frosty, and different types of Corn Flakes in different flavors. The company had adjusted the derivatives to deal with the regional requirement gaps. For instance, it concentrated on iron and calcium fortification with derivatives like Iron Shakti and Calcium Shakti.

Powerful Backing from Guardians 

The company gets technology information about how to personalize derivatives to fit with the Indian nutritional shape, producing packaging elements, particularly for India, production technique, and so on from its parent. 

Developing the India Benefit

The firm has been developing organizational skills in India by shifting Indian directors to other nations. The Indian coalition also handles neighboring nations like Bangladesh, Sri Lanka, and Nepal. 

 Hereafter intends

For the firm, India is a very significant platform that has an outstanding future. Thinking this, the company is intending to keep up its acquisition in the transmission of types and companies to enhance the breakfast grain market in India in the upcoming days. 

Kellogg’s – Marketing Strategies

The first thing that comes into our mind when we think of breakfast cereal and snacks is Kellogg’s. The company has successfully created a strong brand image that is constant for over a decade. The company has been applying various marketing strategies for many years to stand out from the crowd and beat its opponents. Moreover, unique marketing strategies also help the company to maintain its market share. The best marketing strategies used by Kellogg’s are as follows: 

Targeted Marketing

The company utilizes targeted marketing for promoting its products. For instance, Kellogg’s applies different marketing campaigns for kids and grown-ups which are made to attract to their particular tastes and choices. The company has also introduced a wide number of gluten-free and organic products for catering to the increasing health-conscious part. 

Product Innovation

The company has continuously launched new products to meet the demands of changing customer choices. For instance, the company launched the first-ever cereal box toy in the early 1900s and has kept on providing unique products like Kashi Go Crunch and Special K Protein bars. 

Branding

Kellogg’s has a strong brand image that has been consistent for over a century. The iconic characters of the company like Tony the Tiger and Snap, Crackle, and Pop, are popular all over the globe. 

Sponsorship

The company has funded various sports events like the Olympics and the World Cup to improve the visibility of the company. The firm has also made investments in TV shows like USA Gymnastics and Dragon Tales to target kids.

Social Media Marketing

The company is actively present in social media with the help of which it connects with customers and advertises its products. The firm also uses various social media platforms like Twitter, Facebook, and Instagram to inaugurate marketing campaigns and get connected with its followers. 

Packaging

The company has utilized unique packaging to become unique from others. For instance, the company launched resealable cereal bags which allows the customers to maintain the freshness of the cereal for a long time. 

Discounts and Promotions

The company offers promotions and discounts like coupons and buy-one-get-one-free offers to grab the attention of the customers and improve its sales. With the help of loyalty programs, the company retains its consumers. 

Corporate Social Responsibility

The company has utilized its corporate social responsibility initiatives for improving its brand illustration and improving consumer loyalty. For instance, the firm contributed cereals of over $10 million cue at the time of the Covid 19 pandemic to combat worldwide hunger. 

The company has managed to retain its position as a market leader in the breakfast cereal and snack industry with the help of its powerful brand image and marketing consistency. 

The company has applied coherent kinds of marketing techniques to become the leader in the food industry. The firm has successfully grabbed the eyes of its target audience and improved its market share by launching new products and funding social media marketing. Kelogg’s concentrated on CSR initiatives like contributing here to combat hunger at the time of the pandemic which has made its brand reputation strong and developed consumer loyalty. 

Start-up companies may apply these strategies to make a strong brand image and make themselves the leader in their respective fields. 

What Challenges Are Faced by Kellogg’s?

In the ready-to-eat cereal industry, profits are tight. Kellogg’s has to spend a third of its annual income on promotion or business: each dollar is paid on special offers and coupons, advertisements for special pricing, sponsorships, and even the area every brand inhabits in the grocery shop in itself. 

The firm checks the business spending very carefully. The company has to operate dozens of complete data simulations every day on items like TV ad spend, digital marketing, coupon campaigns and other advertisements, sales commissions, display, and shelving expenses—but its system only could handle just one simulation per day. To become successful the company has to change its conventional on-premises infrastructure. 

Final Verdict  

The company took the above-mentioned initiatives to reposition the brand which in turn helped the company to gain nearly 60-65% of the market share of the Indian breakfast grain market. In this way, the company becomes a famous market leader. The firm has chosen to introduce the company as an evening snack for the expansion of the business. My Assignment writing Help can help you to learn more about the company. So, you may contact them. 

 FAQs

  1. Who founded Kellogg’s?

Will Keith Kellogg set up the company Kellogg’s in 1906. 

  1. What are the top marketing techniques of Kellogg’s?

The best marketing techniques of Kellogg’s are as follows: 

  • Product innovation
  • Targeted marketing
  • Sponsorship
  • Branding
  • Packaging
  • Social media marketing
  • Corporate social responsibility
  • Discounts and promotions
  1. What is the target audience of Kellogg’s?

Kellogg’s concentrated on households where there are kids and health-conscious people. The company also focuses on busy people who are searching for quick and easy meal alternatives that are suitable for their busy timetables. 

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