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MarketSince its founding in 1891,Wrigley has establisheditself as a leader in the confectionery industry. It isbest known for chewing gum and is the world’slargest manufacturer of these products, some ofwhich are among the best known and loved brandsin the world.Today,Wrigley's brands are woven intothe fabric of everyday life around the world and aresold in over 150 countries.The original brandsWrigley’s Spearmint, Doublemint and Juicy Fruithave been joined by the hugely successful brandsOrbit,Winterfresh, Airwaves and Hubba Bubba.

Chewing gum consumption in Croatia exceedsthe amount of 34 million USD and holds 34.8% ofthe total confectionery market (Nielsen, MATAM06). In comparison with the past year, themarket has witnessed a 3.2% growth, and today,Wrigley's Orbit is in Croatia a synonym for topquality chewing gum, holding the leading brandposition in the confectionery category (chocolatesexcluded).This product holds 57.4% of the totalchewing gum market (AC Nielsen ON, 2006).

Connecting with consumers and understandingtheir needs, offering innovative merchandisingsolutions and excellent profit opportunities forretailers is the key to Wrigley’s success.The lattercoupled with a focus on innovation and consistentlyhigh level of brand support makes Wrigley anenviable success in the confectionery market.

AchievementsThe Wrigley Company is presently the world’slargest producer of chewing gum. Across the world,Wrigley sales total 4.2 billion USD (source:Wrigleyannual report, 2005).

One of the factors in Wrigley’s success is thedevelopment of products that not only taste greatbut also deliver unique benefits for

a confectionery product.These products deliver arange of benefits including dental protection(Orbit), fresh breath (Winterfresh), enhancingmemory and improving concentration (Airwaves),relief of stress, helping in smoking cessation andsnack avoidance.

Wrigley is one of the pioneers in developingthe dental benefits of chewing sugarfree gum -chewing a sugar-free gum like Orbit reduces theincidence of tooth decay by 40%. Its work andsupport in the area of oral healthcare has resultedin dental professionals recommending sugarfree gumto their patients.

Thanks to Orbit, Croatia is today one of the top10 European markets with the highest per capita

consumption of this product. 97% of Croatiancitizens choose Orbit when buying a chewing gum(GFK, September 2006), while almost 90% of themtry every new initiative.

HistoryWilliam Wrigley Jr. came to Chicago fromPhiladelphia in the spring of 1891. He was 29 yearsold, had $32 in his pocket and unlimited enthusiasmand energy. He also had great talent as a salesman.

His father was a soap manufacturer, and at thestart of his new business in Chicago, Mr.Wrigleysold Wrigley's Scouring Soap. As an extra incentiveto merchants, Mr.Wrigley offered premiums. Heknew his customers would be more likely tocarry Wrigley's soap if they received a little"something for nothing." One of these premiumswas baking powder.When baking powder provedto be more popular than soap, he switched to thebaking powder business.

Then one day in 1892, Mr.Wrigley got the ideaof offering two packages of chewing gum with eachcan of baking powder.The offer was a big success.Once again the premium - chewing gum - seemedmore promising than the product it was supposedto promote.

At that time, there were at least a dozen

chewinggum companies in the

United States, but the industrywas relatively undeveloped. Mr.Wrigley decided thatchewing gum was the product with the potential hehad been looking for, so he began marketing itunder his own name. His first two brands wereLotta and Vassar. Juicy Fruit gum came next in 1893,and Wrigley's Spearmint was introduced later thatsame year.

Mr.Wrigley was also one of the pioneers in theuse of advertising to promote the sale of brandedmerchandise. He saw that consumer acceptance ofWrigley's gum could be built faster by telling peopleabout the benefits of the product throughnewspaper and magazine ads, outdoor posters andother forms of advertising.Then, as more and moreconsumers began to ask for and buy Wrigley'schewing gum in the stores, the storekeeper wouldnaturally want to keep a sufficient stock of Wrigleybrands on hand.

The company continued to grow and currentresults show that worldwide sales have reached 4.2billion USD.Today's board of directors isrepresented by the fourth generation of the Wrigleyfamily, while its headquarters is in one of the mostfamous buildings in Chicago.

The company entered the Croatian market in1990.Thanks to the enthusiasm of local promotersand distributors, the company has achieved excellentresults.

