Localization of Global Products in India
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Localization of Global Products in India

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  • Much higher degree of adaptability.

Localization of Global Products in India Localization of Global Products in India Presentation Transcript

  • Localization of Products PRABHAT PUSTAKE, ROLL#122520006
  • Branding and PackagingBrand 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… PRABHAT PUSTAKE, ROLL#122520006
  • Branding in INDIA – 4 Dimensions PRABHAT PUSTAKE, ROLL#122520006
  • Case Study #1 India PRABHAT PUSTAKE, ROLL#122520006
  • 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.• Worlds 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. PRABHAT PUSTAKE, ROLL#122520006
  • Kellogg`s India `S Kal In 1994 But they didn’t knew what they are standing against…………… PRABHAT PUSTAKE, ROLL#122520006
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  • Established ProductsPRABHAT PUSTAKE, ROLL#122520006
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  • Indian Experience Our 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, Kelloggs products failed in the Indian market.• High-profile launch backed by hectic media activity failed to make an impact in the marketplace. PRABHAT PUSTAKE, ROLL#122520006
  • 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. PRABHAT PUSTAKE, ROLL#122520006
  • 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. PRABHAT PUSTAKE, ROLL#122520006
  • •Lauched Frosties in India April 1997.•Frosties had sugar frosting on individualflakes•The success of these variants took evenKellogg by surprise and sales picked upsignificantly.•It was even reported that Indian consumerswere consuming the products as snacks. PRABHAT PUSTAKE, ROLL#122520006
  • •Followed by the launch of Chocos Breakfast Cereal Biscuits.•The success of Chocos and Frosties also led to Kelloggs decision to focus ontotally indianising its flavors in the future.•“Honey loop” being aggressively promoted in electronic and print media PRABHAT PUSTAKE, ROLL#122520006
  • •Sustained brand-building throughadvertising and investment behind keybrands.• Introducing a limited edition Kellogg’sChocos Spider Man 2 “web designed cereal”• Conducting school contact programmesand having active interface with opinionleaders – CFTRI, the government,independent agencies etc.• Adopting brand names that appeal tothe Indian consumer such as ‘Shakti’,meaning power• Using packaging as an effectivemarketing tool, for brand communicationand on-shelf differentiation• Image building through recycling andreusing, improving access to health andhuman services in local communities PRABHAT PUSTAKE, ROLL#122520006
  • Kellogg`s India `s Aaj in 2013•Rs.400+ crores comprises of cornflakesmarket•Overall Market is growing at 20%annually•Holding 70% of market in a 500 croreIndian cereal market PRABHAT PUSTAKE, ROLL#122520006
  • Case Study #2 PRABHAT PUSTAKE, ROLL#122520006
  •  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 PRABHAT PUSTAKE, ROLL#122520006 Ltd.
  •  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 BusinessweakReferences:http://www.moneycontrol.com/company-facts/gilletteindia/history/GI22 PRABHAT PUSTAKE, ROLL#122520006http://images.businessweek.com/ss/09/09/0917_global_brands/89.htm
  • BRAND HIGHLIGHTS• Gillette India Limited (GIL) is one of Indias well-known FMCG Companies.• The worlds 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. PRABHAT PUSTAKE, ROLL#122520006
  • Core BusinessesGillette India Limited (GIL) has 3 corebusinesses:• Grooming• Portable Power• Oral Care PRABHAT PUSTAKE, ROLL#122520006
  • GILLETTE WORLDWIDE MANUFACTURING SUBSIDIARIES UK EUROPE ASIA NORTHAMERICA SOUTH AMERICA AFRICA AUSTRALIA PRABHAT PUSTAKE, ROLL#122520006
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  • GILLETTE’S STRATEGY IN INDIALaunching innovative andcustomised products•Gillette has created a new market for thepower battery toothbrush through Oral-B(the oral care subsidiary of Gillette India).It also introduced Mach3Turbo, a triple-blade shaving system in India. GilletteIndia has launched customised productsspecially designed for Indian consumers.It introduced “Vector Plus”, which is atwin blade system with push clean anti-clogging function in the mid-pricesegment. PRABHAT PUSTAKE, ROLL#122520006
  • Localisation of distribution system and wide distribution network • 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. PRABHAT PUSTAKE, ROLL#122520006
  • Restructuring business to drive growth• 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. PRABHAT PUSTAKE, ROLL#122520006
  • Leveraging India’s large market• 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. http://www.ibef.org/download/GilletteIndia.pdf PRABHAT PUSTAKE, ROLL#122520006
  • Price Strategy• 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. PRABHAT PUSTAKE, ROLL#122520006
  • In a bid to increase share and growth, Gilletteintroduced the Mach3 in November 2011, priced atRs125 or 60% lower than the Mach3 Turbo. This productis targeted at greater conversions from the doubled-edged segment, which accounts for 62% and 86% of therazors and blades market, in value and volume terms,respectively. And nearly half of this market comprisesusers who get their shaves done in a salon. Gillette isattempting to convert this segment by giving them asalon-quality shave at an affordable price.http://www.livemint.com/2010/11/28211336/Gillette-India-shortterm-pai.html PRABHAT PUSTAKE, ROLL#122520006
  • MARKETING• 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 PRABHAT PUSTAKE, ROLL#122520006
  • BRANDINGUmbrella Branding PRABHAT PUSTAKE, ROLL#122520006
  • PROMOTIONS ANDADVERTISEMENTS PRABHAT PUSTAKE, ROLL#122520006
  • Gillette’s ‘SHAVE INDIA MOVEMENT’ PRABHAT PUSTAKE, ROLL#122520006
  • GILLETTE ‘SHAVE SUTRA’Arjun Rampal and Neha Dhupia lead Gillette Mach3 Turbo Sensitive’sconduct Gillette Shave Sutra – The World’s Largest Shaving Lesson• 150 couples come together to break the world-record for theLargest Shaving Lesson EVER!!• Gillette Shave Sutra demonstrates how with the comfort of Mach 3Turbo Sensitive shaving becomes so effortless that even your partnercan shave you. PRABHAT PUSTAKE, ROLL#122520006
  • BRANDAMBASSADORS PRABHAT PUSTAKE, ROLL#122520006
  • GILLETTE IN THEMINDS OF THE CONSUMERS PRABHAT PUSTAKE, ROLL#122520006
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  • Case Study #3 PRABHAT PUSTAKE, ROLL#122520006
  • • 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. PRABHAT PUSTAKE, ROLL#122520006
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  • PRODUCTPRABHAT PUSTAKE, ROLL#122520006
  • • Entered in India 1996• McDonalds 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 McDonalds business is owned and run by independent franchisees in India• Actively Involver in many social activities like CHILD EDUCATION, PULSE POLIO etc. PRABHAT PUSTAKE, ROLL#122520006
  • 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. PRABHAT PUSTAKE, ROLL#122520006
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