The company plans to buy a Chinese food firm, and has said it will tailor its products to suit local tastes, most notably via cereal bars and whole-grain cereals. Also included in its expansion plans are buyout targets in Southeast Asia, and a new plant in China. But can it wean Chinese consumers off congee?
However, the arrival of international cuisines and rising incomes have created openness to Western-style food. Cereals will probably benefit too. The potential and future for Kellogg's lies with the 'little emperors'. Physical and mental ability-enhancing products/foods have impacted mindsets of young parents. The child's success is the mother's report card. Nutrition, health and overall wellness of the child's mind and body through food would be a good differentiator for Kellogg's in China.
Amar Urhekar, managing director, McCann Healthcare China China presents unique opportunities for marketers to effect lifestyle changes. Just look at how the coffee culture penetrated a traditionally tea-drinking society, simply by redefining the 'coffee moment'. Kellogg's will face many challenges — current habits, cost to consumer, distribution, shelf space, copy cats, and so on.
On a more positive note, Kellogg's global focus on using nutrition as a core communication platform places the company in a great position to tap into the China market where consumers are becoming more conscious of healthy food choices for them and their families.
Kellogg's needs to identify key consumer insights, reinvent the category and aggressively educate the consumer beyond traditional communication.
Pui Poon, director, Hill & Knowlton Beijing