Kellogg’s -Failure to Success Story

History of Kellogg’s:

Kellogg’s, the world’s biggest cereal maker, first entered the Indian market in 1994.

Having Ready-to-Eat food was not a cultural phenomenon in India in the 1990s. Native Americans were used to heating their milk and drinking it spicy and sweetened.

Persuading Indian consumers to drink cold milk instead of hot milk while consuming breakfast cereals was a major challenge for Kellogg’s.

Indian breakfasts are often spicy and hot; Kellogg’s was suggesting the polar opposite by serving a dish that was bland, soft, and cold.

Kellogg’s attempted to shift Indians’ breakfast preferences by portraying their regular breakfast as unhealthy. This backfired because Indian women have been feeding their families the traditional breakfast for decades. Kellogg’s eventually agreed to change its business tactics after a long period of struggle. To cater to a diverse demographic base in India, Kellogg’s lowered the price of their products and started selling a wider variety of package sizes.

The management realized that the majority of Indian shoppers at the time were vegetarians, and they were hesitant to buy packages with a rooster as the main mascot, so the packaging was changed to make it more attractive.

When selling iron-fortified cereals, Kellogg’s decided to localize its flavorings and choose brand names that appealed to the Indian people, such as “Shakti(power).” Cornflakes are also available with mango, banana puree, and other varieties to suit local preferences.

Kellogg’s has already invested heavily in logistics. Both raw materials, including packaging, are sourced in India, and the main plant is strategically situated near the largest demand, lowering costs. Kellogg’s has a market share of about 70% in India and is performing exceptionally well there.

Kellogg’s is an international grocery firm based in the United States. It is the world’s largest cereal company, with sales of $14 billion. It is the world’s second-largest producer of cookies, savory candies, and crackers. “Enriching and delighting the world with meaningful foods and goods” is the company’s goal. Kellogg’s is a food and candy company that produces cereal, crackers, pastries, popcorn, and other foods.

Kellogg’s is a cereal manufacturer that produces breakfast cereal, crackers, pastries, cookies, and other snacks. Kellogg’s products are produced in 20 different countries and marketed in over 180 different countries.

Marketing Strategies by Kellogg’s:

Kellogg’s Marketing Mix examines the brand/company and outlines Kellogg’s marketing approach, which includes the 4Ps (Product, Price, Place, Promotion). Product/service creativity, marketing investment, customer experience, and other marketing tactics have all contributed to the brand’s development.

Marketing strategy aids businesses in achieving their priorities and targets, and the marketing mix (4Ps) is a popular method for defining these techniques. Kellogg’s commodity, packaging, advertisement, and delivery plans are detailed in this article.

The following is an explanation of Kellogg’s marketing campaign’s product strategy and mix:

1. Kellogg’s Product Strategy:

  • Kellogg’s is divided into many industry divisions depending on product type or geography. Morning meals in the United States and treats in the United States are two product-category segments. Kellogg’s commercial mix includes a variety of breakfast cereals as well as other nutritional pieces. Items such as cereal, toaster pastries, nutritional bars, and beverages of well-known brands include cereal, toaster pastries, nutritional bars, and beverages in the US morning foods category.
  • The cereal, toaster pastries, health bars, and drinks category in the United States include well-known brands such as Kellogg’s Cornflakes, Kellogg’s Chocos, Kellogg’s Frosties, Kellogg’s Coco-pops, Special-K, Kellogg’s Froot Loops, and others. Cookies, crackers, savory chips, cereal bars, and fruit-flavored snacks are among the foods available in the United States.
  • Breakfast cereal produces more than $400 billion in annual revenue which accounts for the bulk of global revenues. The biggest brand in this group is Pringles. To boost sales, new versions such as Pringles Tortillas have been launched. Kellogg’s places a premium on in-store convenience.
  • To boost sales, new versions such as Pringles Tortillas have been launched. Kellogg’s places a premium on novelty, introducing new brands and varieties such as Cheez-It Crunch’d, Kellogg’s Raisin Bran with Cranberries, and Eggo gluten-free waffles. Kellogg’s is changing its offerings to meet market demand for nutritious foods that have visible ingredients like granola, bananas, and nuts.

2. Kellogg’s Price/Pricing Strategy:

  • Analysis and business dynamics are used to determine to price. Kellogg’s also uses discount and other incentive programs, such as vouchers that can be redeemed for free products. Kellogg’s keeps its pricing flexible to deal with other companies and to keep up with revenue increases. Despite their market dominance, Kellogg’s price policy in the marketing mix is often dominated by their products.

3. Kellogg’s Place & Distribution Strategy:

  • The United States, Canada, the United Kingdom, and Australia are the top four cereal markets. Kellogg’s is concentrating its efforts on developing markets. Kellogg’s sells its products across a variety of outlets, including grocery shops, cash machines, mini superstores, and high-frequency stores. Kellogg’s delivers its goods to retail retailers through its own sales force. For certain things, Kellogg’s often uses a dealer and distributor scheme. Kello is a character in the game. For certain things, Kellogg’s often uses a dealer and distributor scheme. Kellogg’s sells some of its products directly to supermarkets through a store-to-store distribution system. Kellogg’s is attempting to keep its goods as accessible as possible. Kellogg’s also uses e-commerce to distribute its products. Kellogg’s receives a lot of its business from places like Walmart.

4. Kellogg’s Promotion & Advertising Strategy:

  • To boost sales, Kellogg’s emphasizes creating a solid brand. Kellogg’s employs many advertising tactics as part of its campaign blend. Kellogg’s has sponsored USA Gymnastics as well as children’s shows such as Dragon Tales. Kellogg’s uses cereal boxes as an advertising medium to reach out to kids. Mascots are characters that reflect a brand and appeal to children. Kellogg’s has also contributed.
  • Kellogg’s has financed motorsports events in the past. Another sales technique is merchandising. Kellogg’s launched a PC game named Mission Nutrition that included several exclusive cereal boxes. Marketing campaigns are carried out using social media. Kellogg’s has been focusing brand marketing on special occasions and increased the distribution of compact cups to accelerate snack growth in developing markets.

Vidhi Agarwal

Content writer

Pratik Patil

Graphic designer

Parth Panchal

Editor 

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