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April 09, 2011

Sambar meal




This incident was recited by Mr. Siraj Taher the President of Hyderabad Bird watchers society. Mr. Siraj Taher is an avid bird watcher and a wild life enthusiast. A relative of Siraj was visiting Hyderabad. He was tired of the vegetarian food that was being served to him. 

While he was travelling he found a sign ‘Sambar served here”. Excitedly our man goes inside and orders Sambar. The waiter was puzzled “what will you have the Sambar with?” “Oh only the Sambar, please” “But sir how can you have only Sambar? What about the main dish?” said the puzzled waiter. “Thanks you but I want only the Sambar”. The waiter went inside and bought a bowl full of Sambar (a sort of soup or watery dal that is consumed along with rice and idlis).

The bewildered relative of Siraj looked all around and said “where is the Sambar?” “Sir, this is Sambar”. “But I don’t see any meat pieces” “Why will you see meat? This is a pure vegetarian restaurant”

Intervention by knowledgeable people saved the day. The relative was thinking that Sambar meant the deer that is found in India. In the north India the deer are called Sambar and the poor man thought that the hotel was serving deer meat. The fact of the matter was the hotel has a sign which said “Idly and Sambar served here” but the idly part was not visible and that created the confusion.

April 07, 2011

Products that did not do well, New Coke and Pepsi AM


The market place is a great leveler. It brings down the giants quickly and mercilessly. The bigger the company the faster they are brought back to realities of the market place.

The most cited example is that of the new Coke that was introduced by Coca-Cola. Market research clearly showed that the young generation liked the taste of Pepsi. This was started by Pepsi who used the concept of a blind trail. Blind trail is a form of product testing where the consumers sample the product blindfolded and then choose the better tasting products. The blind test by Pepsi showed that the consumers overwhelmingly chose Pepsi over coke. It looked as if Pepsi was a product for the young and the hep generation and Coke was the product for the old and stodgy. The media campaign by Pepsi touting the results of the blind trail were so effective that even Coca-Cola bought the idea. 

Coke went through extensive market research and product development and launched the New Coke and expected to rake in the moolah. Simultaneously it withdrew the old Coke. To its surprise consumers rejected the new coke and there were protests all around. Consumers rallied around and there was a hue and cry. Coke in its old form was seen as an iconic American brand and the Americans did not want Coca-cola to tamper with their favorite product. Later Coca-cola introduced the old coke and called it Coke Classic.
Pepsi fared no better. The biggest competitor for Pepsi of course is Coca-Cola. But their bĂȘte noire is not each other but the coffee and tea that people drink early in the morning. Most people would like to have their shot of caffeine or thiamine (the stimulants present in Coffee and tea) and they get that shot from their favorite cuppa. Pepsi came out with a grand idea. It developed a product that is high in caffeine and introduced a product Pepsi AM. Pepsi was gung-ho about its product. It was a beautiful combination of a soft drink and caffeine.  

Consumers rejected the product outright. They wanted a shot of caffeine but they wanted it with their coffee. In short people were used to having something hot in the morning and a substitute product when it offers the same stimulant would not be accepted as the substitute was cold. Most of us are not used to having something very cold early in the morning. This effectively rang the death knell for Pepsi AM.

Pepsi introduced a product called Pepsi Maxx in India. It is a 250 ml soft drink that comes in a can. The product claims to have no sugar at all. Pepsi extols the virtues of the concept of "maximum" over that of "zero." It is a counter to the Coke’s diet coke campaign of Zero calories. In India Pepsi is promoting Pepsi Maxx as a energy maximizer as it has caffeine. The product also claims that is not suitable for children.

For a product category that hinges so much on patronage from the children it would be interesting to see how Pepsi Maxx would fare in the Indian market if it is denied to the children. One should not forget that India has very young population. Pepsi need not worry. Enforcement of the rules is quite lenient in India and I am sure that any child who asks for Pepsi Maxx would get it. I am also sure that the restriction of Pepsi Maxx is a statutory obligation because of the caffeine content and not a voluntary restraint from Pepsi Co.

