Perfetti Van Melle

Submitted by: Submitted to:

Anuj Goyal – 2010276 Prof. Rajeev Kamble

Nitin Sardana – 2010205

Sakshi Agarwal – 2010206

Shourjo Sengupta – 2010219

Sreechand Nambiar – 2010230

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Table of Contents

Introduction...........................................................................................................................................3
Brand Strategy – The India Strategy......................................................................................................4
Product Strategy....................................................................................................................................6
Analysis of the Product Strategy........................................................................................................8
Price Strategy......................................................................................................................................10
Analysis of the Price Strategy..........................................................................................................12
Place (Distribution) Strategy................................................................................................................13
Analysis of the Place Strategy..........................................................................................................15
Promotion Strategy.............................................................................................................................15
Analysis of the Promotion Strategy.................................................................................................17
Summary.............................................................................................................................................17
References...........................................................................................................................................19
Annexures............................................................................................................................................20
Exhibit 1:..........................................................................................................................................20
Exhibit 2:..........................................................................................................................................21

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Introduction
Perfetti Van Melle is a European global manufacturer of confectionery and gum. It was formed by
the 2001 merger of Perfetti of Italy with Van Melle of the Netherlands, having its corporate
headquarters in Lainate (Milan), Italy and in Breda, Netherlands. Perfetti Van Melle bills itself as the
third largest confectionery manufacturer in the world after Kraft Foods (owners of Cadbury plc) and
Mars, Incorporated (owners of Wrigley). It employs 17,000 people via 30 subsidiary companies and
distributes its products in over 130 countries.

Perfetti Van Melle India (PVMI), a fully owned subsidiary of the global conglomerate Perfetti Van
Melle, started its Indian operations in 1994. The company today enjoys close to 30% market share,
thus making them one of the leading players in the confectionery industry in India today.

Perfetti Van Melle entered the Indian market in 1994 by offering its first brand Center Fresh,
followed by Big Babol and Alpenliebe in 1995. The other brands like Chlormint, Mentos, Fruittella,
Cofitos, Happydent and Marbels followed subsequently, which will be explained in detail later under
the company’s product strategy. PVMI enjoys a huge brand recall among its consumers which form a
total estimated market size of Rs.3000 cr.

Special care has been taken by the decision makers at Perfetti to make sure they consider all the
aspects which will help them to understand what the Indian consumer likes. The products had to be
adapted according to the Indian climate like increase in the shelf life and the composition of the
product.

Perfetti Van Melle has adopted an aggressive sales strategy to retain the market leader position in
the confectionery industry in India backed by a wide network of Carry & Forwarding agent (C&FA),
distributors & sales force. Another striking feature of this company is that in India alone it has a
network of around 4,500 distributors spread across 2000 urban towns.

Also, the advertising strategy followed by PVMI has managed to capture the attention of the Indian
audience.

Now let’s take a look at the brand strategy followed by PVM in India.

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Brand Strategy – The India Strategy

One of the most important and difficult steps in any marketing process plan is developing a brand
strategy. The company identity has to be created and this is one of the most difficult challenges that
a marketer faces. Perfetti mastered this and using all the marketing tools it was able to manage
visibility, promotion, availability and even unpredictability for all its brands and thus emerging as a
market leader in India.

The main difference they recognized was that India is primarily a mono pack market while globally
the confectionery market is a multi pack market. Also, in India the paan shops and kirana outlets
result in the bulk of sales. Another important trend noticed in India which was different from the
global market was that the sugar free products (which dominated in the global market) were yet not
accepted by the Indian consumers.

While doing some research about the confectionery space in India we realised that it is known by
certain distinct characteristics - highly price sensitive, extremely low value, and a distribution driven
market. With major players such as Nestle and Hindustan Lever as competitors, the battlefield is
expected to heat up. Other operators in the same space include Wrigley Joyco, Candico, Parle,
Godrej Nutrine, Ravalgaon, Lotte Parry, ITC and Cadbury.

Keeping all these points in mind, Perfetti created what they called its India strategy, which worked
for them.