ProductThe characteristic of all Wrigley's products is quality,In fact, the

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sincerityof this commitment was

demonstrated during World War II when in theUSA the production of chewing gums for civiliansstopped due to the lack of quality ingredients.Therefusal to compromise continues to this day andensures that every single piece of gum, whatever thebrand, meets or exceeds all superior standards.Wrigley’s success in the global market can beattributed to a combination of world-classinnovation, excellent targeting of its products,consistent and engaging marketing support, as wellas its tremendous distribution and merchandising.Everyone is a potentialWrigley consumerand the companymakes everyeffort toappeal tothe widestcross sectionof thepopulation,and throughits excellentdistribution andmerchandising ensuresthe product is always withinreach when desired.

Wrigley has four brands in Croatia: Orbit(chewing gums and drops),Winterfresh (chewinggums and drops), Airwaves (chewing gums anddrops) and Hubba Bubba (chewing gums).

Orbit, the most important Wrigley's brand inCroatia, is available in six flavours: Peppermint,Spearmint, Sweetmint, Apple,Watermelon,Winterfrost and four additional subcategories of theproduct - Orbit for Kids with calcium to strengthenchildren’s teeth; Orbit White for teeth whitening;Orbit Professional containing micro granules thathelps clean teeth so that consumer can actually feelit, and Orbit Herbal with herbal extracts to protectteeth and gums.

Recent developmentsTo build on the success of Orbit chewing gum andin response to consumer demand for a product thatis not harmful to their teeth, in April 2002 WrigleyCroatia was the world test market for Orbit Drops.After a successful one-year test period in whichWrigley's Orbit Drops caused a 14% increase of the

total Croatian candy market, the Orbit Dropsmarket share reached 16.9%, and 62% of Croatiancitizens tasted the product.Wrigley introduced thisinnovation to other world and neighbouring markets(Russia, Germany, Czech Republic, Poland, Slovenia,Bosnia and Herzegovina…) where the productshave also had significant success.

After its successful introduction,Wrigleyextended the candy trend to the entire portfolio,launching Winterfresh Mints in 2005 and Airwaves

Drops in 2006, resulting in a 7% increase of the totalconfectionery market.The success of the candydrops is reflected through constant consumptionmonitoring: Orbit Drops currently hold 8.1% ofthe market,Winterfresh Mints 6.9% whileAirwaves Drops hold 5.7 % of the

market (AC Nielsen MAT ON 2006).In order to make chewing

gum permanentlyaccessible to ourconsumers at theworkplace, athome, in the car,the latestinnovation on themarket, launched in

October 2006, is Orbit chewinggums in bottles.

PromotionWrigley's marketing strategy is to create demandfor its product through the use of strong consumeradvertising and highly visible and recognisable in-

store display solutions.William Wrigley, the founder of the company,

was a great believer in the power of advertising.Ever since he made the first brand,WrigleySpearmint in 1910 by continuing to advertise hisproducts when his competitors stopped, thecompany has consistently advertised its products tomany generations.

The consumers that Wrigley aims to reach arespread right across all ages.The main aim forconsumer communication is to convey productbenefits in as memorable a way as possible. Orbithas had a strong media presence in Croatia.

Communication strategieshighlighting Wrigley’s dental andoral healthcare benefits ranging

from decay protection to toothwhitening has had an importantrole in maintaining thecompany's position in themarket.

Winterfresh is Wrigley'sbrand which holds the secondposition in commercialadvertising and its advertisements

transmit the message of a product thatguarantees fresh breath. Airwaves, third inadvertising, highlights its “breath free”qualities. Hubba Bubba,Wrigley's brand for

children, conveys its “fun” brand equity.

Brand valuesWilliam Wrigley, the founder of the WrigleyCompany, once said: "Even in a little thing like a stickof gum, quality is important." This philosophy is asimportant for the Wrigley Company now as it wasin 1891. A focus on quality and s spirit of innovationensures Wrigley wins with consumers.

www.wrigley.com

WrigleyGum was chewed by the ancient Greeks andMayans.

In 1919,Wrigley bought the Chicago Cubs BaseballTeam.

Wrigley introduced the first product with a bar codeon.

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