Group

1. Gligor Daiana Vanessa;

2. Gurău Anca Maria;

3. Iancovici Laura Elena;

4. Iancu Georgiana;

5. Ilie Mihaela Elena.

Project
Our project is about a foreign companies offshoring to/ doing business in
Romania.

We chose to talk about Milka.

Contents
1. Name of the company & type of organization;

2. Short history;

3. Products;

4. Clients;

5. Parteners;

6. Competitors;

7. Financial situation over the last 5 years;

8. Other relevant information;

9. Promotion;

10. Price.
1. Name of the company & type of organization

 General presentation of “Milka”

Milka is one of the most famous brands of chocolate internationally and

nationally, being easily recognized by purple packaging and coconut symbol.
It is the fastest-growing chocolate brand that has topped the tablet segment as well
as the chocolate market and is known by over 90 percent of Romanians, according to
Nielsen and GFK market surveys.
Milka's portfolio includes products in all main segments of the market: tablets, bars
and bars. Milka Chocolate is a trademark of Kraft Foods.

2. Short history
In 1901, the purple packaging of Milka chocolate is launched. Against the purple
background of the pack, for the first time, a cow in the Alps appeared at that time in
black and white. But why is it a vacuum? It embodies better than any other animal the
origin of the Milka brand: the Alpine world and the Alps milk. And how did the cow
get the purple color?

Inspired by the motto "Arrow your distances, get away from all the known ones,"
Milka did not just paint the packaging; the emblem of the trademark - the cow - also
received the purple color, drawing the attention of the first moment on the chocolate.

After the first advertising campaign appeared many other objects of colorful
Christmas trees, balloons etc - purple cow will remain, over the years, the emblem of
the Milka brand.

It fits perfectly into the brand image, embodying the fineness of the Alps milk.
"In the Alps, the air is cleaner, the water is purer and greener grass. That's why the
cows give the best milk. From the best milk, the best, the finest chocolate is
produced. " This phrase has opened the path of purple cow in the Alps, and since then
is the essence of the Milka advertisements.

In 1973, the first advertising spot with the purple vow appears, for which Young
& Rubicam was awarded the gold medal by the Art Directors Club. Since 1973,
Milka cow has been the protagonist of 100 TV spots.
The purple cow today:

Since the 90's, the coconut, the emblem of the brand, is found on all Milka
packaging, becoming one of the most successful advertising figures.

The purple vase, a symbol of quality, is considered a sympathetic, trustworthy and

charitable character. Meanwhile, he has won fans all over the world. The Milka Vaca
contributes decisively to annual sales: about 400 million chocolate tablets, 30 million
Easter Bunnies and Santa Claus Christmas and many other Milka milk chocolate
products from the Alps around the world.
3. Products
The assortment range existing on the Romanian market:

 Milka tablet:

o Milka tablet 100g;

o Milka tablet 250g;

o Milka Luflee;

o Milka Milk Diet in the Alps.

 Milka M-joy;

 Praline Milka;

 Special Milk for Children.

Milka tablet:
Milka tablet 100g:
Milka tablet 250g:

Milka Luflee:

Milka Milk Diet in the Alps:

Milka M-joy:
 Milka praline:

Special Milk for Children:

4. Clients
Milka Chocolate is part of the consumer goods category and is among the top choices of
young chocolate consumers.
In Romania, last year's consumption of chocolate was 1.9 kilograms per capita. At the same
time, in Switzerland, consumption stood at 11 kilograms per capita.
Two to three years ago, the Romans bought chocolate mainly from the kiosks. Now The main
places to buy chocolate most often are the grocery store and the supermarket.
Supermarkets grew as important in chocolate sales, rising to top, between May 2004 and June
2005, the volume of chocolate sales in supermarkets registered 13.9%, between May 2005 and June
2006 it reached 26.3%.
The distribution focuses on three channels: food stores; supermarket; kiosks; hypermarket;
minimarket; general store; small shops, traditional trade and gas stations.

The main places to buy chocolate:

 Consumption of chocolate by age: Consumption of chocolate in different
regions of the country:

Sales of chocolate: The frequency of buying chocolate:

5. Parteners
Curently, on the romanian market of chocolate activate over 70 companies that are selling around
of 90 different brands, but from these companies only 4 or 5 important manufacturers are ruling the
market. These ones adjudecate almost 80% of the volume of products on the Market.

