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Abstract:
The case, 'Kellogg's Indian Experience' analyzes the causes that led to the failure of the Kellogg breakfast cereal brand in the Indian market. The case examines the measures the company adopted on the marketing front to rectify its mistakes and at the efficacy of these measures. |
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Issues:
» Enable students to see how mistakes on the pricing, positioning and distribution fronts led to Kellogg's poor performance in the initial stages

Market
Many people view breakfast as the most important meal of the day. Research shows that 96% of the UK population eat or drink something for breakfast and 49% start the day with ready-to-eat cereals.
This signifies a huge change in UK breakfast eating habits over the last twenty years. In 1968 approximately half the population tucked into a cooked breakfast on a regular basis, but, by 1990 this had dropped to an estimated 10%.
This change can be attributed to increasingly busy lifestyles and an awareness of the importance of healthy eating. However, hectic lifestyles can mean breakfast is often sacrificed to keeping to a tight timetable. The major challenge facing cereal companies today is to persuade consumers that eating cereals is both convenient and beneficial at breakfast time or at any time of the day.
In terms of volume, the UK is the largest consumer of cereals in Europe. In 1999, the market was valued at £944 million. Per capita consumption has risen in the last decade by almost 10% and currently stands at 5.9 kilos, with the over 35s being the greatest consumers.
Achievements
Kellogg's Corn Flakes is the UK's and Europe's number one breakfast cereal. In 1999 alone, more than 100 million packets of Kellogg's Corn Flakes were consumed, while over 40% of all UK households are likely to have Kellogg's Corn