Chocó-Oats

A healthy delicious Snack

 Breakfast cereal market in India

Factors spurring the adoption of breakfast cereals Ready-to-eat in India:-

• Fast-paced urban lifestyle,
• Increasing prevalence of nuclear family structure,
• Rising disposable income,
• Increasingly larger number of globe-trotting Indians with an experimentative
palate are all favorable demographic

• Breakfast cereal market in India estimated at Rs 375-400 crore, is clocking

rapid growth rates of over 20-25%

• Almost 80 per cent of the branded breakfast cereal market has been
cornered by cornflakes, wheat porridge, white oats and muesli.
 Market Analysis
Market size: sales of nearly US$80 million in the Ready-To-Eat
Market in 2010 :- Mr. Anupam Dutta, Managing Director, Kellogg India Private Limited

Competitors: the best-selling kids’ cereal brands—Kellogs, Express

foods, Heinz, Rice Krispy, PepsiCo, Bagrrys India, Mohan Meakins,
Tasty Treats (Food Bazaar)

Market share: 70 % of the market share :- Mr. Anupam Dutta, Managing Director,
Kellogg India Private Limited

Market Forecasts: the kids’ market has been growing at a rate of

more than 15% a year, for the 5 to 7 years.
Source: http://foodbizdaily.com/articles/32649-kellogg-plans-expansion-in-india.aspx
SWOT
 STRENGTHS Weaknesses
• Control 42% of global market share for
Pre-sweeter cereal, which is more than • Low acceptance
triple the market share of any of their
competitors. • Follower in Pricing Strategy
• Low Product Knowledge
• Strongest brand recognition and
advertising recollection of all the cereal
manufacturers

Opportunities
• India is the biggest area for growth for
Kellogg’s.
• Kellogg can continue to slowly diversify,
while still remaining in their core business
area, which will increase their profitability.
• If they can develop a better pricing strategy
and guarantee lower prices, they can reduce
costs while increasing their market share.
Threats
• Quaker Oats, Heinz, Bagrrys India, and Mohan
Meakins. are using price competition and
product proliferation to erode Kellogg’s share
of the market.
• Discount imitation cereals brands have been
successful in reducing premium brands in the
more commodity like cereals.
• Traditional breakfast
 Customer Analysis

Source: UN Population Division

 Customer Analysis

o Who Are the Buyers?

o How Often Do They Purchase?

o Where Do they Want to Buy?

o Who Are the Influencers?

o Who consumes the goods?

o Who are Kellogg’s Target Market?

 Product Features
• Key equity drivers: chocolate taste and the
goodness of oats

• Package: fun, colorful, capture children’s

attention

• Product: sweet and contain nutritious

elements, Low fat contents
 UCP
• Choco-Oats are an excellent source of thiamine, iron, and dietary fiber.
• Fiber is helpful in reducing cholesterol levels in the bloodstream.
• Chocc-Oats are also the only source of antioxidant compounds known
as avenanthramides; help to protect the circulatory system
from arteriosclerosis.
• Help stimulate the immune system to fight off bacterial infections
• Contains beta-glucan, which may help Type 2 diabetics control their blood
sugar level,
 Objective
• Increase Market Share

• Increase profit

• Strengthen kid consumer base

• Attract different target groups

 Strategy/tactics
• Have we heard of it? Promotional issues

• Can we get it? Distribution

• Can we afford it? Pricing

• Are we buying it? Target market record

 Distributions

Kellogg’s Kellogg’s Kellogg’s

Computer system
Wholesaler

Distrib. centers

Retailer Retailers

Distrib. In stores
 Promotion
• Mass Advertising
• TV, Print, Social Media

• Direct Promotions
• Coupons, Events

• Trade Promotions
• In-store displays, Samples
 Budget

Advertising Spends for 4 weeks in major states

State Channel Basic Rate Commercial Duration Total Spot Total

Tamil Nadu Sun TV 14400 20 50 14400000

Andhra Pradesh Eenadu TV 14500 20 50 14500000

Karnataka Udaya TV 12600 20 50 12600000

Kerala Amrita 2000 20 50 2000000

Maharashtra Zee Marathi 15000 20 50 15000000

West Bengal Ruphashi Bangla 12200 20 50 12200000

Assam DY 365 400 20 50 400000

Orrisa Kamyab TV 200 20 50 200000

Hindi Speaking Markets* Colors 15000 20 50 15000000

Total       450 86300000

*Hindi speaking markets = Rajasthan, NCR, Madhya Pradesh, Harayana, Punjab, UP
Thank You