Kelloggs in india marketreport

Whilst local in-store sales have been a touch underwhelming for this British high street brand, it has had success selling dresses online with Tmall part of the Alibaba group. It seems Chinese households are becoming slightly more western in their habits, and breakfast cereals are starting to sneak into their shopping baskets. But are Indian consumers ready to accept breakfast cereals?

Kelloggs in india marketreport

To view more free cases, please visit our site at frequent intervals. Kellogg received unsettling reports of a gradual drop in sales from its distributors in Mumbai. Kellogg Company was the world's leading producer of cereals and convenience foods, including cookies, crackers, cereal bars, frozen waffles, meat alternatives, piecrusts, and ice cream cones.

Founded inKellogg Company had manufacturing facilities in 19 countries and marketed its products in more than countries. The Indian market held great significance for the Kellogg Company because its US sales were stagnating and only regular price increases had helped boost the revenues in the s.

Launched in SeptemberKellogg's initial offerings in India included cornflakes, wheat flakes and Basmati rice flakes.

Despite offering good quality products and being supported by the technical, managerial and financial resources of its parent, Kellogg's products failed in the Indian market. Even a high-profile launch backed by hectic media activity failed to make an impact in the marketplace.

Meanwhile, negative media coverage regarding the products increased, as more and more consumers were reportedly rejecting the taste. There were complaints that the products were not available in many cities. According to analysts, out of every packets sold, only two were being bought by regular customers; with the rest 98 being first-time buyers.

Converting these experimenters into regular buyers had become a major problem for the company. By September,sales had virtually stagnated.

Marketing experts pointed out various mistakes that Kellogg had committed and it was being increasingly felt that the company would find it extremely difficult to sustain itself in the Indian market.

The Mistakes Kellogg realized that it was going to be tough to get the Indian consumers to accept its products. Kellogg banked heavily on the quality of its crispy flakes. But pouring hot milk on the flakes made them soggy.

Indians always boiled their milk unlike in the West and consumed it warm or lukewarm. They also liked to add sugar to their milk. When Kellogg flakes were put in hot milk, they became soggy and did not taste good. If one tried having it with cold milk, it was not sweet enough because the sugar did not dissolve easily in cold milk.

The rice and wheat versions did not do well.

Kelloggs in india marketreport

In fact, some consumers even referred to the rice flakes as rice corn flakes. In earlydefending the company's products, Managing Director Avronsart said, "True, some people will not like the way it tastes in hot milk.

Breakfast Cereals Market In India - wikibizpedia

And not all consumers will want to have it with cold milk. But over a period of time, we expect consumer habits to change.

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