Kellogg Aims For A Bigger Bite Of Breakfast Cereal Market

Mumbai: | Updated: Jun 26 2002, 05:30am hrs
Kellogg India Ltd plans to extend the portfolio of its popular cornflakes brand by launching a slew of new variants in the near future. According to Mr RC Venkateish, managing director, Kellogg India Ltd, the company has recently launched ‘Chocos Pops’, a new variant of its Chocos brand (in a ball shape) with a crunchy chocolate taste.

Adds Mr Venkateish: “Similar variants of our popular brands are planned. Breakfast cereals currently account for approximately two/thirds of our turnover and is expected to continue to be the major chunk of our business (50 per cent) in the years to come. This means we will continue to grow our breakfast cereal business strongly even while growing rapidly in the new categories.”

For its breakfast cereals, the company’s primary target audience includes children in the age group 5 to 12 years of age. Its secondary target group will include older children and adults, says Mr Venkateish.

Informs Mr Venkateish: “Our focus is to provide top quality display and merchandising aids to our trade partners to enable them to merchandise and display the entire range effectively and increase throughput at point of sale.”

As for the company’s new developments in merchandising to enhance its brand visibility, Mr Venkateish explains that disposable floor stands which are made of corrugated board and which allow for high quality merchandising have been used effectively by the company.

As regards instore promotions, explains Mr Venkateish: “Our focus will be to maximise impulse to drive trials as well as spur brand recall at point of purchase.”

As regards the company’s distribution strategy, Mr Venkateish informs that the company has in excess of 600 distributors and covers over 1,25,000 outlets nationally directly. Launching new products like ‘Cheez-It’ is a way of leveraging the distribution system that the company has built up.

On the company’s advertising plans, says Mr Venkateish : “We try to maintain a marketing spend level of at least 20 per cent of sale. At the moment, our emphasis is to make the supply chain a source of competitive advantage by having one of the lowest cost and highest efficiencies given our scale and size.”

The company plans to streamline its supply chain and continue to strengthen its leadership position in the breakfast cereals category.

In an effort to promote its cereal range, the company has lined up a host of promotions which include a consumer promotion for kids called “Eet and Ern” which allows children to collect points and redeem them for gifts (which are not available yet in India) like a robotic puppy, spy vision goggles, jungle survivor, adds Mr Venkateish.