They also attempted to change the perception that the major chuck of the consumers was children
and tried to reposition the confectionery for the entire family. In order to achieve this, they moved
from low margin products like toffees and candies to high margin products like gum and chocolate
confectionery. This helped them to change their target audience from children to the entire family.

There are some factors that stand out when we look at the success that Perfetti has achieved in
India.

Creation of variants and re-inventing of brands

Depending upon the demand, brands were re-invented and relaunched to take the brands forward
and to create some excitement in the market. An example of this would be Cofitos that was
relauched at a lower price point due to the increasing demand.

Innovation at its best

Centre Shock!!! Who can forget that? Such innovative products which created a huge buzz in the
entire market and amongst the consumers is what made Perfetti stand out from the rest. PVM has
also successfully adapted its products to the Indian palate and ensured the maximum flexibility to
give what the market would demand.

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Advertising

From “Dimaag ki batti jala de!” to “Zubaan pe lagaam!”, Perfetti has done it all. A major chunk of
their funds is kept aside for advertising. Also, PVM has shown creativity in its packaging as well as
communications and promotions. Big Babol redemption contests, Cofitos click card promotion are
some examples that we came across. However, advertising has to be backed by availability of the
product, in order for the advertising to deliver the desired results and Perfetti has taken care to
ensure the same.

Thus, to summarize the strategy followed by Perfetti in India we can say that its success is expected
to be the result of superior quality and state-of-the-art products, distinctive marketing strategies,
continuous improvement through research and innovation, care for people and dedication to
surrounding communities and environment. The market success gained in India has allowed the
company to extend its horizons beyond the Indian boundaries. The company now exports to several
neighbouring countries and has started a new manufacturing unit in Bangladesh.

Let’s take a look at the marketing mix that Perfetti followed one by one and our analysis of them,
namely:

 Product Strategy
 Price Strategy
 Place Strategy
 Promotion Strategy

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Product Strategy
Perfetti Van Melle has several mouth-watering and heavy-selling candies as a part of their product
portfolio. The various brands that are currently available in the Indian market are discussed below:

Alpenliebe

Alpenliebe is the flagship brand of Perfetti and a leader in the confectionary market.

A milk-caramel toffee, the Alpenliebe brand banks on the ‘irresistibility’ factor wherein the texture
and taste that it offers is like none other. Even the tag-line ‘Lalach aha LapLap’, focuses exactly on
this quality of the toffee.

Launched in India in December 1995, in its original caramel toffee form, Alpenliebe is now available
in three three variants – Lollipops, Mangofillz and Creamfills. Moreover, other than the Caramel
flavour, Alpenliebe is currently available in Cream Strawberry, Chocolate, Coffee and Cream Banana
flavours and Alpenliebe Lollipops is available in Rich Milky Caramel, Cream Strawberry and Cola
Vanilla flavours.

Alpenliebe Creamfills comes in the usual caramel flavour and it has an extension called Xtra – a
larger candy in the filled format. Xtra comes in to other flavours – Coffee and Mango.

Alpenliebe Mangofillz is the company’s new proposition under the Alpenliebe umbrella and is a
candy with liquid Mango flavoured filling inside. Mangofillz is the first non-cream Alpenliebe candy
and Perfetti’s first foray into the sizeable candy category of ‘virgin fruits’ at the same time.

Big Babol

Big Babol, launched in India in 1994, is one of the biggest bubblegum brands in the country. It is
currently available in two flavours – Fruit and Ripe Mango.

Big Babol is known for its taste and the bigger size bubbles that can be blown out of it. It also comes
with the added advantage that the bubblegum does not stick to consumer’s face.

Center Fresh

Center Fresh, Perfetti’s flagship brand, was the first product to be launched by the company in India
in 1994. Center Fresh has grown to become the largest selling gum brand in India and is a household
name today.

Center Fresh was a first of a kind liquid filled chewing gum. It is currently available in Spearmint,
Peppermint and Sweet Mint flavours.

In 2006, Perfetti came out with Center Fruit, India’s first-ever fruit-flavoured liquid-filled gum. It was
launched with two flavours – Tutti Fruity and Grape. Presently, there are three more flavours
available in the market namely Peach, Strawberry and Watermelon.

