Kellogs Stretegies

1. What were the reasons behind the poor performance of Kellog in the initial

stages? Do you agree that a poor entry strategy was responsible for the company’s

problems? Give reasons to support your answer.

Following are the reasons behind the poor performance of Kellog :-

Underestimated the market

No proper understanding of Indian market factors

Kellog has concentrated more on the crispy flakes, but it had not

concentrated on the way Indians consume which made the flakes slaggy,

affecting taste.

Indians also like to add sugar, which makes dissolution in the cold milk

inefficient.

Average middle-class Indian family did not have breakfast on a regular basis

as West does.

The taste of its products did not suit Indian breakfast habits.

Yes, I agree that the poor entry strategy was responsible for the company’s

Problems.

Reasons:

As mentioned above kellogs underestimated the Indian market

No proper research about the eating habits of Indians

No proper advertising and promotions

2. Is the company’s repositioning of its products on the nutrition/fun platform a step

in the right direction?

Repositioning is the key aspect after company loses its position in the market.

Kellog’s has succeeded in this direction. It had made perfect advertisements and

Lara dutt endorsed the product by making an impact about health concerns.

Another segment it was able to attract is the kids section by establishing a fun

platform with different flavors. Three Different flavors like –Mango Elaichi, Coconut

kesar, Rose. Kellog’s also concentrated on Nutrition and nourishment.