Distribution channel of Perfetti van mille

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.