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Center Shock is another variant which is available in the market. It is an innovative product from the
house of Perfetti which has an extremely sour gum as its outer layer and is filled with a sweet Green
Apple or Peach flavoured center.

Chlormint

Chlormint was launched in 1997 as a mint which contained Herbasol. Chlormint has been positioned
as the mint that can be consumed anywhere and at anytime. It is this ideology that has helped the
brand carve out a significant share of the market even after having a seemingly mundane product
proposition.

Chlormint is available both in the candy form as well as in the chewing gum form.

The brand has been refreshed from time to time with the launch of variants such as Chlormint Ice
and Chlormint Freshfills.

Chocoliebe

Launched in 2006, Chocoliebe is Perfetti’s premium offering in the éclairs segment. It is a ball formed
caramel chew with chocolate filling inside. It is one of the largest players in the éclairs segment and
with its non-sticky texture it is growing by leaps and bounds.

Currently it is available only in caramel flavour.

Happydent

Perfetti Van Melle has come out with the Happydent chewing gum as its offering in the functional
gums category. It contains baking soda and is positioned as a gum that helps maintaining naturally
white and healthy teeth.

Happydent comes in four variants – Happydent White, Happydent Protex, Happydent White Xylit and
Happydent Wave. Happydent White is currently available in two flavours – Mint and Fruit.

Happydent Protex and Happydent White Xylit are Sugar Free gums which contain Xylitol which helps
reduce tooth decay.

The final variant under the Happydent umbrella is Happydent Wave. Wave was launched in 2009
and it is the first ever liquid-filled whitening gum. Happydent Wave is available in a Flitop pack, a
Blister pack and a Mono pack.

Mentos

Mentos is Perfetti’s cult offering to the world. Known throughout the world as fresh mint, it is
positioned as a Chewy Dragee, which is crunchy outside and chewy inside.

Mentos was initially available in a mint flavour. Currently, it is also available in an assortment of fruit
flavours – Strawberry, Lime and Lemon, Orange and Ripe Mango.

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Mentos is also available in another variant – Mentos Marbels. Marbels is a chewy candy which is
available in a variety of colours and yummy flavours like Strawberry, Mango, Orange, Banana and
Watermelon.

In 2004, Perfetti introduced Mentos Sour Marbels which is available in flavours such as Tamarind,
Green Apple and Orange.

Fruitella

The final offering in Perfetti’s portfolio in India is Fruitella. It is as juicy as candy and as chewy as
gum. Fruitella is available in a variety of flavours that the customer can choose from and is an
international favourite.

Analysis of the Product Strategy

The major components of Perfetti’s products, which need to be analysed are:

 Design
 Features
 Packaging
 Quality

Design

Each of Perfetti’s various brands and their variants have distinct design features. By just looking at a
unit of candy, one can identify with the brands. Alpenliebe comes in its unique round shape with an
indentation on top, while Mentos has a classic elliptical shape; Center Fresh is in the shape of a
rounded square while Big Babol has an unmistakable rectangular shape. Also, the various flavours of
each product come in different colours, making them easily identifiable.

Features

Each offering that is part of Perfetti Van Melle’s product basket has a unique feature. This makes
each of Perfetti’s individual products stand out to the customer.

Big Babol is the non-sticky bubblegum which can blow bigger bubbles, Chlormint is the mint with
Herbasol, Happydent helps keep teeth naturally white and Mentos is the candy with a crunchy and
chewy texture rolled into one.

Packaging

With its attractive packaging, Perfetti Van Melle’s products have managed to arouse interest in the
Indian consumer. Perfetti’s products come in attractive packages, both design-wise and size-wise.

Most of Perfetti’s products clearly display the brand name and the actual product form and colour of
the product inside on its packaging. This attracts the customer to the product more effectively. For
brands like Big Babol and Center Shock, the company has used bright colours on their packaging and
for Fruitella, they have displayed the fruit that the flavour is derived from.

