Wrigley has dominated the global gum market for over 100 years but faces new challenges adapting to changing consumer preferences and increasing competition. To strengthen its position, Wrigley is exploring social media marketing, focusing on health benefits to appeal to developing markets like China, and diversifying its product portfolio through the Mars acquisition. Wrigley's strengths include strong brands and R&D but it relies heavily on the US market and faces threats from low-cost competitors. Adapting to marketing trends and leveraging partnerships will be important to sustain growth in China's expanding confectionery industry.

1. CHEW!YES, WE

2. Innovationin China’s Confectionery Market

3. ObjectiveExamine the reason hiding behind Wrigley’s Success in China via various channel, give out constructive recommendations

4. IntroductionThe Chinese MarketS.W.O.T. AnalysisRecommendation

5. William Wrigley Jr. Company founded in 1891Originally sold andHeadquarters located in Chicago, IllinoisIntroduction

6. 1892- William Wrigley Jr. began packaging the chewing gum with the cans of baking powder. Eventually the chewing gum became more popular and the company began producing chewing gum.

7. Wrigley started his own chewing gum brands:-Lotta- targeted the general market -Vassar- targeted women -Spearmint- cool and minty flavor That next year, Juicy Fruit, a sweet fruit-flavored gum was introduced.

8. Tell em’ quickYeah, I’m the one who AdvertiseTell em’ often

9. Production facilities expanded throughout the following 100 years, eventually reaching 19 facilities in 19 countries. Wrigley currently sells its products in over 180 countries.

10. 2005

11. 2008

13. Global Confectionery MarketConfectionery includes chocolate, sugar confectionery and chewing gum. In 2007, the global confectionery market size was around $141billion expected to grow to $145billion by 2010.

15. 14%The World’s largest Confectionary company

16. Wrigley were relatively weak in the sugar confectionery market whereas Mars and Wrigley were strong in the chocolate and chewing gum market, respectively.

17. 2AggressiveExpansionFunctionalConfectionary

19. Developed markets- Wrigley focused more advanced benefits like natural and organic ingredients, sensational pleasure, convenience, more sophisticated innovations for different target customers.Developing regions- Wrigley focused on fundamental benefits of oral health and new flavors.

20. The Chinese Market

21. China’slargest Confectionary company

24. Chinese0.7kg/capita/yearGlobal Average2.8kg/capita/yearDeveloped Countries7.0kg/capita/year

25. Chocolate Consumption Take a closer look Japan & Korea1.4kg/capita/yearGlobal Average8.0kg/capita/yearChinese0.5kg/capita/year

27. Why is that?

28. That’s right! We are allPrice Sensitive!

29. “礼多人不怪”“civility costs nothing”

30. “礼多人不怪”“you never blame a man with a gift in his hand”

34. China has been growing on average at a double –digit rate—and profitable each year– since we started manufacturing locally back in 1993. We are also not resting on past success, but are keenly focused on gleaning additional marketplace insights to drive innovation that is both relevant and motivating to consumers across China.- William Wrigley Jr.II

35. The success in a 4P sense

36. Product Price Promotion Placenew flavors for Extra, including cool mint, strawberry, melon and blueberry

37. Extra Xylitol

38. New convenient package

39. Extra Xylitol and the Whitening series

40. Traditional Chinese herbal flowers and fruitProductPrice Promotion Placebecome willing to spend more on confectionery for their children (higher pricing)ProductPrice Promotion PlaceBenefits of dental care, weight control, stress relief, and increasing alertness and concentration

41. fashionable and healthy image

42. maintain a fresh image to consumers by introducing new variants every now and then. ProductPrice Promotion Placewide distribution network.

43. 2.2 million distribution points, or over 90% retail penetration

44. covered more than 300 cities in ChinaThe S.W.O.T. Analysis

46. Strengths Weaknesses Opportunities Threats Leading market position:World’s largest gum company - 63% of global market share in 2007. It was also the - Fourth largest confectionary company in the worldAlso in 2007, of the 7 top countries in terms of confectionery sales in retail, Wrigley was a top confectionery player in 6 and the industry leader in gum in 5. Allows Wrigley to compete aggressively in every nation and leverage its presence wherever it competes.

47. Strengths Weaknesses Opportunities Threats Strong financial performance:Robust financial performance in FY2005-07 periods: - Revenue increase from $4,159.3 (32442.54HKD) in FY2005 to $5,389.1 ($42,034.89HKD) in FY2007, a CAGR of 14%. Operating profit increased from $776.3 ($6055.14HKD) million in FY2005 to $962.8 ($ million in FY2007, CAGR growth of 11%. Net profit followed the same pattern with an increase of 11% in FY2007. Strong financial performance enhances its stakeholder’s confidence.

48. Strengths Weaknesses Opportunities Threats Research and Development capabilities:Wrigley has strong research and development (R&D) capabilities. Its R&D expenses were $60,796 ($474,208.8HKD) in FY2007.Has 80+ innovations in products or packaging thanks to R&D. - “5” Gum’s Rain and Cobalt flavors ranked first and third.Innovation in packaging is increasing consumption of other brands. - Germany’s launch of a premium bottle package - Poland’s new peg bag pouch provides added value to consumers. In FY2007, new products accounted for approximately 20% of its net sales.

