Marketing Management - I

Term Project
Company: Mondelez International
Group 11

Submitted by:
Arpita Choudhary PGP12102
Gagan Sharma PGP12116
Ishita Bhattacharya PGP12089
Riya PGP12089
Saloni Singh PGP12268

I. Which marketing management philosophy does your conglomerate/SBU

follow?

Humaning is a unique, consumer-centric approach to marketing that creates real,

human connections with purpose. Mondelez no longer markets to consumers but
creates connections with humans.
Humaning is a natural fit for a company that creates the snacks that form the basis
for connections between people all over the world and is a clear manifestation of
the Mondelēz International brand purpose to do what is right: leading the future of
snacking by offering the right snack, for the right moment, made the right way.
With humaning, it feeds the hunger for human connection in everything the
company does by being fully consumer-centric: Listening, empathizing, and
adapting to fit consumer needs at any moment with perfectly crafted products that
are a source of delight.
It does not believe in advertising directly to children under 12 years of age,
regardless of a product's nutritional profile. In 2005, Mondelez International was
the first company to announce global policies for advertising to children. Thus it
follows responsible marketing as well.

II. Is your Conglomerate/SBU myopic in following the management

philosophy?

According to the marketing policy mentioned above, it can be observed that

Mondelez is customer-oriented. Thus, Mondelez is not marketing myopic but
Customer oriented.

This can be verified by the changes it develops in its products according to the
needs and wants of customers. For example, it has not just single chocolate bars
but in a country like India where customers want to have a box of sweets during
Diwali to celebrate, Mondelez made sure that such needs of customers are satisfied
and made specific boxes of chocolates that can be used by the Indian customers to
satisfy their specific needs.

III. Is your Conglomerate/SBU adaptable to the shifting paradigm?

Yes, Mondelez is adaptable to the shifting paradigm. This can be seen as the bitter
beverage, chocolate, was initially transformed into sweet delectable solid bars to
make it more acceptable to the masses.
The manufacturers had been experimenting with the art of chocolate-making
techniques to churn out newer variants and flavors consistently.
Today, the shift is evident as the company is moving back to the original chocolate
with high cocoa percentage for the ‘health-conscious people and simultaneously
producing chocolate with much less milk for ‘not so health-conscious people.

SWOT Analysis
Strengths
● Dominant Brands: Mondelez's product portfolio includes 53 other brands that each
produce over $100 million in yearly revenue. Given the company's emphasis on
innovation, it often adjusts basic items when selling them internationally to better
meet local tastes and distribution growth, the company's market dominance is
unlikely to erode.
 ● Superb Performance in New Markets: Mondelez International has developed
competence in entering and succeeding in new markets. The expansion has
allowed the company to diversify its revenue streams and reduce economic cycle
risk in the markets it serves. Mondelēz saw its emerging markets grow by 19.6%
in net revenue including double-digit growth in Brazil, India, Russia, and Mexico
till 30 June 2021
● Mergers and acquisitions: In recent years, it has effectively integrated some technology
businesses to streamline operations and develop a trustworthy supply chain. Chipita, a
European manufacturer of cakes and pastries, was recently purchased by the corporation.
● Product Innovation: Mondelez International keep developing new products or
mixing two of its product to create a new identity so that the customers don’t lose
its interest and their needs and wants are satisfied. Some of the products in India
like Oreo Orange,

Weaknesses
● Uneven Execution: While Mondelez has a strong management team led by CEO
Irene Rosenfeld, the company's execution has been lacking since its North
American supermarket segment was spun off. In certain global markets, like India,
Mondelez has been plagued by capacity constraints. Mistakes in pricing have also
been an issue, particularly in Brazil and Russia. Indeed, they allowed low-cost
competitors to take the business in some circumstances. In Brazil, it was slow to
react to a weakening economy in the gum category
● Market Research: Mondelez International performed market research in 2020 last
of the market it serves. As a result, it is making judgments based on data that is
old, even though client needs may have changed.
● A high attrition rate in the workforce: in comparison to other companies in the
industry Mondelez International has a higher turnover rate and must spend
significantly more on employee training and development than its competitors.
● Inefficient Financial Planning: The current asset ratio and liquid asset ratios
suggest that the company can use the cash more efficiently than what it is doing at
present. The current ratio is 0.61 compared to the industry average of 1.65. The
liquid ratio is 0.41 as compared to the industry average of 1.12

Opportunities
● Emerging Markets: Mondelez International with its sound balance sheet makes
sure it acquires all the relevant markets that can ensure potential growth for the
 future as well. The key Acquisitions beings Chipita (May 2021), Grenade (Mar
2021), Gourmet Food Holdings (Mar 2021)
● New customers from online channels: The corporation has put a lot of money into the
internet platform in the last few years. Mondelez International has gained access to a
new sales channel as a result of its investment. In the coming years, the corporation can
capitalize on this opportunity by better understanding its customers and meeting their
demands through big data analytics.
● New Trends in Customer Behaviour: Mondelez International may be able to get
into new markets as a result of changing customer behavior. It gives the company
a wonderful chance to diversify into new product categories while also generating
new revenue sources.

