The Kellogg's Case Study

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Transcript

Language and local practices also form a part of segmentation by geographic locations. When Kellogg's, an American multinational food manufacturing company, first launched its famous break fast conflicts in South Asian countries such as India. It became an instant failure. Upon studying the local practices in India, and comparing them with the practices in America, it was found that a consumer in America would consume these flakes with cold milk. This would allow the flakes to stay crispy and average consumer in India has a habit of heating milk before its consumption. When the consumer put those flakes in warm milk, which is their usual practice, the flakes would turn soggy and would not taste good.

The other reason for its failure was most Indians have a habit of adding some sugar to milk before consumption. This resulted in sweet breakfast, which did not go well with the consumers in this part of the world. Kellogg's had to make several modifications to make their product more local before being a part of everyone's break fast in India when possible, a list of customer within us segments should be constructed. When a project team proposes changes of any type, all customers must be consulted. Or at minimum, the customer's concerns must be represented. It is easy to underestimate the value of understanding and providing for customers needs for without customers, we have nothing

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