Pillsbury in India
Temi Bamgbose
Fall 2011, Leadership in a Global Environment - OLG593
Napoleon Elortgui
Due Date: October 3, 2011
“Pillsbury in India” The Pillsbury case study was quite interesting. It explained how the Diageo PLC unit of Pillsbury revamps its business by venturing into India (host Country) with a “dying” product in the home country. The four questions asked at the end of the case study will be answered in this paper.
Question 1: Identify and describe the roles of the product policy, pricing, promotion, and distribution in Pillsbury’s marketing of flour in India?
Marketing mix plays a vital role in helping an international company ensure an overall success and it played a paramount role in Pillsbury’s making of flour in India and should always be considered by international companies before expanding into foreign markets.
Pillsbury has a huge market to expand into in India since it “consumes about 69 tons of wheat a year” and India consumes wheat (roti) with “almost every meal.” Pillsbury’s ingenious way of providing flour that is conveniently packaged, contained no artificial preservatives, their focus on freshness and softness, their efforts into research of what the customers want is quite commendable. Because packaged flour sticks to the stomach and is bad for the intestine ((New Delhi housewife), Pillsbury aimed to establish its flour business and then introduce new products to carry its customers up to more lucrative products, which is an excellent business approach.
Effective pricing is essential to business success. Pillsbury strategically set its pricing low (although, higher than its competitors pricing) in order to increase its market share; however, over a period of time, the company planned to increase its products, as well as the price range. Also, Pillsbury took into consideration many factors that impacted pricing, namely, competition, culture, income levels, legal requirements, variation of cost of doing business from country to
Fall 2011, Leadership in a Global Environment - OLG593
Napoleon Elortgui
Due Date: October 3, 2011
“Pillsbury in India” The Pillsbury case study was quite interesting. It explained how the Diageo PLC unit of Pillsbury revamps its business by venturing into India (host Country) with a “dying” product in the home country. The four questions asked at the end of the case study will be answered in this paper.
Question 1: Identify and describe the roles of the product policy, pricing, promotion, and distribution in Pillsbury’s marketing of flour in India?
Marketing mix plays a vital role in helping an international company ensure an overall success and it played a paramount role in Pillsbury’s making of flour in India and should always be considered by international companies before expanding into foreign markets.
Pillsbury has a huge market to expand into in India since it “consumes about 69 tons of wheat a year” and India consumes wheat (roti) with “almost every meal.” Pillsbury’s ingenious way of providing flour that is conveniently packaged, contained no artificial preservatives, their focus on freshness and softness, their efforts into research of what the customers want is quite commendable. Because packaged flour sticks to the stomach and is bad for the intestine ((New Delhi housewife), Pillsbury aimed to establish its flour business and then introduce new products to carry its customers up to more lucrative products, which is an excellent business approach.
Effective pricing is essential to business success. Pillsbury strategically set its pricing low (although, higher than its competitors pricing) in order to increase its market share; however, over a period of time, the company planned to increase its products, as well as the price range. Also, Pillsbury took into consideration many factors that impacted pricing, namely, competition, culture, income levels, legal requirements, variation of cost of doing business from country to
References: Griffin, R. and Pustay, M. (2010). International Business, Sixth Edition. New Jersey: Prentice Hall Rugman, A. M. (2007). Internalization theory and its impact on the field of international business. Retrieved from http://kelley.iu.edu/rugman/Papers- books/Web%20Papers/InternalizationTheoryanditsImpactonIB.doc Wall Street Journal. (1999). Pillsbury presses flour power in india. Copy provided by Cabrini College Lecturer for Case Study assignment