Define Mobile Menu

Breakfast though being the most important meal of the day has seen the most changes in the recent years. Rising incomes and flexible work hours have caused the change in the breakfast habits of Indian people from the traditional to western to sometimes having none at all. This “need gap” is slowly being catered by the organised breakfast market worth INR 500 crores. A huge part of the breakfast market is still unorganised and rice, wheat, pulses and potato are the common ingredients in it.

Cereals as a breakfast have gained hold in the recent years with the change in work habits as well as lifestyle of the people. As the cereal market is growing rapidly, companies like Kelloggs, Pepsi Co, Mohan Meakins, Britannia are launching new products to increase their share in this segment. This project focuses on the marketing strategies adopted by these companies to gain a strong foothold in The Great Indian Breakfast Market. The Indian breakfast industry is largely unorganised with a market value pegged at INR 2000 cr.

Out of this, the branded breakfast cereal market is estimated at INR 500 cr with a growth rate of 30% and the ready to cook market is about INR 350 cr with a growth rate of 25%. Although most of the people prefer to eat at home, but due to rising number of nuclear families, families with working women as well as double income families, the breakfast habits of people are changing. Though people still prefer Indian authentic breakfast, they have turned health conscious and taste and preparation time tops their list.

Coupledwith the change in lifestyle and food habits, one out of five people in urban India misses breakfast completely every day, while 15 per cent have an inadequate one. This presents a huge opportunity to fulfil the “need” of providing people with breakfast solutions. It starts with the knowledge of common breakfast consumption in different regions of India. Overview: Breakfast consumption in India The above consumption practises show that rice, wheat, potato and pulses are the common ingredients while bread, poha, milk and eggs are the common breakfast dishes consumed in the four regions of India.

For a successful need fulfilment by breakfast solutions, the SWOT analysis of the Indian breakfast market is done. 1. 2 SWOT analysis: Indian breakfast market Changing breakfast habits have led the Indian consumer to the following breakfast preferences: * Fast to make * Can be eaten on the go * Economical * Healthy and palatable * Various tastes and choices * Ready to cook v/s ready to eat * Catering to all the age groups * Right quantity * Catering to both vegetarians and non-vegetarians

Breakfast in India is still treated as the traditional “nashta” and marketers are trying to dabble in varied breakfast offerings to suit the Indian palate. At one end, the breakfast industry is offering ready to cook traditional Indian breakfast like upma, porridge, poha, idli, dosa etc. with focus on positioning their brands as a healthy and tasty breakfast which is simple to cook. Heinz, MTR, Britannia belong to this cadre. On the other hand, the industry is offering cereals like Corn flakes, Oats, Muesli and Wheat Porridge and positions itself as low fat, high fibre healthy breakfast provider.

Kellogg’s, Frito-Lay, Mohan Meakin and Marico come in this category. Both the industries are trying to make the Indian consumer conscious about eating the first meal of the day. The Indian breakfast market is ripe with opportunities, with the right strengths of huge domestic market and abundance of raw materials, for out of the box breakfast solutions. 1. 3 Analysis of Cereal Industry In cereal Industry there are many players in the Indian Market: * Kellogg’s India * Pepsi Co * Mohan Meakins * Baggry’s * Britannia * Marico’s Safola * Future Group :Tasty Treat cornflakes (private label) Aditya Birla More : Feasters corn flakes (private label) Today the branded breakfast cereal market in India is pegged at Rs. 500 crores. 80% of the market is cornflakes and the rest is shared by Oats, Muesli and Wheat Porridge. Kellogg’s holds 70% of the total market (a Rs. 350 crore brand). Over the years market share of Kellogg’s has increased. Market Share of the Kellogg’s Brand: * The industry was pegged at Rs. 150 crores way back in 1995 and the growth over past 15 years is only 8. 4% per annum. * The industry has doubled between 2003 and 2009 which means a growth rate of 12. 3%. It has aken a long time for Indians to change but change is now happening. The category is believed to be growing at 20% to 25% now. * Chocos has 20% share of the Breakfast Cereal Market * India is also fastest growing cereals markets in South Asia with annual growth of 24% and * Forecasting of reaching Rs. 14 billion in 2014 1. 4 Hurdles in Indian Market a. Cultural factors and eating habits – population not used to processed foods Indians like to have a heavy breakfast. Breakfast is synonymous to eating heavy and having a feeling of fullness, something oily Parantas, Puris and Dosas provide easily.

