Perfetti Van Melle is a global confectionery company with a strong portfolio of candy, gum, and mint brands. In India, it has a 22.1% market share and annual sales of ₹2000 Crore. As part of its marketing mix, Perfetti Van Melle offers a variety of affordable products priced as low as Re. 1. It utilizes a multi-tiered distribution system to reach both urban and rural markets across India. The company promotes its brands through television and print ads, retail schemes, contests, and games to maintain a high level of brand recall among consumers.
2. About the Company
Perfetti Van Melle sells to over 150 countries worldwide
and has a strong workforce of 17.6K employees in 38
operating companies throughout the world.
2
₹2000 Crore
Sales in India
22.1%
Market Share
4. • Perfetti Van Melle has a variety of brands under its belt.
• The quality, packaging and design of the products in
almost each range adds one more star to their credentials.
• Perfetti Van Melle also has regional brands in its
marketing mix product offering which are available in
select countries. For example, Big Babool is the bubble
gum brand which is sold in India, Italy, Turkey and China.
4
Product
7. • This market of confectionery is a hyper competitive one and
hence the prices are competitive.
• The pricing strategy in its marketing mix is highly dependent on
the competitors.
• All the candies are priced very cheap. Mono packs of all
confectionaries cost Re.1 and price increases for lollipops, and
other larger packs.
• Perfetti profit has always come from volume and not price
• In the past 20 years, PVMI hasn’t raised price of many products
even once.
7
Pricing
8. 8
Price List
Sl.
No
SKU Brands Unit Price
1 Monopacks
Center Fresh, Center Fruit, Mentos, Happydent,
Alpenlibe, Big Babool, Chlor Mint, Just Jelley
₹1
2 Blister Happydent ₹5
3 Lolipop Alpenlibe, Chupa Chups ₹5
4 Stick Center Fresh, Center Fruit, Mentos, Alpenlibe, ₹10
5 Hanger Just Jelley, Chupa Chups, Mentos Marbels ₹10
6 Flip Tops Happydent ₹10
10. The advantage PVM has over its competitors
is the extensive distribution network that is
in place reaching out even the rural areas.
PVMI has multi tired distribution system.
The company pays 5-6 percent margin to the
distributors for both categories as compared
to the average industry figure of 10 percent.
10
Distribution
Margin of DB is 5%
Margin of SS is 2% (5.5-3.5)
Margin of Sub DB is 3.5%
13. 13
Promotions
• Perfetti has always paid special attention to advertising, in
terms of investments and creativity.
• PVMI enjoys a huge brand recall among its consumers
contributing to a total estimated market size of Rs.5,500
cr.
GamesContestsTV Ads
18. 18
Suggestions
• Introduce Loyalty Program based schemes to encourage
retailers to buy for a fixed quota worth confectionary and
reward them accordingly.