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IMT NAGPUR 2008-2010

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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

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