...Introduction: U.S based Kellogg’s is a world leader and the most successful cereal manufacturer in the world. Kellogg’s entered India in 1994 and it took them a good 15 years for stability in the Indian markets facing initial problems and trying to change the Indian consumer’s mentality about the morning breakfast http://www.kelloggs.co.uk/company/history/howitallbegan.aspx About the assignment: (Refer Appendix 1) Growth strategy by Kellogg’s in India: Kellogg’s were successful to create a need for the product which was never a necessity for an Indian household. We will now discuss how the company managed to establish themselves with a dominant market share in the Indian market. 1.) Ansoff Matrix Ansoff Matrix was introduced to address the corporate strategy of the future. It delivers the perspective of growth options on the horizontal level and introduces the possibility of diversification. (Kotler, Berger & Bickhoff, 2010) http://www.ansoffmatrix.com/ Market Development: Market Development is capturing new markets with your existing products or services. (Lester, 2009) In a new market or to a new consumer, it will be a quiet a task to have them to believe in your product on launching (Meldrum, M & McDonald, M., 2007) especially, when a country is so fond of their traditional recipes. With the help of extensive market research Kellogg’s found out that there was no breakfast cereal trend in the Indian market. Hence they launched their flagship...
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...Kellogg's Indian Experience: A Failed Launch |In April 1995, Kellogg India Ltd. (Kellogg) received unsettling reports of a gradual drop in sales from its distributors in Mumbai. There | |was a 25% decline in countrywide sales since March1995, the month Kellogg products had been made available nationally. | | | |Kellogg was the wholly-owned Indian subsidiary of the Kellogg Company based in Battle Creek, Michigan. Kellogg Company was the world's | |leading producer of cereals and convenience foods, including cookies, crackers, cereal bars, frozen waffles, meat alternatives, piecrusts, | |and ice cream cones. Founded in 1906, Kellogg Company had manufacturing facilities in 19 countries and marketed its products in more than | |160 countries. The company's turnover in 1999-00 was $ 7 billion. Kellogg Company had set up its 30th manufacturing facility in India, with | |a total investment of $ 30 million. The Indian market held great significance for the Kellogg Company because its US sales were stagnating | |and only regular price increases had helped boost the revenues in the 1990s. | Launched in September 1994, Kellogg's initial offerings in India included cornflakes, wheat flakes and Basmati rice flakes. Despite offering good quality products...
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...Kellogg's Indian Experience Details Source: http://www.icmrindia.org/free%20resources/casestudies/Marketing%20freecasestudyp1.htm Themes: MNCs in India Period : 1995-2001 Organization : Kellogg India Ltd Pub Date : 2001 Countries : India Industry : Cereals and Convenience foods Kellogg's Indian Experience: A Failed Launch In April 1995, Kellogg India Ltd. (Kellogg) received unsettling reports of a gradual drop in sales from its distributors in Mumbai. There was a 25% decline in countrywide sales since March1995, the month Kellogg products had been made available nationally. Kellogg was the wholly-owned Indian subsidiary of the Kellogg Company based in Battle Creek, Michigan. Kellogg Company was the world's leading producer of cereals and convenience foods, including cookies, crackers, cereal bars, frozen waffles, meat alternatives, piecrusts, and ice cream cones. Founded in 1906, Kellogg Company had manufacturing facilities in 19 countries and marketed its products in more than 160 countries. The company's turnover in 1999-00 was $ 7 billion. Kellogg Company had set up its 30th manufacturing facility in India, with a total investment of $ 30 million. The Indian market held great significance for the Kellogg Company because its US sales were stagnating and only regular price increases had helped boost the revenues in the 1990s. | Launched in September 1994, Kellogg's initial offerings in India included cornflakes, wheat flakes and Basmati rice flakes. Despite...
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...London Churchill College | BTEC Higher National Diploma (HND) in Business | Business Decision Makingby Edina TosokiTutor: Rahaman Hasan | | LETTER OF TRANSMITTAL 29th of November 2013 Dear Mr. Rahaman Hasan, Enclosed is a formal report for your attention on the subject of Kellogg’s case analysis as per requested in September 2013 to analyze the market response to Kellogg’s products in the UK compared to the historical data of response in India focusing on the failed launch. This report includes introduction, literature, methodology, findings and analysis and finally a conclusion and recommendation section to make clear each step of the process. All data that we collected, organized and analyzed have been presented in charts and graphs for the better understanding, then a final presentation was produced to communicate the whole process through visualization. The workload that this formal report has been based on was assigned both to small groups as well joint class work, however this particular report mainly based on my individual input. During the whole preparation of this report I have tried to stay objective and record accurate information as to the best of my knowledge. Some sections of this report may reflect my own conclusions, suggestions and justifications relating to the subject. Thank you for your time reading, marking my report and giving the opportunity to learn and develop new skills by your guidance. Yours sincerely, Edina Tosoki ...
