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September, 2006 Pragati Maidan, New Delhi, India |
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Now enjoy your breakfast with Godrej.
Comapny to launch health cereals.
Godrej food is now planning to foray in the Rs4 billion breakfast cereal market, a segment primarily dominated by Kellogg’s.
The brand will initially be launches in the northern part of the country as part of a pilot plan. The cereal will be promoted under the Sofit umbrella. The foods executive vice president sales & marketing f the company MY Verma told a leading newspaper that the low pricing policy of the product would help Godrej make a dent in the unexploited cereal market, which is growing at a rate of 10% per annum.
According to analyst it is difficult to crack an orthodox market like India’s since the breakfast habits are different across the country. “Even players like Kellogg’s took a while to get it right in India,” says an industrialist analysis.
However, Godrej seems to have worked all this out. To start with, the company is launching a ‘soya- based’ product, which will its strengthen it reign in the health food market. Secondly, the company will price the products reasonable enough even for the middle class. A 200gm of Godrej’s product will cost Rs30 as against the to Rs70 of Kellogg’s.
Presently the products will be out sourced however, according to Verma the company may consider having its own manufacturing plant as it goes national. The plan is to invest Rs250 million to promote the brand in the year 2005.
The foods divisions of the FMCG behemoth, whose 80% sales come from edible oil business and 20% from the processed food section, contributes about 35% to Godrej Industries topline.
Date: 08-Jan-2005
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