Center fresh is a product of Perfetti Van Melle confectio nery. Globally, Perfetti Van Melle ranks third in the confectionery sweepstakes after Mars and Cadbury. In india, it leads the pack with a 25 per cent share of the Rs 3,000-crore (Rs 30 billion) per annum market.
Center fresh is a product of Perfetti Van Melle confectio nery. Globally, Perfetti Van Melle ranks third in the confectionery sweepstakes after Mars and Cadbury. In india, it leads the pack with a 25 per cent share of the Rs 3,000-crore (Rs 30 billion) per annum market.
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Center fresh is a product of Perfetti Van Melle confectio nery. Globally, Perfetti Van Melle ranks third in the confectionery sweepstakes after Mars and Cadbury. In india, it leads the pack with a 25 per cent share of the Rs 3,000-crore (Rs 30 billion) per annum market.
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Product: Center Fresh. Submitted to: Prof. R Kamble. Submitted By: SECTION ABC Navdeep Gupta (08IT024) IMT NAGPUR 2008-2010 Contents Brief History Of Brand ......................................................... ...................................................... 3 Brand Strategies ...... ................................................................................ .................................... 5 Key success factors in India ............ ................................................................................ ........ 6 Strong brand building ............................................... ............................................................... 7 Constant re-in vention of brands .............................................................. ................................. 7 Innovative products(particular to company) . ........................................................................... 8 Co mpetitive Scenario Around the Brand ............................................ ......................................... 8 Financial statistics ............... ................................................................................ ...................... 10 Future Plans ......................................... ................................................................................ ..... 10 References ............................................................ .................................................................... 11 IMT NAGPUR 2008-2010 Brief History Of Brand Center fresh is a product of Perfetti Van Melle confectio nery. Globally, Perfetti Van Melle ranks third in the confectionery sweepstakes after Mars and Cadbury. Largest manufacture of confectionery and chewing gum pro ducts .Two brothers ambrogio and egidio perfetti founded perfetti in 1946. Izaak van mella founded van mella in 1841.Perfetti acquired van mella in Jan 2001. Bu t in India, it leads the pack with a 25 per cent share of the Rs 3,000-crore (Rs 30 billion) per annum market. India, in fact, is the only country outside Italy where Perfetti is ahead of both its rivals. It could boast of other achievement s in the country as well. In a market where price points are as low as 25 paisa, it has three brands which sell over Rs 100 crore (Rs 1 billion) each: Alpenlieb e, Center Fresh and Big Babol. And, says Perfetti India Managing Director Sameer Suneja, 37, the Indian operations, expected to scale the Rs 1,000-crore (Rs 10 billion) mark this financial year, have been profitable for some years now. (Per fetti came to India in 1994.) Confectionery, it so happens, is an intensely comp etitive market in the country. There are large multinational corporations like M ars (it bought out Wrigley last year for $23 billion), Cadbury, Lotte (it acquir ed Parry from the Murugappa Group some years ago), Hershey (it purchased Nutrine three years ago), Nestle and well-entrenched local players like Parle Products, Ravalgaon and not-to-forget ITC which had bought Minto from Candico in 2002 and has added another brand called Candyman to its portfolio since then. And more h eavy weights are ready to test the waters. Dabur for instance, could join the ma rket in the not-too-distant future its brand, Hajmola, is after all the undisput ed market leader in the digestive candy market. There are distribution synergies which could prove too irresistible to exploit one day. Then there are local swe atshops which churn out candies often sold unwrapped. Little surprise then, ther e are innumerable brand launches every year almost 70 new brands were seen in th e market place in the first half of 2009 Industry experts say not more than ten per cent of the new launches survive for more than a year. Mortality rate of bra nds in this business, therefore, is as high as 90 per cent. (This is still bette r than Japan where almost 3,000 brands are launched every year out of which not more than 90 survive!) IMT NAGPUR 2008-2010 And 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 confectioneries if they ru n out of change. This means that any climb in raw material prices (sugar this ye ar and petroleum-based packaging films last year) has to be absorbed by the manu facturer. The import is clear this is not a market for the faint-hearted. Suneja , slightly built and a peripatetic salesman, is a veteran of 12 long years at Pe rfetti. After he passed out of IIM Bangalore in 1994, Suneja had joined Colgate Palmolive and from there he moved to Frito Lays and finally to Perfetti in early 1997 as a brand manager. After a two-year stint in Italy, he returned in 2002 a s the head of sales and marketing. Last year, he was named CEO. Perfetti has a l arge portfolio of 16 brands. Of these, it has decided to actively promote ten: C enter Fresh, Center Fruit, Big Babol, Happydent, Alpenliebe, Creamfills, Chlor-M int, Chocoliebe, Mentos and Marbles. These ten fetch the company almost 80 per c ent of its sale revenue. Perfetti brands in India Center fresh Center fruit Center shock Alpenliebe Alpenliebe