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Smaller Kpak Format For Kellogg’s Corn Flakes In India to Expand Reach

April 12, 2010: 04:09 AM EST
Following a test-market launch in Tamil Nadu, Kellogg’s in India is launching nationally the smaller Kpak package format for its Corn Flakes product, following Kpak launches for its Chocos and Honey Loops. The smaller package enables the brand to hit the Rs 10 price point, making it more affordable for the Tier II and III towns, helping it to secure greater market share. Rural areas aren’t yet on Kellogg’s radar as urban centers still provide large potential. Kellogg’s already has a 70 percent share of the relatively small ready-to-eat cereal category in India, and Corn Flakes are also being positioned as an evening snack to help boost out-of-home demand for the product as competition intensifies, with PepsiCo looking to leverage the Quaker platform in India and introduce other breakfast items from its global portfolio, and private label competitors emerging. At the moment, Kellogg’s sees that competition as beneficial by helping to grow the category in the market. It currently offers only breakfast cereal in India and has as yet no plans to introduce some of its other categories.
Seema Sindhu , "Kellogg's goes snacking", Business Standard, April 12, 2010, © Business Standard
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