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7/28/2019 amm presentation-120811224207-phpapp01

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CASE STUDY ONPerfettis Distribution Strategy

Presented by :

Prasad Kumar Nayak.


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About the company

This is the first MNC company diversifying in

to snacks business.

Perfetti van melle is a ITALY based parentcompany.

It have 31 manufacturing in world wide, 3

manufacturing locations in India (ManesarPlant, Chennai Plant & Rudrapur Plant).

It has 5000 distributors service worldwide.


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Continues:

It entered in india in 1994.

Sameer suneja is M.D. of perfetti india.

It employs 18,000 peoplevia35[subsidiary companies.

It distributes its products in over 150

countries.Product quality

Food safety management system

CSR (corporate social responsibility)


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Stop not golz

Time to wait,STOP!

Time to snack,

STOP NOT!


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Alpenliebe

Alpenliebe waslaunched in India in

December 1995 with adistinct productproposition.


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Alpenliebe lollipop

The brand positioning ofLagey Raho reflected inthe communication, not

just communicated theproduct experience butwent beyond.

It communicated thepleasure of the long lastinglollipop.

In the year of launch(2001) Alpenliebe becomethe market leader with 46%

market share.


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Alpenliebe Mangofillz

Mangofillz has takenforward the overall brandplatform ofirresistibilitywhilekeeping the focus on themango taste of theproduct.

Kajol, the Alpenliebe

brand ambassador, isbeing brought in toprovide a connect withthe parent brand and

bring in its heritage,


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Alpenliebe Creamfills

It is a Caramel Candy with acream filled center. It was launched as a brand

extension of alpenliebe as aninnovation in 2005 but within

four years it has carved its ownidentity. Creamfills is positioned on

surprise where one gets morethan expected, as the base linesays What a surprise.

When launched it was aninnovation and the only candyavailable with a filling insideand till 2009 the positioning

was ofKuch Alag Achanak.


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Big Babol

Big Babol was launchedin India in 1995.

It has been positionedon the fact that how youcan use big bubbles toyour advantage and

make Big BabolBade Kaam ki Cheez.Over time,


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Center Fresh

Center Fresh, the flagshipbrand of Perfetti Van Melle'swas launched in 1994. It wasthe first liquid filled chewinggum .

It is available in Spearmint,peppermint and Sweet mintflavours and in the Re 1

mono and 5 pcs Rs 6 stick.

Center fresh trulyRakhe Zubaan pe lagaam.


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Center Fruit

Center Fruit was launched in the year2006 as Indias first ever fruit-flavoredliquid-filled gum.

It was launched with 2 tantalizingflavors Tutti Fruity and Grape.Initially, it rode on the strong equity ofCenter Fresh but over the years, thebrand has carved a niche for itself and isone of the fastest growing brands inPerfetti Van Melle portfolio today.

In addition to Tuttii Fruity and Grape,the brand has added 3 more deliciousflavors - Strawberry, Watermelon andSweet Mango.


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Chocoliebe

Launched in 2006 over thepast four years, Chocoliebeis Perfetti Van Melle'spremium offering in the

clairs segment. Since 2006 we have built

the brand on the premiseof a rich chocolate & soft

caramel which wasimplemented by the firstcommunication of

Pyar Do. Pyar Lo.


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Mentos

Mentos started its journeyin India way back in 1999,under the Freshmakerpositioning. But the

Mentos story starts in2002, when it was re-launched. Subsequently in2003.

it got an Indianizedpositioning ofDimaag ki Batti Jala depertaining to smart

thinking


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Chlor-mint (candy & gum)

Chlor-mint was launched in theyear 1997 in the Health carecategory as an AyurvedicProprietary Product whichcontained Herbasol that helpedbreath freshness.

The brand has built a uniqueplace for itself in the consumer'smind, so much so that 'DobaraMat Poochna' is part of everydayparlance meaning .

In order to widen the appeal of thebrand, Salman Khan was chosenas the brand ambassador in 2009.

currently the tag line is

chaba daba ke khao.


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Happydent

The "Palace" commercialswept all creative awardsin India and bagged two

awards at Cannes. Truly, Happydent is a

"chewing gum for asparkling smile" Jagmaga le, Muskura Le.

It comes in three flavorhappident white,happident wave,happident sugar free.


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Marbels

So enter the wonderfulworld of Marbels CozMarbels Ki DuniyaMain Kuch Bhi HoSakta Hai!


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Center shock

Innovative productsthat WOW you andare fun to make aswell! This extremelysour gum with a sweetheart was launched inIndia in 2002.

Once you got over the

Shock, you could tasteeither the GreenApple or the Peachflavored sweet center.


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competitors


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Melody

Q 1 A l h di ib i f P f i hi h


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Q.1: Analyze the distribution strategy of Perfetti, which

enabled it to become a leading player in the Indian

confectionary market.

BEFORE MERGER IN INDIA

The company offered hefty sales-linked incentives such as

increase in margin in percentage terms with increase in sales and

offered one pack free on every pack sold.

AFTER MERGER WITH VAN MELLE IN INDIA

Brought a distribution network of 3 lakh outlets which todaybecome 10 lakhs

FOCUSED ON POP OUTLETSWHO ARE UNABLE

TO PUECHASE LARGE QUANTI TY


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CREATED A MULT-TIERED DISTRIBUTIONSYSTEM .

Divided Its11brands In To Two Groups P1and P2

Non-conflicting brands like Alpenliebe original, Chlormint,

Big Babol and Center fresh were grouped under P1

CenterShock, Chlormint gum, Mentos, Marbels, Fruit-tella and

Happy Dent were planted in P2

Perfetti spends Rs17 crore for advertising andmarketing of the product to attract customers and

to improve sales.


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The product allotment and commissionstrategy adopted by perfetti led to discontentamong the channel members. Explain the

companys rationale in adopting such adistribution strategy.


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Perfetti entered into the Indian market.

During the entrance in the Indian market,Perfetti did not merge or acquired any

company. It adapt the simple way that how much the

goods wills be demand that much will besupplied.

The great change occur when it acquired thevan melle

The acquisition brought a distribution networkof 3 lakh.


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Instead of expanding the distribution networkover a large of region, they focused on specific

areas . Company focused on small retailers .

Small retailers unable to purchase largequantity.

Retailers were not willing to buy the samebrands twice a week.

Some brands are perceived as substitute by the

retailers.


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To solve this problem and to keep flow ofproduct in the market, the company had

divided their product into groups. P 1 group consists of Alpenliebe original,

Chlormint, Big Babol. P2 group consisted ofCentershock, Chlormint gum, Mentos,

Marbles, Fruit-tella and Happy Dent.


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The company paid 5 percent margin to thedistributors compared to the average industry

figure of 10 percent. Retailers were paid 15 percent when the

industry standard was around 30 percent.

These are the basic reason for productallotment and adapting such strategies.


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