Threats
● Low-Cost Rivals: For market giants like Mondelez, competition from smaller,
regional brands and/or private labels is always a source of concern. As a result, the
corporation must remain inventive, carefully control pricing discrepancies, and
maintain a substantial advertising expenditure. Otherwise, as it has in the past in
less stable overseas marketplaces, share erosion may occur.
● Currency Fluctuations: Because the company operates in a variety of nations, it is
subject to currency swings, which are exacerbated by the turbulent political
atmosphere in several markets throughout the world.
● Local Distribution Threat: Local distributors' growing power poses a danger in
some regions, such as India, where the competition is paying local distributors
bigger margins.

PESTEL ANALYSIS

Political

● Political Stability: Mondelez International Inc. operates in a number of countries,

each with its own set of political issues. Growing tensions and instabilities in the
global political climate may have an impact on industry growth and limit
Mondelez International Inc.'s growth potential.
● Changing policies: Changes in government policy are detrimental to company
performance due to uncertainty. Mondelez International Inc. must research current
 political trends in the country because changes in government may alter the
government's priorities for the development of certain industries.
● Protests/pressure groups and governance system: Pressure organisations,
social/environmental activists, and labour unions should all be closely scrutinised
by Mondelez International Inc., as protests play a significant role in the
policy-making process.
● Bureaucracy and corruption: Bureaucracy and corruption have a negative impact
on the business climate. Due to decreased public faith in commercial organisations
and the general political and economic structure, operating in nations with high
levels of corruption and inadequate law enforcement makes the business
environment extremely risky for Mondelez International Inc.
Economic

● Economic/business cycle stage: Organizational performance is directly influenced

by a country's economic progress. Mondelez International Inc. can benefit from
growing economies.
● Inflation/employment/interest/exchange rates: The ability of Mondelez
International Inc. to pursue its long-term growth strategy will be determined by the
rate of GDP growth. High unemployment indicates that there is a surplus of labour
available at cheaper wages. Mondelez International Inc. can cut its production
costs by operating in such a market.
● Economic structure: Mondelez’s business operations are influenced by the current
economic framework. A monopolistic or oligopolistic structure will have a
different economic and regulatory environment than monopolistic or perfect
competition.
● Labor market conditions: Wage rates and worker supply are determined by labour
demand and supply. To understand how it can attract individuals and harness their
abilities to increase business performance, Mondelez International Inc. must
evaluate and forecast labour market trends.

Social

● Demographic trends: For multinational corporations such as Mondelez

International Inc., changes in demographic patterns such as population ageing,
migration trends, and socioeconomic characteristics are critical.
 ● Equality and power distance: When entering markets with a high or low power
distance, Mondelez International Inc. must alter its business management
procedures. Growing inequality is changing the power structure in many countries,
which has major ramifications for multinational corporations like Mondelez
International Inc.
● Spending patterns and behavior: The purchasing power of money has an impact on
consumer spending patterns. It's critical to understand customers' preferences and
spending patterns by studying and forecasting their purchasing power based on
pertinent economic data.

Technological

● Social media marketing: Mondelez International Inc. can boost its business by
utilizing the benefits of social media marketing. Technological advancements can
be exploited to kick off innovative social media campaigns aimed at building
online brand communities.
● Research and development: To understand how new technologies influence the
firm's value chain and current cost structure, Mondelez International Inc. must
examine rival investments on a local and macro level.
● Shortened product life cycles: The use of new technology has shortened the time it
takes to develop a new product. Mondelez Inc. should quickly develop new goods,
diversify its product line, integrate flexibility into the value chain, and cultivate
positive business relationships with value chain partners.

Environmental

● Renewable technologies: Subsidies are available in several countries to encourage

investment in renewable technologies. Mondelez International Inc. can take
advantage of it by investing in renewable technologies to maintain long-term
viability.
● Attitude towards eco-friendly products: Green/eco-friendly items are becoming
increasingly popular. Mondelez International Inc. can seize the opportunity and
use green business practices to gain stakeholders' trust.
 ● Renewable technologies: Subsidies are available in several countries to encourage
investment in renewable technologies. Mondelez Inc. can take advantage of it and
invest in renewable technologies in order to secure long-term viability.

