Did you know that this food product has actually travelled to the moon? Did you know that this food product was the first company to give prizes in the box for the kids? Did you know that the logo of this company was actually handwritten by the founder himself?
The company that I'm talking about is a company that served as our breakfast for many years. This was actually one of the added advantages for people who did not know how to cook. The company that I'm talking about is none other than Kellogg's.
Kellogg's was one of the company which was growing in the high highest margin when it came to cereal breakfast. It was winning over and over no matter what because this had become the number one brand when it came to the cereal growth. But it failed in the Indian market.
But initially it had a tough time when it came to the competition in the Indian market. They struggled a lot when it came to adjusting to the Indian people and Indian market because they did not know what was exactly needed. In this video, I'll be telling you how did they win over the Indian people in this toughest market in the initial stages.
Continue watching this video. this video also I'm Varsha Rain Kumar welcome to the Freedom Business English channel do not forget to subscribe and download our freedom app the story actually takes us back to 1948 where a man named John Harvey Kellogg's was sitting and planning what can he actually invent when it comes to mindful of breakfast he wanted a product in such a way that people were actually having a light tummy and a healthy breakfast. So he started thinking that what is the product that he can make.
One day in the kitchen, he was working with the granolas when by mistake he happened to flake a seed, thus came corn flakes. He happened to taste it and it actually happened. to taste really good. That's where he thought that he should make this his food product and then he joined hands with bigger partners and investors and built the company and started growing immensely.
The foreign product went on and on all the way from US till the France. Everyone started having cornflakes and then started liking the food. As this market kept growing over and over, the turnover every year was more than 60 billion and then these people wanted to merge in and dive towards the Indian market.
Indian market as well. When they thought that they could be diving towards the Indian market, the simple strategy that they thought that people would accept this product in Indian market was just because of two reasons. One is because the population is too much and Indians actually welcome the culture of foreign food. And this was the two reason which pushed them towards the Indian market and because of the population growth in the Indian market, they happen to think that there were many ways and many reasons they can make sure that their revenue changes when it comes to sales.
And over time, they entered the Indian markets and then they had their fine way of marketing and distribution network all strategized over time. Years passed and then Cornflakes had its own way of distribution. They bought in their new ideas and started with their marketing promotions.
Everything went according to their plan. But at the end, they expected a turnover more than 30%. But it was less than 15%.
But the entire turnover happened to reduce almost to 30%. most up to 15%. This is what they did not expect and this is what they thought that something is happening in the Indian market that they are not ready to accept this product and they are not ready to sacrifice the way that they had their lifestyle with when it came to breakfast with a foreign product. They started thinking that they show people that our product is equal to the healthy breakfast that you guys are having.
This kind of actually happened to trigger a lot of people's minds and then they did not get adjusted to these conflicts. Over time, the results that they were collecting as the feedback told that the entire thing was very soggy and extremely soft. Just when their market was about to get shut and they were planning to leave India because their product was not being a huge success as they expected and their sales was actually decreasing, they wanted to give one last shot. That is where they happened to think about a new way by understanding what is wrong and why they should change the product. They started thinking in the business cycle way.
They started thinking about the major keys. towards business which was the major four P's which is product, price, place and promotion. As we all know in the present textbooks or present guideline where we find the steps shown in the following way are the product, price, promotion, place. And this is what they followed.
They started thinking about the product, then they made sure their price is same and then they went towards the promotion and towards different places. And over time, when they gave a deep thought about what is going wrong in their entire cycle of promotion, they realized that their business was actually being stopped by one way, which is called by following these steps. They changed by understanding place comes first and then the product.
They started understanding. what their targeted audience were and how easy it's to determine their targeted audience. They started focusing on the younger crowd, they started seeing how they respond towards it and then they started seeing how many people are working, how many people are in rush towards work so that they can come and then eat their food easy and then move about it in the way that they could.
And after that, they actually made sure that they chain the product according to people's preferences. They started understanding that what are the adult requirements and what are the kids requirements. What are the ways that these people would see the product towards? And then they started off with the pricing. As we all know, initially, Conflicts came up with a high price for just 500 grams.
