Kellogg's Indian Experience

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Setting Things Right

Disappointed with the poor performance, Kellogg decided to launch two of its highly successful brands - Chocos (September 1996) and Frosties (April 1997) in India. The company hoped to repeat the global success of these brands in the Indian market. Chocos were wheat scoops coated with chocolate, while Frosties had sugar frosting on individual flakes. The success of these variants took even Kellogg by surprise and sales picked up significantly. (It was even reported that Indian consumers were consuming the products as snacks.) This was followed by the launch of Chocos Breakfast Cereal Biscuits. The success of Chocos and Frosties also led to Kellogg's decision to focus on totally indianising its flavors in the future. This resulted in the launch of the Mazza series in August 1998 - a crunchy, almond-shaped corn breakfast cereal in three local flavors - ‘Mango Elaichi,' ‘Coconut Kesar' and ‘Rose.' Developed after a one-year extensive research to study consumer patterns in India, Mazaa was positioned as a tasty, nutritional breakfast cereal for families. Kellogg was careful not to repeat its earlier mistakes.

It did not position Mazza in the premium segment. The glossy cardboard packaging was replaced by pouches, which helped in bringing down the price substantially.

The decision to reduce prices seemed to be a step in the right direction. However, analysts remained skeptical about the success of the product in the Indian market. They pointed out that Kellogg did not have retail packs of different sizes to cater to the needs of different consumer groups. To counter this criticism, the company introduced packs of suitable sizes to suit Indian consumption patterns and purchasing power. Kellogg introduced the 500gm family pack, which brought down the price per kg by 20%. Also, Mazza was introduced in 60gm pouches, priced at Rs 9.50.

Kellogg's advertising had not been very impressive in the initial years. Apart from ‘Jago jaise bhi, lo Kellogg's hi,' the brand had no long-term baseline lines. Later, Kellogg attempted to indianise its campaigns instead of simply copying its international promotions. The rooster that was associated with the Kellogg brand the world over was missing from its advertisements in India. One of its campaigns depicted a cross section of individuals ranging from a yoga instructor to a kathakali dancer attributing their morning energy and fitness to Kellogg. The advertisement suggested that cornflakes could be taken with curds, honey, and banana.

In April 1997, Kellogg launched ‘The Kellogg Breakfast Week,' a community-oriented initiative to generate awareness about the importance of breakfast. The program focussed on prevention of anemia and conducted a series of nutrition workshops activities for both individuals and families. The program was launched in Chennai, Delhi and Mumbai. The company tied up with the Indian Dietetic Association (IDA) to launch a nation-wide public-service initiative to raise awareness about iron deficiency problems. Nutritionists and dieticians from the country participated in a day-long symposium in Calcutta to deliberate on the causes and impact of anemia caused by iron deficiency. This program was in line with the company's global marketing strategy, which included nutrition promotion initiatives such as symposiums, educative programs and sponsorship of research.

Emphasizing Kellogg's commitment to nutrition education, Avronsart remarked, "Product modification, particularly the addition of iron fortification in breakfast cereals is how Kellogg responds to the nutritional needs of the consumers. In this spirit, Kellogg India is taking a major step to improve the nutritional status of consumers in the country, the specific opportunity being iron fortification for which we have undertaken major initiatives to promote the awareness of the importance of iron in the diet."

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