Kellogg’s Corn flake breakfast on the other hand does not give that feeling of fullness and that goes against the grain of having a full breakfast. In short after having a corn flake based breakfast the Indian consumers were still hungry. Also Indians have spicy and hot food for breakfast. So expecting them to eat corn flakes for breakfast is also challenging. b. Easy availability of low-priced traditional breakfast- Traditional breakfast options are very cheap and have a lot of variety. Dosas and Pranthas are known for their variety. Indians make sure that the same breakfast is not repeated for at least a week.

Asking Indians to repeat the same type of corn flake based breakfast is too much of a cultural change for the Indians to accept. c. Low awareness about processed foods- Traditionally Indians have not been very conscious of their calorie intake. Neither have they been very particular about the diet plan to be followed for their health. This trend has seen a change in recent years with coming up of many fitness centers, gyms etc. Kellogg’s and other brands have tried to cash on this changing trend. d. Price sensitive customers- Indian customers are known to very price sensitive.

These products are relatively costly as compared to other available traditional breakfast options. Kellogg’s specifically is the most expensive among these brands with its price being double of the other corn flake brands available. This may also hinder the prospect of market growth. Considering all these challenges, Kellogg India is required to come up with a value proposition and a framework to convince Indian consumer to leave the long followed breakfast eating pattern and move to an entirely new range of products offered by the company. 1. 5 Competition in Breakfast Cereal Industry

Breakfast is the most important meal of the day. Certainly for several packaged food companies, if not for everyone. Call it the breakfast war, the scramble to serve the first meal of the day is getting busier with companies such as Britannia, Marico, PepsiCo, Kellogg India and MTR Foods offering more and more options to meet Indian consumers’ rising demand for quick-fix food. Several companies looking to cash in on a surge in demand for quick-fix breakfast options in urban areas where the number of double-income families and working professionals are rising and consumer lifestyle and food habits are changing.

These products are targeted specifically at urban, working people and, hence, there is no price undercutting or margin pressure, helping the industry grow in double digits, in volume and value. Industry players estimate the branded breakfast foods market in India at around Rs 500 crore, offering enough room for new entrants. There is a ready market for such products. Among the cereal industry what is surprising to see is that a lot of competition is present in Oats segment which is much smaller than cornflakes. Pepsi has quaker oats not cornflakes. Marico has Saffola Oats but no cornflakes.

Britannia also has Oats and Muesli but no cornflakes. Cornflakes is a 400 crore market compared to 80-100 crore Oats. It seems companies consider fighting in a new and growing category safer than taking Kellogg’s head on in the cornflakes market. Company| Product line| Product width| PepsiCo| | | | Oats| Quaker Oats| Kellogg India| | | | Corn flakes| Kellogg’s Corn flakes| | | Kellogg’s Special K| | | Kellogg’s Wheat Flakes| | | Kellogg’s Chocos| | | Kellogg’s Honey Loops| | Oats| Kellogg’s Heart to Heart oats| | | Kellogg’s Oat Bites| | Muesli| Just Right muesli| Britannia Industries| | | Oats| Classic Oats| | | Savoury Oats| | | Strawberry Oats| | | Multigrain Oats| MTR Foods| | | | Instant Mix| MTR rava dosa| | | MTR Idlis| | | MTR Uthappam mix| | | MTR Dhokla mix| Company| Product line| Product width| Marico| | | | Oats| Saffola Oats| | | Saffola Masala oats| Baggry’s| | | | Oats| White Oats| | | Chewy Oats| | | Jumbo Oats| | Muesli| Fruit N Fiber Muesli| | | Crunchy Muesli| Mohan Meakin| | | | Corn flakes| Corn flakes| ITC Foods| | | | Instant mix| ITC Rava Idli Mix| | | ITC Rice Idli Mix| | | ITC Rice Dosa Mix| Future Group| | | | Corn flakes| Tasty Treat cornflakes (private label)|

Aditya Birla More| | | | Corn flakes| Feasters corn flakes (private label)| Spencer’s Retail| | | | Cereal| Tasty Wonders cereal (private label)| McDonald’s| | | | Breakfast Menu| Breakfast menu in metros| Apart from the cereals there is a good demand to ready-to-eat traditional breakfast as well. MTR and ITC with their instant breakfast mixes such as rava idli, dosa, uthappam are targeting this segment. Incidentally, quick-service restaurant chain McDonald’s, which enjoys strong equity in the breakfast meal space globally, has also identified the gap in the breakfast market.

