PERFETTI VAN MELLE

Project on STOP NOT

By

MANAGING DIRECTOR-PERFETTI
VAN MELLE
SAMEER SUNEJA
MANAGING DIRECTOR, PERFETTI VAN MELLE INDIA
Sameer Suneja, Managing Director, Perfetti Van Melle has been with the Indian
confectionery major for 15 years now. Accredited as among "India's Hottest Young
Marketers" in 2005 by Brand Equity and also one of "India's Hottest Young Executives"
in 2008 by Business Today, Sameer is largely responsible for building the brands at
PVM and creating some memorable and award winning advertising. Sameer joined
PVMI during its start up days and has played a key role in the company's distinguished
growth over the years. Perfetti Van Melle is the undisputed leader in sugar
confectionery today and most of its brands are market leaders in their respective
segments.
Sameer joined the company as a Brand Manager in 1997 and subsequently moved to
Milan for an International Marketing assignment where he spent a couple of years. He
returned to India in early 2002 and was the Head of Marketing and subsequently
became Head Sales and Marketing. He became the Managing Director three years ago
and is among the youngest Managing Directors in the country running a company with
a turnover of 1200 Crores. During his stint as a Managing Director, the company has
seen exponential top line and bottom line growth.
An MBA from IIM Bangalore ('94 batch), he started his career at Colgate Palmolive.
From there he moved on to Frito-Lay before joining Perfetti Van Melle. Website:
http://www.perfettivanmelle.in

GLOBAL OVERVIEW OF PERFETTI

VAN MELLE

Largest Manufacturer of Confectionary and

Chewing-gum products.
Two brothers Ambrogio and Egidio Perfetti
founded Perfetti in 1946.
Izaak Van Mella founded Van Melle in 1841.
Perfetti acquired Van Melle in Jan 2001 and
became Perfetti Van Melle.

PERFETTI S BRANDS IN INDIA

Alpenliebe

Center Fruit

Chlormint

Chocoliebe

Creamfills

Mangofillz

Marbels

Mentos

Big Babol

Center Fresh

Happydent Wave

Happydent White

Sugar Free

Lollipops

Center Shock

Fruitella

STOP NOT

Perfetti van Melle, a leading confectionery maker,

forayed into the Rs 3,000 crore Indian packaged
snacks market with its own brand of snacks
called Stop Not.
Launched in Dec11.

Currently available in Golz(ring shaped)

category with 4 exciting flavours.

THE INDIAN SNACKS MARKET

According to a study by McKinsey&Co, the
Indian food market will grow two fold by 2025
with the rapidly growing Indian economy and
improving lifestyles of Indians contributing in a
big way to this growth.
The Indian snacks market is worth around US$ 3
billion.
The snacks Market in India is growing at a rate
of 45 % every year.
Frito-Lays, Haldirams,etc are some of the
dominant players in the market.

MAJOR COMPETITORS

Frito-Lays-Kurkure,Uncle chips, Lays,Cheetos

Parle- Wafers, Hippo

Haldirams- Chips,wafers,mixtures

ITC- Bingo, Mad angles, Tangles

SWOT ANALYSIS ON STOP NOT

Strengths

STRONG
STRONG BRAND
BRAND VALUE
VALUE :: The
The product
product comes
comes with
with the
the PERFETTI
PERFETTI VAN
VAN MELLE
MELLE

needless
needless to
to say
say it
it has
has aa pretty
pretty strong
strong brand
brand value.
value.

tag
tag so
so its
its

ATTRACTIVE
ATTRACTIVE PACKAGING:
PACKAGING: The
The management
management has
has given
given the
the product
product aa very
very impressive
impressive

packaging,
packaging, quite
quite different
different from
from competitors.
competitors.

STRONG
STRONG DISTRIBUTION
DISTRIBUTION CHANNELS
CHANNELS :: As
As the
the company
company is
is already
already into
into dominant
dominant

confectionary
confectionary business,
business, it
it doesnt
doesnt require
require to
to explore
explore for
for the
the markets.
markets.

EXPERIENCED
EXPERIENCED MANAGEMENT
MANAGEMENT TEAM
TEAM :: The
The company
company is
is running
running by
by aa quite
quite experienced
experienced

management
management team
team operating
operating in
in India
India for
for the
the last
last 16-17
16-17 years.
years.

GOOD
GOOD MARGIN
MARGIN FOR
FOR RETAILERS
RETAILERS :: The
The company
company is
is providing
providing aa good
good margin(substantially
margin(substantially high
high

but
but yet
yet attractive)
attractive) to
to its
its retail
retail counters,
counters, giving
giving an
an edge
edge over
over its
its competitors
competitors product.
product.

UNIQUE
UNIQUE PRODUCT
PRODUCT :: The
The company
company launched
launched its
its snacks
snacks product
product which
which is
is quite
quite different
different from
from

what
what its
its competitors
competitors are
are selling.
selling.