April 03, 2011

Global Brand, Local Reality: The Kellogg India Positioning Case

A classic case of how ignoring culture can derail even the strongest brands.


Kellogg’s is a name to reckon with across the world. It pioneered the concept of cornflakes as a breakfast item and successfully entered markets where cereals were previously unknown. Over time, it has managed to influence and even change breakfast habits globally. With such a strong legacy, Kellogg's entered India in the early 1990s with immense confidence.

The expectations were high. Kellogg believed that the Indian organized breakfast market would quickly adapt to its offerings. Given the company’s global scale and expertise, it was assumed that Indian consumers would gradually shift towards ready-to-eat cereals. Kellogg invested heavily in market research, introduced high-quality products, and backed them with strong packaging and advertising campaigns handled by leading agencies.

However, the results were far from expectations. Despite having the right product and marketing push, Kellogg's struggled to gain acceptance in India. Detailed market research revealed several critical mistakes in positioning and understanding consumer behavior.

Where Kellogg Went Wrong


1. Misjudging Satiety Value: Kellogg positioned itself as a replacement for the traditional Indian breakfast. However, Indian breakfasts are typically heavy and filling. Foods like parathas, puris, idlis, and dosas provide a strong sense of fullness. In comparison, a bowl of cornflakes with milk did not satisfy hunger to the same extent. Consumers felt hungry soon after eating cereals, which went against the expectation of a “complete breakfast.”

2. Ignoring the Need for Variety: Indian cuisine thrives on variety. Breakfast menus change frequently, and even similar dishes come in multiple variations. For instance, there are dozens of types of dosas and parathas. Asking consumers to eat the same cereal every day was too drastic a shift. The lack of variety in Kellogg’s offerings initially made it difficult for consumers to adopt cereals as a daily habit.

3. Taste and Temperature Mismatch: Indian breakfasts are typically hot and Savory. Kellogg’s cereals, on the other hand, were sweet and designed to be consumed with cold milk. This created a cultural mismatch. Many consumers tried eating cornflakes with hot milk, which made them soggy and unappealing, further reducing repeat consumption.

4. Offending the Homemaker’s Sentiment: Kellogg’s early advertising subtly suggested that traditional Indian breakfasts were not nutritious. This messaging backfired. Indian homemakers, who take pride in preparing meals for their families, felt their choices were being criticized. This emotional disconnect created resistance rather than acceptance.

5. Cultural Misfit in Consumption Habits: In India, milk is traditionally consumed hot, partly due to cultural beliefs and practical reasons in a tropical climate. Kellogg’s insistence on cold milk did not align with this habit. When consumers adapted the product to suit their preferences, the experience deteriorated, leading to dissatisfaction.

Kellogg’s Positioning Strategy Correction

Kellogg quickly realized that directly competing with traditional Indian breakfast was a difficult, almost impossible task. Instead of replacing existing habits, the company decided to reposition itself.

Taking inspiration from the success of NestlĂ©’s Maggi noodles, Kellogg's understood the power of smart positioning. Maggi was not marketed as a meal replacement but as a convenient, quick snack for children, especially between school and dinner. It appealed to both mothers (convenience) and children (taste and fun).

Kellogg adopted a similar approach. It repositioned cornflakes as a supplement rather than a substitute. The new communication strategy emphasized that consumers could continue eating their traditional breakfast while using Kellogg to “complete” their nutritional intake.

One of the campaigns illustrated this effectively. A child is shown eating a traditional breakfast, which provides about 85% of daily nutrition. The remaining 15% is then symbolically “topped up” by Kellogg cornflakes. The message was clear: don’t replace your breakfast—enhance it. This was a significant shift in strategy. Instead of challenging cultural habits, Kellogg aligned itself with them.

Product Expansion and Indianization Efforts: Over time, Kellogg expanded its product portfolio in India. It introduced variants such as Wheat Flakes, Frosties, Rice Flakes, Honey Crunch, All Bran, Special K, and Chocos. These products targeted different segments, including children and health-conscious adults.




