1.Introduction and Background of India
The report helps in the overall analysis and background of country India along with the analysis of the Kellogg’s company. Furthermore, the discussion related to the opportunities of Kellogg’s will be done while entering into India and the actions are required to be analysed which are taken by Kellogg’s. Moreover, the failures along with the different consequences are required to be identified and the remediation steps are needed to be analysed effectively.
India which is also known as Republic of India is country of South Asia and it is the seventh main country by area along with the second most populous country in the entire world. India is bounded by Indian Ocean on South, Bay of Bengal on Southeast and Arabian Sea on Southwest. It has the area of more than 3,287,263 square kilometres and the population of India is 1.2 billion and this is the most populous democratic country in the entire world as well. Lastly, the military force is the strongest force in entire India and the coastline of India is 7517 km long in comparison to the other countries (Jha).
2.Background of Kellogg’s in India
Kellogg’s is one of the American multinational food-manufacturing organization which is headquartered in Battle Creek, United States of America. In India, tries to produce different kinds of convenience foods which is inclusive of cornflakes along with different cereals which has helped them in increasing their business (Kellogs.com). Additionally, this was being seen that Kellogg’s tried to open their first manufacturing site and store in Mumbai, India in the year 1994.
Kellogg’s furthermore launched the cornflakes concept as the breakfast cereal in India. Moreover, in 2014, Kellogg India introduced the Pringles which helped them in establishing the snacking portfolio in an effective manner (The Times of India). In the year 2014, Kellogg India opens the second manufacturing plant in Andhra Pradesh and in the year 2015, this was being seen that Kellogg commissions its first and foremost R&D centre which tries to develop the different breakfast related products for India along with different kinds of markets which are emerging in nature in ASPAC region (Kelloggs.in).
Opportunity of Entering into India
There are different opportunities which have been gained by Kellogg’s while entering and expanding their presence in the Indian market. This has been seen that in the Indian market, the changes and preferences of the individuals are changing and they are becoming more health conscious (Piekkari, Welch and Welch). In the year 2014, Kellogg’s introduced corn flakes which are healthy and people are shifting their focus from the different traditional breakfasts to the different western kinds of breakfasts which is in demand which has created a positive impact on the market share of the organization (Kasemsap p. 1102).
Furthermore, this was seen and analysed that there has been changing lifestyle of the different organization and this has been noticed that the different individuals in India are looking for healthy food options along with some easy meals to save their time and stay fit and healthy (Epsteinv and Yuthas). These are the different aspects which have helped the company Kellogg’s in gaining huge opportunity while entering into the Indian market and they decided to enter into the Indian market (Adekola and Sergi).
Actions Taken by Kellogg’s
At first, the entry of Kellogg’s into the Indian market was a total failure, but after a span of time, Kellogg’s tried to revise their repositioning strategies which helped them in making a remarkable comeback in the entire Indian market (Beretta p. 97). Kellogg’s tried to analyse the eating habits of the Indian consumers through conducting a survey through distribution of the different questionnaires through different grocery or supermarkets (News & News, 2018). Furthermore, the company tried to provide the different emails to the random customers in different parts of India and gained their knowledge on analysing their viewpoints regarding eating healthy and becoming healthy (Mahidin, Othman and Saifudin p.35).
With the help of the survey results, Kellogg’s tried to enter into the Indian market as they analysed that there was change in the food options as the customers shifted their focus more onto the western food habits from the traditional food habits such as Idli, Dosas and other food items. In the urban population of India, this has been seen and identified that Nestle tried to grab their presence in an effective manner ("Kellogg India, The Economic Times").
Failure and Consequences
While entering into the Indian market, there was huge failure which was faced by Kellogg’s. The major reason behind the failure of Kellogg’s was the improper implementation of the marketing mix aspects in the market (Business-standard.com). There was wrong positioning, lack of the customization of the product and the company had faced inability in analysing the cultural along with preference difference of the Indian customers towards the different breakfast which was ready to eat concept (TranslateMedia).
Furthermore, the other reason of failure of Kellogg’s in the Indian market was the major fact which was related to wrong analysis of the flavour in terms of the different food items which was prepared by them (Ibef.org.). Additionally, the distribution strategy failed miserably as the prime and major reason was that the company mainly concentrated on the different metro cities. The major consequences of the failure of Kellogg’s at the first go in the Indian market is related to the different cultural differences and aspects which affected their business in a negative manner and in a major manner as well (TranslateMedia).
Remediation and Other Steps
After the failure of the company in the Indian market, Kellogg’s tried to introduce the marketing mix which is inclusive of 4Ps in an effective manner which helped in managing their effectiveness in an appropriate manner.