Kraft Foods

Kraft Foods România is a subsidiary of Kraft Foods Inc, the second biggest company in the world
in that works in the domain of food products. In Romania, the company owns an chocolate factory
in brasov, the former Poiana Produse Zaharoase Brasov and also an unity of manufacturing
wrapped coffee in Bucharest where it is located the logistic center. The portofolio of Kraft on the
Romanian market includes a variety of chocolate like Poiana, Africana, Milka, Toblerone and
brands of coffee like Jacobs and Nova Brasilia, as well as the cheese cream Philadelphia.On the
other hand on segment of chocolate tablets, Kraft foods has a rate of approximately 50% in
accordance with market estimations with brands such as Poiana, Milka and Africana. Kraft Foods is
available in over 155 countries( including Czech Republic, Slovakia and Turkey) with international
known brands. The lead of Kraft Foods România estimated for 2008 incomes of over 140 milion
dollars, bigger then the last year with 20%. Milka chocolate its place in the Kraft Foods România
portfolio and reported the last year an increase of 40% of incomings. Also Milka chocolate in
moment holds 20% of incomings on the tablet chocolate market which represents 80% of the total
sellings of chocolate.

Kandia-Excelent

Excellent owns a factory in Bucharest and has a market share of about 22%. The most famous
brands of the company are Kandia, Laura, Rom and Magura. Prior to the deal with Cadbury
Schweppes, Kandia-Excelent's major shareholders were Axis Investments, which held 83.96% of
the shares, and the Austrian bank Meinl Bank, which became a shareholder in April 2006 with a
stake of 9.16%. Kandia-Excelent has recently completed Kraft Foods' confectionery product
procurement procedures, the transaction involving various equipment and brands of Silvana and
Sugus. Kandia Excellent is counting on a turnover of 152.995 million lei, 25% higher than last year,
and a net profit of 8.85 million lei compared to 26.91 million lei in 2006, after which company has
budgeted investments of 4.63 million euros.

Supreme Chocolat

Supreme Chocolat is part of the Supreme Group, which also includes Supreme Imex, which
processes coffee for Kraft Foods, Supreme Gourmet - operates cafes and a distribution division -
Supreme Distribution. Supreme Chocolat is present on the chocolate and sweet biscuit segment. In
chocolate, the company is known for Primola brands - on the medium segment, Anidor - premium,
and Novatini - economically, and for Ulpio brand biscuits. The company also produces chocolate
bars and chocolates. Last year, Supreme Chocolat achieved a turnover of 23 million euros, up 10%
over 2006. The premium segment is shared by Milka, Poiana Senzatii (Kraft), Heidi and Anidor
(Supreme). Milka is the leader in the premium segment of chocolate tablets, according to AC
Nielsen data. On segments, Milka recorded a 20% market share in tablet sales, a segment that
covers about 80% of the chocolate market. On the praline segment, the product doubled its market
share last year.

The best-selling brands of chocolate in Romania are in the order of the market share: Poiana, Milka
and Primola. The most alert increase in 2006 was made by Milka. The top five chocolate
manufacturers / traders in 2006 are as follows:

1) Kraft Foods: Poiana, Milka, Africana

2) Kandia: Excelent Kandia, Laura

3) Supreme: Chocolat Primola, Anidor, Novatini

4) Nestlé: KitKat, Joe

5) Masterfoods: Snickers, Mars

In 2010 the top five chocolate producers were:

1) Kraft Food

2) Kandia Excelent

3) Supreme Chocolat

4) Nestle

5) Modares Food

Product Diagram for Chocolate Market

6. Competitors
7. Financial situation over the last 5 years
The chocolate market is divided between four major players: Kraft Foods Romania, Kandia-Excellent,
Supreme Group, Heidi chocolats Suisse. These are also companies that generate 90% of sales, although the
market is also room for premium chocolate importers. On all price segments: premium, medium and
economic, manufacturers brands clearly dominate the shelves with chocolate tablets of large urban
retailers.
Romania is located in the European Union on one of the last four places to use chocolate. The specialized
studies showed that Romanians consumed last year about 1.9 kilograms of chocolate per capita, compared
to Switzerland, which is the European leader, with 11 kilograms. Also, the Hungarians consume on average
4 kilos of chocolate, per year, the Greeks three kilos, while the Portuguese eat chocolate almost as little as
the Romans, respectively 1.93 kilograms.

