This document presents a marketing plan for a new cornflake product called InstaFlakes targeting the Indian breakfast cereal market. It provides an overview of the product, discusses the growing market opportunity in India due to rising incomes and health awareness. It analyzes competitors and identifies key consumer segments. The marketing mix, distribution strategy, and pricing are proposed. Strengths include being a nutritious instant breakfast, while threats include food regulations and substitutes. The USP is proposed as an instant multigrain variant with differential packaging.
3. WHY ?
Rising Disposable Income:
India is an unsaturated and attractive market. It is one of the fastest
budding economies in the world. The economy is expected to grow at
the rate of 9-9.5 percent during 2012-2017.
Emerging Middle Class:
Economic growth has given rise to an emerging middle class .They will
be a primarily responsible for rise in consumer spending and will
account for 59 percent of the country’s total consumption by 2025.
Rising Health Awareness:
People are moving towards balanced and healthy diet to keep control on
life style diseases. Better health awareness, higher sales of breakfast
cereals like cornflakes.
4. MARKET SHARE ,SIZE AND
COMPETITING BRANDS
India’s cornflakes market is worth USD 157 million in 2015 and with a
CAGR of 22.07 %.
(http://www.businesswire.com/news/home/20160314006188/en/India-
Breakfast-Cereal-Market-Overview-2016-)
Cornflake is the valuable product in the breakfast category with a
market share of 70% as per 2017. The second largest category in the
breakfast cereal market is oats.
COMPETITING BRANDS:
6. CORE ATTRIBUTES
Weight and Hunger
Eating cereal in the morning makes us less likely to experience cravings
for unhealthy, high-calorie and high-fat foods later in the day.
Nutrition
One cup of dry bran cereal offers nearly 4 grams of protein and 7 grams
of dietary fiber with less than 7 grams of sugar.
Health Benefits
The benefits of eating nutritious cereal for breakfast go beyond staying
full and avoiding obesity.
Practical Benefits
As a nonperishable food, it’s economical, easy to store, easy to prepare
and easy to transport
8. MARKET SEGMENTING
DEMOGRAPHIC
Kids & Adults- Plain cornflakes are actually targeted to children.
PSYCHOGRAPHIC
Health Conscious Public- Cornflakes has a proper image of very
healthy and nutritious food makers in market.
BEHAVIORAL
Usage Rate- Cornflakes targets people that frequently buy the
product.
10. MARKET POSITIONING
Positioning as complete health
beneficial product.
Product which goes in phase
with busy generation.
Instant and time saving during
breakfast.
12. POLITICAL ENVIRONMENT- In India, Government supports the
product related to healthy and also as a breakfast staple.
ECONOMIC ENVIRONMENT- Cornflakes has such high demand in
the market that its sales are not much affected when recession
occurs.
SOCIAL ENVIRONMENT- People are very conscious about their
health nowadays and that is why cornflakes is very popular and it
has also very high demand.
TECHNOLOGICAL ENVIRONMENT- Technological aspect is very
high as continuous research and for further development of the
product.
LEGAL ENVIRONMENT- Legal aspect of cornflakes is quite
supportive as the product is very healthy and nutritious.
ENVIRONMENTAL- These factors are related to climate and
weather conditions in a country.
14. SUPPLIER POWER- CORNFLAKES BASED COMPANIES HAVE
MEDIUM POWER WHEN BUYING FROM SUPPLIERS.
BUYER POWER- BUYERS OF CORNFLAKES ARE MAINLY
SUPERMARKETS AND GROCERY STORES. THEY HOLD THE POWER
BECAUSE THEY SET THE PRICE.
SUBSTITUTE- THERE ARE A LOT OF SUBSTITUTES TO
CORNFLAKES . THIS INCLUDES FRUITS, BARS, DOUGNUTS, AND
TOASTS INCLUDING INDIAN BREAKFAST.
BARIERS TO ENTRY- THE BARRIERS TO ENTER INTO THE
BREAKFAST CEREAL IS MEDIUM. WHILE A STARTING COMPANY
WOULD FIND IT DIFFICULT GETTING IN, THERE ARE
COMPANIES THAT CAN STRIKE AND TAKE AWAY A LARGE
AMOUNT OF MARKET SHARE.
15. SWOT ANALYSIS
STRENGHTS
Instant breakfast.
Nutritional breakfast.
Fat and cholesterol free.
Available in different flavors.
WEAKNESS
As a daily breakfast meal can be little
monotonous.
Expensive for many rural and sub-urban
customers.
16. OPPURTUNITIES
Increase in income is leading to increase in size
of readymade food market.
Change in lifestyle.
Can be launched into various local flavors.
THREATS
Food and safety regulations by government.
17. MARKETING MIX
Product: Introduction of the our product is based on the
diversified packing type. Our product name would be
“INSTAFLAKES”.
Price: As usually the the price of the cornflakes is bit costly.
We will be coming up with reasonable rate of Rs50. We are
priced as per competition so that customer will switch easily
from the existing brand.
Place: Initially concentrating on the main metro cities like
Hyderabad, Bangalore , Mumbai, Delhi, Kolkata.
Promotion: The promotion of the product will be through the
distribution channels as airlines and modern retail markets in
the selected metro cities.
18. CONSUMER BEHAVIOUR
Consumers are preferring the breakfast
options that are easy to cook and
healthy.
Convenience seeking consumers like to
have breakfast on the way to their
destination.
Consumers who would love to look out for
new variants.