1. CHEW!

2. Innovationin Chinas Confectionery Market 3. ObjectiveExamine the reason hiding behind WrigleysSuccess in China via various channel, give outconstructive recommendations 4. IntroductionThe Chinese MarketS.W.O.T. Analysis Recommendation 5. William Wrigley Jr. Company founded in1891Introduction Originally sold and Headquarters located in Chicago, Illinois 6. 1892- William Wrigley Jr. began packaging thechewing gum with the cans of baking powder.Eventually the chewing gum became morepopular and the company began producingchewing 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 emquickTell emoften Yeah, Im the one whoAdvertise 9. Production facilities expanded throughout thefollowing 100 years, eventually reaching19 facilities in 19 countries. Wrigleycurrently sells its products in over 180countries. 10. Confectionery includes chocolate, sugarconfectionery and chewing gum. In 2007, the global confectionery market sizewas around $141billion expected to grow to$145billion by 2010. 11. 14%ChocolateSugar Confectionary55%31% Chewing Gum 12. The Worldslargest Confectionary company 13. Wrigley were relatively weak in the sugarconfectionery market whereas Mars and Wrigley were strong in thechocolate and chewing gum market,respectively. 14. Aggressive FunctionalExpansionConfectionary 15. Exploring Enhancing Developing Old Old New Product Product Product 16. Developed markets- Wrigley focused moreadvanced benefits like natural and organicingredients, sensational pleasure,convenience, more sophisticated innovationsfor different target customers. Developing regions- Wrigley focused onfundamental benefits of oral health and newflavors. 17. Chinaslargest Confectionary company 18. Take a closer look 19. Thats right! We are allPrice Sensitive! 20. China has been growing on average at a double digit rateand profitableeach year since we started manufacturing locally back in 1993. We are alsonot resting on past success, but are keenly focused on gleaning additionalmarketplace insights to drive innovation that is both relevant and motivatingto consumers across China.- William Wrigley Jr.II 21. Product Price Promotion Place new flavors for Extra, including cool mint,strawberry, melon and blueberry Extra Xylitol New convenient package Extra Xylitol and the Whitening series Traditional Chinese herbal flowers and fruit 22. Product Price Promotion Place become willing to spend more on confectioneryfor their children (higher pricing) 23. Product Price Promotion Place Benefits of dental care, weight control, stressrelief, and increasing alertness and concentration fashionable and healthy image maintain a fresh image to consumers byintroducing new variants every now and then. 24. Product Price Promotion Place wide distribution network. 2.2 million distribution points, or over 90% retailpenetration covered more than 300 cities in China 25. Strengths Weaknesses Opportunities Threats Leading market position: Worlds largest gum company- 63% of global market share in 2007. It was also the- Fourth largest confectionary company in the world Also 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. 26. 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 stakeholders confidence. 27. 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 Gums Rain and Cobalt flavors ranked first and third. Innovation in packaging is increasing consumption of other brands.- Germanys launch of a premium bottle package- Polands new peg bag pouch provides added value to consumers. In FY2007, new products accounted for approximately 20% of its net sales. 28. 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 29. Strengths Weaknesses Opportunities Threats Brands include:M&MsSnickersMarsOrbitExtraDoublemint Has strengthened, diversified, Enhanced growth potential and given us a competitive advantage. 30. Strengths Weaknesses Opportunities Threats High dependence on the US markets for revenue generation: The US accounts for approximately 90% of its North Americas net sales and assets.29.4% of its total revenue in FY2007 was the from US. This makes Wrigleys in the US more exposed to country specific factors such as labor strikes, changes in economic conditions and increasing competition. 31. Strengths Weaknesses Opportunities Threats High dependence on the US markets for revenue generation: The US accounts for approximately 90% of its North Americas net sales and assets.29.4% of its total revenue in FY2007 was the from US. This makes Wrigleys in the US more exposed to country specific factors such as labor strikes, changes in economic conditions and increasing competition. 32. Strengths Weaknesses Opportunities Threats Seal of acceptance from the American Dental Association likely to push up sales: American Dental Associations (ADA) Seal of Approval for Extra, Eclipse and Orbit in September 2007. ADA is the nations largest non-profit dental association, representing more than 155,000 dentists The ADA Seal displays that chewing Wrigleys 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. 33. 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 Chinas 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, Wrigleys full range of confectionery offerings has established a strong foundation for future business expansion. 34. 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. 35. Strengths Weaknesses Opportunities Threats Intense competition: Wrigley faces stiff competition from big multinational companies primarily with Cadbury. Second-largest producer of chewing gum in the world Recently, 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 Wrigleys near 100% market share in the UK Trident Splash brand of gums is taking over market shares. Cadburys sugar-free gums in the US. Wrigley also competes with Hershey in other non-chocolate categories (e.g. hard and chewy candy including mints). 36. Strengths Weaknesses Opportunities Threats Chewing 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. 37. How do you advertise/Market to a market youdominate: The market was a large and mature industrywith little competition. Mars Merged with Wrigley Making it theworlds largest confectionery company. Has roughly 14% of the global confectionery,now the 2nd largest Cadbury holds about 10%of the global market share. 38. -----1.0,2.0,3.0 Info on Want to RaiseMarket Strategy. awareness of brands and product Advertising Innovation Choose to integrated with outside agencies TV , Print and Radio (Old) Must recapture all the benefits of multi-brand and keep defining the key factors to success 39. 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. 2005Consultant Group- 40. Attention was given to a nation where humancentricity and the character of spiritualityovercame the challenges of diversity. 3.0 Must Make Use of Media:Expressive Social media: Blogs, Twitter, YouTubeetc.Collaborative media: Wiki, Rotten Tomatoes,Craigslist. ( People can do there ownhomework now and Choose) 41. PERCEPTIONS & Choice Chinese buy Avg. 10 sticks ofhttp://www.ted.com/talks/lan Gum a year g/eng/sheena_iyengar_on_t Americans Avg. 160 he_art_of_choosing.html Taiwan Avg. 70-808:40s to 10:15 A Manager of Wrigley-- Ideas to think about- said I dont thinkWrigleys started as a soap Co. started giving out onePeople know how stick of gum with xyz global Wrigleys is In product. Bring this back:the past they have In China: Only have sticks of gum in Dental and healthalways branded facilities. Locally 42. A Blogger all it is http://www.youtube.repackaged Wrigley com/watch?v=RE4Cspearmint HTiHS_8This may be truehowever they havefound a way torecapture theattention of the theretarget Audience(Marketing 3.0) 43. Growing up on Gum TED Clip Ref.in the West vs. it justbeing introduced in1989/ Guangzhou What is ChewingGum fragrancedbreath candy-What is Disney concept- 44. Concept Creation- In the coming 5 to 10Benefits of Chewing years. It shall be Improving oral health challenging for Managing weight Wrigley to go beyondgum and compete in Relieves stress the larger Some research confectionary marketsuggestedIncreased in order to sustain itsthe flow of blood togrowth in China.the brain by 20-40% 45. Make partnershipsand business ventureswith the localcommunityGet involved Dental is a start Gum/ Fast Food Wrigley / fitness gym 46. Sourced by: