2. Branding and Packaging
Brand 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…
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5. 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, Toaster pastries, cereal bars, fruit-
flavored snacks, frozen waffles, and vegetarian foods.
• Post liberalization, company entered India in 1994.
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6. Kellogg`s India `S
Kal In 1994
But they didn’t knew what they are
standing against……………
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13. 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, Kellogg's
products failed in the Indian market.
• High-profile launch backed by hectic media activity failed to make
an impact in the marketplace.
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14. 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.
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15. 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
16. •Lauched Frosties in India April 1997.
•Frosties had sugar frosting on individual
flakes
•The success of these variants took even
Kellogg by surprise and sales picked up
significantly.
•It was even reported that Indian consumers
were consuming the products as snacks.
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17. •Followed by the launch of Chocos Breakfast Cereal Biscuits.
•The success of Chocos and Frosties also led to Kellogg's decision to focus on
totally indianising its flavors in the future.
•“Honey loop” being aggressively promoted in electronic and print media
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18. •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.
• Adopting brand names that appeal to
the Indian consumer such as ‘Shakti’,
meaning power
• Using packaging as an effective
marketing tool, for brand communication
and on-shelf differentiation
• Image building through recycling and
reusing, improving access to health and
human services in local communities
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19. Kellogg`s India `s Aaj in 2013
•Rs.400+ crores comprises of cornflakes
market
•Overall Market is growing at 20%
annually
•Holding 70% of market in a 500 crore
Indian cereal market
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21. 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
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Ltd.
22. 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
Businessweak
References:
http://www.moneycontrol.com/company-facts/gilletteindia/history/GI22
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http://images.businessweek.com/ss/09/09/0917_global_brands/89.htm
23. BRAND HIGHLIGHTS
• Gillette India Limited (GIL) is one of India's well-known FMCG
Companies.
• The world's 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.
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24. Core Businesses
Gillette India Limited (GIL) has 3 core
businesses:
• Grooming
• Portable Power
• Oral Care
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25. GILLETTE WORLDWIDE MANUFACTURING SUBSIDIARIES
UK
EUROPE ASIA
NORTH
AMERICA
SOUTH
AMERICA
AFRICA
AUSTRALIA
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27. GILLETTE’S STRATEGY IN INDIA
Launching innovative and
customised products
•Gillette has created a new market for the
power battery toothbrush through Oral-B
(the oral care subsidiary of Gillette India).
It also introduced Mach3Turbo, a triple-
blade shaving system in India. Gillette
India has launched customised products
specially designed for Indian consumers.
It introduced “Vector Plus”, which is a
twin blade system with push clean anti-
clogging function in the mid-price
segment.
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28. 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.
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29. 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.
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30. 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
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31. 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.
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32. In a bid to increase share and growth, Gillette
introduced the Mach3 in November 2011, priced at
Rs125 or 60% lower than the Mach3 Turbo. This product
is targeted at greater conversions from the doubled-
edged segment, which accounts for 62% and 86% of the
razors and blades market, in value and volume terms,
respectively. And nearly half of this market comprises
users who get their shaves done in a salon. Gillette is
attempting to convert this segment by giving them a
salon-quality shave at an affordable price.
http://www.livemint.com/2010/11/28211336/Gillette-India-shortterm-pai.html
PRABHAT PUSTAKE, ROLL#122520006
33. 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
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37. GILLETTE ‘SHAVE SUTRA’
Arjun Rampal and Neha Dhupia lead Gillette Mach3 Turbo Sensitive’s
conduct Gillette Shave Sutra – The World’s Largest Shaving Lesson
• 150 couples come together to break the world-record for the
Largest Shaving Lesson EVER!!
• Gillette Shave Sutra demonstrates how with the comfort of Mach 3
Turbo Sensitive shaving becomes so effortless that even your partner
can shave you.
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42. • 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.
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45. • Entered in India 1996
• McDonald's 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 McDonald's business is owned
and run by independent franchisees in
India
• Actively Involver in many social
activities like CHILD EDUCATION,
PULSE POLIO etc.
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46. 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.
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