...keting lessons from Kelloggs experience Marketing lessons from Kellogg’s Indian experience [pic] Kellogg’s is a name to reckon throughout the world. It is the company that introduced the concept of Corn flakes as a breakfast item throughout the world. They have taken on markets where corn flakes has never been very popular as breakfast and converted them into corn flake eating nations over a long period of time. They are experts in changing breakfast eating habits of customers’ across the world. In the early nineties Kellogg came to India with lots of hope and confidence. The Indian organized breakfast market sector was expected to roll over and die. After all Kellogg’s annual turnover was so big that the Indian organized breakfast sector was written off even before the skirmishes started. Kellogg did lot of home work and launched its products in India. They had the best products, packaging and their marketing strategy was excellent. The advertising campaign was handled by a leading Indian advertising agency. Kellogg did not do as well as expected. The witch doctors (read marketing research firms) were called in. The research findings were very surprising. The areas where Kellogg went wrong include: [pic] 1. Kellogg pitched itself as an alternative to the regularly consumed breakfast. The Indian breakfast is heavy and there is a feeling of fullness at the end of an Indian breakfast. What with oily Parantas, Puris and Dosas, the feeling of fullness is real...
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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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...can Kellogg’s do better in India? What were the mistakes it made? ABOUT KELLOGS: Kellogg is $13.2 billion multinational food manufacturing company with its headquarters in Michigan, USA. It has manufacturing units in 18 countries and markets its products in over 180 countries. Brand Kellogg’s a global successful player serving packaged breakfast items across globe. Kellogg’s ventured in India in 1994. On its arrival, it created a new category of branded breakfast cereal products. Since then the journey for Kellogg’s has been far from easy, actually it has been so tough that it has found itself to be one of the biggest brand failures in India. In this article let us study what went wrong for the global brand, what mistakes it made and going forward what should be its strategy. Breakfast Cereal Industry: The Industry was pegged at Rs 150 crores way back in 1995 during early days of Kellogg’s. Today, this new category created by Kellogg’s is pegged at Rs 500 crores. Cornflakes account for 80% of the market, rest is shared by Oats, Muesli and Wheat Porridge. Kellogg has 70% market share i.e. 350 crores. The category has grown by only 8.4% per annum over the last 15 years. The figures are testimony to the fact that Kellogg's effort to change the breakfast habit of the Indian people, has not had as much success as it hoped for. Cornflakes for breakfast is somethings we as Indians are not used to and making us leave our idli’s, dosas and parantha’s for cornflakes is...
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...used by 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...
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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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...------------------------------------------------- Abstract: The case, 'Kellogg's Indian Experience' analyzes the causes that led to the failure of the Kellogg breakfast cereal brand in the Indian market. The case examines the measures the company adopted on the marketing front to rectify its mistakes and at the efficacy of these measures. | ------------------------------------------------- Issues: » Enable students to see how mistakes on the pricing, positioning and distribution fronts led to Kellogg's poor performance in the initial stages Market Many people view breakfast as the most important meal of the day. Research shows that 96% of the UK population eat or drink something for breakfast and 49% start the day with ready-to-eat cereals. This signifies a huge change in UK breakfast eating habits over the last twenty years. In 1968 approximately half the population tucked into a cooked breakfast on a regular basis, but, by 1990 this had dropped to an estimated 10%. This change can be attributed to increasingly busy lifestyles and an awareness of the importance of healthy eating. However, hectic lifestyles can mean breakfast is often sacrificed to keeping to a tight timetable. The major challenge facing cereal companies today is to persuade consumers that eating cereals is both convenient and beneficial at breakfast time or at any time of the day. In terms of volume, the UK is the largest consumer of cereals in Europe. In 1999, the market was valued at £944 million...