Legal

● Employee protection laws: Employee/labor health and safety requirements must be

followed by Mondelez Inc., as certain nations have rigorous regulations to
safeguard labor safety.
● Consumer protection laws: To protect customer data, Mondelez International Inc.
must research data protection regulations. To guarantee compliance with consumer
protection regulations, the company must consider several considerations.
● Intellectual property laws: Intellectual property laws are in place to safeguard
businesses' patents and valuable ideas. Inability to safeguard intellectual property
rights may result in a loss of competitive advantage, weakening Mondelez
International Inc.'s position in comparison to other market participants.

5C ANALYSIS

● Company
Brand equity- mondelez international possesses a reputed brand equity among both
existing and new customers, which facilitates its expansion into new markets.
Culture- There exists a strong culture of product innovation and modification of
processes
Production – In order to successfully cater to the increasing customer demand, Mondelez
has a robust, flexible and highly effective supply chain which enables it to handle
increased levels of production

● Collaborators
Number of suppliers and their abilities – A large number of suppliers becomes difficult
to manage, whereas too less number of suppliers poses a threat of supply chain
distribution
International risks and nature of suppliers – Mondelez faces a critical question about
whether to localize their products and if so, how much? This in turn governs the other
decisions from localized production, marketing and other processes.
Position and bargaining power in the value chain – If the collaborators have strong
bargaining power then Mondelez Irene will not be able to sustain higher margins even
with higher marketing expenditure.

● · Customers
Targeted market segments – The market segment includes both high and low-end
customers. Most of their customers are families and children.
Frequency of purchases – The frequency and quantity of purchases is high among
targeted segments. Mondelez implements newer marketing strategies with discounts and
family deals which further increases the frequency and quantity of purchases
Customers’ needs – Customers demands and preferences should be analysed and their
desired features should be incorporated. The recent switch to healthier alternatives as
well as the customers preference of quality over price further has impacted the
functioning of the organization.
·
● Competitors
Using Porter’s five forces, we can analyze the competitors :
Bargaining power of buyers: A strong bargaining power of buyers puts pressure on
Mondelez to revise its pricing strategy and offer high-quality products at discounted
prices. This usually happens when there exists in the market a substitute product, a large
number of alternatives, and low switching costs.

Bargaining power of suppliers: A weak bargaining power of suppliers usually exists since
Mondelez usually dictates the prices and the suppliers have to accept their terms and
conditions. This happens due to a large number of suppliers, increased net supply, and the
supplier’s lack of control over the distribution network.

Competitive rivalry: There exists high competition which poses a threat to Mondelez
International’s growth in the international market and also hinders the company’s
profitability (Eg, Nestle, . Furthermore, the product differentiation is low and it has
become more and more difficult to set up a differentiation basis.

Threat of substitutes: A gradual increase in health consciousness and shift to healthier

choices has raised concerns for Mondelez International. Technological innovation has
made it possible to introduce similar products in the market thereby acting as threatening
substitutes. A strong threat of substitutes exists due to the high performance: cost ratio of
substitutes, their increased availability, and low switching costs.
The threat of new entrants: The threat of new entrants is moderate since Mondelez is a
reputed brand with high brand equity and newer entrants have a negligible effect on
Mondelez’s market share.

● Climate
Political environment: Mondelez International needs to study and be updated with labor
laws, tax laws, changing trade regulations: especially since it caters to multiple markets,
there is an increased chance of political instability.
Social environment: Rise in health consciousness and shift to healthier alternatives have
adversely affected the organization. However, with growth in population and rising
low-end market tiers, there exist ample opportunities for the company to grow.

Consumer Decision Making Process

Methodology
To analyze the consumer decision-making process, we took a sample size of 20
with whom we had interviewed to understand the process. The theoretical process
consists of needing recognition, information search, evaluation of alternatives,
purchase and post-purchase behavior was broken down into simple questions
which mainly revolved around the why, when, and how of each step. We asked
them about the features like taste and brand they look for and the temptation they
have to make the final choice. Based on the answers to these questions, we divided
the process into five major components namely

1. Triggers of purchase
2. Stages in the process
3. Inputs are taken at each stage of the decision-making process
4. The roles different people played in the process
5. Time taken to reach the final decision

The answers to these questions helped us develop different user profiles we can
find in the market and summarized the process each of them would go through.
Knowledge of this process would help us in targeting and positioning our product.
This process would also help us understand the current users we have and help us
decide how to expand our customer base.
Here we found customers who were conscious about the amount of sugar used to
make our product and what alternatives are available for the same.