Its chicken Mexican wrap, muffins and hash browns offering is being rolled out across Pune and Bangalore, beyond Mumbai and New Delhi, in past few years. India has one of the highest rates of coronary heart disease in the world and the incidence is increasing. Caring for the heart is set to become an important concern among consumers. Breakfast cereal producers, especially oats manufacturers, will benefit from this trend with more consumers will become aware of the benefits of oats.

Cereals with other health or nutritional benefits, such as reduced sugar, high fibre or vitamin enriched cereals will also grow faster than traditional corn flakes or rice flakes, because one of the key decision factors for consumers to purchase cereals is their health benefits. Such demand will drive innovation in breakfast cereals with more new launches and the introduction of international brands over the forecast period. 1. 6 Breakfast Market Segmentation The Indian breakfast market can be segmented in the following ways: a.

Demographic: The choice for breakfast varies when it comes to demography. The young demographic profile, increasing income, time constraint due to increasing number of working couples and increasing awareness about healthy diet has made the breakfast market grow. b. Behavioral: Breakfast habits tend to change from individual to individual. Kids prefer tasty snacks for breakfast while adult men need a heavy traditional breakfast to start their workday. Health conscious women and men go for low fat breakfast. However in most parts of India, it is still the traditional breakfasts that rule the table. c.

Psychographic: Psychographic segmentation has become a very important concept for the marketers with an ever changing lifestyles, values and thinking. Companies are using scientific methods to understand the needs of the consumers and are segmenting them according to their personality and psychological traits, lifestyle or values. d. Geographic: When it comes to breakfast products in India we can segment the market among the North, South, East and West regions with each region preferring different breakfast items. Also there can be segmentation based on tier 1 and tier 2 cities, urban and suburban areas. . Marketing Strategies of the Major Breakfast Cereal Players 2. 1 Products and Strategies of Kellogg’s India The brand name Kellogg’s is synonymous with the Cornflakes category in India. Kellogg’s, a multinational giant, came to India in 1994 and is responsible for building the cornflakes category. The journey has been far from easy. It has actually been so tough that Kellogg’s found a place in the book ‘Brand Failures’. Kellogg’s tried to change the breakfast habit of the Indian people and has not had as much success as it hoped for. 2. 2 Kellogg’s Product Portfolio

Kellogg’s offering consists of the following products: Kellogg’s cornflakes, Heart-to-Heart Oats, Special K, All Bran Wheat Flakes, Kellogg’s Chocos, Kellogg’s Honey Loops and Kellogg’s Extra Muesli. Each of these is available in multiple variants. Kellogg’s is the umbrella brand under which all its variants are sold. Kellogg’s is targeting everyone in the family with a special offering. All these are breakfast options but meant for different target segments. They have ensured no one is missed out. Kellogg’s is targeting everyone in the family with a special offering. All hese are breakfast options but meant for different target segments. They have ensured no one is missed out. Product line| Product width| Product depth| Target group| Year | CORN FLAKES| | | | | | Kellogg’s Corn Flakes | Original, Strawberry, Honey, Almond and Honey, Banana, Mango| Entire family| 1994| | Kellogg’s Special K| | Women| 2008| | Kellogg’s Wheat Flakes| | Women| 2001| | Kellogg’s Chocos| Smacks, Planet Stars, Duet| Kids| 2009| | Kellogg’s Honey Loops| | Kids| 2009| OATS| | | | | | Kellogg’s Heart to Heart Oats| | Men 30+| 2010| | Kellogg’s Oat Bites| | Men 30+| 2010|

