Functional & Innovative Products

Sompalli Siva Charan – 2002229

Suram Kavya Reddy – 2002238
Uma Deepthi Yalla – 2002255
Thotakoora Sai Mohith Naag – 2002249
Thummala Vijay Sai Reddy – 2002250
Vignesh Balagi - 2002264
Companies Considered
• Mahindra
• Mondelez (Cadbury India)
• P&G
• Nestle
 Functional & Innovative Product classification
Functional Products  Innovative Products
Dairy milk silk, Celebrations (Mondelez)
Oral-B Manual Toothbrush, Head & Shoulders,
Pantene, Ariel and Tide (P&G)
Efficient Supply Nestle a+ Nourish milk, NESTLÉ a+ SLIM Milk & Curd
        
Chain (Nestle)
Mahindra – SUV, Pick Ups, Small Commercials                               MISMATCH

                              MATCH

Mahindra - Trucks, Buses Dairy milk silk Valentine/Diwali edition (Mondelez)

               Oral-B iO Electric Toothbrush, Opte Precision Skin
Care, Heated and Treo Razor by Gillette (P&G)
Responsive Supply YIYANG Active, Celltrient, Häagen Dazs (Nestle)
Chain Mahindra – Electric, Engines(mFALCON), Transmission
MISMATCH                                  MATCH
 Functional Products
MAHINDRA • SUV - Thar, XUV300, Alturas
G4, XUV500, Scorpio, Bolero,
Marazzo, KUV100 NXT  KUV1OO marks Mahindra's entry into
• Pick Ups - Bolero Pik-Up, Bolero
Maxitruck Plus, Bolero Camper
• Small Commercial - Troe Zor, Alfa
Load, Alfa Passenger, Jeeto,
Supro Cargo Van, Supro Maxi
Truck, Supro Mini Truck, Supro Van
• Electric - Troe Zor, E-Verito, E-
Alfa, Treo, Treo Yaari
• Trucks - Blazo Haulage, Blazo
Tripper, Blazo Tractor Trailer
Furio, Javo
• Buses - Cruzio, Cruzio Grande
Innovative Products
• KUV100 - The all-new 'feature-packed'
SUV. With the option of mFALCON, the
the petrol space.
• Arjun NOVO - A first-of-its-kind tractor
that maximizes productivity and
provides best fuel efficiency. The Arjun
NOVO makes superior technology
accessible to farmers across the nation.
• Blazo - India's first smart truck.
Mahindra brings the FuelSmart
advantage that lets you choose between
superior fuel efficiency and unmatched
power; as required, depending on the
load and road condition.
• mFALCON - Mahindra's very first
gasoline engine. For its development,
18-engine related patents have been
filed covering aspects like engine oil
sump, cylinder head, aluminium
cylinder block and many more.
MAHINDRA

Functional Products Supply Chain Innovative Products Supply Chain

1 – Plants
Engines & Transmissions – Igatpuri
SUV – Chakan, Haridwar, Nasik, Durban(South Africa)
Pick Ups – Chakan, Nasik
Small Commercial – Chakan, Haridwar, Nasik, Zaheerabad,
Durban(South Africa)  
Electric – Bangalore
Trucks – Chakan
Buses – Chakan

The Research & Development for these products happens in

2 – Presence collaboration between the various innovation centres created by
Mahindra all over the globe, especially in India, US, UK and Italy.
The Americas
After which they are sold using the same supply chain as the
Europe functional products.
Africa & Middle East
Europe
Mondelez (Cadbury India)

• Functional products
Dairy milk silk • Innovative products
Dairy milk silk valentine edition
Celebrations
Celebrations Diwali edition
Consumers
Consumers
5-30 Age group 18-30 Age group
Male & Female Male & Female
Life span Life span
All year 3 weeks to 2 months
Profit Share
Profit Share
21% of yearly profits for Valentine's day & 30% for Diwali
Dairy milk contributes to 30% of overall profits in
Supply Chain for innovative products:
confectionary
Supply Chain for functional products: Cadbury Source’s remain same
Specialized manufacturing components are used to bring in the
Cadbury Sources cocoa from local farmers of Tamil Nadu innovation in product design, small lot size, minimum inventory
Has 5 manufacturing facilities in India, high inventory levels, levels, higher unit costs
large batch sizes Distribution network
Distributors: 2100 distributors with the contract of 45000 Retail outlets: shops and supermarkets, restaurants and café,
retailers across India cinemas and theatre’s, online channels
Retail outlets: shops and supermarkets, restaurants and café, Special Outlets such as online gifting sites, promotional stalls in
cinemas and theatre’s, online channels malls
 P&G
Functional Products Innovative Products
• Oral-B Manual Toothbrush • Oral-B iO Electric Toothbrush
• Head & Shoulders, Pantene • Opte Precision Skin Care
• Ariel and Tide • Heated and Treo Razor by Gillette
Innovative
• Oral-B iO, a power toothbrush series is a new era in brushing and is a monumental leap in innovative oral care technology
• OPTE digitally scans your skin, analyzes your complexion, and camouflages age spots, sunspots, and hyperpigmentation
• Gillette TREO is the first of its kind, a unique razor we designed for caregivers and their loved ones.
• The above innovative products have more fluctuated and unpredictable demand, and they have much shorter life cycle. Market
competition is less, and it is possible to create high profit margins
Functional
• People buy Functional products like Oral-B Manual Toothbrush and Toothpaste, Head & Shoulders, Pantene, Ariel and Tide in
wide range of retail outlets, and these products have more stable and predictable demand, as well as long life cycles
• Market competition is severe which squeezes the profit margin

Supply Chain of Functional and Innovative Products

• P&G has leveraged large-scale application of advanced analytics and digital technology to excel in its ability to manage complicated global
supply chain with more than 130 manufacturing sites serving over 180 countries
• P&G follows efficient supply chain for Functional products to minimize cost and ensure positive profit margin
• P&G followed Consumer driven Supply network and maintained necessary responsiveness for supply of its innovative products 
 Nestle

Functional products Innovative products

YIYANG Active
Celltrient
Häagen Dazs 

Consumers
40+ Age group
Male & Female

Innovation at Nestle:
Nestle invests 1.7 CHF Bn across 25 R&D centers
Innovative products have increased the sales by 30% in 3 years
Supply Chain for functional products: Focuses on science-based innovation to create competitive gaps

• The company has presence across India with 8 Supply Chain for innovative products:
manufacturing facilities 
• With over 2000 brands are locally
• Sales & Marketing : Delhi, Mumbai, Chennai and Kolkata
managed across  187 countries
• Storage :Setting up digital warehouse of the future with XPO
• Storage: 60 of our warehouses were automated.
logistics
                      100 of our factories were paperless.
• Retail outlets: shops and supermarkets, restaurants, online
• Retail outlets: shops and supermarkets, restaurants and
channels
café, cinemas and theatre’s, online channels
Thank You