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Perfetti also gives its consumers several options to choose from where the size of the packaging in
concerned, i.e., the quantity that the buyer wishes to consume. Alpenliebe, Big Babol, Center Fresh,
Chocoliebe and Mentos are all available in both singles packs as well as in sticks of a higher quantity.
Chlormint and Happydent are available in single units and flip-top packs, while Happydent is also
available in blister packs, giving the consumers a variety of options.

Quality

Perfetti Van Melle focuses greatly on the quality of their products. They have three manufacturing
units in India, located in Manesar, Chennai and Rudrapur, all of which have been certified to the
requirements of ISO 22000:205, by SGS International. ISO 22000 is an international Food Safety
Management System.

Also, the products being human consumables, all the Food Preservation Requirements warranted by
the Prevention of Food Adulteration Act, 1955 and subsequent amendments are applicable and
complied with.

In addition to all this, Perfetti Van Melle India practices comprehensive protocol for maintaining
hygienic practices of the highest order in its manufacturing facilities. The quality of output is
controlled by suitable batch-making, in-process sample testing, process monitoring, etc. take care of
the necessary output quality.

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Price Strategy
For all we know, Perfetti has been following the simplest of pricing strategies. Most of it’s
products are available in the market at two basic price points, i.e. 50 paisa for a mono pack,
which has a single tablet and Re. 1 for brands like Center Fresh, etc. The prices of different
products do not vary from region to region, i.e. the part of the country they are being sold
in, they are same throughout. But almost all of the products are available in different kinds
of packaging. Here’s a look at some of the products the company offers:

Mentos

 Earlier, when it was launched in the Indian market, it was available at Re 1 per unit,
but now, looking at the demand and the preferences of the customer, the price has
been brought down to 50p per unit.
 There is another SKU that is widely available across the stores is a stick of 10 pieces,
which costs Rs 5.

Center Fresh

 Earlier it was available for Rs 1.5 per unit for several years, which included a huge
profit margin, but then it was reduced to Re1.
 It is also available in the form of a stick, which has 5 pieces for Rs. 5.

Big Babol

 In the case of Big Babol, the same pricing strategy was followed as in the case of
Center Fresh.

PRICING MATRIX – Perfetti lies in the Top Left portion, i.e. ECONOMY

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Alpenliebe (3 Variants)

 This was the first product that the company launched in the Indian market, and at
that time and even now, it is available at 50 paisa per unit, although they have
introduced a lot of SKUs.
 There is a stick that is available for Rs 5 which has 10 units.
 Then there is a big plastic jar, which has 1500 pieces and is available for Rs 750, and
it is aimed exclusively at the retailers.

Happydent (4 Variants)

 The cheapest unit for this product is available at Re 1 per unit and each unit consists
of two tablets.
 There is also a small plastic packing available for Rs 10, which has 22 tablets.
 Then there is a bar available for Rs 5, which has 10 tablets.

Center Fruit (3 Variants)

 This is available at Re 1 per unit.

 The bigger jar has not been introduced by the company yet, though a medium sized
jar is available for the retailers to buy. It comes at Rs 120 and contains 120 pieces.

Analysis of the Price Strategy

The company has been following an economic pricing strategy right from the starting. It has
been aiming at maximizing its marketing share by keeping its products at a very low cost so
that everybody can buy them. Earlier there were only the smaller units that were freely
available in the market, and hence the profit margin for the retailers was very less, so the
prices were a little higher. But then, the company realized the need of bigger packaging and
hence came the plastic jars and the 1kg packaging. As already the pricing of the product is
very low, there is no use giving any discounts to the customers and moreover if they give
any sorts of discount on a 50p candy, there would be a lot of problem for the shopkeepers
as well for the customers in terms of how to exchange the money. So what the company did
was that on the bigger jars and the 1kg packing, they packed in more candies, hence giving
the customers more than what they would usually get, and also gave a chance to the
retailers to earn more as they now had more numbers to sell. The plastic jars were also
made of pretty good quality, so that they could be used later when all the candies are sold
off.

