Kellogg’s is a well-Known brand in the western part of the world, unfortunately, when they launched their products in the market it was not at all a smooth journey for them as they had to face a lot of hurdles. But the hurdles never stopped them from achieving what they want to. The company started to thoroughly analyze the market and found out a way as to how they can hold on to the stakeholders in India because India proved to be a tough market for them in the initial years.
The first and foremost hurdle that the company faced is just because they wanted to change the eating habits of the Indian people. It had to go through a lot of phases until it established itself as one of the strongest players in the breakfast cereal category in India.
A lot of reports have shown that presently, Kellogg’s holds approximately 65% of the Indian market. It was not easy for Kellogg’s being a foreign brand to launch in India. This paper will emphasize how the company started its journey as a failure and with proper marketing strategy they are able to capture around 65% of stakeholders at the present date, which can be regarded as a huge success. We are also providing a KIA Motors case study solution.
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In the United States of America, Kellogg’s is regarded as one of the biggest brands providing cereals for breakfast. It has been found out that the products of the company are manufactured in around 18 countries and sold over 180 countries. Kellogg’s entered the Indian Market in the year 1994 and it has not been a smooth entry for them because they wanted to transform the eating habits of the Indian people.
The Indian people preferred their traditional eating habits over modern-day cereal breakfast. The company felt that the Indian people do not have healthier eating habits and that is where the challenge of the company started, as the Indian people did not take it in a positive way. We are also providing a Jaguar case study solution.
The first-ever fault that was made by the company is that in the initial advertisement they focused on the unhealthy eating habits of Indians, this ended up hurting the sentiments of the Indian people and especially the ladies who have been serving traditional food for their families.
The advertisement had a negative impact on the mindset of the Indian people. The second fault was, the price at which Kellogg’s was available was considered to be higher in comparison to the traditional food in India, and not all people have the capacity to buy it. It was becoming impossible for the company to convince the Indian people. We are also providing an IKEA case study solution.
The company was not able to understand the cultural aspect of the Indian people, what they like or do not like. Indian people prefer warm milk, but cornflakes go better with cold milk, and once the cornflakes are dipped in warm milk, it lost its crispiness and the Indian people thought that the company made fake promises by not providing crispy flakes to them. All these factors led to the decline of sales of the company. Assignmenthelp.us offers Kellogg's case study help.
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Creative marketing technique
Improvement in the supply chain
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It has been found out that over a period of time the company was successful in widening its product portfolio according to the needs of the Indian customers. The products ranged from Frosties to Choco flavored scoops and different variants of cornflakes. Not only that the company also emphasized the issues related to health faced by the local people. For instance, it tried to increase awareness amongst people about the benefits that they will get if they increase the intake of iron and calcium. With the help of products like Iron Shakti and Calcium Shakti.
Improving the Indian Talent
The company has also helped the Indian managers to leverage their skills by moving them to other countries. Not only that the Indian managers also managed neighboring countries like Sri Lanka, Bangladesh, and Nepal.
Present Market Scenario
At present Kellogg’s has about 60% of the market share in India related to breakfast cereals. The competitors that the company has is- Quaker, and Nestle.
Strengths of Kellogg's – Internal Strategic Factors
Weakness of Kellogg's – Internal Strategic Factors
Opportunities for Kellogg's – External Strategic Factors
Threats Kellogg's Facing - External Strategic Factors
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Kellogg's uses a lot of water in their food manufacturing, thus rules governing water disposal and other waste food resources should be followed. If it establishes any plant in such an area that affects or leads to the endangerment of existing endangered animal species or natural flora and fauna, it may face severe reprisal from local organizations.
Thus, this paper can be concluded by saying that Kellogg’s had a very tough journey in the past and it had to face a lot of criticism, after accepting the criticism in a positive way, transforming their failure into success. As a result of which it is one of the most famous organizations.
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