Distribution system of Perfetti

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Distribution channel of Perfetti van mille

Distribution channel of Perfetti van mille

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  • 1. CASE STUDY ON Perfetti’s Distribution StrategyPresented by :•Prasad Kumar Nayak.
  • 2. 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.
  • 3. 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)
  • 4. Stop not golz Time to wait, STOP! Time to snack, STOP NOT!
  • 5. Alpenliebe  Alpenliebe was launched in India in December 1995 with a distinct product proposition.
  • 6. 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.
  • 7. 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,
  • 8. 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”.
  • 9. 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,
  • 10. Center Fresh  Center Fresh, the flagship brand of Perfetti Van Melles 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”.
  • 11. Center Fruit  Center Fruit was launched in the year 2006 as India‟s 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.
  • 12. Chocoliebe  Launched in 2006 over the past four years, Chocoliebe is Perfetti Van Melles premium offering in the éclairs 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”.
  • 13. 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 re-launched. Subsequently in 2003.  it got an Indianized positioning of “Dimaag ki Batti Jala de” pertaining to smart thinking
  • 14. 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 consumers 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”.
  • 15. 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.
  • 16. Marbels  So enter the wonderful world of Marbels „Coz “Marbels Ki Duniya Main Kuch Bhi Ho Sakta Hai!”
  • 17. 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.
  • 18. competitors
  • 19.  Melody
  • 20. Q.1: Analyze the distribution strategy of Perfetti, whichenabled it to become a leading player in the Indianconfectionary 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
  • 21.  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.
  • 22.  The product allotment and commission strategy adopted by perfetti led to discontent among the channel members. Explain the company’s rationale in adopting such a distribution strategy.
  • 23.  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.
  • 24.  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.
  • 25.  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.
  • 26.  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.