Kellogg also attempted to Indianize its offerings. The Mazza range introduced fusion flavors like mango, coconut, and rose to appeal to local tastes. However, these innovations received only a lukewarm response, indicating that flavor adaptation alone was not enough.

To address pricing concerns, Kellogg introduced smaller packs priced as low as 10. This strategy aimed to increase affordability and encourage trial among price-sensitive consumers. While this improved accessibility, it did not completely solve the adoption challenge.

Repositioning as a Health and Diet Food: In recent years, Kellogg's has taken another step in repositioning. It shifted focus towards health and weight management. Cornflakes were marketed as a diet-friendly option, with campaigns suggesting that consuming them regularly could aid in weight loss.

 

The messaging highlighted benefits such as low-fat content and controlled calorie intake. For example, campaigns claimed that consuming cornflakes for two weeks could result in noticeable weight loss. This repositioning aligned well with the growing health consciousness among urban Indian consumers.

Key Lessons from Kellogg’s Indian Experience

 Kellogg’s journey in India offers several important marketing lessons:

Cultural understanding is critical: Products must align with local habits and beliefs.

Positioning matters more than product quality: Even a great product can fail if positioned incorrectly.

Do not attack existing habits: It is better to complement than to replace deeply rooted behaviors.

Emotional connect is crucial: Messaging should respect consumer sentiments, especially in culturally sensitive markets.

Adaptation is continuous: Markets evolve, and brands must keep repositioning to stay relevant.

Conclusion: Kellogg’s experience in India is a classic case of global ambition meeting local reality. While the company initially struggled due to positioning errors, it demonstrated resilience by adapting its strategy over time. From being a breakfast replacement to a nutritional supplement and later a diet product, Kellogg's has continuously evolved in response to Indian consumer behavior.

The journey highlights a fundamental truth in marketing: success in a new market depends not on imposing change, but on understanding and integrating into existing cultural frameworks.

Kellogg India, cornflakes marketing, positioning strategy, Indian breakfast habits, FMCG case study, brand repositioning, consumer behavior India, cereal market India, Maggi strategy comparison, product adaptation

#KelloggIndia #MarketingStrategy #BrandPositioning #ConsumerBehavior #FMCG #CaseStudy #IndianMarket #MarketingLessons #BrandRepositioning #FoodMarketing

 











India wins the cricket world cup 2011

India wins the world cup. What a day and what a moment. I am in Delhi away from my family and it was a nerve wracking day. 

I vividly remember watching as a young man India winning the cricket world cup in 1983. It was a beautiful thing; me along with my parents and my sisters watching the totally unbelievable sight of the underdog India winning comprehensively against the world champion side of West Indies. And it was a black and white TV on which we watched the unbelievable finals at Lords, England. 

After that it was a despair that repeated every four years. The heartbreak of the semifinals in 1987 where Kapil Dev threw it away against the English team. The same thing in 1991, and in 1996 it was a heart wrenching scene of Vinod Kambli walking way sobbing in the semifinals aganist the Sri Lankans at Eden Gardens, Kolkata. In 1999 the same thing. 

Ethiopian Cafe
Hope was revived in 2003 and I was in Ethiopia and it was very inspiring to see the Indians progress till the finals. We had planned to watch the finals and we were in a Ethiopian cafĂ© but walked way the minute the first over got over against the Australians. The mauling of Zaheer Khan by the Australians was too much to bear. The ultimate insult was in 2007 when Bangladesh defeated India and India was bundled out of the world cup in the preliminary stage itself. The Pepsi slogan in 2007 was “come on India” and they promptly came back from the Caribbean islands from the preliminary stage itself.

