localization of global products in india

Localization of Products

PRABHAT PUSTAKE, ROLL#122520006

Branding and Packaging

Brand is a product, service, or concept that is publicly distinguished from other products, services, or concepts so that it can be easily

communicated and usually marketed…


Branding in INDIA – 4 Dimensions


Case Study #1


India

http://en.wikipedia.org/wiki/File:Kellogg's.svg

Company Facts

• Established in 1906 founded by Will Keith Kellogg• Products manufactured in 18 countries and marketed in more than 180

countries around the world.• World's leading producer of cereal and a leading producer of convenience

foods, including cookies, crackers, Toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and vegetarian foods.

• Post liberalization, company entered India in 1994.


http://en.wikipedia.org/wiki/File:BlotterKelloggsCornFlakesAdvertizement1910s.jpg

Kellogg`s India `S Kal In 1994

But they didn’t knew what they are standing against……………


Established Products


Indian ExperienceOur only rivals are traditional Indian foods like idlis and vadas."

- Denis Avronsart, Managing Director, Kellogg India.

• Products offered in India Corn Flakes, Wheat flakes, Basmati rice flakes.

• April 1995, 25% decline in sales in comparison to last month.

• 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.

• High-profile launch backed by hectic media activity failed to make an impact in the marketplace.


Reasons for Failure

• Over confidence and ignorance of cultural aspects.

• Lack of understanding of Indian consumer behavior and habits.

• Premium pricing policy.

• Banked heavily on crispy flakes.


Intensity of Competitive Rivalry


•Chocos launched in India in September 1996.

•Targeted at Kids with mascot monkey “Jose”

•Chocos were wheat scoops coated with chocolate.

•Lauched Frosties in India April 1997.

•Frosties had sugar frosting on individual flakes

•The success of these variants took even Kellogg by surprise and sales picked up significantly.

•It was even reported that Indian consumers were consuming the products as snacks.


•Followed by the launch of Chocos Breakfast Cereal Biscuits.

•The success of Chocos and Frosties also led to Kellogg's decision to focus on totally indianising its flavors in the future.

•“Honey loop” being aggressively promoted in electronic and print media


•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.

• Adopting brand names that appeal to

the Indian consumer such as ‘Shakti’, meaning power

• Using packaging as an effective marketing tool, for brand communication and on-shelf differentiation

• Image building through recycling and reusing, improving access to health and human services in local communities


•Rs.400+ crores comprises of cornflakes market

•Overall Market is growing at 20% annually

•Holding 70% of market in a 500 crore Indian cereal market

Kellogg`s India `s Aaj in 2013


Case Study #2


The company established by King Camp Gillette on 28 September 1901 in Boston.

Initially it was American Safety Razor Company. The invention of Razor was patented in 1904. 1905 Develops new markets by opening London Offices. 1914 Gillette brokers deal with US Army (3.5 Million razors, 36

Million blades) In 1952, its name changed to The Gillette Company. In India, co. established on 9th February 1984, in Rajasthan as Indian

Shaving Products Limited and was jointly promoted by House of Poddar Enterprises and Gillette co.

Now it is called as Gillette India Ltd. Merged with Duracell (India) Pvt. Ltd. and Wilkinson Sword India

Ltd.PRABHAT PUSTAKE, ROLL#122520006

1973 Net Sales exceed $1Billion.

1980 Net Sales exceed $2 Billion.

Sold off to P&G in 2005 for $57 billion

Launched various innovative products to capture the Indian Audience

Market leader in premium shaving care segment

Good reputation for delivering high quality, value added products

Still in the infant stage with great opportunities ahead. Saw a 16% growth in 2008

Awarded as the 13th most global brand by Bloomberg Businessweak

References:http://www.moneycontrol.com/company-facts/gilletteindia/history/GI22http://images.businessweek.com/ss/09/09/0917_global_brands/89.htm


• Gillette India Limited (GIL) is one of India's well-known FMCG Companies.

• The world's largest personal care and household products company.

• First in INDIA to introduce gel in tubes.

• Running since 111 years (1901-2012).

• Global Leader in premium shaving care segment

• Over 1 Billion men start their day with Gillette.

• Manufacturing operations located in 23 countries.

• Distribution in 200+ countries.

BRAND HIGHLIGHTS


Gillette India Limited (GIL) has 3 core

businesses:

• Grooming

• Portable Power

• Oral Care

Core Businesses


NORTHAMERICA

SOUTHAMERICA

UKEUROPE

AFRICA

ASIA

AUSTRALIA

GILLETTE WORLDWIDE MANUFACTURING SUBSIDIARIES


Launching innovative and customised products•Gillette has created a new market for the power battery toothbrush through Oral-B (the oral care subsidiary of Gillette India). It also introduced Mach3Turbo, a triple-blade shaving system in India. Gillette India has launched customised products specially designed for Indian consumers. It introduced “Vector Plus”, which is a twin blade system with push clean anti-clogging function in the mid-price segment.