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...written, on screen multimedia presentation and verbal presentations. I have chosen ASDA to do my research upon. ASDA is a global supermarket which sells groceries, electrical equipment, general domestic equipment, toys and clothing. It is now subsidiary of the American store Wal-Mart. Today they are the UK’s second-largest chain by market share. Written- written communication involves any type of interaction that makes us use the form of a written word. It is one of the main types of communication used. Written communication is used a lot in a business as written communication involves reports, letter, instruction, agreements, memos and policies. Written communication is the most appropriate when detailed instructions are required, when something needs to be documented, or when the person is too far away to easily speak with over the phone or in person. ASDA uses this type of communication to communicate without different people in the hierarchy system or to one of their customers. It is appropriate to the user’s needs because written communication is precise and explicit. It also allows the manager to get in contact with someone easily without hassle. On-screen multimedia presentation- on screen presentation means any sort of information that is presented on the screen. It can be written so the user can read it. It can be in the form of a video clip with sound and images aswell. This can be used by the board of directors and managers when showing key information about the...
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...Marketing in Emerging Market Economies: Why there is a need to reformulate marketing tactics used in emerging markets. Emerging Markets – An overview Emerging market economies are those economies which exhibit high growth and investment potential. Emerging economies are generally found in East and South Asia, Eastern Europe, South Africa, Latin America and Middle East. These economies are characterized by improving standard of living, other than that they have large growing middle class population who have high aspirations and ambitions for the future. All these characteristics make these economies attractive destinations for exporting goods, investment and outsourcing. Emerging economies of the world possess several advantages which have led to their rise. The major advantages that have been observed in these economies are availability of cheap labour force and highly qualified work force which have made these economies challengers in the global market. Another major characteristic of these economies is that their growth rates are much higher than the developed countries of the world. The new international challengers are the top firms operating in these emerging economies who have now become key contenders of the world market. A very good example of the above discussion is Orascom Telecom - which is an Egyptian telecom provider who on the basis of managerial capabilities and superior technology has become one of the major telecommunication provider in Africa...
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...DR KALIM KHAN MOTIVATIONAL LECTURE Kis mein jyada fayda hai ? Hath mein paise hokar paise banana OR paise na hokar paise banana ? Trace the history of bankruptcy. They made lots of money. But today they are nowhere. Ex : Kodak, Nokia, Kingfisher Every brand started with 0, but became bankrupt when they had lots of money. You can move from 0 to 100, but then from 100 to 105 it becomes difficult. It has been observed that after certain stagnancy it plunges down. So How would u like to see the graph ? Why do they die down? 1. Lack of innovation : Generally people misinterpret this word with invention. Any improvement done and if it gives money , then it is called INNOVATION. If it doesn’t give money it is called CREATIVITY. Ex : Today there is no medicine for AIDS. But if medicine is found then it is INVENTION. Ex: Different ways of thinking is creativity. There are no examples of creativity. When creativity gets practical implication and you get money is innovation. Ex: Steve Jobs was highly creative and what he gave the world by way of his product was innovation. Innovation is not only in product but also in selling / systems. Ex : unique ways of selling. Direct marketing. Door to door selling. All the product was existing in the market. So very innovative in selling. Ex : Pan Parag Product was competitive. But no corporate competitors . This was way back in 1983. But he took the route of paanwala and sold thru them only. Actually they were his...
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...Kelloggs India Ltd.: 4 2.1: summarizing data: 5 2.2 Results from the summarizing data: 6 2.3 Measures of dispersion: 7 2.4 quartiles, percentiles, conelation coefficient 8 3.1 Using data from kellogg's business scenario, preparation a range of graphs 9 3.2: Use trend lines in spreadsheet graphs 10 3.3 The answer is delivered through attached Microsoft PowerPoint 10 3.4 Formal Business Report: 10 4.1Management information system: 11 4.2Presentation of a project pian for the Kellogg's case study for an 14 4.3Internal rate of return: 15 Referrences: 16 1.1 Preparation of primary and secondary data: Primary data: Primary data of Kellogg India Ltd. is collected from the primary sources like company own databases, company surverys, interviews. The data which are collected by thoe own researchers source or primary source is known as primary data(Dawes, 1971). The company generally gather its primary data from the existing customer perspective. Besides company accountant information regarding survey plays vital role in this case. Kellogg India Ltd. empahasizes more on primary sources than on the secondary sources of data. They use direct observatons, personal interview from customer as their primary data sources. Secondary data: Secondary data are the subsequent publication of primary literature(Kahnmean and Lovallo, 1993). The data sources from the third parties not company internal sources is used as secondary data to use in research by Kellogg India Ltd. external...
