Wednesday, December 9, 2009

Blue Ocean Vs Used Apple



Often class-discussions bring very interesting and unnoticed events or happenings.

As 'Beer and Diaper' phenomena (discussed in MIS class), there was another striking story came in class (this time it was Strategic Marketing class):

Mohans had to run its plant 4-shifts to meet demand of Kelloggs Cornflakes Indian market


An example of 'Second Mover Advantage' from marketing class:

How:

1. Kelloggs (termed Pioneer in Marketing concepts) created market of Cornflakes in India.

2. It took years of Kelloggs marketing efforts to change (even little) Indian breakfast preference over Paratha, Idly and VadaPav to Cereals.

3. It must be a time to reap the first mover advantage for Kellogg in Indian Market.

4. Mohans (termed 'Early Follower' in Marketing concepts) introduced a cheaper version of cereals to reap the new market.

5. Indian Customers asked for cornflakes in shops but not Kelloggs but Mohans (price-sensitivity).

6. To meet higher demand of Mohans cereals: Mohans had to run its cereal plant 4-shifts in a day.

So which strategy do you vouch for: a) Blue Ocean (Kelloggs') or b) Used Apple (Mohans')

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