Kellogg's Entry and Expansion in India: Opportunities, Actions, Failures and Remediation

This report analyses Kellogg's entry and expansion in India, including opportunities, actions, failures, and remediation steps taken by the company. It discusses the background of India and Kellogg's in India, the opportunity of entering into India, actions taken by Kellogg's, failure and consequences, and remediation and other steps. The report concludes that Kellogg's first step in the Indian market was not successful due to improper marketing mix strategies, but the company made a remarkable comeback in the Indian market by adopting different repositioning strategies.

Running head: INTERNATIONAL BUSINESS
International Business
Name of the Student
Name of the University
Author note

Table of Contents
Answer to Question 1 2
Introduction and Background of India 2
Answer to Question 2 2
Background of Kellogg’s in India 2
Opportunity of Entering into India 3
Actions Taken by Kellogg’s 3
Failure and Consequences 4
Remediation and Other Steps 5
Conclusion 5
References 7

Answer to Question 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).
Answer to Question 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).
Conclusion
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.

References
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