This was a very smart move on the part of the company to lure in more retailers and
distributors and did wonders for the company as it’s reach increased and hence grabbing
more and more market share. As the market share increased, the profit margins for the
retailers also increased, which we found out to be somewhere in the range of 15% - 25%,

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depending on the type and variant of the product. So the plastic jar of Alpenliebe, that has
an MRP of Rs 750, goes to the retailer at approximately Rs 600. Same goes with the sticks of
Happy Dent, Mentos, Center Fresh etc, these come in packing of 24 sticks per box, which
has an MRP of Rs 120, but goes to the retailer at Rs 106. Whereas the whole seller gets a
margin of somewhere around 5.5% - 7%.

Pefetti, very clearly lies in category D, where they produce their products for the mass
customer base at a very low price, hence aiming at high market share. They have been able
to achieve their target in almost 16 years and their pricing strategy has been a very
important part of their campaign in India.

But now, the only problem we believe they face is that of stagnation. Due to the pricing
that they have been following, they cannot introduce a new product at a higher price, and
hence limits their scope of R & D and trying out newer products which might actually be
good. The problem is that now the customer has a fixed mindset about the Brand, and if the
company introduces little costlier product, say at Rs 5 per unit, the customer might think
twice before buying it as he would be skeptical due to the price, and this did happen with
the company, when they introduced the Alpenliebe Lollipop in two flavours at Rs 4 per unit,
it failed very badly, despite the product being very good.

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Place (Distribution) Strategy

Perfetti Ven Melle manufacturing units in India are located in Manesar and Chennai with another
plant commissioned at Rudrapur, Uttaranchal in 2007. From these the distribution is done in four
regions, and has branch offices in Delhi, Mumbai (Maharashtra), Kolkata (West Bengal) and
Bangalore (Karnataka) to manage sales in the regions.

During the entrance in the Indian market, Perfetti did not merge or acquire any company. It adapted
the simple way that the quantity of goods demanded will be supplied. To build up its network,
initially it followed the booking system of distribution (sales officials would make calls to outlets and
supply according to the order received). On the initial stage, company also 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.

The great change occurred when it acquired the Van Melle. The acquisition brought a distribution
network of 3 lakh outlets which today have become around 10 lakhs. Instead of expanding the
distribution network over a large region, they focused on specific areas.

In India, a large chunk of confectionery retail trade is made up of unorganisedmom and pop retail
outlets such as paan shops and kirana outlets that result in the bulk of sales. So, company focused
on these retailers who are unable to purchase large quantity. Hence, the company felt to service
thrice a week to the outlets. The problems with this system were that retailers were not willing to
buy the same brands thrice a week and some brands are perceived as substitutes by the retailers.

To solve these problems and to keep flow of product in the market, Perfetti has created a multi-
tiered distribution system. The company divided their products into groups. P1 group consists of
Alpenliebe original, Chlormint, Big Babol. P2 group consisted of Centershock, Chlormint gum,
Mentos, Marbles, Fruit-tella and Happy Dent. And most recently a third group is introduced that
includes products which are least sold. According to PVMI strategy, when these retailers are visited
thrice a week they tend to replenish supplies & pick up new variants.

The company had assigned the two groups to different distributors, i.e., one distributor cannot have
two groups together. P1 got double sale than p2.

The main distribution channels used by the company are wholesalers, brick and mortar store, agent,
internet, retailer and direct sale. Wholesalers are to resale (sale without transformation) goods to
retailers, industrial, commercial, institutional or professional users, or to other wholesalers.

Moreover, the price points are fixed. Confectionaries, thanks to the intense competition, have been
sold in the country at 25 paisa, 50 paisa and Re 1 for several years now. Retailers often hand out
confectionaries if they run out of change. Confectionaries are purchased almost always on impulse
and the products offered by Perfetti will never be found on the grocery list in households.
Most of the times, the purchase is at the behest of the kid. So, the product should be placed at the
level of the child’s eye. Thus, what any confectioner needs to ensure is that its brands are
prominently visible at the outlet, preferably close to the cash counter.

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Naturally, given the clutter in the market, a lot of companies offer the retailers very high margins.
Though retail margins in the business are normally between 12 per cent and 15 per cent, some
confectioners even offer up to 25 per cent. But if promotional budgets are high as in case of Perfetti,
bottom-line of the company can be eroded in no time.