And people were not ready to buy because they were finding a substitute product for a lesser price. And as we all know, every individual thinks in the way of investment, in the way of advantages as well. They have to make sure whatever they're investing in is actually bringing them a long-term benefit.
This was one of the criteria that Cornflakes wasn't actually reaching. This was one of the criteria that Cornflakes wasn't able to fulfil. The prices were high for just 500 grams. And over time, they started decreasing it so that even the middle class family could afford it.
And later on, they started with their promotional activities towards achieving people's mind and then connecting with them telling that our cereal breakfast is equal to your healthy breakfast. Over time, they even realised that in India, people prefer hot milk. And that's where when these cereals were put into the hot milk, they were actually getting soggy really quick.
They realized that they have to chain the product by making it crispier and even solid. That's where these products happen to chain the entire way of marketing and chain the product by understanding why these customers aren't buying their products. But over time, they started making ads by telling that Kellogg's is one of the thing which is equal and healthy towards the Indian breakfast and they can choose this product anytime, anywhere. This hit the emotion.
And this was the way that they changed their entire sector into a new different way of campaigning and made sure that people can buy by changing their business cycle. And at the end Kellogg's thought that this can give them a great rate of success but at the end this did not give them a great rate of success. They happened to fail when it came to the entire market. This entire trick backfired by hitting the emotions of the Indians by telling that their breakfast wasn't healthier but the foreign product that they bought in was much more.
The only mistake that the Kellogg's people did not realize is that never go by the emotions of people because they have their own negativity. People started putting their emotions on the line when it came to their product and people started neglecting this product. This is where conflicts had to hit the rock bottom when it came to the Indian market and had to take their tickets back home.
They had once survived halfway towards the market and that's where Kellogg's never gave up on this last shot as well. They came up with three things to succeed over the Indian market. First one was determining and understanding the price that they preferred. They chained the entire price of the product and they made sure that whatever price that they are giving is affordable by everyone and anyone. They understood that what are the major type of age groups that consider this type of cereal breakfast and what are the age groups which consume them for fitness.
And over time, they determined that what are their targeted audience in different sectors. And then second step was product expansion. They understood that they have to expand their product because in India, people preferred fruits and vegetables.
Anything healthy and anything good to taste was people's choice. And they made sure they bought in fruits and by giving this, they made different flavors. By getting banana, strawberry and mixed fruits as well. When they bought in these new flavors, people started buying them for their fitness and their health as well.
They hit them with a huge number by telling that we are gonna give you different varieties and in fact, These different varieties also worked in the other countries. When it comes to the third part of the cereal industry, and the strategy that they used over was and their targeted audience were actually the kids. They wanted to make sure that the kids consume because most of the kids love chocolate.
That's where they bought in Kellogg's Chocos. They made them in different shapes and different sizes so that kids buy and even they bought in four different flavors so that kids go by their own choice. They had moons and stars, they had bites and many more different flavors.
so that kids actually choose them. They conquered the minds of kids because kids became their customers and parents became the buyers. This was one of the way they bought an impression that Kellogg's has to sustain in the Indian market because it became a snack time cereal as well as a breakfast that kids could consume with milk and kids could eat quick. They started all these three campaigns by understanding that what is the purpose and then determining is their product actually solving the cases of all these people. As we get into the deeper study, we can understand that there are so many people who focused on fitness and Kellogg's focused on the fitness group of people by providing more and more fruits into their products and then they started understanding kids like sweet and chocolate stuff.
That's where they made sure that most of the kids who weren't consuming milk, they can actually mix it with chocos and this could solve the parents problem as well. They went to the roots of the problem, understood and won their entire way up to the 70% in the Indian market. So if you're thinking that no matter what, your business is going to hit the rock bottom, understand that never give up.
Determination, as I always keep telling, is one key towards success and persistence is also the key which can help you towards success. So if you like this video, do not forget to like, share and subscribe. Also download our Freedom app. It's going to give you way more information when it comes to business and marketing.
personal finance as well as organic farming thank you so much get wise and break free