49. Strengths Weaknesses Opportunities Threats Diversification of confectionary business:Wrigley acquired by Mars, Inc. in October 2008.Combined, now commands over $27 billion in sales and employs more than 64,000 associates worldwide.Strong foundation of established brands in 6 core categories: - Chocolate - Non-chocolate confectionery - Gum - Food - Drinks - Pet care

50. Strengths Weaknesses Opportunities Threats Brands include: M&Ms Snickers Mars Orbit ExtraDoublemintHas strengthened, diversified, Enhanced growth potential and given us a competitive advantage.

51. Strengths Weaknesses Opportunities Threats High dependence on the US markets for revenue generation:The US accounts for approximately 90% of its North America’s net sales and assets. 29.4% of its total revenue in FY2007 was the from US. This makes Wrigley’s in the US more exposed to country specific factors such as labor strikes, changes in economic conditions and increasing competition.

52. Strengths Weaknesses Opportunities Threats High dependence on the US markets for revenue generation:The US accounts for approximately 90% of its North America’s net sales and assets. 29.4% of its total revenue in FY2007 was the from US. This makes Wrigley’s in the US more exposed to country specific factors such as labor strikes, changes in economic conditions and increasing competition.

53. Strengths Weaknesses Opportunities Threats Seal of acceptance from the American Dental Association likely to push up sales:American Dental Association’s (ADA) Seal of Approval for Extra, Eclipse and Orbit in September 2007. ADA is the nation's largest non-profit dental association, representing more than 155,000 dentists The ADA Seal displays that chewing Wrigley's sugar-free gums can help maintain good oral health.The seal is also highly influential in increasing purchases among consumers. More than 92% of consumers said their purchase intent increased when they saw the ADA seal.

54. Strengths Weaknesses Opportunities Threats Emerging economies of China and Russia to boost its revenues:In China, and Russia the company is seeing double-digit category growth rates. China is the third-largest economy in the world and Wrigley is China’s largest confectionery company.Wrigley has built greater retail distribution than any other consumer product company - ACNielsen. However, it still remains toward the lower end of the global scale. Despite this, Wrigley’s full range of confectionery offerings has established a strong foundation for future business expansion.

55. Strengths Weaknesses Opportunities Threats Growing Hispanic population in US:Hispanics are the most rapidly growing ethnic group in the US. The US Census estimates that by 2020, the Hispanic population will reach 59.7 million or almost 17.8% of the total US population. Nielsen Media Research estimates that the buying power of Hispanics will exceed $1 trillion USD by 2008 (a 55% increase over 2003 levels)Wrigley has appointed the Bravo Group (Bravo) agency of record for Hispanic creative and promotional marketing efforts in the US.

56. Strengths Weaknesses Opportunities ThreatsIntense competition:Wrigley faces stiff competition from big multinational companies – primarily with Cadbury. Second-largest producer of chewing gum in the worldRecently, Cadbury strengthened its position after acquiring Intergum, a low-cost Turkish gum producer. Cadbury was the one to launch Trident and Dentyne gum brands in the UK. This severely dented Wrigley’s near 100% market share in the UK Trident Splash brand of gums is taking over market shares. Cadbury’s sugar-free gums in the US. Wrigley also competes with Hershey in other non-chocolate categories (e.g. hard and chewy candy including mints).

57. Strengths Weaknesses Opportunities ThreatsChewing gum tax:Governments, especially Ireland and England, are imposing new policies on chewing gum companies. Forces them to pay towards the cost of cleaning up their products. The Irish government persuaded Wrigley, to make a contribution of $7million towards clean-up costs after it threatened to impose a purchase tax on the manufacturer. Westminster Council is also urging ministers to follow the example of the Irish government.

58. Social media and Wrigley

59. The “SITUATION”How do you advertise/Market to a market you dominate:The market was a large and mature industry with little competition.

60. Mars Merged with Wrigley Making it the worlds largest confectionery company.

61. Has roughly 14% of the global confectionery, now the 2nd largest Cadbury holds about 10% of the global market share.The Future: Going Beyond Gum-----1.0,2.0,3.0 Info on Market Strategy.Want to Raise awareness of brands and productAdvertising InnovationChoose to integrated with outside agenciesTV , Print and Radio (Old)Must recapture all the benefits of multi-brand and keep defining the key factors to success

62. Technology has shifted from the mechanical world to the digital world!1.0 = Being product Centric2.0 = Consumer –centric3.0 (Today) we see marketing as transforming again in response to the new dynamic environment. (Human kind)- what moves you?-Note- The idea of mkt 3.0 started in Asia! Nov. 2005 –Consultant Group-

63. Attention was given to a nation where human centricity and the character of spirituality overcame the challenges of diversity.3.0 Must Make Use of Media: Expressive Social media: Blogs, Twitter, YouTube etc. Collaborative media: Wiki, Rotten Tomatoes, Craigslist. ( People can do there own homework now and Choose)

64. PERCEPTIONS & Choicehttp://www.ted.com/talks/lang/eng/sheena_iyengar_on_the_art_of_choosing.html8:40s to 10:15-- Ideas to think about-Wrigley's started as a soap Co. – started giving out one stick of gum with xyz product…. Bring this back: In China: Only have sticks of gum in Dental and health facilities.Chinese buy Avg. 10 sticks of Gum a yearAmerican’s Avg. 160Taiwan Avg. 70-80 A Manager of Wrigley said “ I don’t think People know how global Wrigley’s is” In the past they have always branded Locally