creamfills Chlor-mint Chocotella Cofitos Fruittella Happydent white Marbels Mentos Chocoliebe Big babol IMT NAGPUR 2008-2010 Alpenliebe lollipop Chatar patar Given the clutter in the market, the only way to create brand salience is through innovative adver tising. Like in other FMCG categories, large confectioners spend 12 to 13 per ce nt of their sale revenue on advertising and brand promotion. Center Fresh, the b rand with which the Italian candy giant entered India in 1994.The launch price o f this product was Rs 1.50. In 1995, Perfetti dropped the price to Re 1. The rea l push for the brand, though, came in 1996 when Center Fresh associated itself w ith the Cricket World Cup Brand Strategies To understand the strategy behind the new campaign, first some background. The first ad was aired at the brand's 1994 launch. An international commercial, it showed a man rafting ownstream while th e English jingle sang on about a fall of freshness. In the next scene, the produ ct split in the middle, showing a similar "fall of freshness". The launch price of Center Fresh was Rs 1.50, almost three times as high as other gum brands. "We thought we could command a premium for being an innovative liquid-filled gum, a nicely pillow-packed foreign brand," recalls Sameer Suneja, the company's marke ting head. Well, they were wrong. While initial advertising and the novelty fact or helped push trials for a few months, sales soon declined and in 1995, Perfett i dropped the price to Re 1. That helped. The real push for the brand, though, c ame in 1996 when Center Fresh associated itself with the Cricket World Cup. It b ecame the official chewing gum of the World Cup, the rationale being that cricke ters like to chew gum on the field. The brand emphasized 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. The next big push came when Cente r Shock was launched in 2001. "We couldn't afford to advertise both Center Fresh and Center Shock. Instead, we launched the new product under the 'Center' umbre lla, so that there would be a rub off on the mother brand from the Center Shock advertising," says Suneja. He claims the strategy worked then, and again when si milar tactics were adopted at the launch of Center Fruit and Air Action Center F resh (that ad showed a thin man pushing a chubby girl on a swing). "We have not advertised the mother brand, but still brand awareness and sales continue to be very high," declares Wakankar. IMT NAGPUR 2008-2010 So why a Center Fresh ad now? Have the new variants overshadowed the mother bran d, or have new products that have been promoted aggressively - such Wrigley's Or bit or even Prefetti's own HappyDent - affected Center Fresh sales? That may be the market buzz, but the company brushes aside all such rumours. Wakankar insist s the brand is growing at a "healthy" double-digit rate, while Suneja points to the fact that "98 per cent of all chewing gum sales in India happen between 50 p aise and Re 1 - and Center Fresh is Re 1." The reason, then, may lie in the new factory Perfetti is setting up at Rudrapur (in addition to existing facilities a t Manesar and Chennai). The additional capacity will need extra demand and Perfe tti's drumming up business. "Our philosophy is that when things are looking good , invest and make them better," says Suneja. How was the new ad conceptualised? O&M Group Creative Director Abhijit Awasthy says there was no formal briefing - just some brainstorming on "what will work best for the product". For Center Fre sh, both agency and client were clear that there was no need to push awareness t he brand has been around long enough and the variants have done their bit to pro mote the mother brand. "Freshness as an attribute also came out quite naturally from the product name. Plus, a lot of people have been doing ads for different p roducts on the idea of freshness. So, there was no need to play on the freshness factor, too," he adds. Which is where the idea of a more generic ad came up, on e that plays upon the more indirect benefits of chewing gums - it can keep help keep your mouth busy and shut when it is not required to speak. Also, since Cent er Fresh is a mass product consumed by consumers across sections, Perfetti wante d an ad that cuts across audience types. Key success factors in India The Indian confectionery market is very different from the global market. While India is primarily a mono pack market, globally the confectionery market is a mu lti pack market. The trade is also Significantly different with the global marke t relying heavily on organized trade. In India, unorganized mom and pop retail o utlets such as paan shops and kirana outlets result in the bulk of sales. Organi zed trade is still insignificant in terms of sales. Functional products and suga r free confectionery dominate the world-wide market, while that trend is yet to pick up in India. IMT NAGPUR 2008-2010 Strong brand building Perfetti Van Melle has also shown creativity in its packaging as well as communi cation and promotions. Big Babol redemption contests, Cofitos Click Card promoti on are examples of this. Alpenliebe, Big Babol, Chlor-mint are all brands built in the past decade and advertising has played a key role in the same. A series o f conventional and non-conventional branding techniques and media innovations ha ve been utilized to promote the company's products in India. Besides media vehic les like television, radio (FM), press, outdoor and on ground activities as well as ³point of purchase´ promotional material have been used tactically, across the c ountry. The company believes in being flexible when deciding spends on a specifi c brand and lets the market factors determine spends on the brand and on differe nt media vehicles. However, advertising has to be backed by availability of the product, in order for the advertising to deliver the desired results and Perfett i has taken care to ensure the same. Constant re-invention of brands The