MUESLI| | | | | | Kellogg’s Extra Muesli| Nuts Delight, Crunchy Fruit & Nut, Fruit Magic| Adults| 2006| 2. 3 Kellogg’s Cereal Products and Strategies Adopted 2. 3. 1 What has been the Strategy so far Kellogg’s entered the market as a premium product offering the best quality. They did not have much success to begin with. Their price was too high for middle class India and they were trying to change the breakfast eating habit of Indians. In marketing, asking a consumer to change their habit is perhaps the toughest task. Hence, growth was slower than expected. 2. 3. There were many problems for Kellogg’s * The price of a 500 gm pack of Kellogg’s corn flakes cost more than a third than its nearest competitor. They targeted the middle-class consumers, but the high pricing resulted in the consumers buying it as a status product rather than a nutrition rich breakfast product. * Consumers were unwilling to shake off their traditional roots and adopt to the western food Habits. * Indians preferred hot milk with breakfast, and Kellogg’s crispy corn flakes turn soggy when mixed with the same which was not liked by Indian consumers. Kellogg’s in its advertising campaigns hinted that the Indian breakfast was not nutritious and that Indian breakfast was not very good for health. This deeply hurt the sentiments of the home maker and was one of the reasons for their failure. * Promotion of corn flakes always showed a family eating on dining tables while many Indian households do not have the habit of eating on tables. Kellogg’s realized that what works in the US need not work here. They launched Cheez-It and it failed. They launched biscuits and it bombed. 2. 3. 3 What have they done over the years to reach here

To get more consumers to try their product, they launched Rs. 10 packs in 2010 (called Kpak). This also helped them gain distribution. Expecting a small shop to keep a big box of Kellogg’s was tough, but it’s easier to place a Rs. 10 pack. For a consumer, investing Rs. 10 on a premium product is much easier than investing Rs. 80 and buying a 250gm pack. 2. 3. 3. 1 Cornflakes: The Company positioned this product as their main offering with the tagline “The Original & Best”. Kellogg’s also came up with variants to suit local tastes; Mango, Honey, strawberry etc.

The low fat Kellogg’s Corn Flakes is called as “Iron Shakti”. The product positioning has been changed as well: From a breakfast cereal, it is now also a “Shaam ka Nashta” (evening snack). The new positioning will help promote out-of-home consumption. 2. 3. 3. 2 Chocos: and honey loops cater to kids. They have also launched a lot of related products aimed at different segments and hence have expanded their presence and made themselves relevant to more people without diluting their brand. To gain an easy entry into the market, Kellogg’s first targeted kids. Convincing kids was much easier for them than convincing adults.

All of these moves have indeed helped Kellogg’s reach to this position today. 2. 3. 3. 3 Special-K: This product is specifically targeted towards women in the age group 18-35 who are particularly conscious about their figure and health. Kellogg’s positioned this product primarily as a low-fat cereal that can be eaten to help one lose weight. It frequently has give-away offers for various health and fitness products or contains dieting information on the back of the box. The company launched a separate website dedicated for Special K. Using this website, Kellogg’s launched a competition named as “Special K Challenge”. . 3. 3. 4 Heart-to-Heart Oats: In the year 2010, Kellogg’s launched Heart to Heart Oats, made with 100% wholegrain oats, marking the company’s foray into the hot cereal category in India. It is positioned as a risk reducing product to heart diseases. The product helps the reduce cholesterol. It is also low in salt to help keep blood pressure healthy. 2. 3. 3. 5 Muesli: Kellogg’s has launched muesli with three different flavors containing dry fruits and nuts. This has not been positioned separately for any segment. But here also they have maintained the health factor they always promote. . 3. 4 Where is the competition Cornflakes are 80% of the breakfast cereals market and Kellogg’s rules the roost here. The other major player in the market is Mohan Meakin. Big super markets have their private labels as well. The competition is priced half of Kellogg’s and still is unable to dent the consumers of Kellogg’s. This is purely because of the superior quality of Kellogg’s. A lot of competition is present in Oats segment (80-100 crore market). Marico rolled out Saffola Oats and is pitting itself against established MNCs such as PepsiCo (with Quaker Oats) and Kellogg’s.

