Product details

The INR 7 billion breakfast cereal market in India had attracted several fast moving consumer goods giants like GlaxoSmithKline Consumer Healthcare, PepsiCo and Britannia with their respective brands like oats cereal under the brand names, 'Horlicks', 'Quaker Oats' and 'Britannia Healthy Start'. In addition, many other private players like Dr Oetkar and Marico had also penetrated into the breakfast cereal market. Yet, Kellogg’s was the market leader with around 60% market share in the breakfast cereal market. In the muesli segment, it had a market share of around 49% and in the oats segment a market share of 9%. Kellogg’s always had the first mover advantage over its rivals. Kellogg’s was present in the Indian market since 1995 with its Kellogg’s corn flakes brand. Initially, Kellogg’s had to compete with traditional Indian Nastha (breakfast). Kellogg’s positioned itself as family brand and promoted and customised different ways to eat cereal to the Indian customers. Kellogg’s came up with different flavors like honey and almond to add variety to its products. Although Kellogg’s was quick to learn from its mistakes, it faced various challenges with the strong cultural values of Indian consumers and low price factor. Based on the above scenario, it remained to be seen, whether, Kellogg’s would be able to survive in the competitive scenario with the help of its positioning strategy.