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...1.1 The strategy context and terminology explained based on Kellogg’s study case: * Mission: It defines what the company does, who it serves and how it serves. This is a formulated form of company`s goal, philosophy and characteristic. For Kellogg`s the quality was the key also the mission is to develop their product through the customers, consumers and communities. * Vision: This can be defined as a dynamic and compelling view at some point in the future. True the vision the company can see where it want to be and what Kellogg`s want to achieve in the future. Kellogg`s vision is ‘To enrich and delight the world through foods and brands that matter’ (Kelloggs). Regarding to our case study, Kellogg`s vision in India was to serve a bigger choice in the food industry and also apart of cereal they wanted to expand into snack and frozen foods in U.S. * Objectives: Kellogg`s objectives included such as support physical activity for the population, promote exercise, sponsor activities (studies). Kellogg became the main sponsor of swimming in Britain. Also they introduce food labelling which is providing an opportunity for the consumers to make decisions about the right balance of food. Kellogg is violently supporting but in the same it puts a lot of effort to protect their reputation. * Goals: Kellogg`s want to provide the consumers all over the world with simple and more suitable way of enjoying good health. * Core competencies: Core competence is important for...
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...business policy of constant innovation and renovation, concentrating on its core competencies and commitment to better and high quality, with the aim of availability to the best quality food to the people of Singapore. In the report we have brought a discussion about the marketing segmentation of Nestle, their target market and positioning strategy in Singapore. The way Nestle chooses its different core customers different needs with a better way and how it fulfilled satisfaction its consumers by making greater facilities by the aggregate of different products or marketing mixes is shown in market segmentation of Nestlé. In the area of market viewing we have talking how Nestle have made many segments and decided to expand their whole business in whole Singapore. In the end of this we have talking how Nestle available to the customers point more Efficiently and effectively comparing with their other manufacture competitors in the highly challenging food& beverage market of Singapore by making differentiation of target Users and customers. Nestle is the biggest nutrition and foods company in the globe, established his headquarter in Vevey, Switzerland. The journey of Nestle begins with Henri Nestlé developed the first milk food for early in 1867, and saved the life of a neighbour’s child. This man makes a food for the needy babies who are not able to take mothers feed can use food as an alternative food. Henri Nestle left his job in 1875 but the Nestle was going on a top speed. In...
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...Responsibility Report | 2008 “Bringing Our Best To You” For more than 100 years, corporate responsibility has been at the foundation of Kellogg Company and a key part of our heritage and culture. We are pleased to share this report with you. It provides an overview of our corporate responsibility approach, priorities and targets, as well as a baseline performance review in several key areas. Welcome Welcome to Kellogg’s first global Corporate Responsibility Report. We hope this report provides information useful to our stakeholders, including our consumers, employees, customers, investors, business partners, community members, and governmental and nongovernmental organizations. We plan to publish a corporate responsibility report on an annual basis, expanding and improving upon this first effort. Data in this report are for 2007 except as noted. Although the report focuses primarily on calendar year 2007, it includes discussion of some 2008 events that were particularly relevant to our corporate responsibility strategy. The report covers Kellogg’s wholly and majority-owned operations, and complements other information about Kellogg available on our company Web site (www.kelloggcompany.com) and our nutrition Web site (www.kelloggnutrition.com). As part of our strategic focus to pursue selective growth opportunities, we have recently acquired several new businesses around the world. Those acquisitions are being integrated into our company, and we intend to report on...