company continually works towards developing its brands and goes to the exte nt of reinventing the same if the situation demands. An example is the brand Cof itos that was re launched at a lower price point because of the market demands. Variants of Alpenliebe were also launched in the year 2002 to take the brand for ward and to create excitement in the market. Similarly the company has worked on the positioning of brands like Chlor-mint and modified the same in order to dev elop it further. in June 2009 Center Fresh has launched a new campaign ³India, baa te kam, kaam zyaada´ as an extension to the brand thought ³Zuban pe rakhe lagaam´. The agency was tasked with creating a new approach for the existing brand propos ition. The film shows a group of policemen, office executives, politicians, doct ors and two cricketers seemingly engrossed in serious discussions in their respe ctive fields. This is accompanied by an audio praising the talent and future of India. Cut back to the same set of people actually discussing about the most mun dane things which are absolutely not related to their respective professions. Th is is followed by the voiceover ³India, baate kam, kaam zyaada´. IMT NAGPUR 2008-2010 Innovative products(particular to company) Perfetti Van Melle has introduced several innovations in its products, cases in point being Center Shock, Alpenliebe Swirl and Happydent Gum. The company offers products through continuous innovation, and by setting and achieving high quali ty standards, rigorous processes and controls. As a result these are recognized by the consumer to be amongst the best two in the respective product categories in which it operates. The company believes that this contributes significantly t o their achieving and maintaining a dominant position in the market. Perfetti Va n Melle has also successfully adapted its products to the Indian palate, service d the market with superior products and ensured the maximum flexibility to give what the market would demand. CENTER FRESH SWOT ANALYSIS Strengths Innovation Promotional tactics Packaging Quality WEAKNESS Maintaining technology superiority Price constrain OPPORTUNITIES Innovation within the brand Sugar free prod ucts THREATS Competition from international brand. Competition from domest ic players . Competitive Scenario Around the Brand IMT NAGPUR 2008-2010 Because of Target advertisements need to appeal to consumer s across age brackets and socioeconomic groups. Confectionery brands cut across consumer categories. Perfetti therefore puts humour (Mentos and Center Fresh), e motion (Alpenliebe), bizarreness (Happydent and Chlor-Mint) and fun in liberal m easures in all its commercials. We do some edgy work and are willing to take ris ks, says Suneja. Story lines have been dropped and film shoots scrapped at the l ast moment, says he, to get the perfect advertisement. Perfetii Promote there Pr oduct with following Promotion tools Free sampling. Animated films. Trump cards. Advertising . One way to create a difference in the mind of consumers, Perfetti has realised, is to coin taglines for all its flagship products. Others who do that now will o nly be seen as following it. Thus, there is Zubaan par rakhe lagaam (reins in th e tongue) for Center Fresh, Dobara mat puchna (Dare not ask again) for Chlor-Min t and Dimag ki batti jala de (Lights up your brain) for Mentos. Hidden Competito rs in India Pan Flavored supari Chutki Pass Pass Compe titors Orbit Pim Pom Boomer Spearmint. Juicy fruit IMT NAGPUR 2008-2010 Financial statistics Overall turnover in India of chewing gum is Rs 325 crore . In whic h center fresh capture 33%. In between 2001-2006 confectionery market was g rowing at a rate of 8.7% Under confectionary market chocolate segment is growing at the rate of 10%,chewing gum and mint segment increasing at a rate of 12-15% and sugar segment increasing at the rate of 5%. Global confecti onary market would rise 16% between 2006 - 2010. Future Plans Perfetti Van Melle's vision is to enhance its world leadership in confectionery by creating value for people through delightful and imaginative high quality pro ducts. The company's mission is to: Develop, manufacture and market high-quality and innovative products for consumers, through Efficient use of its resources a nd in partnership with its customers Create a fulfilling workplace for its emplo yees built on trust, mutual respect and appreciation of their diversity Value th e role it plays in communities, as a socially and environmentally committed Orga nization Generate economic value through superior growth and profitability India and China are the focus countries as per the Group's global plans, given the im portant positions of these two economies at the global level. In India the compa ny strives to change the face and nature of the confectionery industry. It aspir es to shift it away from the unorganised segment, dominated by low quality and u nhygienic products, to a more competitive and organised scenario, dominated by h igh quality manufacturing, innovative advertising and widespread distribution ex tending even to small towns and villages. Living the Perfetti Van Melle Values r equires courage, vision, trust, commitment and pragmatism. IMT NAGPUR 2008-2010 The following values guide the company's actions in achieving the mission: Integ rity without compromise Achieving excellence Dedication to the consumer Care for its people Social and environmental responsibility Independence References http://www.campaignindia.in/news/center_fresh_urges_india_to_talk_less_and_work_ more www.authorstream.com/.../himanshuvohra-102291-center-fresh-perfetti-chewing -gumcentrefresh-07-education-ppt-powerpoint/ http://business.rediff.com/special/ 2009/aug/18/spec-perfetti-success-in-india.htm Article by on center fresh Bhupes h Bhandari & Byravee Iyer.( http://www.businessstandard.com/india/news/perfectin g-perfetti/367216/) http://www.rediff.com/money/2007/mar/20ad.htm