Information obtained from Market Search

Consumer 1: Raghav Napal

I.What were the triggers of purchase?
Wanted to have something sweet like chocolate so bought Cadbury dairy milk.
II.What were the stages in the purchase processes?
Stages have had a craving to have a bar of chocolate, went to the nearby shop, and got some
dairy milk chocolates.
III.What inputs were sought in each of these stages?
People generally choose to buy Cadbury dairy milk whenever they have a craving to have
chocolate.
IV. Who played what kinds of roles in each stage?
No one particularly than the immediate consumer, who had to decide which type of dairy milk
they want to have out of soo many variants available
V. Approximately how much time was taken in each stage?
The craving to have chocolate was immediate
Going to the shop took 5 minutes
Deciding which chocolate to have too another 2 minutes
Finally bought the Cadbury dairy milk

Consumer 2: Vijay Anand

I.What were the triggers of purchase?
Wanted to bring sweets for my kids
II.What were the stages in the purchase processes?
Stages were children’s cravings to have chocolates, went to a nearby shop and bought Dairy milk
and Gems for my children
III.What inputs were sought in each of these stages?
Kids generally love Gems because of their flavour and colors
IV. Who played what kinds of roles in each stage?
The major role was played by the kids who said the type and size of Dairy Milk they want and
also for gems
V. Approximately how much time was taken in each stage?
The kids convinced me to get them chocolates took 10 minutes
Going to the shop took 7-8 minutes
Deciding which chocolate to have didn't take time as it was pre-decided
Finally bought the chocolates in 2 minutes

Consumer 3: Seema Sengupta

I.What were the triggers of purchase?
Diwali is coming soon and I wanted an apt gift for my office colleague.
II.What were the stages in the purchase processes?
To begin with, I had set a budget of 700 rupees and I wanted to give her something she can share
with her family. Also, I wanted it to be of premium quality and last a long time. Sweets are very
common and my friend loves chocolates. I was confused between Ferrero Rocher, Hershey’s,
and other foreign brands. However, I finally selected Cadbury Silk Praline, which is a high-end
product (16 pieces of praline for 650 rupees), which are not conventionally available in the
market as solo products. Also, the luxury packaging looks rich, posh, and classy.
III.What inputs were sought in each of these stages?
My friend love chocolates and the fact that she has never tried out this type of chocolate (praline)
before.
Also, the pralines are not available in smaller packages and are not sold by any other reputed
brand. The number of chocolates offered was 16 and the price too shows that it is a high-end
product, therefore makes a good gift.
IV. Who played what kinds of roles in each stage?
I was the decision-maker of the purchase, however, my friend’s preferences played a role
V. Approximately how much time was taken in each stage?
Coming to the departmental store took around 15 minutes.
Choosing between different brands of chocolates (based on packaging, quality, brand name) took
another 10 minutes.
Waited in the queue for 5 minutes and finally purchased it.

Consumer 4: Rohit Roy

I.What were the triggers of purchase?
My son has stood second in a chess competition. I want to give him a Cadbury
celebrations pack to celebrate his achievement
II.What were the stages in the purchase processes?
Stages include deciding his favorite chocolate (gems, 5 stars, Cadbury dairy milk)
and deciding to buy them separately. However, I found they were present
together/compiled in the celebration pack.
III.What inputs were sought in each of these stages?
 My son's preference was thought of and Cadbury celebrations literally have the
celebration word in them, therefore it makes it a perfect gift to celebrate his
achievement
IV. Who played what kinds of roles in each stage?
I and my wife are the decision-makers and once decided, I decided to come to the
shop to buy the product
V. Approximately how much time was taken in each stage?
Going to the shop took 5 minutes
Deciding which chocolate to have too another 5 minutes
Finally bought the Cadbury dairy milk

Inferences
The main driving force behind the purchase of Mondelez Cadbury was the wish to
consume something sweet. Also, due to its vast array of products covering a
diverse price segment, it catered to all the strata of the society and all the occasions
as well: be it as an everyday household purchase to a niche Diwali gift.
Competition is stark, however, with its brand being a common household name in
India (especially with their tagline Kuch Meetha Ho Jae by Amitabh Bachchan),
Mondelez Cadbury still reigns supreme.