According to the data of the MEMRB research agency, Romanian consumers particularly prefer brown
chocolate (with milk content). Sales were about 87% of the total market, between September/October
2006-January/February 2007, followed very long distance from the white one with sales of more than 7%.
At the same time, we see an increase, albeit quite small, of sales of black chocolate, from 2.5% in
September/octombrie 2005-January/February 2006 to 3.9%, in September/October 2006-January/February
2007. Chocolate tablets are still the best selling, holding first place in the top preferences.

Kraft Foods recorded, in the year 2006, a turnover of over 400 million lei (114 million euros) and a net
profit of 40 million lei (over EUR 11 million), according to data transmitted to the Ministry of Economy and
Finance.

The domestic chocolate market was estimated, last year, about 250 million euros, and for this year,
producers Intrevad a 20% growth rate. The Kraft Foods representatives, however, forecast a two-digit
growth, lower than 20%. The main competitors are Kraft Foods, Heidi Chocolat Suisse, Kandia-Excellent and
Supreme Chocolat.

The most famous chocolate brand in the Kraft Foods portfolio is Milka, this mark registering, last year, an
increase in revenues of 40% compared to the previous year, Muller said. Since entering the local market, in
2002, the market share of the Milka chocolate has increased ten times, reaching 20% today, according to
Kraft officials.

For the year 2008, the Milka brand, along with Poiana, Jacobs coffee and Biscuit LU, is at the heart of the
company's development strategy, Muller claims. Kraft Foods Romania, controlled by the American group
with the same name, released yesterday the new packaging for premium chocolate tablets. Thus, the
plastic packaging, which can be resealed, replaced the old packaging from aluminum foil and paper. The
company's representatives declare that the investment in the new packaging, made at several chocolate
factories of the group, was several million dollars. Currently, the chocolate packaged in plastic is brought
from Germany, but the company will begin, soon to produce some of the premium brand assortments in
the new packaging and the factory in Brasov.

CIFRA DE AFACERI FIRMA MILKA

DATE FINANCIARE FIRMA MILKA

 COTA DE PIATA A FIRMEI MILKA PE JUDETUL BUCURESTI SI PE TARA

8. Other relevant information

Chocolate vs Recession
Increasing unemployment amid economic decline can lead to increased
demand for chocolate and cocoa bars, the German experts from
Commerzbank. "Everything revolves around little joys: if people can't
afford a meal at the restaurant, they buy their chocolates," which increases
the lust for life, analysts say.
What is interesting to underline is the role of of stations in sales of sweets
in general and chocolate bars in particular. For example, only in the first
half of this year, the volume of sales of chocolate bars through petrol
stations exceeded the volume achieved throughout the year 2007 on this
channel. The situation is also from a value point of view, so that filling
station have achieved nearly ten percent of sales only for the first six
months of 2008, compared to almost nine percent in the whole year 2007.
Advantages and Disadvantages
Advantages:
* The distribution of goods is done at international and national level.
 * The company's capacity is great at both the number of cats ' jobs to
manufactured products.
* The company is expanded in many countries.
* The company has a wide range of products.
* The company is a advantageous one, brings profit from sales.
Disadvantages:
* The product contains a lot of sugar.
* Excess consumption is harmful to health.
* Causes diabetes in excess consumption that leads to loss of
customers.
* Large competitors on the market.
Conclusion
In conclusion, Milka is a very large company and known worldwide and
also very profitable. Milka has a wide range of products, so they could
compete with other manufacturers.
9. Promotion
TV spots is the main way to promote sweets and especially chocolate. In order to
differentiate, each company tries to determine the association of its products with a
specific idea: Kandia - Love Chocolate, Primola - A Personal Pleasure, Poiana -
Feelings, With Milka go skiing in the Alps.

However, because TV spots are not enough on a market with hard competition,
companies are releasing products on the market. This way, young people have been
given M-joy chocolates (from Kraft Foods Romania), but also chocolate waffles with
chocolate Joe Crunch (from Nestle).

