Branding & Marketing 

Kellogg’s Chocos: A step that saved the brand from failing

Anytime you think about breakfast, I am pretty sure that the initial things that strike your mind are cornflakes, chocos, and milk. The more interesting part is that whenever you hear these words, the first brand that comes into your mind is Kellogg’s.

But, how many of you know that Kellogg’s was formed accidentally by Dr John Harvey Kellogg in his home kitchen where he was experimenting with rice to make a new dish. To his astonishment, he created a soft and flake-like structured edible, today famously known as the cornflakes.

On 19th Feb 1906, John Kellogg and William Kellogg founded the Battle Creek Kellogg Cornflakes Co. After becoming a popular brand in America and Western Europe, the company finally decided to enter the Indian market.

KELLOGG’S EXPANDS BY ENTERING THE INDIAN MARKET

In the year 1994, Kellogg entered the Indian market. There were two principal reasons behind this. One is the rapid increase in the Indian population which gave the company a larger audience to cater to and the second was that because of the foreign companies approaching India the purchasing power of the country was rising.

THE UNEXPECTED DOWNFALL

Kellogg’s was confident enough and expected growth of 40 per cent in its market share. However, to their shock, the brand faced a loss of around 18 per cent. To regain the losses, the company launched a campaign describing Indian breakfast as unhealthy. Unfortunately, this led to a massive backfire and people actually started boycotting Kellogg’s. Within a year, Kellogg’s lost 80 per cent of its market share in India.

The company’s sales were so poor that they were about to shut their market in India, but giving up too soon was never the option.

THE RISE OF KELLOGG IN INDIA​

After the unexpected fall in India because of their backfiring campaign and poor market research, Kellogg’s needed a strong comeback. For the same, they started from scratch. They restudied the Indian market and its consumer behaviour.

After some rigorous attempts, finally, Kellogg’s came up with a strategy and product that not only helped the brand come back into India, but also made them the market leader in its niche.

It was none other than the introduction of Kellogg’s Chocos. A chocolate-flavoured breakfast meal that can be prepared in minutes. In their research, they analyzed how Indian mothers find it very difficult in providing morning meals to their children. And that’s what Kellogg’s solved, it provided the ultimate solution to Indian mothers by giving them ready-to-eat breakfast and delicious taste to the kids.

Moreover, it dropped its price from more than sixty rupees to just thirty-five rupees. These two techniques helped Kellogg’s regain the Indian market. Not only just regained but regained and became the king of the cereal market.

Here are some figures of Kellogg’s that will leave your mouth wide open:

1. Kellogg’s revenue for the twelve months ending March 31, 2022, was $14.269B, a 2.35% increase year-over-year.
2. Kellogg’s annual revenue for 2021 was $14.181B, a 2.98% increase from 2020.
3. Kellogg’s annual revenue for 2020 was $13.77B, a 1.41% increase from 2019.

WHAT CAN WE LEARN FROM KELLOGG’S:

1. SMART BUSINESS OBJECTIVES: It’s important to enter a new market with smart and convincing strategies. Moreover, it is not important even if you’re a well-established market, it’s important to come up with intelligent objectives for your brand.

2. PRE-CONSUMER BEHAVIOR: Studying the nature and consumption behavior of your target consumer is vital. It becomes more significant once you prepare and decide on entering a new market, just like Kellogg’s examined its consumer behaviour realising the need for a new and well-versed products that can cater for Indian consumers.
3. MARKETING COMMUNICATION: A bad and falsely triggering marketing communication can be lethal for your brand. The way Kellogg’s communicated with Indian mothers before launching their Kellogg’s Chocos in the Indian market. They found the problem and then communicated with the solution for the same i.e., providing ready-to-eat breakfast for children.

Lastly but most importantly, don’t give up and that was one of the major reasons why Kellogg’s was able to make a powerful comeback into the industry. They kept trying till the end, whether the idea worked for them or not, they kept pushing. That’s how a positive brand approach should always be.

KEEP GOING, KEEP GROWING!