GILLETTE’S STRATEGY IN INDIA


• Gillette’s sales and distribution network is wide, enabling consumers all over the country to buy its products.

• Gillette has localised its distribution system and made it specific to the Indian market.

• Gillette has targeted the Indian market on a shop-by-shop basis as against the European and US market where there are only few major retailers.

Localisation of distribution system

and wide distribution network


• Gillette restructured its business in India in 2003.• Strategic restructuring: Focused on grooming and

oral care business while exiting battery and household appliances business.

• Financial restructuring: Focused on improving the margins, cost reduction and improving asset utilisation.

• The restructuring undertaken by Gillette paid off with increasing profits.

Restructuring business to drive growth


• Gillette is tapping the large Indian consumer base to establish a strong presence in the country. The market for shaving blades in India is the largest in the world.

• The market for oral care (toothbrushes) is the second largest

in the world, while that of batteries is the third largest in the world (all in volume terms).

• Apart from this the increasing consumer-spending capacity and the increase in retail activity are also some factors which attract Gillette to expand its business in India.

Leveraging India’s large market

http://www.ibef.org/download/GilletteIndia.pdfPRABHAT PUSTAKE, ROLL#122520006

• Gillette Presto, a product designed to upgrade consumers who still use double-edge blades, with a product priced atRs18, and with refills priced at Rs5 which lasts up to 5 shaves. With the company pursuing a volume-led growth strategy, its advertising and promotion expenditure can be expected to continue growing at high levels. And, even as sales growth may continue to surprise on the upside, profit can be expected to lag for some time to come.

Price Strategy


In a bid to increase share and growth, Gillette introduced the Mach3 in November 2011, priced at Rs125 or 60% lower than the Mach3 Turbo. This product is targeted at greater conversions from the doubled-edged segment, which accounts for 62% and 86% of the razors and blades market, in value and volume terms, respectively. And nearly half of this market comprises users who get their shaves done in a salon. Gillette is attempting to convert this segment by giving them a salon-quality shave at an affordable price.

http://www.livemint.com/2010/11/28211336/Gillette-India-shortterm-pai.html


• Strong distribution strategies played a prominent role in the robust growth, as a result of which Gillette brand has managed to tap both the “premium” and the “value-for-money” consumers – Sharat Verma, Marketing manager of Gillette India

• The lower-value products, followed the company’s realisation that while “new and improved” is still good, “lower price” works better in these tough times

MARKETING


BRANDINGUmbrella Branding


PROMOTIONS AND ADVERTISEMENTS


Gillette’s ‘SHAVE INDIA MOVEMENT’PRABHAT PUSTAKE, ROLL#122520006

Arjun Rampal and Neha Dhupia lead Gillette Mach3 Turbo Sensitive’s conduct Gillette Shave Sutra – The World’s Largest Shaving Lesson

• 150 couples come together to break the world-record for the Largest Shaving Lesson EVER!!

• Gillette Shave Sutra demonstrates how with the comfort of Mach 3 Turbo Sensitive shaving becomes so effortless that even your partner can shave you.

GILLETTE ‘SHAVE SUTRA’


BRAND AMBASSADORS


GILLETTE IN THE GILLETTE IN THE MINDS OF THE MINDS OF THE CONSUMERSCONSUMERS


Case Study #3


• Headquartered in the United States, began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald

• in 1948 they reorganized their business as a hamburger stand using production line principles.

• Businessman Ray Kroc joined the company as a franchise agent in 1955.

• purchased the chain from the McDonald brothers and oversaw its worldwide growth.


PRODUCT


• Entered in India 1996

• McDonald's India is a 50– 50 JV partnership between MCDONALD’S CORPORATION (U.S.A) and two Indian businessman Amit Jatia and Vikram Bakshi

• The entire menu was changed

• 90% of McDonald's business is owned and run by independent franchisees in India

• Actively Involver in many social activities like CHILD EDUCATION, PULSE POLIO etc.


Product adaptation-the Indian challenge

• 40% vegetarians selections to suit Indian tastes.

• Respect for local culture-no beef or pork served.

• Soft serves and mc shakes are eggless

• Re-formulated own products using spices favored by Indians.

• Only vegetable oil used as cooking medium.


localization of global products in india

Business

dimensions prabhat pustake

againstprabhat pustake

marketedprabhat pustake

s india

kellogg india

duracell india

print mediaprabhat pustake

india corn flakes