O slideshow foi denunciado.
Utilizamos seu perfil e dados de atividades no LinkedIn para personalizar e exibir anúncios mais relevantes. Altere suas preferências de anúncios quando desejar.


5.636 visualizações

Publicada em

Fourth Quadrant_SCMHRD

Publicada em: Saúde e medicina, Negócios
  • Seja o primeiro a comentar


  1. 1. Submitted By:Team : Fourth QuadrantDebi Prasad DashHarshit RShaleen Agrawal(MBA-1)Healthy ChildHappy Child…
  2. 2. Baby FoodIndustryFrom A RuralPerspectiveSource : National Family Health Survey,Nielsen survey, 2010RURAL INDIA-PRESENT SCENARIO• Forms >70% of consumer base, over 50%contribution to National income.• Strong emergence of rural middle class,increase in disposable income and avghousehold spend•>70% own TV and are influenced by Brandambassadors and jingle in TVC•Rise in aspirations, awareness towards useof brandsISSUES:• 1 in 3 of world’s malnourished childrenlives in India•46% children underweight, 74% anaemic• Levels of breastfeeding dangerously low,50% mothers quit breastfeeding after 6months• Absence of a low-cost high nutrition foodsupplementCONSUMER TRENDS-RURAL INDIA :• Awareness for branded baby food – 31%• Consumption level – 15%• Frequency of use of branded baby foodproducts by consumers – Occasional• Reason for not preferring brandedproducts18% - costlier15% - unavailability in local shopsBaby Foods Industry Analysis• Nestle India Ltd - Market leader with85%(Rs1,500 crore) market share in infantfoods and nutrition market. Brands-Cerelacand Nestum (infant foods), Lactogen,Nestogen and Nan (infant milk).• Farex from Heinz India Pvt. Ltd – keycompetitor in infant foods•Low penetration in rural India
  3. 3. Nestle in Rural Baby Food SegmentNestlés Foray into Rural Market1. Baby food industry growing at an average CAGRof 12% (Current size – 1500 cr, Cereal foodMarket size – 300 cr)2. Emerging robust demand for a low-costnutritional supplement for infants in the wake ofevolved consumer mindset, rising disposableincomes and willingness to buy brandedproducts for improved healthcare of young ones.3. Nestlés strong position as market leader,strong presence in urban market (Cerelac),strong distribution network, R&D capacity andtrust factor.4. Low entry barriers and absence of potentialthreat from competitors.
  4. 4. Competitive AdvantageStrengthsMarket Leadership with 85% share of the 300 cr baby cereal MarketTrusted Brand name in Indian householdsLittle competition/threat from competitorsSound Financial position to promote R&DStrong distribution network for other Nestle Products which can be used topromote Cerelac and CeremealWeaknessesLow customer preference and awareness in ruralIndia due to High cost, low availability and lackof focused advertising.OpportunitiesCapture Market share of Artificial Milk substitutes which are suffering due toGovt regulations and WHO initiatives to promote BreastfeedingCapture the untapped potential of Rural Markets by introducing low costproduct variantsAbsence of any other nutritional supplements (apart from mother’s milk) fornewborns in villagesThreatsRegulations by IMS Act 1992, prohibiting TVadvertisements, using Baby models onpackaging for <2 years baby food productsAvailability AwarenessAcceptability Affordability4 As of Rural Market(sorting out the issues)Inclusive Distributionstrategy through ruraldistributor andkirana shopProviding freeFree samples in PHCs andPositioning as the solutionfor many diseasesHealth camps inpanchayat and PHCs,regional helpline, Doctorsand ASHA karmisSmall Packs andproduct pricing within therange of rural consumersSWOT
  5. 5. Go To Strategy ICerelac Essential strategyIntroduce low-cost variant of Cerelac in ruralmarket in the under 2 years baby foodscategoryPromote the product as an essentialsupplement(not a substitute) to mother’smilk for required nutritionDevelop the new Cerelac variant fitting inthe cost by R&D, collaboration with labslike DRWA* and lab certificationsCapitalize on the growing spending powerof the rural middle, upper middle andupper class, and willingness to spend forchildren and build strong customerpreference*DRWA -Directorate of Research on Women inAgricultureCeremeal strategyAggressively promoteand advertise Ceremealas a highly nutritionalproduct for >2 yearsbabiesCapitalize on thecustomer preferencebuilt by the new Low-cost Cerelac in ruralmarkets and increasemarket shareBuild preferenceamong children byintroducing newflavours, promoting toymerchandise etc.•Enter the largely untouched rural market with a “Twin – Product” Strategy of a Low cost Cerelac Variant –‘Cerelac Essential’ for newborns (<2 years) and ‘Ceremeal’ for >2 years baby foods category.Target Customer Group: R1, R2Expected OutputBirth Rate : 20.97/1000 perannumPopulation : 1.21 billion born2.54 crores (1.21bn/1000 X20.97)Urban: rural Population Ratio =0.76:0.24Below 3yrs children in Rural India= (7.5 crores X 0.76) = 5.7 CroresPotential Market : R1 & R2 only(23.6%) = 1.345 croresExpected Sales (Per Year)= (1.345 crores X 200) = 135Crores
  6. 6. Go To Strategy IIPRODUCT AND INNOVATIONCerelac EssentialLow cost ‘Cerelac’ variantcreated in association withDRWA*Product constituents: sweetpotato based weaning mix withcereals, pulses and oil seedsproviding necessary nutrients toinfantsPackaging: 375gms standardpacking with a new ‘mascot’rather than baby models asprescribed by IMS Act,1992Product introduced as asupplement to Mother’s milkCeremealHighly nutritious foodsupplement for 2 years+ babiescategory.Sold and promoted as a slightlypremium and value addedproduct than Cerelac Essential.PRICING AND DISTRIBUTIONCerelac EssentialNew variant to bepriced at 50/- for astandard 375gms packEach serving to costapproximately Rs.5/-and last for a weekTo be made available atkirana stores andmedical stores usingpre existing strongdistribution network ofNestle (Maggi, Sauceetc.)• CeremealTo be sold at 100/- pricerange for a standard300gms packDistribution - Same asAboveADVERTISING AND PROMOTIONCerelac EssentialPromotion majorly by Word of mouth andlistribution/shopkeeper pushAssociations with labs and certifications to provide trustand authenticity to the productFirst use to be initiated by recommendations from doctorsand health centres as an essential supplement to mothersmilk.CeremealTo be promoted aggressively to convert Cerelac Essentialusers to slightly premium and more nutritious ‘Ceremeal’Pan India TV advertisements launched to appeal to ruralCerelac usersEstablish a mascot with chewable mascot toys forteething childrenIntroduce variety of flavours to build preference amongkidsThank You