Britannia also has Oats and Muesli but no cornflakes. Heinz India too has decided to enter the breakfast cereal market by introducing Complan Nutri Bowl Muesli. It intends building the Complan franchise with a host of health and nutrition products. Other than this Kellogg’s is facing competitions from other breakfast substitutes such as ready-to-cook breakfast solutions such as idli, dosa, vada, upma from MTR and Gits. Other breakfast solutions include juices, butter and cheese spreads, honey, dairy products such as milk, curd etc. These can be substitutes or complements to cornflakes. 2. 3. Kellogg’s Today Factors for success of Kellogg’s – in short: * Innovative marketing and brand-building * An efficient supply chain network, with a association with a large number of distributors * Customizing their products to suit the Indian market * Catering to each section of market by providing products of varied flavors, nutritional aspects and packages * Maintaining a “ Just in Time” strategy which helps Kellogg’s to reduce inventory * Benefiting the retailers by providing shelf ready packaging units and distribution network to help them reduce their inventory 2. 3. 6 Issues

It’s Price Point. Just an example, the price of Kellogg’s cornflakes is 100% more than Mohan Meakin (another old and strong brand). If they want to grow fast, they need to give more value (value is what we get for the price we pay) to consumers. 3. Product and strategies of PepsiCo for Quaker Oats The 130+ years old brand Quaker Oats has been a world leader in the oatmeal segment. PepsiCo, the American multinational corporation entered the cereal market by a merger with Quaker Oats in 2001. Quaker’s cereal and snack food division serves as healthier complement to the PepsiCo’s Frito-Lay snacks division.

In India, Quaker Oats was launched in 2006. Over the past few years, the urban Indian consumer has become more aware of an ideal diet as well as an active lifestyle. Given this situation, healthy food products are finding their mark when launched in the markets. The launch of Quaker Oats in India addressed this rapidly growing health trend. 3. 1 What has been their strategy so far Since the launch of the brand, the company created a distinct image of Quakers in the consumer’s mind. This helped the company to differentiate its brand from the other brands in the market.

In India, the product was less promoted through television commercials and the print media. With a target group of middle class husbands and wives in the age group of 30 years and above having hectic lifestyles, Quaker Oats positioned itself as a very nutritious breakfast option for a quick and easy morning meal for the family. In the initial stages, the company introduced trial packs at low rates such as Rs. 8 and Rs. 10. The pack includes Oats-based traditional Indian breakfast recipe, such as Quaker Oats idli, dosa, poha, upma, uttappam that can be easily cooked at home.

In India, it focussed on the people with diabetic and heart related issues. Oats is a category that can go a long way in reducing these risks. Quaker Oats maintains a portal http://www. goodmorningheart. com which helps to assess risks associated with the heart and provides a range of solutions and information on how to stay Heart Healthy. Also, Quaker Oats in association with The Times of India and Apollo Hospitals announced the launch of ‘Mission to Make India Heart Healthy’. Apollo Hospitals provide free heart check up for Quaker Oats consumers and TOI was involved with the 360 awareness campaigns. . 2 Strategies Today Recently, with the launch of the new range of flavours, Quaker Oat’s promises to appeal to consumers across age groups in terms of taste. All the four new flavours have healthy inclusions of real fruits and vegetables, topped in local Indian flavours. While the Strawberry flavour with Apple has real apple pieces, the Kesar flavour with Kishmish has real raisins. 4. Products and Strategies of Marico Marico is one of India’s leading Consumer Products & Services companies in the global beauty and wellness space.

Saffola had become well-entrenched in the minds of the consumers as a health and wellness brand in the cooking oil space. The company extended this brand name to its other offerings in the packaged foods category starting with Saffola low sodium salt and atta for diabetics, followed by Saffola Arise Rice. Saffola launched Saffola Oats in 2010 as a healthy, nutritious and active way to start your day. Its tagline says “Now your meals can be Healthy and Tasty”. The product was first launched in Tamil Nadu and some other Southern India cities where the consumption of oats is high.

