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.

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.

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, fruit-flavored snacks, and vegetarian foods.

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.

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

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

Product- Offer GMO Free Tests to consumers to maintain

integrity Offer variety of flavors Offer New On the Go optionBranding- Renew image of product as well as commitment to

GMO Free Foods Healthy & Convenience Commitment to environment, social & economic

responsibilityWebsite- Add descriptions to pages & pictures Add new Interactive component Focus on mission Quality Reports and Test

KELLOGGSStrengths

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

QUAKERSStrengths

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

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.

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 “Nescafe Tune” 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.

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

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.

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

Bru : Happiness Begins with Bru Brand :Bru

Company : Hindustan UnileverAgency : 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.

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

Much of the success of Bru can be attributed to following factors

1. Innovation in new product2. Innovation in packaging 3. Aggressive campaigns4. 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

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

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.

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”