Kellogg the $ 10 billion Michigan – based food major, is knocking at corporate doors.
Retails strategy did encourage consumers to try cereal for breakfast, but it was painful slow going. If what Kellogg’s Indian subsidiary is doping in Delhi is any indication, the company seems to have settled on an alternative route of the consumer’s palate. It’s abandoning its breakfast plank in favour of round the clock consumption and not just at home either. As a part of its new strategy, k0lloss India recently installed cereal dispensers in 120 odd officers in Delhi. The results have encourage the company to contemplate similar efforts in other metros, even as it expand its chain of dispensers in Delhi officers. At a details off-take of 4-5 kg per office per day (which amount to over 100 helpings a day) this could be just the tip of the iceberg for Kellogg’s. the new strategy is in line with current trends, with companies emphasizing health consciousness, the time is right for Kellogg to perk up and get in on the action. For years, Kellogg’s been focusing on retail marketing and new products launches, without any significant breakthrough. Its small sachet initiative early this year didn’t make a significant impact either. With no fresh infusion of investment from the parent in sight, the Indian arm clearly had to manager on it own. This is one step in that director. In marketing you’ve to do a 360-degree job, explain R.C.Venkateish managing director. Kellogg India.” You just can’t afford to bombard the consumer with products and communication and relax, hoping that she will lap them up”, he says. For the last eight years Kellogg had done just that. Now it wants a more calibrated approach to new products a launches and consolidate gains it’s made for. The key lies in expanding penetration fro home to out-of-home situations, while increasing more occasions to eat the products. And by targeting offices Kellogg is trying to do just that. Kellogg roped in solutions, a Delhi based marketing consultancy, for the track. The mandate was to see how best the consumption of Kellogg cereals could be perked up. Solutions, along with
Kellogg’s three – member marketing team, decided to test the concept of snack junction Kellogg as a snack for office staff. “Snack because there are many more opportunities for the consumer to pick up snacks through out the day”, says Kanika Mathur COO and director, solutions.The ‘healthy breakfast’ plank had restricted space for Kellogg to operate. With the traditional 9to 5 officer culture going out of fashion corporates seemed to be the obvious target to test the concept, especially as most companies are now willing to provide employees as much facilities as possible within the office itself. Solution shortlists around 1,000 large companies to start with and its 30-member team fanned out sell the idea. The customer includes MNCs like whirlpool, Electrolux, Coke, Samsung, Amex; call center like spectramind and consultancies like PWC and KPMG. According to a KSA grow fast study, there are over one-lakh officers in Delhi with 50 or more employees. And for 50 employees, an average company spends Rs.6, 000 - 8,000 per month on test and coffee alone. At a cost of Rs.4,000 – 5,000 per dispensing unit (depreciable and to be written off), payback for the new approach seems pretty attractive.It’s created much needed awareness for a concept that’s much in nature”, says Mathur.The company is capitalizing on this excitement by poster campaigns at the ‘snack junction’ within the site. The exercise has helped Kellogg increase visibility, generate trails, which weren’t quick in retaining alone and make it popular.
Question Critically Examine the product Mix strategies adopted by Kellogs with respect to
Product Life cycle Stages?