Feasibility Study: Global Business Marketing Analysis for the potential distribution of Keebler Cookie Products within the Country of India.

1. Cana Sun, Torrie Nguyen,
Gustavo Terrazas, David Harris
http://www.youtube.com/watch?v=PmaYbBUhbIo&feature=relmfu
Keebler India

2. Country Analysis
Located in Southern Asia, between Burma
and Pakistan
Area: about one-third of the U.S.
Climate: Varies from tropical in the south
and moderate in the north
Terrain:
Himalayas in the north
Deserts in the west
Upland plain in the south
Population: > 1.2 Billion
Urban Population: 30%
Major cities (population >7 million):
New Delhi, Mumbai, Kolkata, Chennai
https://www.cia.gov/library/publications/the-world-factbook/geos/in.html

3. Country Analysis
Infrastructure
Airports: 352
Railways: 39,751 miles
Paved Roadways: 2,063,206 miles
Ports: 7 major ports (Mumbai, Kolkata included)
Communication:
Land Line: > 35 MIL
Mobile: > 750 MIL users
Internet: > 60 MIL users
Ease of Doing Business rank: 122/181 *
Global Manufacturing Competitiveness Index (GMCI): 2/26*
https://www.cia.gov/library/publications/the-world-factbook/geos/in.html
*http://globaledge.msu.edu/Countries/India/Indices

4. Target Market
Indian Families:
Lower / Upper Middle Class:
•Mothers
•Children
•Fathers
Multi – Generational Households:
• Older Family Members
http://www.indianmba.com/Faculty_Column/FC71/fc71.

5. • Most Indian Households still have a Traditional
Patriarchal Structure for Decision Making
• Indian Middle Class Women (Mothers) have
Increasing Household Spending & Purchasing
Empowerment

6. Decision Makers
Middle Class Indian Society Is In A Gender Role “Flux”
Traditionally Patriarchs
• Married Men
• Husbands / Fathers
• Older Family Members (M/F)
Women / Mothers (Middle Class)
• Changing Family Roles
• More Autonomy / Increased Decision
Making
Consumer Goods (FMCG)
2nd Incomes / Entering Workforce
http://articles.economictimes.indiatimes.com/2012-03-
27/news/31245046_1_indian-women-women-power-consumer-
spending

7. Influencers
Family Shops as a “Collective Unit”
Husbands
Mothers / Wives
Teens / Children
Older Generations
Highly influential on Decision Makers
http://www.indiabusinessview.com/news/100/mckinsey-survey-shopping-habits-india-china-and-brazil

8. Market Entry
Market Entry Mode: Control Posture
– Utilize Existing Foreign Direct Investment (FDI)
• Keebler Cookies: Parent Company Kellogg's U.S.A.
• Alliance with Wholly Owned Subsidiary – Kellogg's India (1994)
Why?
• Manufacturing Facilities / Warehousing (Exists)
• Indian Distribution Channels / Promotion & Sales Agents (Established
Relationships)
– Assist in Local Product Adaption and Promotion Efforts
- Knows Local Culture / Business Environments
- Has Established Retailer Relationships
• Domestic Mfg - Lower costs / Decrease VAT (Tax / Tariffs)

9. Marketing Strategy
Product; Pricing; Distribution; Advertising

10. Product
Notable Snacking Habits in India:
-Value healthy aspect of snacks
- Busy Lifestyle Decrease in Snacking
-50% of kids eat sweets before dinner daily
"Indian Mothers Recognize the Health Benefits of Soup." Knorr Soups Snacking Survey. Web. 18 Apr. 2012.
<http://www.hul.co.in/mediacentre/news/2011/indian-mothers-recognize-the-health-benefits-of-soup.aspx>.

11. Pricing
http://articles.economictimes.indiatimes.com/2011-10-13/news/30275535_1_biscuit-prices-edible-oil-biscuit-industry
Name Avg. Price
Parle Rs 10 ($ 0.19)
Britannia Rs 10 ($ 0.19)
Sunfeast Rs 5 ($ 0.09)

12. Pricing
General Shopping Habits:
Prefer buying familiar/popular brands*
Values opinion from their social circle *
Price Sensitive **
Strategy: Skimming
Average Price for Biscuits (2011): Rs 5 – 10 ( $0.09-0.19) USD
Recommended Product Price: Rs 12- Rs 15
*Taneja, Kanika. Mall Mania in India- Changing Consumer Shopping Habits. Diss. The University of Notthingham, 2007. Print.
**"Consumer Buying, Customer Buying Behaviour, Buyer Behaviour, Buying Behaviour, Buyer Behavior, Consumer Spending
Habits, Consumer Shopping Habits, Consuming Habits, Consumer Habit, Consumer Buying Habits, Consumer Habits." Brand
Awaaz. Web. 18 Apr. 2012. <http://brandawaaz.biz/changing-indian-consumer-habits>.
http://articles.economictimes.indiatimes.com/2011-10-13/news/30275535_1_biscuit-prices-edible-oil-biscuit-industry

13. Distribution Channel
Retailers
- Foodworld Supermarkets Ltd
- Over 200 stores including hyper markets,
supermarkets and express stores
- Food Bazaar and Big Bazaar
- Over 160 stores including hyper markets and
supermarkets
Distributors / Wholesalers
- Suggested three distributors in most populated
cities
- Delhi: 23 Mil
- Mumbai: 20 Mil
- Kalkata: 15 Mil
Manufacturer
- Wholly owned manufacturing subsidiary
- Form of Foreign Direct Investment
- Pros: remain in full control of venture
- Cons: large upfront investment, barriers
CONSUMERS
Distribution Agent
“Retail: Top companies in India,” moneycontrol,com, Retrieved 4-16-2012, http://www.moneycontrol.com/stocks/top-companies-in-india/total-assets-bse/retail.html

14. Retailers
“Retail: Top companies in India,” moneycontrol,com, Retrieved 4-16-2012, http://www.moneycontrol.com/stocks/top-companies-in-india/total-assets-bse/retail.html

15. Promotion
Push Strategy
– Using agent to work directly with retailers
• Negotiation with retailers
Pull Strategy
– Sales promotions
• Distribution of free samples at supermarkets and hypermarkets
• Coupons in print ads

16. Advertising
45%
47%
3%
5%
Types of Media Used in India
Television
Print
Radio
Internet
Trade Promotion and Advertising. Doing Business in India: 2012 Country Commercial Guide for U.S. Companies. Retrieved 5/4/2012. http://www.buyusainfo.net/docs/x_8893831.pdf

17. Advertising
Traditional media
Print: lower class
• Newspaper
• Magazines
• Billboards
TV: middle class
Appeals
Quality: price and nutritional benefits
Youth: cartoon character and colors
Trade Promotion and Advertising. Doing Business in India: 2012 Country Commercial Guide for U.S. Companies. Retrieved 5/4/2012. http://www.buyusainfo.net/docs/x_8893831.pdf

18. Keebler in India
Large population
– Growing middle class & purchase power
• Women’s role
Distribution channel
Push and pull strategies
Product quality