Depending on the season and the holidays coming, sweets companies try to
promote either figurines in the shape of bunnies or Santa Claus, or heart-shaped
lollipops.

 European Brand Promotion Tournament. Milka caravan arrived

in Craiova.
Little cow Milka, without marmot and bears, came in Craiova for the second
European brand promotion tournament which is held in over 40 cities in Europe. The
hundreds of people from Craiova present in "Mihai Viteazul" Square had some
surprises: a small trip in "Alpine World", a visit to a chocolate minifactory,
interactive-fun games, free Milka pictures , the possibility of winning a trip in the
Alps or a visit to the Chocolate Festival in Austria and, of course, a lot of chocolate .

 Little cow Milka left to gather brand promoting.

Wanting to differentiate, promotional campaigns resorts to unconventional programs.

Kraft foods started a European tournamont with little cow Milka, the mascot of the
chocolate brand.

The purple cow will be walked through over sixty cities of Europe, from Italy,
Germany, Netherlands, Spain, Portugal, Belgium, Luxembourg, Austria, Poland,
Romania, Ukraine, Turkey, Hungary, Slovenia, Croatia and Serbia. Eight of the cities
of the route followed by Milka are Romanian.

In Bucharest, Milka hosted the Youth Park on 8-9 April. The festival aimed to bring
the image of the Alps, Milka's hometown, into a 100-square-foot tent. Children of all
ages were able to play in specially arranged spaces, they could take pictures with
Milka cow and had a climbing wall.

For the participants of the events organized in the Milka tournament, sampling
actions are taking place, and branded products (key rings, cow toys and toy trucks)
can be bought from the minimarket placed where the events take place. In parallel
with the European Mascot tournament, a promotion is taking place, the big prize
being a trip to the Alps for four.

As an unconventional marketing event, the Milka tournament is not a premiere on the

Romanian market, where the growing competition in the field of consumer goods
obliges companies to differentiate not only the products but also the promotion
campaigns.

 Milka and skiing.

-Milka little cows:

Milka little cows also appeared on the snow slides in Romania. You can find them at
Kalinderu(Busteni) and Clabucet (Predeal).

-Take the start on the top of the snow slide:

Milka little cow wishes a beautiful descent to the skiers who venture to the top of the
Kalinderu snow slide in Busteni.

-If u go skiing for the first time:

 Whether you come from Bucharest or Brasov, you will find on DN1, signposts that will
point you to the snow slides. Come skiing!

-With Milka you ski with the finest pleasure:

First ski lessons are not so easy, you may fall, but this way you learn! We wish you: ski with
the finest pleasure!

 Winter campaign:

Kraft Foods Romania, the Milka-branding company, has invested about 6

million euros in the campaign to promote the chocolate during the cold season.

 A new communication campaign for Milka:

Ogilvy & Mather signs the latest communication campaign for Milka, aiming
the communication of theChristmas products portfolio.

The campaign was developed around the association between Milka and the
Christmas tradition, seeking to illustrate the role of the brand in this equation, the
"supplier" for Santa's bag full of gifts.

To promote the Milka brand, Ogilvy created the Christmas Wishes Festival, a
caravan-event that take place annually in the cities of the country.

The creative idea developed by Ogilvy builds a story about Santa Claus. He is
caught while making his chocolate supply at the Milka Factory in the Alps.

Besides the caravan-event, consumers will be able to compete in "The big

snow fight" for prizes, in ski racings, or to build a three-dimensional puzzle.
 The communication campaign contains complementary messages on various
channels - TV and outdoor at national level, as well as TV, print, radio. It will be
played on channels like ProTV, Home TV, ProCinema, PrimaTV, KanalD, TVR2,
Hallmark, Realitatea TV, B1 TV, National TV, N24, National Geographic, Discovery
Channel, AXN, Kiss TV, U TV.
10. Price

Webografie

a. www.milka.ro

b. www.iqads.ro

c. www.capital.ro

d. www.markmedia.ro

e. www.standard.ro

f. www.zf.ro

g. www.wall-street.ro
h. www.dailybusiness.ro

i. www.tmctv.ro

j. www.adcritics.ro