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...Introduction Decision making is a vital part of business. But without having the appropriate source of information it can’t be done properly. One can learn about various fields of business while taking decision. Four procedures of accurate information- gathering data, string data, creating useful information, and presenting them can also be learnt. Currently all the successful organizations use IT based data analysis. This type of data analysis has a lot of advantages. Kellogg India is an US based company focused mainly in cereal products. After the reconstruction of Indian market, it decided to expand its operation in this side of this world. It invested 35 million pound and implemented its western policy. Now after decade’s Ups and Downs, Kellogg is keen to control the lion’s share of Indian domestic market and wants to be the only player. While Kellogg still holds more than 60% share in India's Rs 700-crore organized breakfast cereal market and increased its overall sales 30% in FY12, it is now facing increased competition with multinational and home-grown players including PepsiCo, Marico, GlaxoSmithKline and Dr Oater entering the oats and muesli segments(New York Times 1998). That’s why now it’s going to take some vital decision that will reshape its market strategy. The author can examine a variety of data Sources. He can use any type of data and any type of method and also will use all the necessary tools to represent this work. However Author will clarify the whole...
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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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...Deerfield Raid Analysis The Deerfield Raid took place over three hundred years ago in 1704. This French-Indian massacre affected hundreds of English Deerfield residents. These residents knew they lived in a vulnerable location, so they took precautions for any type of war-conflict that may arise, even resorting to building fences around the settlement for protection. Yet, unfortunately for them, they were ill-prepared and ended up being ambushed by the French and Indians which led to many of them becoming captives. Many families became separated, and different individuals chose a way to proceed after their captivity. Gender, age, and ethnicity did not necessarily dictate their paths, but it definitely shaped their experiences following the...
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...Northwestern University Kellogg School of Management SYLLABUS and ASSIGNMENTS International Business Strategy INTL 460 SECTIONS 61 and 81 Fall 2008 Professor Daniel F. Spulber Office 606 Leverone 491-8675 E-mail: jems@kellogg.northwestern.edu International Business Strategy Course Description The course defines the objectives and strategies of international business. The course emphasizes economic analysis of international business strategy formulation. Topics covered include gains from trade, costs of trade, and the competitive strategy of the international business. The course considers alternative modes of market entry, including import and export through intermediaries, contracting with suppliers and distributors, strategic alliances and foreign direct investment (FDI). Case studies are used to illustrate the basic principles of multinational business management and strategy. The course introduces the “Strategy Star” analysis. The first week of the course is dedicated to introducing international business strategy and providing a review of the micro-economics concepts that will be employed during the course. The course then introduces the concept of the ‘Global Value Connection.” This concept is used to develop global competitive strategies that depend on doing business between countries. Weeks 2 and 3 present strategies for providing global added value. The course highlights the economic aspects of gains and costs of trade that are relevant...
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...| Global MBA Rankings: Review and Recommendations | | | Table of Contents Executive Summary 3 Review of Existing MBA Ranking Methodologies 3 A New MBA Ranking Methodology 5 KPI Categories 6 1. Internationalism 6 2. Career 6 3. Salary 6 4. Network and Student body 6 5. Faculty and Education 7 Data Collection and Standardization 7 Summary 7 Appendix 1: List of KPIs 9 Appendix 2: KPI Descriptions and Definitions 10 1. Internationalism KPIs 10 2. Career KPIs 10 3. Salary KPIs 11 4. Network & Student Body KPIs 12 5. Faculty and Education KPIs 12 Appendix 3: Salary Adjustment Process 14 Appendix 4: Data Standardization Processes 15 Appendix 5: School Questionnaire 16 Appendix 6: Alumni Questionnaire 17 Appendix 7: 2010 Survey Data 18 Internationalism 18 Career 19 Salary 20 Network and Student Body 21 Faculty and Education 23 References 24 Post Script: Lessons Learned 25 Executive Summary Over the last few weeks we have taken on the task of assessing the relevance of the two most recognized annual Global MBA ranking systems, published by the Financial Times and the Economist. We have concluded the need for a new ranking system that would address some of the key shortcomings of these systems. This new system would continue to build on the successes of the esteemed publications. We believe that a new system needs to take into account the needs of the emerging Y-generation, the millennials, a lower...
