this presentation has information of various breakfast brands in india which includes kelloggs quaker oats britannia bru and nescafe.the above mentioned companies marketing strategies swot analysis etc.
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marketing of breakfast foods
1.
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4. The need for convenience and busy schedules of people has been
propelling the processed food industry, which includes breakfast
cereals.
The breakfast cereals market in developed economies tends to
saturate mainly due to the search for other traditional breakfast as well
as some on-the-go breakfast alternatives such as cereal bars
International players in breakfast cereals market are also focusing on
reformulating their products by replacing harmful hydrogenated fat
and oils with healthier ingredients such as fiber and fruits.
With recognition of its health benefits, cornflakes became one of the
main breakfast foods in the U.S. and later on in other parts of North
America and Europe.
5. Kellogg’s is the global market leader in breakfast cereals market,
while
General Mills and PepsiCo are the other key players.The
breakfast cereals market is dominated by top three players that
control over 50% of the market
Among other players, Cereal Partners Worldwide (CPW), a joint
venture company between General Mills and Nestle, has grown
multifold and is expanding at a faster rate.
6.
7. COMPANY FACTS:
Establishedin1906foundedbyWillKeithKellogg
Productsmanufacturedin18countriesandmarketedinmorethan
180countriesaroundtheworld.
World'sleadingproducerofcerealandaleadingproducerof
conveniencefoods,includingcookies,crackers,fruit-flavored snacks,
andvegetarianfoods.
KELLOGGS FAILURE:
Early rivals were traditional Indian foods like idlis and vadas
Despite offering good quality products and being supported
by the technical, managerial and financial resources of its
parent, Kellogg's products failed in the Indian market.
8. Sustained brand-building through advertising and investment
behind key brands.
Introducing a limited edition Kellogg’s Chocos Spider Man 2
“web designed cereal”
Conducting school contact programmes and having active
interface with opinion leaders – CFTRI, the government,
independent agencies etc.
Image building through recycling and reusing, improving access
to health and human services in local communities
MARKET SHARE :
Market of Rs.500 Crore
Rs.400 crore comprises of cornflakes market
Overall Market is growing at 20% annually
Holding 70% of market in a 500 crore Indian cereal market
9.
10. COMPANY FACTS:
Quaker Oats is on a mission to continue spreading Oat Goodness for
another 100 years.
We plan on having our focus for 2012 Market plan to push for creativity,
sustainability and growth. These goals can only be accomplished if all
members of management and staff are productive, efficient and effective.
The main focus of our marketing goals for 2012 is to listen and connect with
our consumers. Our objectives are to gain trust, become a resource and
build long lasting relationships with our target market.
SALES AND MARKET SHARE:
$13 Billion 2012
Annual growth of 4.9%
Annual Breakfast Cereal Sales$7.7 Billion
11. Product-
Offer GMO FreeTests to consumers to maintain
integrity
Offer variety of flavors
Offer New On the Go option
Branding-
Renew image of product as well as commitment to
GMO Free Foods
Healthy & Convenience
Commitment to environment, social & economic
responsibility
Website-
Add descriptions to pages & pictures
Add new Interactive component
Focus on mission
Quality Reports andTest
12. KELLOGGS
Strengths
42% of Global Market
Strong Brand Recognition
Convenience
Weakness
Lack of Innovation
Lack of Sustainable or Progressive
Products
No Organic or Fair Trade
Products contain plant phytosterols
Opportunity
Global Market
Kids Market
Mergers/ Distribution
Threat
FDA
Label Restrictions
Consumer Awareness
Image-Bad Pressst Inflation
QUAKERS
Strengths
130 in Business
1st to trademark Breakfast Cereal
1st to Advertise in National Magazine
1st to introduce convenience breakfast cereal
Weakness
Controversial Image of “Healthy Option”
Cross Contamination of Products
Lack of Sustainable or Fair trade
Lack of Innovation
Opportunity
Entered Global Market
India’s a growing market
Healthier option versus Fast Food
European Market- recently banned GMO
Threat
New Products
Consumers are more educated about products
False advertising
Customer disapproval
13.
14. No matter how effective the packaging and
promotion of a product, the company will find it
very challenging to market a product that doesn’t
satisfy a consumer need. Nescafe owes much of
its success to a strong marketing mix.
15.
16. PROMOTION
Nestle has used a number of advertising strategies throughout the years to
make the product Nescafe appealing
In particular, it has used persuasive advertising, with an emotional aspect, to
make it an instant success. Nestle runs a number of advertisements and
television commercials focused towards making it a household premium
brand.
Another powerful tool is the widely known “NescafeTune” which is one of the
best advertising campaigns which was launched about 20 years ago.
The continuous advertising with smart promotions has given Nescafe a strong
position in the instant coffee industry. Nescafe also focuses on producing high
quality products and experiments with a lot of variants.
Nescafe has signed on Deepika Padukone as the brand ambassador and has
introduced many ads including Purab Kohli and KaranJohar to push the
Nescafe coffee brand.