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...production of its TVs in-house. Why do these firms pursue different operations strategies for basically the same products? Advantages of Sony using the “Buy” (Outsource) strategy: • Allow Sony to concentrate resources on unique applications like movies, video games, and music. • The fastest growth is in low-end televisions sold in developing counties like China; whose production can be more easily outsourced than more sophisticated models. • Outsource partner may be able to manufacture products at cheaper cost. • Flexibility in choosing outsource partner who specializes in product. Sony can match suppliers who can meet market demand. Outsource partner may be an expert or have latest production and manufacturing technologies available. • Sony is losing money, and manufacturing is very capital intensive. Sony can save money and use its resources to fit their strategic organizational objectives. • Offsets: using an outsource supplier may help Sony capture orders or improve business relations with the suppliers home country. Advantages of Samsung using a Make (Produce) strategy: • Samsung leadership believes that giving up manufacturing is tantamount to abandoning your brand. • Samsung can maintain tight control over the value chain, and therefor over quality. • Samsung keeps all the profits. • Samsung has reduced design to manufacturing to distribution from 16 weeks to 4 weeks; Samsung is quicker to market. • Samsung can better protect intellectual property rights...
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...IntMk-CStud-4.qxd 26/05/2005 14:05 Page 563 section 4 case studies cases 4.1 Wal-Mart’s German Misadventure 4.2 Handl Tyrol: Market Selection and Coverage Decisions of a Medium-sized Austrian Enterprise 4.3 Blair Water Purifiers to India 4.4 A Tale of Two Tipples 4.5 Kellogg’s Indian Experience 4.6 Strategic Alliances in the Global Airline Industry: from Bilateral Agreements to Integrated Networks 4.7 GN Netcom in China 4.8 IKEA: Entering Russia 4.9 The ‘David Beckham’ Brand 563 571 574 583 586 590 594 599 604 case 4.1 Wal-Mart’s German Misadventure I don’t think that Wal-Mart did their homework as well as they should have. Germany is Europe’s most pricesensitive market. Wal-Mart underestimated the competition, the culture, the legislative environment. — Steve Gotham, retail analyst, Verdict Retail Consulting, October 20021 We screwed up in Germany. Our biggest mistake was putting our name up before we had the service and low prices. People were disappointed. — John Menzer, head of Wal-Mart International December 20012 ‘Don’t look now:’ low prices all year round! With thanks to Walmart 563 IntMk-CStud-4.qxd 26/05/2005 14:06 Page 564 section 6 case studies section 4 German blues For the world’s largest retailing company, Wal-Mart, Inc., the German market was proving difficult to crack. By 2003, even after five years of having entered Germany, Wal-Mart was making losses. Though Wal-Mart did not reveal these figures, analysts estimated...
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...In 2007 it took seven economists 11 months to decide what should have seemed obvious given all the foreclosures, bank failures, and layoffs that the United States is officially mired in a recession. Many economists believe the current downturn could be the worst since the recession of 1980-1982, when the United States unemployment rate soared above 10%. There are many reasons for the recession of 2008, but mostly because the irrational exuberance in the housing market led many people to buy houses they could not afford because everyone thought housing prices could only go up. In 2006, the bubble burst as housing prices started to decline. This caught many homeowners off guard, who had taken loans with little money down. As they realized they would lose money by selling the house for less than their mortgage, they foreclosed. An escalating foreclosure rate panicked many banks and hedge funds, who had bought mortgage-backed securities on the secondary market and realized they were facing huge losses. By August 2007, banks became afraid to lend to each other because they didn't want these toxic loans as collateral. This led to the $700 billion bailout, and bankruptcies or government nationalization of Bear Stearns, AIG, Fannie Mae, Freddie Mac, IndyMac Bank, and Washington Mutual. By December 2008, employment was declining faster than in the 2001 recession. No industry took a hit like the retail industry. Compared to the 2009 Store Closing list, the number of stores scheduled for...
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...Brand Strategy What can a brand do to stay profitable during a recession? Here are some realistic possibilities: • Add a lower-price item with fewer features to your product line. You might even launch it under a different brand name. Most companies should produce a line of products at different price points. • Add some additional value to the offer, such as free shipping or installation. • Maintain the current price but advertise heavily as to why customers should pay more for this brand. Procter & Gamble (P&G) uses this strategy with Tide, instead of cutting the price. • Change the brand’s image through a new campaign. Dove introduced its “Real Beauty” campaign in China in 2011 based on the notion that most women have real beauty—and Dove can help them realize it. • Innovate something new. Apple introduced its iPhone just before the Great Recession and caused Nokia’s market share to decline from 50 percent to 10 percent in five years. • Shift to win the low price position but maintain the brand value and promise. Insurance provider Geico sells auto insurance mainly online and, as a well-known brand, owns the low-cost position. Top Twelve Branding Keys For 2012 by Derrick Daye The 12th year of the 21st century is close upon us, bringing not just a new slate, but also a sense of significance: the very number 12 commands a lot of attention, in different ways. For product brands it’s a unit of trade – 12 units to a dozen, said to be cheaper than other...
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