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...vs vs Brand : Indian School of Business | COBE : Group Project | | | | Comparative Analysis: ISB (Challenger) vs IIM (Established Leader) in Management Education in India Comparative Analysis: ISB (Challenger) vs IIM (Established Leader) in Management Education in India | Group Members Anuj Nigam (61310848) Pawan Verma (61310107) Rajat Giri (61310031) Rucha Deshmukh (61310482) Suruchi Giri (61310030) S N Basu (61310512) Group Members Anuj Nigam (61310848) Pawan Verma (61310107) Rajat Giri (61310031) Rucha Deshmukh (61310482) Suruchi Giri (61310030) S N Basu (61310512) ISB | IIM | Collage Comparative Analysis | * The collage is portraying salient points of ISB. In anti-clockwise order from top right hand side * Global Faculty -> Case Study & Publication-> Bush Visit (Global presence)-> Corporate support -> Global School Support-> Student life-> Controversies-> Two school model-> ISB Logo (Global Identity in form of globe) | * The collage is portraying salient points of IIMs. In anti-clockwise order from Top right hand side * Biggest asset for IIMs – their alumni-> IIMs with varied architectures-> CAT and coaching centers menace-> Visitors at IIMs (e.g Laloo)-> Always ranked in Top 3-4 in various magazines ratings-> Student life at IIM-> Controversies with government especially with MHRD-> Total 13 IIMs | Segmentation & Tageting | * Discovered a new segment ...
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...LITERATURE REVIEW 1. J Suresh Reddy26 has published article in Indian Journal of Marketing. Title of article is “Impact of E-commerce on marketing”. Marketing is one of the business function most dramatically affected by emerging information technologies. Internet is providing companies new channels of communication and interaction. It can create closer yet more cost effective relationships with customers in sales, marketing and customer support. Companies can use web to provide ongoing information, service and support. It also creates positive interaction with customers that can serve as the foundation for long term relationships and encourage repeat purchases. 2. Neelika Arora 32has published research article entitled “Trends in Online...
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... Name: Trisanku Banerjee Career objective: To succeed in an environment of growth and excellence and earn a job which provides me job satisfaction and self development and help me achieve personal as well as organization goals. Educational qualifications: Three Year Full-Time Program in Planning and Entrepreneurship from IIPM (Indian Institute of Planning and Management) Kolkata * PGDM (Post Graduate Diploma in Management) from IIPM Kolkata in 2014 with 70% marks & leading to an MBA Degree from International Management Institute - Belgium with Marketing and HR specialization. * BBA from IIPM Kolkata in 2012 with 68% marks * Higher Secondary from Nonachandanpukur Manmathanath High School, Barrackpore in 2009 with 62% marks * Madhyamik from Ramakrishna Mission Boys’ Home High School, Rahara in 2007 with 76% marks Key Skills: * Executive Communication * Conviction * Creativity * Computer Basics * Leadership Work Experience: * Company: Indiabulls Distribution Services Limited * Designation: Relationship Manager * Responsibility: Generating revenue for the company by selling Real Estate Properties and maintain relationship with clients. * Period of work: From 1st November, 2013 to 31st March, 2014 * Company: Justdial Limited * Designation: Marketing Executive * Responsibility: Giving presentation...
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...Marketing Channel Strategies in Rural Emerging Markets Unlocking Business Potential By Benjamin Neuwirth Benjamin Neuwirth, Kellogg School of Management, bneuwirth2012@kellogg.northwestern.edu 1 EXECUTIVE SUMMARY In his landmark book “The Fortune at the Bottom of the Pyramid,” C.K. Prahalad describes the profits that can be earned by selling products to “Bottom of the Pyramid” customers. While there is truth to this, companies face unique challenges when operating in the rural regions of emerging markets where many of these customers live. For example, the consumer population is dispersed over a wide geographic area, transportation infrastructure is often poorly developed, and many consumers have sporadic and extremely low incomes. This paper examines these challenges from a marketing channel perspective. The fundamental question is: How can companies entering into rural emerging markets design a marketing channel strategy that meets the needs of customers and allows for the long-term profitable success of the business? I begin answering this question by examining common challenges that companies operating in this environment face. Each challenge is accompanied by examples of companies that have solved the problem in a unique way. Then, I develop a generalized framework for designing marketing channels in rural emerging markets. Finally, I apply the framework to d.light Design, a company that manufactures and sells solar lanterns in India and Africa and that I worked...
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