INDUSTRY PROFILE• Confectionery is the set of food items that are rich in sugar, anyone or type of which is called a confection.• There is 38 Confectionery companies in India but Prefetti is largest selling company in India.• Mars is the number one confectionery company in the world.
Company profile• Perfetti Van melle is a Italy based parent company.• World’s third largest confectionery group.• Its headquarters are located Italy (Lainate) and Netherland (Breda).• Perfetti enter to the Indian market in 1994.• It has two manufacturing plants in India at Manesar (Haryana) and Tamil Nadu
Products• Alpenliebe• Big Babul• Center Fresh• Center Fruit• Center Shock• Chatar Patar• Chlormint• Cofitos• Happydent white• Protex• Marbles• Mentos
FACT• The turnover of the company is400cr., and there market share is 80%.• They are offers to selling products at25paise• The company decided to sell the product by the small retailers• The company divided its11brands into 2groups , p1and p2.• P1is doing very well but p2 is not.• The p2 company decided to more advertising the products.• The advertising cost is17 cr
AnalysisMarket Analysis• There was 80%market share of organized companies.• The organized market was dominated by perrys, nutrine and Cadbury.• The foreign tag was the problem for perfetti.• MNC• There was a small hitch in the implementing this strategy
Product Analysis• The other problem for company was that some of its product were competing for the same space as the retailer received them to substitutes for each other.• It divides its11brand into 2 group that is P1andP2.
Question 11.Analyze the distribution strategy of Perfetti, which enable it tobecome a leading player in the Indian confectionary market?Ans:-1.Product range is divided into 2 categories, which inturn have different distributors. It divided its11brands intotwo groups P1and P2. Non-conflicting brands likeAlpenliebe original, Chlormint, Big Babol and Center freshwere grouped under P1.2. Perfetti spends Rs17 crore for advertising .3. The company offered hefty sales-linked incentives such asincrease in margin in percentage terms with increase insales and offered one pack free on every pack sold.
Question 2• 2.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