Limitations of the Methodology

1. The sample size was very small due to constraints
2. The user of the product majorly belong to metropolitan cities
3. Only adults were interviewed
4. Only tier 1 city samples were taken

Recommendations for Cadbury

● Almost 10% of India’s population is diabetic thus prefers to avoid sugar
intake, and many are calorie conscious these days. Thus, Cadbury should
come with a sugar-less variant that could help people who are conscious
about their sugars or are diabetic can enjoy the chocolate.
 ● Conduct regular primary and secondary research and do not rely on past data
much as consumers keep changing their preferences rigorously
● It should never stop innovating, as one day or the other a product gets
obsolete, thus to be in the race Cadbury should always come up with new
flavors

STP of Cadbury

Segmentation: Cadbury adopts STP marketing strategy in which it divides the

broad market into subsets of consumers, businesses, countries who have or
perceived to have common needs, interests and priorities and then design and
implement strategies.

The different segmentation strategies used are:

1. Demographic segmentation:
● On the basis of age group- The buyers are segmented on the basis of
different age groups.

13-19 years of age - 29%

20-25 years of age - 22%
26-30 years of age - 19%
30-40 years of age - 30%

Kids - Dairy Milk, Bournvita, 5 Star, Fuse, Tang

Millennials - Silk, Celebrations, Ice Creams
Adults - Bournville, Temptation, Celebrations, Ice Creams

● On the basis of income- Cadbury chocolates are generally priced reasonably

and affordable so that the majority of the population can afford them.
Some exceptions like Cadbury Temptations and Bournville are premium
chocolates that can be afforded by higher-income consumers.
 ● On the basis of gender- For purchasing Cadbury chocolates, gender doesn’t
matter as it is meant for both male and female.

2. Psychographic segmentation: Cadbury positions its product as a substitute

of traditional Indian sweets for which it segments the market on the basis of
psychology of the customers.
● Personality
● Values
● Lifestyle

3. Behavioral segmentation: Cadbury segments its customers into different

categories depending on their behaviour like:
● Decision roles - The decision role is played by the final consumer.
● Occasion- Cadbury has changed the scenario of having chocolates
from having it casually to occasionally.
● Gifts- Cadbury chocolates are positioned as gifts for several
occasions.
● User status - This segments comprises impulse users
● Attitude- There is a segment of customers who are enthusiastic about
the new products and are early adopters.
● Loyalty- This segment of customers comprises people who are loyal
towards the brand.

4. Geographic segmentation: Cadbury has geographically divided the market

into distinct segments and offers products according to the needs of the
customers. The geographic segments includes
● Region
● Density
● City size
Based on the above segmentation, Cadbury offers its product to different countries
with different strategies all over the world. The most important geographic
segmentation is region.
Targeting:
Cadbury changed their prospective customers from kids to adults and now it
includes every family member. Consumers from every part of society enjoy
Cadbury products.
Cadbury Temptations and Bournville are premium chocolates for higher-income
consumers. Dairy Milk Silk is targeted at millennials and those who cannot resist
chocolates. Whereas, Cadbury Bournvita, has been positioned as a must-have for
growing children and has been targeted to the parents of small children between the
age of 2-8 years old and also to millennials. It is an affordable product and can be
purchased by any income class.
So by comparing its product offerings to age-wise demographics, its target
audience is as follow

Age-wise breakdown of Cadbury India’s offerings

Age Product offerings

Kids Dairy Milk, Bournvita, 5 Star, Fuse, Tang

Millennials Silk, Celebrations, Ice Creams

Adults Bournville, Temptation, Celebrations, Ice Creams

Positioning:
Over the ages, Cadbury Dairy Milk has evolved its positioning strategy.
In 1994, Cadbury Dairy Milk had used the tagline ‘Real Taste of India’ in order to
associate itself with and appeal to the older age group, since it was already popular
among the young children. The campaign was targeted at awakening the kid in all
of us.
A decade later, due to India’s love for sweets and desserts (especially after a meal),
Cadbury associated itself with the tagline ‘Khaane Ke baad kuch meetha jo jaaye’
This was followed by the idea of ‘Shubh Arambh’ : ie, the Indian culture of
commencing an important task with something sweet/ a dessert, which touched the
sentiment of the Indian crowd.
In 2018, the tagline was changed to ‘Kuch Accha Ho Jaaye, Kuch Meetha ho
jaaye’ to associate itself with the act of kindness, selflessness and the joy of giving
and sharing.
References:
https://www.mondelezinternational.com/About-Us/Marketing-Approach
https://iide.co/case-studies/cadbury-marketing-strategy/