1. Pet Services in India – From Bow-Bow to Wow-Wow
Issues:
» The impact of changes in social structures on businesses
» How the entry of established players brings about a change in consumer behavior
» Understanding the reasons behind the growth of pet service business in In
Introduction
In 2000, Mars Inc., a $14 billion US giant in dog food, entered the Indian market through its wholly-owned subsidiary, Effem India Pvt. Ltd. The company started its operations in India with its Pedigree dog food brand. Mars was not the only international player showing interest in this market. Nestlé Purina Petcare company, part of international food giant Nestlé, also entered the Indian pet products market with its Purina brand in 2003.
Questions for Discussion:
1. “One pet owner proclaimed, ‘Our pets are our kids.'” Assess the changes in the Indian society that has resulted in the growth of pet services in India?
2. “Indian pet owners have traditionally fed pets with home-cooked food. But the trend is rapidly changing in favor of branded pet foods, because these provide balanced diet and pets do have specialized nutritional needs.” How did the belief systems prevalent in the Indian families influence the dietary patterns of the pets?
2. Kellogg’s Indian Experience
In April 1995, Kellogg India Ltd. (Kellogg) received unsettling reports of a gradual drop in sales from its distributors in Mumbai.
There was a 25% decline in countrywide sales since March1995, the month Kellogg products had been made available nationally. Kellogg was the wholly-owned Indian subsidiary of the Kellogg Company based in Battle Creek, Michigan.
Kellogg Company was the world’s leading producer of cereals and convenience foods, including cookies, crackers, cereal bars, frozen waffles, meat alternatives, piecrusts, and ice cream cones.
Founded in 1906, Kellogg Company had manufacturing facilities in 19 countries and marketed its products in more than 160 countries. The company’s turnover in 1999-00 was $ 7 billion. Kellogg Company had set up its 30th manufacturing facility in India, with a total investment of $ 30 million.
The Indian market held great significance for the Kellogg Company because its US sales were stagnating and only regular price increases had helped boost the revenues in the 1990s.
Launched in September 1994, Kellogg’s initial offerings in India included cornflakes, wheat flakes and Basmati rice flakes.
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. Even a high-profile launch backed by hectic media activity failed to make an impact in the marketplace.
THE ISSUES
Kellogg realized that it was going to be tough to get the Indian consumers to accept its products. Kellogg banked heavily on the quality of its crispy flakes. But pouring hot milk on the flakes made them soggy. Indians always boiled their milk unlike in the West and consumed it warm or lukewarm. They also liked to add sugar to their milk or lukewarm.
Discuss the case in detail.
3. Online Matrimony Services in India
Issues:
» Evolution of online matrimonial services in India
» How online matrimonial services are used to balance family influences with individual aspirations
» Threats posed by online matrimonial services to the traditional media
Introduction
Online matrimony services in India started in the late 1990s. By 2003, there were about 2000 online matrimonial websites in India. By 2005, the two leading players in the Indian online matrimonial market were Shaadi.com and BharatMatrimony.com.
Questions for Discussion:
1. “Considering the significance, the institution of marriage holds in the life of an Indian, Internet matrimony was sure to be a winner.” What were the reasons behind the success of companies like Shaadi.com and Bharatmatrimony.com?
2. Newspapers like the Times of India and Hindustan Times have come up with online offerings, for the matrimonial ads placed in those newspapers. Discuss the reasons that prompted newspapers to enter the online matrimonial space.
4.Maruti – Valuing the Indian used Car Market Issues:
Issues
» Evolution of the used car-market in India
» Role of word-of-mouth in developing new business for a company
» The role of changing demographics in developing new markets.
JetBlue Airways (jetBlue), a New York-based low-cost airline flying to 32 cities in the US in 2005, started operating in 2000. Maruti Udyog Limited (MUL), the largest automobile company in India in 2005, came into existence through an Act of Parliament in 1981. In 1982, MUL entered into a joint venture with Suzuki Motor Company of Japan to manufacture cars in India. With the entry of MUL, the car market in India started growing.
Questions for Discussion:
1. It was after the entry of companies like MUL, Ford, Mahindra, etc., that the organized used car market in India attained critical mass. To what extent has the entry of these players changed the consumer behavior towards the used car market?
2. “In 2001, MUL, the market leader in the car industry in India, entered the used-car market in India by launching its True Value operations.” How will the entry of Maruti into the used car market help the company maintain its leadership position in the Indian car market?
