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    Amm Presentation-120811224207-Phpapp01

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    Perfetti's distribution strategy enabled it to become a leading player in the Indian confectionary market by: 1. Bringing a distribution network of 3 lakh outlets after merging with Van Melle in India, which has since expanded to over 10 lakh outlets. 2. Focusing on small retailers and pop outlets that were unable to purchase large quantities by dividing its brands into two non-conflicting groups. 3. Adopting an incentive-based commission strategy that led to initial discontent but drove sales through increased margins based on sales targets.

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    Amm Presentation-120811224207-Phpapp01

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    Perfetti's distribution strategy enabled it to become a leading player in the Indian confectionary market by: 1. Bringing a distribution network of 3 lakh outlets after merging with Van Melle in India, which has since expanded to over 10 lakh outlets. 2. Focusing on small retailers and pop outlets that were unable to purchase large quantities by dividing its brands into two non-conflicting groups. 3. Adopting an incentive-based commission strategy that led to initial discontent but drove sales through increased margins based on sales targets.

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    Perfetti's distribution strategy enabled it to become a leading player in the Indian confectionary market by: 1. Bringing a distribution network of 3 lakh outlets after merging with Van Melle in India, which has since expanded to over 10 lakh outlets. 2. Focusing on small retailers and pop outlets that were unable to purchase large quantities by dividing its brands into two non-conflicting groups. 3. Adopting an incentive-based commission strategy that led to initial discontent but drove sales through increased margins based on sales targets.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    123 views28 pages

    Amm Presentation-120811224207-Phpapp01

    Uploaded by

    irfankhan007
    Perfetti's distribution strategy enabled it to become a leading player in the Indian confectionary market by: 1. Bringing a distribution network of 3 lakh outlets after merging with Van Melle in India, which has since expanded to over 10 lakh outlets. 2. Focusing on small retailers and pop outlets that were unable to purchase large quantities by dividing its brands into two non-conflicting groups. 3. Adopting an incentive-based commission strategy that led to initial discontent but drove sales through increased margins based on sales targets.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 28

    CASE STUDY ON

    Perfettis Distribution Strategy

    Presented by :
    Prasad Kumar Nayak.

    About the company


    This is the first MNC company diversifying in

    to snacks business. Perfetti van melle is a ITALY based parent company. It have 31 manufacturing in world wide, 3 manufacturing locations in India (Manesar Plant, Chennai Plant & Rudrapur Plant). It has 5000 distributors service worldwide.

    Continues:
    It entered in india in 1994. Sameer suneja is M.D. of perfetti india.
    It employs 18,000 people

    via35[subsidiary companies. It distributes its products in over 150 countries. Product quality Food safety management system CSR (corporate social responsibility)

    Stop not golz


    Time to wait, STOP! Time to snack, STOP NOT!

    Alpenliebe
    Alpenliebe was

    launched in India in December 1995 with a distinct product proposition.

    Alpenliebe lollipop
    The brand positioning of

    Lagey Raho reflected in the communication, not just communicated the product experience but went beyond. It communicated the pleasure of the long lasting lollipop. In the year of launch (2001) Alpenliebe become the market leader with 46% market share.

    Alpenliebe Mangofillz
    Mangofillz has taken

    forward the overall brand platform of irresistibility while keeping the focus on the mango taste of the product. Kajol, the Alpenliebe brand ambassador, is being brought in to provide a connect with the parent brand and bring in its heritage,

    Alpenliebe Creamfills
    It is a Caramel Candy with a

    cream filled center. It was launched as a brand extension of alpenliebe as an innovation in 2005 but within four years it has carved its own identity. Creamfills is positioned on surprise where one gets more than expected, as the base line says What a surprise.
    When launched it was an

    innovation and the only candy available with a filling inside and till 2009 the positioning was of Kuch Alag Achanak.

    Big Babol
    Big Babol was launched

    in India in 1995. It has been positioned on the fact that how you can use big bubbles to your advantage and make Big Babol Bade Kaam ki Cheez. Over time,

    Center Fresh
    Center Fresh, the flagship

    brand of Perfetti Van Melle's was launched in 1994. It was the first liquid filled chewing gum . It is available in Spearmint, peppermint and Sweet mint flavours and in the Re 1 mono and 5 pcs Rs 6 stick. Center fresh truly Rakhe Zubaan pe lagaam.

    Center Fruit
    Center Fruit was launched in the year

    2006 as Indias first ever fruit-flavored liquid-filled gum. It was launched with 2 tantalizing flavors Tutti Fruity and Grape. Initially, it rode on the strong equity of Center Fresh but over the years, the brand has carved a niche for itself and is one of the fastest growing brands in Perfetti Van Melle portfolio today. In addition to Tuttii Fruity and Grape, the brand has added 3 more delicious flavors - Strawberry, Watermelon and Sweet Mango.

    Chocoliebe
    Launched in 2006 over the

    past four years, Chocoliebe is Perfetti Van Melle's premium offering in the clairs segment. Since 2006 we have built the brand on the premise of a rich chocolate & soft caramel which was implemented by the first communication of Pyar Do. Pyar Lo.

    Mentos
    Mentos started its journey

    in India way back in 1999, under the Freshmaker positioning. But the Mentos story starts in 2002, when it was relaunched. Subsequently in 2003. it got an Indianized positioning of Dimaag ki Batti Jala de pertaining to smart thinking

    Chlor-mint

    (candy & gum)

    Chlor-mint was launched in the

    year 1997 in the Health care category as an Ayurvedic Proprietary Product which contained Herbasol that helped breath freshness. The brand has built a unique place for itself in the consumer's mind, so much so that 'Dobara Mat Poochna' is part of everyday parlance meaning . In order to widen the appeal of the brand, Salman Khan was chosen as the brand ambassador in 2009. currently the tag line is chaba daba ke khao.

    Happydent
    The "Palace" commercial

    swept all creative awards in India and bagged two awards at Cannes. Truly, Happydent is a "chewing gum for a sparkling smile
    " Jagmaga le, Muskura Le.

    It comes in three flavor

    happident white, happident wave, happident sugar free.

    Marbels

    So enter the wonderful

    world of Marbels Coz Marbels Ki Duniya Main Kuch Bhi Ho Sakta Hai!

    Center shock
    Innovative products

    that WOW you and are fun to make as well! This extremely sour gum with a sweet heart was launched in India in 2002. Once you got over the Shock, you could taste either the Green Apple or the Peach flavored sweet center.

    competitors

    Melody

    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 today become 10 lakhs

    FOCUSED ON POP OUTLETS WHO ARE UNABLE TO PUECHASE LARGE QUANTITY

    CREATED A MULT-TIERED DISTRIBUTION


    SYSTEM .
    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 and marketing of the product to attract customers and to improve sales.

    The product allotment and commission strategy adopted by perfetti led to discontent among the channel members. Explain the companys rationale in adopting such a distribution strategy.

    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 be supplied. The great change occur when it acquired the van melle The acquisition brought a distribution network of 3 lakh.

    Instead of expanding the distribution network over a large of region, they focused on specific areas . Company focused on small retailers . Small retailers unable to purchase large quantity. Retailers were not willing to buy the same brands twice a week. Some brands are perceived as substitute by the retailers.

    To solve this problem and to keep flow of product in the market, the company had divided their product into groups. P 1 group consists of Alpenliebe original, Chlormint, Big Babol. P2 group consisted of Centershock, Chlormint gum, Mentos, Marbles, Fruit-tella and Happy Dent.

    The company paid 5 percent margin to the distributors 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 product allotment and adapting such strategies.

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