Pillsbury, one of the world's largest producers of grain and other foodstuffs was founded in 1872 by Charles Alfred Pillsbury and his uncle John Sargent Pillsbury. In 2001, General Mill Inc. became one of the largest food companies in the world after buying Pillsbury for $10.4 billion.In mid 1990's Pillsbury decided to expand its business into the potentially market of India. India was utilizing about 69 million tons of wheat a year, second only to China. ( The U.S was utilizing approximately 26 million tons). Large number of India's wheat ends up as roti, a flat bread prepared on griddle that unites almost every meals. Moreover, most of Indian housewives buy raw wheat in bulk, then clean it by hand and store it in huge metal hampers and every week carry some to a neighborhood mill, or chakki, where it is ground between two stones. To help these housewives, the company entered into the Indian market as Godrej-Pillsbury, which was set up as joint venture in 1996 with a 50-50 equity ownership of both parties. The joint venture distributed food products including flour, canned corn and fruit juice. Godrej-Pillsbury launched with flour which played a significant role for Pillsbury to lay its roots in the Indian market. Pillsbury has widespread distribution channels around the worldwide and sells high-value products whereas Godrej is local food giant as well as marketer and distributor of food products.Đọc tiếp: http://www.ukessays.com/essays/business/pillsbury-presses-flour-power-in-india.php#ixzz3gOxCGBiyĐó là một mức độ cao của sự không chắc chắn về sự phổ biến rộng rãi tại Ấn Độ vì bất ổn chính trị mà đòi hỏi phải cho lý do chính trong số nhiều quốc gia. Hơn nữa, điều kiện tàn phá giao thông vận tải, Tiện ích và cơ sở hạ tầng thương mại tài khoản cho các lý do khác của sự không chắc chắn. Các điều kiện nói trên của Ấn độ kinh doanh cơ sở hạ tầng minh họa cho một môi trường nghiêm khắc nghiệt mà công ty có nghĩa vụ phải làm việc từ đầu nếu nó quyết định để làm việc trên riêng của mình. Vì các yếu tố này, Pillsbury đặt Godrej thực phẩm Limited là đối tác của nó. Godrej thực phẩm Limited là một từ của Ấn Độ hàng đầu tập đoàn, nhóm Godrej, với cơ sở sản xuất hiện đại và một mạng lưới phân phối quốc gia của nhà phân phối 800 và 24 phiếu đại lý. Nó cũng là nổi tiếng về cung cấp giải pháp đa dạng đóng gói với nhiều loại hình sản phẩm. Cho các trường hợp không may của hệ thống kinh tế xã hội cơ bản của Ấn Độ Pillsbury đã phải chi tiêu trong hàng tỷ để bắt đầu kinh doanh của mình. Hợp tác với một công ty mạnh mẽ, truyền thống chắc chắn sẽ làm giảm rủi ro của nó và cho phép Pillsbury để thực hiện tốt nhất ra khỏi phân phối và các bí quyết packaging-wise của các đối tác Ấn Độ.Cũng chiến lược của công ty đã hơn xuyên quốc gia mà xuất hiện như công ty cố gắng để kết hợp những lợi ích của quy mô toàn cầu hiệu quả với những lợi ích của địa phương để đáp ứng. Hơn nữa, Pillsbury phát triển nhanh chóng trong bản mở rộng vào thị trường Ấn Độ, công ty đã đạt được đầu tiên mover lợi thế.Read more: http://www.ukessays.com/essays/business/pillsbury-presses-flour-power-in-india.php#ixzz3gOz4TgxjCustomization and Standardization of the Four P'sPillsbury realized that in this tradition bound Indian market they need to push the basics first. Even though the ultimate aim of Pillsbury for targeting Indian market is to sell lucrative product, Pillsbury had to launch Chakki fresh atta, pounded wheat flour, which is more basic product. Consequently its goal is to establish its flour business and then introduce new products to carry its customers up to more profitable products. The main character of Pillsbury's flour product is that it is differentially positioned on the softness factor. Chakki fresh atta maintains the softness up to 6 hours which is most important aspect. In addition to that it provides greater quality of packaging. Maintaining the same taste after the purchase is the primary competence of Pillsbury's product. Furthermore, since 2004, Pillsbury started offering healthier Atta than refined wheat flour. It adds the value of health and well-being to the product by adopting the platform of “wellness” and offering the 100% Whole Wheat benefit to the Indian consumer.Pillsbury product provides customized product by Launching products keeping in mind regional preferences. It segmented the atta market to pit itself against the regional players. General Mills India has launched a new sub-brand under its Pillsbury brand.Price is kept at a little lower value than its main competitors branded Atta, but higher than local Chakki Atta and local brand Price. Pricing in Indian is customized along with the standards of living in India. At first place Pillsbury wanted to offer high-value food which requires some appliances such as micro oven and refrigerator. However, most Indians can't afford to buy such appliances, so Pillsbury had to abandon the strategy.The primary method of promoting is the mascot, The Pillsbury's Doughboy. But this mascot was not same as it is in US market. It was customized to Indian culture. Doughboy greeted in an Indian way and had spoken six regional languages in the local commercial break. Besides, Pillsbury used a free sample of sunflower oil with every five-kilogram package of flour as a promotion tool. Retail and point-of-sale space its visibility is very low. In order to prevent this, it has also been paying grocers to display a standing cardboard Doughboy with its prisible spot in shops.Mode of EntryThe Diageo PLC unit of Pillsbury entered the Indian market by allowing itself to stick to a plan that was somewhat unconventional to their usual standards of entry. This company is accustomed to selling high value products such a microwave pizzas, ice cream, and other frozen baked food products. However, the Indian market is not flowing with significant income in comparison to other parts of the world. In order to successfully enter this market, the company had to rely on the inexpensive and simple goods. The decision was made to enter the Indian market by selling packaged flour. Through its joint venture titled, Godrej-Pillsbury Ltd, the company launched its flour in southern and western India in the late 1990's. Selling pre-packaged flour means that Pillsbury will have to sell high volumes of the products because of the relatively low price attached to it. However, the goal is to first establish the Pillsbury name within Indian households, and earn the trust from the Indian wives. Once the Indian wives trust that Pillsbury flour is reliable and convenient, then Pillsbury can think about introducing more lucrative product lines into the market. It has been noted by the company though, that this goal may take a significant amount of time to achieve. Pillsbury knew that entering the Indian market would be a challenge, but the growth potential in the Indian processed food market should not be overlooked. Many foreign companies have recognized the growth potential and have entered in India's food-processing sector, including Pillsbury. Pillsbury knew that if it wanted to successfully enter the market, it would be best to do so through a joint venture. A reputable and experienced local agent has a good understanding of the market and also maintains good contact with Indian end users. The local agent in India also has good connections with government officials which helps the foreign company gain necessary licenses and clearances. What is also important is that the local agent can help with promotional activities such as placing advertisements in local areas1. We have learned that Pillsbury reached some of these benefits by using a joint venture with the well-established company, Godrej, in India. The company has been able to pay local grocers to display a standing cutout of the Pillsbury Doughboy alongside it's product in visible areas of the stores. This is considered a significant advantage since many grocers have little space within their stores to allow for promotional displays. By entering the market through a joint venture, Pillsbury can find ways of establishing its name more easily, and ensure that their products are successful.
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