This document outlines Wrigley's expansion and innovation strategies in China's confectionery market. It discusses Wrigley's history starting in 1891 and expansion globally through acquisitions. In China, Wrigley saw opportunities for growth due to the large economy and underserved rural/urban markets. The company achieved success through product innovation like adapting flavors to local tastes and establishing a wide distribution network. The document recommends Wrigley pursue renewable materials, recyclable packaging, future gum innovations, and expanding beyond gum to sustain its growth in China.

1. WM WRIGLEY JR.COMPANY:
INNOVATION IN
CHINA’S CONFECTIONERY MARKET
BATCH MATES:
Jasneet B38
Prasanth B39
Nitish B40

2. TIMELINE
• 1891- company started by William
Wrigley Jr.
• 1892- Wrigley started producing gum through Zeno
Manufacturing in Chicago, before Wrigley purchased
the company in 1911.
• 1893- , oldest brand in the
Wrigley family, was launched
– Number 1 in chewing gum with kids

3. Cont’d …..
• 1910- was introduced
• Established first factories outside U.S
– Canada(1910), Australia (1915), Great Britain (1927) & New Zealand (1939)
• 1912- Clarence Crane invented ,a candy.
Wrigley purchased the Life Savers
brand in 2005 from Kraft.
• 1914- was introduced with a double
spear registered trademark.

4. Cont’d
• 1960- First Television advertisement was given
• 1961- Expands around the world
– Now available in more than 180 countries
• 1974- Juicy fruit launches the use of UPC codes
• 1975- was introduced in 1975 as
the first non-stick alternative in
chewing gum

5. Cont’d
• 1976- Wrigley’s first cinnamon gum
was introduced
• 1984- first sugar free gum was
introduced
• 1989- International Expansion to China & Eastern Bloc
countries
• 1994- was introduced
Became more popular among US teens

6. Cont’d
• 1999- A new level of Breath-freshening gum
was introduced
• 2001- & were introduced
• 2004- Acquires , ,, PIM
POM & TREX
• 2007- Long-lasting flavoured “5” gum launched

7. 2008- MARS completes acquisition of
Wrigley company

8. GLOBAL CONFECTIONERY SHARE

9. GROWTH
STRATEGIES
Aggressive Continuous
expansion in product
emerging markets innovation

10. AGGRESSIVE EXPANSION IN EMERGING MARKETS
• Russia, India, China
Local Adaptability SUCCESS
Needs

11. CONTINUOUS PRODUCT INNOVATION
Health Related
Confectionery
Add health ingredients
to their brands
Exploit the inherent benefits
of the confectionery
Search alternate delivery systems
to deliver health benefits.

12. In
Annual sales ( in Billion $)
Annual sales ( in Billion $)
5.4
1.9
1.45
1997 2007 2008

13. Scope for Wrigley in China
Product Innovation
One of the largest economies in the
world
Large under-explored Rural & urban
markets
Less awareness & consumption

14. Reasons for less growth rate
• Market was dominated by sugar confectionery
i.e. >70%
• Chocolates were considered to be more of a
Western taste
Despite the small market share, chocolates and
chewing gums had grown at a faster rate than
sugar confectionery between 2000 and 2005

15. Wrigley’s Success through Product
Innovation in China
• The sales were expected to be 70-80% of market
share in China.
• The heart of Wrigley’s success was its product
innovation and its wide distribution network.
• It reached 2.2 million distribution points
Implanting Wrigley’s Products into China via New
Product Launches
Adapting to Local Consumer Tastes and Culture:
Langyi Sugar-Free Gum
“open, joyous, clear, bright, relaxed and happy” in Chinese

16. 3 PRINCIPLES
People…. Planet…. Performance

17. Benefits of Chewing Gum
• Chewing Gum helps improve Oral health
 Chewing sugar-free gum after eating or drinking is clinically proven
to be an important part of good oral health
• Stimulating flow of saliva in the mouth
• Relieving dry mouth discomfort
• Neutralizing plaque acids that form in the mouth
after eating fermentable carbohydrates
• Helping to demineralise enamel to strengthen
teeth
• Helping to whiten teeth by reducing and
preventing stains

18. RECOMMENDATIONS
• Use 100% renewable sources
• Use of 100% recyclable plastic in
manufacturing of Jars
• Future Gums should be released
• Go beyond Gum
• Vending machines should be made available
for easy accessibility

19. Conclusion
It should follow the following product innovation
strategy in order to capture the opportunities
and to sustain its success:
 It should go for repositioning of its products.
 Timely update or revamping strategies should be
followed.
 Regular R&D should be done on the tastes &
Preferences of customers

22. Did U Know ……. ?
• On average, a piece of chewing gum costs about 3
pence, but the cost of removal is about 10 pence per
piece.
• Chewing gum takes up to 5 years to biodegrade.
• Chewing gum litter was found in 95% of sites.
• The earlier gum that was eaten dates back to more
than 2000 years.
If Litter Continues
If you want to eradicate it