Tuesday, November 17, 2009

Big Bazaar Versus Kellogg's

I should start with an apology that I have not updated the blog for more than a month now, will try and be more regular from now on....

I observed this new item a few days back and thought about writing about it, the fight between Big Bazaar and Kellogg's , and it is not first of the kind that Big Bazaar is involved in , some time back it was with Cadbury’s and even before that it was Lay's. All the three were removed from the shelves of Big Bazaar, and reasons given were the differences Big Bazaar had with the margins that were being given.

Some people might see it as a normal routine affair, bargaining between two parties for better margins, but it is not. It is part of the larger plan which big Bazaar has and the reality which marketers are walking into, the world which will be dominated by Dealer owned labels. In the news you can also read about how Big Bazaar is not too worried about the fact that Kellogg’s would not be there on its shelves, it has it's own Brand Tasty Treat which would be there as an substitute.

Now the typical FMCG marketer in India is used to be on a enviable position, the retailer being small and unorganized and at the mercy of the Brand marketers, who could afford to play from the position of strength. But this all will change in the near future.

The other day I had an opportunity to listen to Mr Manish Tiwary, who heads the Modern trade Division at HUL. a the division which deal with the organized retailers like Big Bazaars, Spencer’s and he shared his concerns how the dealer brands increasingly put pressure on the brand marketers. He said that the time when you could keep getting more customers just on the basis of cosmetic improvements to your brand is more or less over, and only those brands which have a very strong proposition and value for the customers will be able to survive.

Though in India the proportion of organized trade itself is very small and the proportion of the business of dealer owned labels even smaller, but one can see these events giving us a preview of the future holds for brand marketers.....

I had written more on Dealer Owned Brands earlier also , Link1,
Link2

3 comments:

Dissertation Writing service said...

I should start with an apology that I have not updated the blog for more than a month now, will try and be more regular from now on....

I observed this new item a few days back and thought about writing about it, the fight between Big Bazaar and Kellogg's , and it is not first of the kind that Big Bazaar is involved in , some time back it was with Cadbury’s and even before that it was Lay's. All the three were removed from the shelves of Big Bazaar, and reasons given were the differences Big Bazaar had with the margins that were being given.

Some people might see it as a normal routine affair, bargaining between two parties for better margins, but it is not. It is part of the larger plan which big Bazaar has and the reality which marketers are walking into, the world which will be dominated by Dealer owned labels. In the news you can also read about how Big Bazaar is not too worried about the fact that Kellogg’s would not be there on its shelves, it has it's own Brand Tasty Treat which would be there as an substitute.

Now the typical FMCG marketer in India is used to be on a enviable position, the retailer being small and unorganized and at the mercy of the Brand marketers, who could afford to play from the position of strength. But this all will change in the near future.

The other day I had an opportunity to listen to Mr Manish Tiwary, who heads the Modern trade Division at HUL. a the division which deal with the organized retailers like Big Bazaars, Spencer’s and he shared his concerns how the dealer brands increasingly put pressure on the brand marketers. He said that the time when you could keep getting more customers just on the basis of cosmetic improvements to your brand is more or less over, and only those brands which have a very strong proposition and value for the customers will be able to survive.

Though in India the proportion of organized trade itself is very small and the proportion of the business of dealer owned labels even smaller, but one can see these events giving us a preview of the future holds for brand marketers.....

I had written more on Dealer Owned Brands earlier also , Link1,
Link2

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MBA Dissertation said...

I should start with an apology that I have not updated the blog for more than a month now, will try and be more regular from now on....

I observed this new item a few days back and thought about writing about it, the fight between Big Bazaar and Kellogg's , and it is not first of the kind that Big Bazaar is involved in , some time back it was with Cadbury’s and even before that it was Lay's. All the three were removed from the shelves of Big Bazaar, and reasons given were the differences Big Bazaar had with the margins that were being given.

Some people might see it as a normal routine affair, bargaining between two parties for better margins, but it is not. It is part of the larger plan which big Bazaar has and the reality which marketers are walking into, the world which will be dominated by Dealer owned labels. In the news you can also read about how Big Bazaar is not too worried about the fact that Kellogg’s would not be there on its shelves, it has it's own Brand Tasty Treat which would be there as an substitute.

Now the typical FMCG marketer in India is used to be on a enviable position, the retailer being small and unorganized and at the mercy of the Brand marketers, who could afford to play from the position of strength. But this all will change in the near future.

The other day I had an opportunity to listen to Mr Manish Tiwary, who heads the Modern trade Division at HUL. a the division which deal with the organized retailers like Big Bazaars, Spencer’s and he shared his concerns how the dealer brands increasingly put pressure on the brand marketers. He said that the time when you could keep getting more customers just on the basis of cosmetic improvements to your brand is more or less over, and only those brands which have a very strong proposition and value for the customers will be able to survive.

Though in India the proportion of organized trade itself is very small and the proportion of the business of dealer owned labels even smaller, but one can see these events giving us a preview of the future holds for brand marketers.....

I had written more on Dealer Owned Brands earlier also , Link1,
Link2

Stumble Upon ToolbarStumble Upon Toolbar
paulsmith198914@gmail.com said...

I should start with an apology that I have not updated the blog for more than a month now, will try and be more regular from now on....

I observed this new item a few days back and thought about writing about it, the fight between Big Bazaar and Kellogg's , and it is not first of the kind that Big Bazaar is involved in , some time back it was with Cadbury’s and even before that it was Lay's. All the three were removed from the shelves of Big Bazaar, and reasons given were the differences Big Bazaar had with the margins that were being given.

Some people might see it as a normal routine affair, bargaining between two parties for better margins, but it is not. It is part of the larger plan which big Bazaar has and the reality which marketers are walking into, the world which will be dominated by Dealer owned labels. In the news you can also read about how Big Bazaar is not too worried about the fact that Kellogg’s would not be there on its shelves, it has it's own Brand Tasty Treat which would be there as an substitute.

Now the typical FMCG marketer in India is used to be on a enviable position, the retailer being small and unorganized and at the mercy of the Brand marketers, who could afford to play from the position of strength. But this all will change in the near future.

The other day I had an opportunity to listen to Mr Manish Tiwary, who heads the Modern trade Division at HUL. a the division which deal with the organized retailers like Big Bazaars, Spencer’s and he shared his concerns how the dealer brands increasingly put pressure on the brand marketers. He said that the time when you could keep getting more customers just on the basis of cosmetic improvements to your brand is more or less over, and only those brands which have a very strong proposition and value for the customers will be able to survive.

Though in India the proportion of organized trade itself is very small and the proportion of the business of dealer owned labels even smaller, but one can see these events giving us a preview of the future holds for brand marketers.....

I had written more on Dealer Owned Brands earlier also , Link1,
Link2

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