Perfetti has tackled the challenge by giving its products to retailers in plastic jars. This makes life
convenient for the retailer and gives the company the opportunity to place its brands prominently at
the outlet. Of course, brand visibility on a jar is better than small two- or three-gram units.

Analysis of the Place Strategy

Strategy of dividing the products into two groups is a successful one as it solves the problems of
substitute products and retailer’s problem of not wanting to repeat the products when visited thrice
a week. The grouping is done on the basis of characteristics of the products such as two mint gum
products like Centerfresh and Chlormint gum are not in one group that may be used as substitutes.

On the other hand, this structure also has some problems. One was alienation from distributors
because some distributors felt why the company wanted to take away some of the brands from
them when customers want to buy these products while the neighbouring distributor would be
given the same products resulting in movement of customers to the other distributor. Another
problem can be that retailers may not want to deal with different distributors for products from
different groups.

Perfetti’s distribution strategy of focusing on small retailers such as paan shops and kirana stores is
another success strategy as main sales of confectioneries are done through them in India. Idea of
placing the products on shelves such that children can easily see them and at the cash counters are
successful as target customers for confectioneries is mainly children and youth. As for the cash
counters, while paying customers might think of getting some after seeing the product and can also
get these instead of the change they might be getting.

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Promotion Strategy
To consolidate its worldwide market presence, Perfetti Van Melle has always paid special attention
to advertising, in terms of investments and creativity, as they both play a vital role in the creation of
a product's distinctive personality and market positioning. For Perfetti Van Melle, advertising is not
simply means to access; it is one of the most important parts of strategic development. Television,
radio, press, Internet; Perfetti Van Melle has in depth knowledge of the contemporary media,
effectively differentiating their use according to their specific target groups, as well as customs and
conditions in each particular country.

Perfetti has a large portfolio of 16 brands. Of these, it has decided to actively promote ten: Center
Fresh, Center Fruit, Big Babol, Happydent, Alpenliebe, Creamfills, Chlormint, Chocoliebe, Mentos and
Marbels. These ten fetch the company almost 80 per cent of its sales revenue.

The promotion strategy adopted by Perfetti can be divided into four major sub-divisions:

 Advertising
 Sales Promotion
 Events and Experiences

Advertising

Innovative advertising is the only way to create brand salience, given the clutter in the Confectionary
market. Like in other FMCG categories, large confectioners spend 12 to 13 percent of their revenues
on advertising. Perfetti spends close to 15 crore on its advertising campaigns. Perfetti puts humour
(Mentos and Center Fresh), emotion (Alpenliebe), bizarreness (Happydent and Chlormint) and fun in
liberal measures in all its commercials. They use generic tagline for its products which suits the
Indian scenario and catch the customer mind. Thus, there is “Zubaan par rakhe lagaam” for Center
Fresh, “Dobara mat puchna” for Chlormint and “Dimag ki batti jala de” for Mentos.

Perfetti have also roped in Kajol as a brand ambassador for Alpenliebe and Salman and Sohail Khan
as brand ambassadors for Chlormint.

Perfetti has also come up with the innovative idea of promoting its brands through animated films. It
has entered into a tie-up with Cartoon Network to place its Center Fruit brand in the storyline of
Balla Bowl. While brand placements in movies, television programmes and gaming is fairly big in
India, the trend of using comics, toys and animated videos or films as vehicles is just beginning to
take shape.

While the promotions for Mentos had been predominantly TV-led, Perfetti also used newer media
such as the Internet. In doing so, it became one of the first companies in India to start major online
initiatives for its brands.

Sales Promotion

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Perfetti started the concept of add-ons like Tattoos which boosted sales of the bubblegum
industry in a major way. They introduced new radical gifts like Spyro and Squeeze, which
were meant for children.

Perfetti also came up with redemption contests for its Big Babol brand and cricket trump cards for its
Center Fresh brand.

Perfetti Van Melle, has also adopted a unique way to reach to its consumers. The company has tied-
up with the famous 'Dabbawalas' of Mumbai to distribute its newly launched Mangofillz candy with
each Dabba, the famous tiffin in Mumbai. Perfetti distributed 2 lakh Mangofillz thus reaching a
massive consumer base.

