Global Marketing Term Paper Essay Example | Topics and Well Written Essays - 2500 words

Global Marketing Term Paper - Essay Example Therefore, they more or less stuck to their pricing levels in US and tried to bring in quality and technology to ensure that the product tasted better and was more nutritional. The re-entry in case of Kellogg was in terms of price. The war in the middle class consumer products is over the price. Kellogg had to compete with Mohun which has been in the market prior to Kellogg's entry. Mohun and another of the competitors, Champion were both pricing their products at a much lesser price compared to the one Kellogg did. Kellogg however, was sure of the strategy and continued with the same pricing strategy of being the premium brand among corn flakes. Though of course, the other two offered by Kellogg, the wheat and the rice flakes did not do well in the market and had to be slashed down. On analysis of the first two to three years of Kellogg business in India, it is seen that the company has not spent enough efforts in understanding the consumer preference in the market. A large percent of the upper and middle class consumers will not be having their breakfast. In addition to this, most of the people who do take breakfast would like to have something that 'fil ls' the stomach. More likely Indian alternatives like idli and vada dominated the breakfast scene in most houses rather than any other. The cereal breakfast concept did not just pick up and was viewed mostly as a health issue. Only those people who were either sick or otherwise not healthy would go for cereal food. Therefore, number of people who would be continuous or regular buyers of corn flakes was becoming lesser. As their study shows only 2% of the buyers were regular buyer which is not what Kellogg wanted to have. Kellogg had launched during its re-entry, the chocos which is corn flakes coated with chocolate. This was a roaring success and the market immediately picked up. Kellogg could corner nearly 57% of the market share in the Indian market. In addition to this, Kellogg had other products in the pipe line to suit the taste of the Indian consumer. Indian consumers want their breakfast to be filling, nutritious and less costly. It was not expected to be fun. But when the Chocos was introduced with a fun element to it, it immediately appealed to the kids and it took over the morning breakfast from the noodles and idlis for the children. Kellogg therefore had to ensure that the fun factor in the breakfast cereals continued. In line with this, Kellogg further went ahead and released the biscuits with the same brand, the Chocos and another line of special corn flakes primarily aimed at the growing Indian breakfast eaters. It had the mazaa in it; special flavours exclusively developed for the Ind ian market. On analysing further the status of the corn flakes market, it could be seen that the company was aiming at improving their continued domination of the market and might better their share. But the market itself if small and has to be increased to ensure that there is adequate growth for the company in real terms. This was taken care of in the third approach that Kellogg had. They planned to educate the people and distributed free samples to the students and the target customers so that they might get converted. In the course of time, the effect could be felt. Kellogg was intent on weaning the people who starved away the morning and then slowly