17. A significant portion of Nescafe's promotion strategy
involves the use of
Advertising campaigns
Newspapers
Internet
Televisions
Public relation activity
Another promotion strategy is excellent branding that is
used to build high brand value for end customers. Besides
some packaging and product changes, Nescafe logotypes
has always remained the same since its origin
18. Nestle has adopted the strategy of non-price competition.
It ensures that traders don’t take advantage and hike prices by maintaining
uniform pricing for all its products, including Nescafe
It offers generous discounts to its distributors. Different Nescafe brands come
with different prices depending on how they are made
Nescafe has estimated other factor costs such as labour and considered mass
production in order to reduce the price and make it more affordable in India.
However, being one of the premium brands it enjoys a high stature and
acceptability at a relatively high cost than its nearest competitors.
19. Nestle company follows the FMCG strategy distribution.This is quite effective
because it involves breaking the bulk in a typical distribution channel
The two distribution channels are:
1. Manufacturing-C and Agent-Distributors-Retailers.
2. Manufacturing-Bulk Buyers-Consumers
Nestle enjoys a stronger distribution network and sales network than most
because of the pull from the market
In order to encourage sales, Nestle frequently offers bulk buyers trade
discounts to keep the sales high.
The company also uses two other famous products [Maggi and Kitkat] to
boost sales.
The only challenge for Nescafe is that it faces competition from other
chocolate companies like Bru and Cadbury
20.
21. Bru : Happiness Begins with Bru
Brand :Bru
Company : Hindustan Unilever
Agency : O & M
Brand Analysis Count : 359
Bru is a power brand from the HUL's stable. A brand which
pioneered the instant coffee category in Indian market in 1969 is
also an example of many successful marketing practices.
22. According to HUL, Bru is the market leader in coffee segment with a
value share of 46.9%.Prior to 2004, HUL had many brands in the coffee
category. It had Deluxe Green Label and Bru instant as the main brands
and small brands like Dilkush , Cafe and Cafe Gold. In 2004, as a part of
the power brand strategy, HLL decided to phase out Dilkush and Cafe
brands . It then consolidated the coffee brands under the master brand
Bru . Bru before becoming the family brand was positioned as a coffee
that tasted just like filter coffee. But after the elevation to master
brand, Bru took the positioning around happiness.
Bru was synonymous for instant coffee and had an astounding 21%
market share in the first year of launch itself. All these years, the brand
has been fighting for the numerouno position with Nestle whose iconic
Nescafe brand was the market leader. But in 2008, the brand pushed
Nescafe to the second position
23. Much of the success of Bru can be attributed to following
factors
1. Innovation in new product
2. Innovation in packaging
3. Aggressive campaigns
4. Nestle lost out because of lethargy.The company failed to
consistently invest in its Nescafe brand. I do not seeing any
memorable campaigns from Nescafe in recent past.This has
cost the brand dearly. HUL's marketing acumen is vivid in the
rise of Bru as the market leader. It has never stopped
innovating for this new brand.
5. Bru was able to give new offerings to customers on a regular
basis. One of the recent successful new product was the
cappuccino packs.The new flavor gave the brand a new
thrust in the market.The new flavors even prompted
hardcore tea lovers like me to try out these
24.
25. Britannia market position is very high due to factors relating to
its pricing strategies, distribution channels and variety of
products.They commence new products to satisfy the
consumer's needs giving them new and alternative products to
choose, which in turn benefit the company by having more
potential for growth. So we understand that the company is
not only growing, but also gaining profits.
Their estimated market share is 38%. In the early years of the
company, they received sales at an annual rate of 16% in
market and their operational proceeds were nearly 18%. But
now it has been increased to 27%, giving Britannia annual
revenue of Rs 2,200 crore only from their biscuits. 10% is
contributed by the diary products.They have an annual
capacity of 433,000 tones of biscuits with sale while exporting
up to $150.75 million
26. Marketing Strategy include anything from facts, events,
procedures, values and personalities.
Britannia nearly sells all their products all over India and
even exports it other few countries.Their market rate
kept growing every year in the Indian market.Therefore,
BIL has implemented a Diversification strategy, so that it
becomes the market leader in the food and biscuits
industry. But they made sure that when they diversify,
they make similar kinds of products such as cheese, diary
products and even more bakery items. So the company
can realize their marketing strategies by underlining the
opportunities in the market.There are a various different
strategies they adopt.
27. The common factor has been that a product when tackles the regional
barrier and touches a Consumers personal preferences only then does it
succeed
Any companies marketing strategies when penetrates the regional
barriers and social barriers only then does it excite or appeal to the
customer
Now that we have an in-depth view of the company's profile,
marketing strategy and marketing mix, it shows the different methods
used to adapt to promote and publicize their products across India and
other countries. Based on the information researched, we find that
they focus on consumer needs to a very large extent.This is shown by
the fact that, since consumers are more health conscious nowadays,
they have introduced NutriChoice Diabetic Biscuits. It is also proven by
their tagline, "Eat Healthy,Think Healthy”