Firstly, Kellogg’s tried to launched Frosties (sweet and sugar-coated cornflakes) in the year 1997 and the company was surprised by their success in the Indian market (The Times of India).
Secondly, Kellogg’s tried to reduce their pricing of the different products and they tried to begin and offer more and huge variety of product sizes in order to appeal the different customers in India (Peng).
Thirdly, the individual packs which were introduced by Kellogg’s did wonders and there was repositioning of the strategies wherein the cereals were termed as the fun choice and not the nutritious one in nature (Paik, Kwon and Chen).
Lastly, the Kellogg’s brand tried to localise the branding along with the advertising approach which helped in becoming more acceptable in nature (Salomon).
Therefore, this can be inferred from the entire analysis that the first step of Kellogg’s in Indian market was not successful due to the improper marketing mix strategies. However, in the future, this was seen that Kellogg’s tried in adopting the different kinds of repositioning of the strategies which helped them in becoming more successful in Indian market.
"Business-Standard.Com". Second Thoughts On The Indian Consumer, 2018, https://www.business-standard.com/article/management/second-thoughts-on-the-indian-consumer-104060701131_1.html. Accessed 21 Nov 2018.
Campaignlive.Co.Uk,- "Kellogg's Falls Foul Of TV Junk Food Rules With Ad For 'Healthier' Coco Pops Granola". Campaignlive.Co.Uk, 2018, https://www.campaignlive.co.uk/article/kelloggs-falls-foul-tv-junk-food-rules-ad-healthier-coco-pops-granola/1489849. Accessed 21 Nov 2018.
"The Economic Times". Kellogg India: Latest News & Videos, Photos About Kellogg India | The Economic Times, 2018, https://economictimes.indiatimes.com/topic/Kellogg-India. Accessed 21 Nov 2018.
Adekola, Abel, and Bruno S. Sergi. Global business management: A cross-cultural perspective. Routledge, 2016.
Beretta, Edoardo. "Language in International Business. The Multilingual Reality of Global Business Expansion." (2016): 97-97.
Epstein, Marc J., and Kristi Yuthas. Measuring and Improving Social Impacts: a guide for nonprofits, companies and Impact investors. Routledge, 2017.
Ibef.Org, 2018, https://www.ibef.org/download/Kellogg_India.pdf. Accessed 21 Nov 2018.
Jha, Shweta. (2015) "Kellogg’s journey in india: from being bland to scrumptious in culturally diversified international market."
Kasemsap, Kijpokin. (2018) "The role of information system within enterprise architecture and their impact on business performance." Global Business Expansion: Concepts, Methodologies, Tools, and Applications. IGI Global, 2018. 1078-1102.
Kelloggs.In, 2018, https://www.kelloggs.in/. Accessed 21 Nov 2018.
Kelloggs.In, 2018, https://www.kelloggs.in/en_IN/who-we-are/history.html. Accessed 21 Nov 2018.
Kellogs.com- "Kellogg’S Goes Beyond Breakfast - Times Of India". The Times Of India, 2018, https://timesofindia.indiatimes.com/business/india-business/kelloggs-goes-beyond-breakfast/articleshow/62782695.cms. Accessed 21 Nov 2018.
Mahidin, Norlila, Siti Norezam Othman, and Adam Mohd Saifudin. "Halal logistics issues among the food industry companies: A preliminary study." (2016): 35-40.
News, Latest, and Business News. "Firstpost How The MNC Ego Blinded Kellogg's, Coke And Unilever In India - Firstpost". How The MNC Ego Blinded Kellogg's, Coke And Unilever In India - Firstpost, 2018, https://www.firstpost.com/business/how-the-mnc-ego-blinded-kelloggs-coke-and-unilever-in-india-1309483.html. Accessed 21 Nov 2018.
Paik, Yongsun, Jong-Wook Kwon, and Dong Chen. Global Business: Connecting Theory to Reality. Routledge, 2017.
Peng, Mike W. Global business. Cengage Learning, 2016.
Piekkari, Rebecca, Denice Welch, and Lawrence S. Welch. Language in international business: The multilingual reality of global business expansion. Edward Elgar Publishing, 2014.
Salomon, Robert. Global vision: How companies can overcome the pitfalls of globalization. Springer, 2016.
The Times of India- "Kellogg’S Goes Beyond Breakfast - Times Of India". The Times Of India, 2018, https://timesofindia.indiatimes.com/business/india-business/kelloggs-goes-beyond-breakfast/articleshow/62782428.cms. Accessed 21 Nov 2018.
TranslateMedia "How Kellogg's Failed, And Then Won, In India". Translatemedia, 2018, https://www.translatemedia.com/translation-blog/how-kelloggs-failed-and-then-won-in-india/. Accessed 21 Nov 2018.