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 BRAND VALUE : The product comes with the PERFETTI VAN MELLE tag so
its needless to say it has a pretty strong brand value.

ATTRACTIVE PACKAGING: The management has given the product a very impressive
packaging, quite different from competitors.

STRONG DISTRIBUTION CHANNELS : As the company is already into dominant

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

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

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

GOOD MARGIN FOR RETAILERS : The company is providing a good

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

UNIQUE PRODUCT : The company launched its snacks product which is quite different
from what its competitors are selling.

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

strong financial 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 heavy-
selling 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