I am very happy for Sachin Tendulkar. It was the happiest thing in the world to see Sachin Tendulkar being called the world champion. The greatest player to play cricket ever, the player who has all the records in the world. But the only thing missing thing was the world cup and even that has been achieved. I sincerely hope that Sachin plays both test cricket and one day cricket for another four years and help India try to defend its title four years from now. Yes Sachin would be 42 by that time but for Sachin nothing is impossible. Sachin has already played six world cups and that is a mind blogging record. 1991, 1996, 1999, 2003,2007 and 2011. And why not 2015. Ye Dil Maange more (This heart screams for more).  

The other players played their part. The warrior of a captain Dhoni who came good when it mattered, in the finals, Gautum Gambhir who played that gem of an inning, Yuvraj Singh the impeccable all rounder. Even Virat Kohli who gave such solid support to Gambhir, all of them need to be appreciated and applauded. The great Zaheer Khan who wiped out his horrors of the 2003 world cup final. One’s heart goes out to Saurav Ganguly who gave the self confidence in Indian players to believe in themselves and in their talent.

My heart also salutes the great Lankan team which was so humble in their defeat, Sangakkara who so candidly appreciated the fact that the Indian team was better. The great Muralidharan had to walk into the sunset without the ultimate send off. Murali you have 800 test wickets and have won one world cup. Let Sachin have one world cup too. Hats off to the cool cat Mahela who batted with so much élan and aplomb that it was jaw dropping to see him slice through the Indian attack just like a skilled surgeon.

April 02, 2011

Marketing lessons from Kellogg’s Indian experience



Kellogg’s is a name to reckon throughout the world. It is the company that introduced the concept of Corn flakes as a breakfast item throughout the world. They have taken on markets where corn flakes has never been very popular as breakfast and converted them into corn flake eating nations over a long period of time. They are experts in changing breakfast eating habits of customers’ across the world.

In the early nineties Kellogg came to India with lots of hope and confidence. The Indian organized breakfast market sector was expected to roll over and die. After all Kellogg’s annual turnover was so big that the Indian organized breakfast sector was written off even before the skirmishes started.

Kellogg did lot of home work and launched its products in India. They had the best products, packaging and their marketing strategy was excellent. The advertising campaign was handled by a leading Indian advertising agency.

Kellogg did not do as well as expected. The witch doctors (read marketing research firms) were called in. The research findings were very surprising. The areas where Kellogg went wrong include: 
1.   Kellogg pitched itself as an alternative to the regularly consumed breakfast. The Indian breakfast is heavy and there is a feeling of fullness at the end of an Indian breakfast. What with oily Parantas, Puris and Dosas, the feeling of fullness is real and not imagined. Kellogg’s Corn flake breakfast does not give that feeling of fullness and that went against the grain of having a total breakfast. In short after having a corn flake based breakfast the Indian consumers were still hungry. 
2.   Indian breakfast is known for its variety. There can be 30 types of Dosas (there is a restaurant in Hyderabad that offers 99 types of Dosas!) or Idlis, Parantas or other types of native Indian breakfast items. Indians are used to a variety and one item that is eaten will not be on offer for the next two or three weeks. Asking Indians to have the same type of corn flake based breakfast was too much of a cultural change for the Indians to accept.
  3.   Indians have spicy and hot food for breakfast. To ask them to eat the sweet tasting and cold corn flake breakfast was too much of a sweet breakfast for the Indians to digest. 

4.   Kellogg in its advertising campaigns hinted that the Indian breakfast was not nutritious and that Indian breakfast was not very good for health. This deeply hurt the sentiments of the home maker. The home makers said to themselves “We have eaten and served the Indian breakfast for decades and centuries. My family is doing fine”. Once the home maker’s ego was hurt they psychologically turned themselves against the concept of corn flake based breakfast. 

  5.   Kellogg corn Flakes have to be consumed with cold milk. Indians have be taught right from their childhood that milk has to be consumed every day and that milk should always be consumed hot. In a tropical country that is very logical. If the milk is bad once it is heated it will become undrinkable. So for the Indian family eating corn flakes with cold milk was unbearable. So hot milk was poured over the corn flakes. Once hot milk is poured the corn flakes become soggy and there are no longer tasty and edible.