MARKETING ASSIGNMENT

KRAFT FOODS –MARKETING STRATEGY

FOR INDIA

11/5/2011 1

ALOK JAINMBA, IIT KANPUR

Estimation for the next 5 year

• Current market value of biscuit industry = 12000 crore

• Average annual growth rate = 17%

• Average annual growth rate (Premium segment)= 20 – 25 %

• Taking a conservative view = 15%

• Market value after 5 years = 12000*(1.15)^5

=24136.28 crores Sales

Glucose

Premium

So the net worth of premium biscuits in the next five year= 12068.14 crore

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Segmentation and preference

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No More Complaints

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Introducing NEWTONS

• Premium segment productcatering “aspiring India”

Taste + Health

Customized with ingredients like Almonds and Brahmi

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PROMOTION

• Free trial pack with Bournvita.

• Coupon with each pack and one pack freewith 5 coupons ( for consumers)

• Tea stalls to offer 2 biscuits free

• Packs of three sizes targeting ASPIRING INDIA

• Dedicated large shelf space at retail stores & Incentives on achieving sale targets

• Advertisement in mass media

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Rs.10/-

Rs.20/-

Pricing and Packaging

Rs.5/-

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Biscuits will be rolled out in cities initially

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SWOT analysisSTRENGTH

•Kraft has strong brand image with over 170 countries all over the world •Strong distribution network of cadburyin India •Nutritious and healthy innovative biscuit

WEAKNESS•New entrant in Indian biscuit industry with such product•Difficult to sustain profit margin

THREATS•Threats from well established regional & local player•Increasing raw material & distribution cost•Highly volatile market and difficult adaptation

OPPORTUNITIES•Entry for wide range of products in future•To capture the growing biscuit market of India

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REFERENCES

• www.kraftfoodscompany.com

• http://articles.economictimes.indiatimes.com/2009-10-27/news/28409019_1_glucose-biscuits-biscuit-brand-nutrichoice

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Thank you

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