India- a name, welcomed by major brands across the world! Globalization and international trade are adding catalyst to this market reaction. Can all the brands succeed by simply replicating their native business model? On the top of mind, many have tried and majority has failed. Every geography has its own culture, tradition and values and to accommodate the brands amidst the mindset if the customers, requires a tricky permutation and combination of all these. The very basic tastes and preferences of Indian consumers present a deviation from rest of the world. A wide urban and rural divide creates another challenge for the companies to mould their distribution network. They need to adapt to the local market in order to entice the customers towards their brands. This “Glocal” strategy will help the new brands to
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Being popular in more than 160 countries with sales turnover of about $9 billion and Indian Governments move of attracting FDI, its entry into India was seen as a welcome move. But the initial entry of Kellogg’s in India (1994) was a blunder. With a business goal to change the breakfast habit of the Indian consumers, it tried to switch them from hot homemade food to its own products. But India is a country of diversity with the eating habit varying across its region to region. With Idli-dosa in the south to Parantha in the north, with Poha in the central India to Puri in the east, the breakfast habit is significantly different. For Kellogg’s, it really became a tough nut to crack to change the ingrained breakfast habits of the Indian consumers. Kellogg’s had to pass through different tough phases of the life-cycle before it became the strongest player in the breakfast cereal market in India. According to a report, The Economic times (December 2013), Kellogg’s grew 31% to cross Rs 500 crore sales in India with more than doubling its business in the last three
Being popular in more than 160 countries with sales turnover of about $9 billion and Indian Governments move of attracting FDI, its entry into India was seen as a welcome move. But the initial entry of Kellogg’s in India (1994) was a blunder. With a business goal to change the breakfast habit of the Indian consumers, it tried to switch them from hot homemade food to its own products. But India is a country of diversity with the eating habit varying across its region to region. With Idli-dosa in the south to Parantha in the north, with Poha in the central India to Puri in the east, the breakfast habit is significantly different. For Kellogg’s, it really became a tough nut to crack to change the ingrained breakfast habits of the Indian consumers. Kellogg’s had to pass through different tough phases of the life-cycle before it became the strongest player in the breakfast cereal market in India. According to a report, The Economic times (December 2013), Kellogg’s grew 31% to cross Rs 500 crore sales in India with more than doubling its business in the last three