Mondelez International Marketing Mix
About Mondelez International:
Mondelez International is among the leading brands in the food industry that sells a wide range of snacks, chocolates, cheese, grocery and powdered beverages products.
It aims to become the largest snacks brand in the world with a focus on growth, execution and culture.
In the year 2020, the company has achieved impressive growth by focusing on product innovation and customer centric growth.
Apart from product quality and innovation, the focus of the company is also on operational excellence.
Mondelez is a leading international brand of food products rivalled by the likes of Nestle and Kraft Heinz.
The company has achieved enormous global growth riding on the popularity of several of its market leading products like Cadbury and Oreo.
Mondelez International sells its products in more than 150 countries.
While the company has an impressive presence in the United States, it also generates a substantial part of its revenues from the markets outside the US.
In fiscal 2020, the net revenues of the company grew to $26.6 billion compared to $25.9 billion in 2019 as the company enjoyed stronger sales in the European and North American markets.
In this marketing mix we will discuss the 4Ps including the product, place, pricing and promotion strategy of Mondelez International in detail.
Mondelez International Marketing Mix
Mondelez International Product mix:
Mondelez International is a market leading brand of food products with a diversified product portfolio.
Its product portfolio includes five main categories which are biscuits, chocolate, gum & Candy, beverages and cheese & grocery.
The biscuits made and sold by Mondelez include salted snacks, cookies and crackers.
Biscuits are the largest product category based on net sales and revenues. In 2020, Biscuits accounted for around 48% of the net sales of the company. The second largest product category of Mondelez international based on net sales is that of chocolates which accounted for around 36% of the company’s net sales in 2020.
Some of the market leading brands sold by Mondelez International include Oreo, Cadbury, Milka, LU, Lacta, Toblerone, Chips Ahoy, Trident, Halls, TUC, Tang, and Sour Patch.
Mondelez has a rich and diverse product portfolio which helps drive higher sales and revenues.
Oreo is a very famous brand in the portfolio of Mondelez International enjoying strong popularity globally.
The success of its product portfolio is mainly because of Mondelez International’s ability to innovate and differentiate its product mix.
Mondelez International Place mix:-
Mondelez International is a global company with sales across the world in more than 150 countries.
The company has its headquarters at Chicago, Illinois, United States.
The company has maintained a strong presence worldwide through a large and global distributor network.
It has divided its business operations into four major geographic segments including North America, Europe, AMEA and Latin America. The United States is the largest geographic market of Mondelez International from where the company generated around $7.1 billion in 2020 and around $19.5 billion from the remaining markets.
Apart from direct store delivery, the company distributes its products through company owned and satellite warehouses, distribution centers and other facilities.
In several international locations, the company also depends on independent sales agents.
The company is also investing in strengthening its ecommerce capabilities for faster business growth and global success.
Mondelez has partnered with other organizations with digital capabilities including ecommerce brands and omnichannel retailers to achieve more growth.
At the end of 2020, the company had 133 manufacturing and processing facilities located in 45 countries.
It also has 111 depots and distribution centers locally that include both company owned and leased properties.
The company has also partnered with third party logistics partners, contract manufacturers, copackers and other strategic partners to utilize their warehouse locations and distribution centers.
In this way, Mondelez has a strong and capable distribution network and omnichannel capabilities to drive higher sales and superior growth in a hyper competitive industry environment.
The company has also established 12 innovation technical centers around the globe to accelerate innovation.
Mondelez International Price Mix:
Mondelez is operating in a highly competitive market environment and as the price competition in the food industry keeps rising, the company may need to shift to more lower margin products.
The company has adopted a competitive pricing strategy to maintain market share. Some of its market leading products follow a premium pricing strategy.
Pricing products too low can lead to image dilution and perception of lower quality and therefore in case of several of its products Mondelez follows a premium pricing strategy.
However, the company also keeps its focus on consumer preferences and expectations and prices products accordingly to maintain its market share.
These products are also offered in different sizes and packages to cater to varying needs of different segments of customers.
In several emerging markets like India, the company also follows a low unit pricing strategy in terms of chocolates and biscuits to capture market share.
Pricing is an important factor that drives growth and consumer loyalty in the food and beverages industry and therefore instead of higher margins only, companies need to achieve a balance in terms of demand and profit margins. If the prices of some products are higher then it is mainly because of the higher costs of raw materials.
In recent years, the company has focused on disciplined pricing to achieve higher growth and it was also an important reason that the organic sales of the company grew in 2020.
Mondelez International Promotions Mix:-
Mondelez is operating in a highly competitive market environment, where marketing and promotion are key to driving higher brand awareness, superior growth and customer loyalty.
The focus on digital marketing has grown across all industries including food and beverages industry and the companies are utilizing digital channels mainly to drive higher brand awareness and customer engagement.
The competitors of Mondelez include international, regional and local brands.
It competes with brands like Nestle and Kraft Heinz internationally as well as several more local and regional brands.
Mondelez spends a large sum on marketing and promotions each year to drive higher growth and superior sales.
In 2020, the company spent $1.376 billion on advertising and promotions.
The company conducts its marketing programs through three main marketing activities including:
- consumer marketing and advertising including digital and social media, on-air, print, outdoor and other product promotions
- consumer sales incentives such as coupons and rebates; and
- trade promotions to support price features, displays and other merchandising of our products by our customers.
Digital promotions and social media marketing are the key focus areas for the company. It uses digital channels to promote its individual brands in various markets.
The company uses social media channels like Facebook, twitter and YouTube to drive higher awareness of its individual brands. Brands like Oreo are highly popular on social media channels including Facebook and Twitter.
Oreo’s Facebook page has more than 40 million followers which shows its popularity on social media. In the past, it has run several social media marketing campaigns that achieved very high level of success.
A few last words:
Mondelez International has maintained a strong position in the global food and beverages industry. The company has seen its financial performance improve driven by recent changes in its pricing strategy and increased focus on marketing.
The company has also maintained a strong focus on research and development since product innovation is key to its growth and superior performance globally.
It has introduced several market leading products including Cadbury, Oreo and others. social media and digital marketing have also played a crucial role in the marketing strategy of Mondelez and helped the company grow brand awareness in various corners of the globe. Its global distribution network and supply chain management have also enabled higher success for the company globally.
The company continues to invest in improving its digital sales, marketing and distribution capabilities to improve its competitive edge. Mondelez is operating in a highly competitive market environment. However, based on its strong competitive edge, the company will continue to maintain its growth momentum in the coming years.
Other Sources: Mondelez International Annual Report 2020.
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