Was entering the market with standardized product mistake

Assignment Help Operation Management

Reference no: EM132303779

A major cereal manufacturer produces and markets standardized breakfast cereals to countries around the world. Minor modifications in attributes such as sweetness of the product are made to cater to local needs. However, the core products and brands are standardized. The company entered the Chinese market a few years back and was extremely satisfied with the results. The company’s sales continue to grow at a rate of around 50 percent a year in China. Encouraged by its marketing success in China and other Asian countries, and based on the market reforms taking place, the company started operations in India by manufacturing and marketing its products. The initial response to the product was extremely encouraging, and within 1 year, the company was thinking in terms of rapidly expanding its production capacity. However, after a year, sales tapered off and started to fall. Detailed consumer research seemed to suggest that while the upper-middle social class, especially families where both spouses were working, to whom this product was targeted, adopted the cereals as an alternative meal (i.e., breakfast) for a short time, they eventually returned to the traditional Indian breakfast. The CEOs of some other firms in the food industry in India are quoted as saying that non-Indian snack products and restaurant business are the areas where MNCs can hope for success. Trying to replace a full meal with a non-Indian product has less of a chance of succeeding. You are a senior executive in the international division of this food MNC with experience of operating in various countries in a product management function. The CEO plans to send you to India on a fact-finding mission to determine answers to these specific questions.

What, in your opinion, would be the answers to these questions:

Was entering the market with a standardized product a mistake?

If it was a mistake, was it a problem of the product or the way it was positioned?

Given the advantages to be gained through leveraging of brand equity and product knowledge on a global basis, and the disadvantages of differing local tastes, what would be your strategy for entering new markets?

Reference no: EM132303779

Questions Cloud

Strategic objectives-communication tactics of participants : Describe a conflict event that you have observed in an organization, and identify the strategic objectives and communication tactics of the participants

Liquid medication designed to prevent glaucoma : Newvis Pharmaceutical Company is monitoring a process that fills vials with a liquid medication designed to prevent glaucoma in the eyes of the user.

What are the implications for my professional behavior : What are the implications for my professional behavior and success? In other words, how can you use this material in your professional life?

Statistical tools for different types of research design : What are the Statistical Tools for different types of research design. Name and explain apples objectives and target market when they took Steve Jobs back.

Was entering the market with standardized product mistake : Was entering the market with a standardized product a mistake? If it was a mistake, was it a problem of the product or the way it was positioned?

What are primary leadership challenges facing the committee : What leadership styles could be developed in this situation? What are the primary leadership challenges facing the committee?

Acute care and long-term care facility : What is the difference between an acute care and a long-term care facility? What is the difference between an ambulatory care and an acute care facility?

The darling of the low-cost flight industry : On Valentine's Day 2008, JetBlue, an airline that had become the darling of the low-cost flight industry,

Emerging trends and technologies for target corporation : Explain which emerging trends and technologies could be used to improve/enhance the e-business system of Target.

User Account

All Pages