Events and Experiences

In 1996, Perfetti associated itself with the Cricket World Cup through its Center Fresh brand. It
became the official chewing gum of the World Cup, the rationale being that cricketers like to chew
gum on the field. The brand emphasised its cricket connection - on the packaging, billboards,
hoardings and TV commercials. Free samples were passed around outside the stadia on match days.
Sales took off and the "official chewing gum" status continued for some years.

Analysis of the Promotion Strategy

The promotion strategies of PVM have been spot on. Of all the promotional activities followed, the
best and most remembered one is when it associated itself with the Cricket World Cup 1996. This
was an attempt to gain maximum exposure and the investment was completely worth it. We think
that this strategy of theirs was what made Perfetti what it is today.

Some other innovative ideas that could help the company considerably in the promotion of its
brands can be noted down as follows:

 Perfetti can have tie ups with major retailing outlets like More, Big Bazaar, Metro, etc. and
have their boxes kept at the billing counters which would give Perfetti visibility and it’s a
proven way to increase sales also in a way.
 Again, they can coordinate with colleges and promote events as the brands like Center Fresh
and Alpenliebe are very famous amongst the college going crowd.
 Toll booths and ticketing counters at various places can also provide Perfetti products in
place of change due to the advantage of its low price point.
 After tie ups with major television networks, Perfetti can also approach airline companies to
provide Perfetti products along with their in-flight meal.
 Bundling their products will help and would be a winning strategy. Also they can associate
themselves with stationery products like pencils, erasers, etc. by which they would be
targeting their prime segment which are the kids.

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Summary
Perfettis’s journey in India has been very fruitful and the strategies used have set benchmarks for the
confectionery industry. From children to the common man, PVM has managed to capture the
attention of the Indian consumer.

From our group’s point of view, we feel Perfetti has taken keen interest in understanding the India
which has resulted in them achieving the market leader status with more than 30% share. But we
can see that some influence has been there of the global strategies in Perfetti’s way of promotions.
Hence a future change that Perfetti could bring about would be to introduce a premium brand which
would stand out from the cluster of products that are there in the market right now. Innovation in
products is not a new thing for Perfetti and combined with an exceptional marketing strategy, we
think another benchmark can be set by this company.

With India’s economic boom and the changing mindset of its consumers, Perfetti should try to
maximize its profits as much as possible so that they can achieve the desired lead over the
competition. In India, the company now strives to change the face and nature of the confectionery
industry. It aspires to shift it away from the unorganised segment, which is dominated by low quality
and unhygienic products, to a more competitive and organised scenario, dominated by high quality
manufacturing, innovative advertising and widespread distribution extending even to small towns
and villages.

As they say, living the Perfetti Van Melle Values requires courage, vision, trust, commitment and
pragmatism.

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 Perfetti Van Melle

References
http://www.perfettivanmelle.in

http://en.wikipedia.org/wiki/Perfetti_Van_Melle

http://www.perfettivanmelle.com/about_glance.htm

http://ibef.org/download/perfettivan_melle_india.pdf

http://www.scribd.com/doc/22960002/%E2%80%A2-%E2%80%A2-%E2%80%A2-%E2%80%A2-
%E2%80%A2-Rahul-Joshi-Pooja-Gaikwad-Roopali

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 Perfetti Van Melle

Annexures
Exhibit 1:

Brands launched by Perfetti n India:

 Alpenliebe
 Alpenliebe Creamfills
 Alpenliebe Lollipop
 Big Babol
 Center Fresh
 Center Fruit
 Center Shock
 Chatar Patar
 Chlor-mint
 Chocotella
 Cofitos
 Fruitella
 Happydent White
 Protex Happydent
 Marbels
 Mentos
 Chocoliebe

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 Perfetti Van Melle

Exhibit 2:

Perfetti’s competitors in the Indian market:

 Cadbury
 Nutrine
 Ravalgon
 Parry
 Parle
 Nestle
 Wrigley
 Joyco
 ITC
 Hindustan Lever

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