STRONG
STRONG FINANCIAL
FINANCIAL POSITION:
POSITION: Being
Being aa Rs.1200
Rs.1200 crore
crore company
company in
in India,
India, it
it enjoys
enjoys aa strong
strong

financial
financial reputation.
reputation.

WEAKNESS

LACKS IN TASTE : Unfortunately, the product has failed to impress

the masses due to its low masala content and spiciness. Therefore,
the product needs a review from its R&D team.
SPICY SOUTH SALE IS STAGNANT : The Spicy South flavour
is not doing good in the market as compared to its other flavours.
DISTRIBUTORS LACK OF INTEREST : It has been observed
that the distributors are not taking much interest in the snacks item
as they are considering it as an extra burden due to its space
consuming cartons.
PACKAGING LOOKS SMALL : The packaging looks small as
compared to the other snacks available in the market.
SHORTAGE OF STANDS : The Products demand is favourably
high at the moment due to its intensive promotion through T.V.
advertisement, but shortage of stands for big packs at the retail
counters might pose a threat to its sale.

OPPORTUNITIES

STAGNANT SUPPLY OF KURKURE : Brand Kurkure is one of the major

threat to the products sale. According to retailers the supply of kurkure is very
stagnant at the moment, so its an opportunity for the product to increase its sales
NEEDS A SEPARATE DISTRIBUTOR : The product requires separate sole
snack selling distributor due to the lack of interest of confectionary selling
distributors. The distributors are demanding extra carriage cost due to its space
consuming cartons. Otherwise the distributors might dump the whole snacks
consignment into the wholesale markets which might affect the sale of the
product and its availability in the retail market.
SMALL NET BAGS : The big packs of the product requires small net bags for
the retail counters who cannot afford to buy the quantity required for the stand
and also who buy in low quantities. This can increase the sale of the big packs.
REQUIRES A PRODUCT LINE : The product should be ready with a
completely new set of snacks which should be improvised with more masala
content and spiciness, else its brand might die.

THREATS
MARKET SHARE LEADERSHIP : The major
threat to the product is from the undisputed
snacks leader Frito-lays. We stand nowhere to
its sales at the moment, but surely we can give
them a tough competition in near future, if are
able to improvise on our product range.
COMPETITORS SELLING EXTRA: All the
major brands in the competition like Bingo,
kurkure, parle, oyes are giving some percent
extra in their packs resulting in large looking
packaging of their product.

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.
Keeping upto the expectations PVM came up
with another impressive commercial for Stop
Not.
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.

MARKETTING MIX STRATEGY

Product Strategy

Price Strategy

Place Strategy

Promotion Strategy

PRODUCT STRATEGY
Perfetti has several mouth-watering and heavyselling candies as a part of their Product portfolio.
Launching a snacks product added one more star
to their credentials.
Launched in Dec2011, STOP NOT is a completely
indigenously developed snack, inspired from the
flavours of the Indian kitchen. Made hygienically,
using the best raw materials, Stop Not variants
have been developed by combining Indian food
preferences with the most modern food processing
technology.
Currently available in 4 flavors- Full Masala, Spicy
South, Tangy Tomato, and Khatti Metthi.

ANALYSIS OF THE PRODUCT

STRATEGY

The Major components of Perfettis Products,

which need to be analysed are:

Design

Packaging

Quality

DESIGN
Each of Perfettis various brands and their variants
have distinct design features. Stop Not comes with
a face print on its packaging with different colors for
each of its flavours which makes them easily
identifiable among the other brands.
PACKAGING
With its attractive packaging, Stop Not has
managed to arouse interest in the consumer market.
QUALITY
Perfetti focusses greatly on the quality of their
products.They have 3 ISO22000 certified
manufacturing units located in Manesar, Chennai
and Rudrapur.

PRICE STRATEGY
For all we know, Perfetti has been following the
simplest of pricing strategies. It launched Stop
Not in 2 price segments viz.,a 5 rupee and a 10
rupee pack, keeping in line with its competitors.
ANALYSIS:
The company has been following an economic
pricing strategy right from the starting. For
Stop Not, it has been aiming at maximising its
market share by giving comparitavely higher
margin and promotional offers to the retailers as
compared to its competitors.

PLACE(DISTRIBUTION) STRATEGY

Perfetti Van Melle manufacturing units in India

are located in Manesar,Chennai and Rudrapur.
From these the distribution is done in four
regions, and has branch offices in Delhi, Mumbai,
Kolkata and Bangalore to manage sales in the
region.
ANALYSIS:
With Distribution channels already been set for
its confectionary products, the company does not
have to explore for the markets for Stop Not.

PROMOTION STRATEGY
To consolidate its worldwide market presence,
Perfetti has always paid special attention to
advertising, in terms of investments and
creativity,as they both play a vital role in the
creation of the products personality and market
positioning.
The promotion strategy adopted by Perfetti for
launching Stop Not are :
Advertising

Events and Experiences