Cana Sun, Torrie Nguyen, Gustavo Terrazas, David Harris

http://www.youtube.com/watch?v=PmaYbBUhbIo&feature=relmfu

Keebler India

Country AnalysisLocated in Southern Asia, between Burma and PakistanArea: about one-third of the U.S.Climate: Varies from tropical in the south and moderate in the northTerrain: Himalayas in the north Deserts in the west Upland plain in the southPopulation: > 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

Country AnalysisInfrastructure

Airports: 352Railways: 39,751 milesPaved Roadways: 2,063,206 milesPorts: 7 major ports (Mumbai, Kolkata included)Communication:

Land Line: > 35 MILMobile: > 750 MIL usersInternet: > 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

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.

• Most Indian Households still have a Traditional Patriarchal Structure for Decision Making

• Indian Middle Class Women (Mothers) have Increasing Household Spending & Purchasing

Empowerment

Decision MakersMiddle 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

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

Market EntryMarket 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)

Marketing StrategyProduct; Pricing; Distribution; Advertising

ProductNotable 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>.

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)

PricingGeneral 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

Distribution Channel

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

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

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

Advertising

45%

47%

3% 5%Types of Media Used in India

TelevisionPrintRadioInternet

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

AdvertisingTraditional media

Print: lower class• Newspaper• Magazines• Billboards

TV: middle class

AppealsQuality: price and nutritional benefitsYouth: 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

Keebler in India

Large population

– Growing middle class & purchase power

• Women’s role

Distribution channel

Push and pull strategies

Product quality