Kellogg’s is one of the world’s leading cereal manufacturers, with a global presence in over 180 countries. However, its entry into the Indian market was not without its challenges.

Kellogg’s Journey in India

Initial Entry and Failure

Kellogg’s first entered the Indian Market in 1994, with a high-profile launch and a frenzy of marketing activity. However, the company soon realized that it had underestimated the challenges of the Indian market.

One of the biggest challenges was the difference in eating habits between India and the West. Indians are accustomed to eating warm and savory breakfasts, while the company cereals are typically eaten with cold milk. Additionally, many Indians were not familiar with the concept of breakfast cereals, and Kellogg’s struggled to educate consumers about the benefits of its products.

Another challenge was the price of Kellogg’s cereals. The company cereals were significantly more expensive than traditional Indian breakfast foods, making them unaffordable for many consumers. Additionally, Kellogg’s cereals were not available in a variety of sizes, making them difficult to fit into the budgets of Indian families.

As a result of these challenges, Kellogg’s initial foray into the Indian market was a failure. The company withdrew from the market in 1996, after just two years of operation.

Re-Entry and Success

Kellogg’s re-entered the Indian market in 2007, after learning from the mistakes of its first foray. The company this time focused on developing products that were more suited to the Indian palate and budget.

One of the key changes the company made was to introduce a new cereal called Chocos. Chocos is a chocolate-flavored cereal that is eaten with hot milk. This made Chocos much more appealing to Indian Consumers, who are accustomed to eating warm breakfasts.

Kellogg’s also introduced a variety of smaller pack sizes, making its cereals more affordable for Indian families. Additionally, the company invested heavily in marketing and education campaigns to educate consumers about the benefits of breakfast cereals.

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As a result of these changes, Kellogg’s has been successful in its second foray into the Indian market. The company has become one of the leading cereal brands in India, and its products are now enjoyed by millions of Indian consumers.

Challenges Faced in India

Despite its success, Kellogg’s still faces a number of challenges in the Indian market.

Competition from Local Brands

One of the biggest challenges for the company is competition from local cereal brands. There are a number of Indian cereal brands that offer products that are more suited to the Indian palate and budget than Kellogg’s cereals.

Price Sensitivity of Indian Consumers

Another challenge for Kellogg’s is the price sensitivity of Indian consumers. Indians are generally more price-sensitive than consumers in other parts of the world, and this can make it difficult for the company to compete with local cereal brands.

Changing Consumer Preferences

Consumer preferences in India are also changing rapidly. More and more Indian consumers are becoming health-conscious, and this is leading to a shift towards healthier breakfast options. the company needs to adapt its products and marketing messages to reflect these changing consumer preferences.

Strategies Adopted to Overcome Challenges

the company is aware of the challenges it faces in the Indian market, and it has adopted a number of strategies to overcome these challenges.

Product Innovation

One of the key strategies adopted by Kellogg’s is product innovation. The company is constantly developing new products that are suited to the Indian palate and budget. For example, company recently introduced a new cereal called Krrish Rice Krispies, which is made with Indian rice and flavored with spices.

Pricing Strategy

Kellogg’s has also adopted a more competitive pricing strategy in India. The company has introduced a variety of smaller pack sizes and has also reduced the prices of some of its products.

Marketing Strategy

Kellogg’s has also adopted a more focused marketing strategy in India. The company is now targeting its marketing campaigns at specific consumer segments, such as health-conscious consumers and young mothers.

Conclusion

Kellogg’s has come a long way since its initial failure in the Indian market. The company has learned from its mistakes and has adapted its products, pricing, and marketing strategies to meet the needs of Indian consumers. As a result of these changes, Kellogg’s has become one of the leading cereal brands in India. However, the company still faces a number of challenges, such as competition from local brands, the price sensitivity of Indian consumers, and changing consumer preferences. Kellogg’s needs to continue to innovate and adapt

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