To highlight the healthiness of the product the company has exhibited various features of the product. 4. 1 Promotion To be effective in its launch and future sales Saffola needed to come out with an effective promotional strategy. During their launch they promoted the product through advertisements as one which can be mixed with traditional India food ranging from south Indian dishes like Idli and Upma to dishes like Dhokla. They promoted the product as one which allows you to have the taste of your own traditional breakfast but in a more healthy way. | | | | | | |  |  |  |  | | | | | |

In their next stage of promotion the company started giving out recipe books guiding home makers on how to use Saffola Oats in your traditional breakfast along with a mix of healthy Saffola Oats. Going a step further Saffola came out with a plan where they asked people their recipe of Saffola Oats and started printing these recopies in their recipe books. Their site also invites consumers to share different recipes from their end to enhance consumer involvement with the brand. The product is currently available in three different packages of 200g, 400g and 1 kg suiting the needs of different Indian consumers. 4. 2 Saffola 4. 2. Saffola Masala Oats From the house of Marico after the success of Saffola Oats came out another oats product. They called it Saffola Masala Oats,which is the first of its kind in India, with a tagline „A delicious way to keep your Family Healthy?. Released in two scrumptious flavours Curry and Pepper and Masala and Coriander the product is currently available in only Tamil Nadu. To differentiate Saffola Masala oats and Saffola Oats, Saffola used the promotional strategy where they put the product as one which can be used at any time of the day and in any type of meal. Saffola promoted the product as like they are not oats.

Keeping the tradition of spice in Indian food they promoted it as one where you will get the taste of Indian Spice on your plate in a more healthy way. Keeping in mind the consumers who are always on the run and having hardly had any time to spend on cooking, Saffola promoted this product as one which can be cooked in just 3 minutes saving ample time for the consumers. 4. 2. 2 SafolaLife In 2009, Saffolalife, a not-for-profit initiative was started by Marico, the objective of which was to spread awareness of the risk of heart ailments in India, and hence attempt to bring down the deaths related to cardio vascular diseases. The initiative encourages a preventive lifestyle through mass media like TV, radio and outdoor communications. * Free cholesterol tests were provided to the people in various cities across India. * In 2009, Saffolalife invited people in an open access format to a diagnostic evaluation of their lipid profiles across several metros. * The consumer had to reach a centre of the Diagnostics Partner: Metropolis Healthcare Ltd, where serum samples of the consumers were collected and analyzed. * Over 60,000 people (one of the largest data bases) responded by presenting themselves for a blood test.

Safolla came up with an online portal http://www. saffolalife. com. This site provides self-health assessment tools, exercising tips, and other health related queries are answered by experts. In 2012, Safolla has come with a new campaign, “Make a Healthy Start”. 5. Products and Strategies of Britannia A market leader in its own domain, Britannia never considered entering the cereals market ruled by other major players. In 2011 it launched its Healthy Start range of products. 5. 1 Britannia Healthy Start Under this label, it launched a variety of cereals to cater to the Indian breakfast market.

The different products available are: * Classic Oats * Savoury Oats * Strawberry Oats * Multigrain Porridge Healthy Start range of products targeted the people in the age group of 25-45 years who tend to possess an unhealthy lifestyle due to the job constraints and are exposed to higher health risks. The Healthy Start range of products was positioned in the market as healthy and tasty breakfast options. It is also positioned as mixes that is easy to cook and take just about 5 minutes. With its tagline “Ghar KeNashte, Health Ke Vastey, the message of being home-made meals for the sake of health is loud and clear. Healthy Grains: Special bigger sized grains for satiety, with lower starch levels to reduce fat and help in quicker cooking. * 100% Real Veggies: The mixes include vegetables preserved with a special Nutri Freeze Science which retains up to 95% of nutrition and taste. * Flavorsome: Exciting spicy mixes made from real spices , perfect for the Indian palate. * No Bad Stuff: No Trans fats, No Cholesterol, No preservatives or MSG. * Special Packaging: Double layer packaging to retain freshness and aroma. During the initial days, the company tied with a lot of online sites and offered free samples.

