Perfetti adopted a distribution strategy focused on small retailers and pop outlets. It created a multi-tiered distribution system dividing its 11 brands into two non-conflicting groups (P1 and P2) to be purchased separately. This addressed retailers' unwillingness to buy substitute brands together. While its incentives structure upset channel members, it aimed to keep products flowing through specific focused areas by tailoring margins and incentives.

1. CASE STUDY ON
Perfetti’s
Distribution
Strategy
Presented 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 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”.

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 Melle's
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 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”.

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

20.  Melody

21. 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

22.  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.

23.  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.

24.  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.

25.  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.

26.  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.

27.  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.