The company is also actively involved in promoting the product through the social media website Facebook. As a part of its Facebook activities, Britannia conducts the “5 Minutes Breakfast Challenge” to actively engage with the consumers, thereby promoting the brand image and visibility. 6. Products and strategies of Bagrry’s Bagrry’s is a Delhi based company established in 1995 and has experience of five decades in the food industry under the brand name of wheatex and oatex. About 50% of the total group’s revenue comes from the cereal business. 6. 1 Product Portfolio

The following types of products are offered by the company: * White Oats – Hi-fibre, heart Friendly and quick cooking meal * Chewy Oats – 100% Whole Grain Oats and The mouth feel of the product is chewy * Jumbo Oats – Steamed and flaked grain used in the manufacturing of Granola, Bars, and Muesli * Fruit N Fibre Mueslis- Contains crunchy oat clusters with honey, almonds, raisins, wheat and fruits like apple and banana. Has zero cholesterol and trans fat * Crunchy Muesli – Mixture of rolled oats, wheat flakes, corn flakes, oat bran with or without nuts, raisins, honey. It? a rich source of protein and iron. * Oat Bran * Wheat Bran Bagrry’s target consumers are both young professionals in the 25-plus years age group, as well as the elderly in the 55-60 years age group who consume low-calorie and low-glyceamic foods. They also target families that buy in bulk. Their products are available in bulk quantities too. The company has positioned its oats products as heart friendly and as foods that help in weight management. The muesli products are positioned as energy boosting products. The wheat bran products provide dietary fibres, help in weight management and promote good bowel function.

Bagrry’s was the first to introduce products in plastic jars. Also, the brand has been quite successful in changing the breakfast habits of Indians without spending a lot on mainstream advertising. Media has played a very important role in the brand’s growth by generating awareness about health, diet and lifestyle. The brand has been largely promoted by positive customer feedback and word-of-mouth. Brand promotion activities include participation in food fairs, exhibitions, shop demonstrations, point-of-sale promotion and PR.

Bagrry’s has never aired any television commercial. They have been using print media and advertise largely in magazines. Southern and Western India are crucial markets for Bagrry? s. As they have a good presence in Southern and Western India, they want to improve their presence in Eastern and Central India. They also seek to diversify in terms of flavoured oats but focus will be health grains. 7. Conclusion With an ever rising population, increasing demand for food products, and changing lifestyles, the Indian cereal market is growing at a tremendous rate of 25 % p. . Breakfast cereals are gaining popularity as an alternative breakfast option to traditional staples. This trend is particularly strong in urban areas where consumers have higher spending power and the price of cereals is less of a problem for them. Due to increasingly hectic lifestyles, many urban consumers and double-income households are choosing breakfast cereals, as these consumers do not have time to prepare breakfast, and are opting for breakfast cereals for their ease of preparation. Consumers are also becoming more aware of Western food and lifestyle trends.

Moreover, an increasing number of manufacturers have fortified breakfast cereals with vitamins, added health food ingredients and promoted their health benefits through educational and social programmes, thus creating a favourable perception of cereals among consumers. The huge prospect is also luring big players like Nestle and Heinz towards the Indian market, which already has a presence of Indian companies like Marico and Britannia and multinational giants like Kellogg’s and PepsiCo.

Competition from these other cereal brands and the presence of traditional Indian breakfast products means that it is important for a brand to take the consumer perspective and mindset also into account while formulating their strategies. The rural markets are very much an untapped market as far as cereal products are concerned. The low cost products will be effective in the rural market. The players in the Indian breakfast cereal market offer products in the corn flakes, oats and muesli category.

Kellogg’s leads the pack in the corn flakes market with a 70 % market share, whereas Quaker Oats holds the leadership position in the oats market. India has one of the highest rates of coronary heart disease in the world and the incidence is increasing. Caring for the heart is set to become an important concern among consumers. Breakfast cereal producers, especially oats manufacturers, will benefit from this trend with more consumers will become aware of the benefits of oats.

Cereals with other health or nutritional benefits, such as reduced sugar, high fibre or vitamin enriched cereals, will also grow faster than traditional corn flakes or rice flakes, because one of the key decision factors for consumers to purchase cereals is their health benefits. Such demand will drive innovation in breakfast cereals with more new launches and the introduction of international brands over the forecast period. Consumers are becoming more busier and health conscious by the day and what they need is something which suits them in the this



Get your custom essay sample



Hi there, would you like to get such a paper? How about receiving a customized one?

Check it out