DEVISE A DISTINCT

ADVANTAGE FOR MONDELEZ

INDIA IN THE OMNI-CHANNEL
INTER B-SCHOOL BUSINESS STRATEGY
COMPETITION
CONTEXT
❖ Mondelēz International is a global snacking powerhouse with a portfolio of well-loved brands like Cadbury Dairy Milk, Oreo,
• Toblerone, Tang, Belvita, Ritz. The India business too has a very strong portfolio with a mix of global (Dairy Milk, Oreo, 5-star,
Tang, Fuse) & local (Bournvita, Perk, Gems, Shots and Choclairs) brands.

❖ MDLZ being present in India for 74 Years, has been delighting consumers with some of the brands being the most loved and
trusted in the country

❖ For FMCG players, India historically has been a market driven through traditional trade (TT). MDLZ has been a pioneer in
building a deep TT play with robust end to end cold-chain infrastructure (factory --> warehouses --> distributors – retailers
with visi-coolers) and expansive distribution network spanning over lakhs of outlets. The strong TT play has contributed
immensely to MDLZ’s growth in the last few decades in India, providing us a sales operations lead differentiation

❖ In the last decade, organized trade, first through modern trade (MT) stores & then with E-commerce, has become the driver
of FMCG growth in India , with the E-comm adoption being fast tracked during Covid years. More recently, the large retail
players have been extending their presence to an “Omni-channel” play with both offline and online formats for consumers,
and an integrated operations (Store as Supply Point) in some cases as well.

❖ Omni-Channel (An integrated Organized trade across MT+ ECOM) is well poised to be the key channel for future, MDLZ wants
to build a distinct advantage in Omni-channel to accelerate its growth in India.
 India Grocery to reach $650Bn by 2030
OMNI slated to be 3.5x by 2030, 1/3 of Grocery

E-Commerce Modern trade Unorganised

Omni CAGR 2020-30

~650

5-7% p.a. 13% ~33%

~500
6% 22% ~16%
~370 15%
~1%
~9%

~2%
80% 65%
90%

2020 2025 2030

McKinsey Report, 2021

 India Grocery to reach $650Bn by 2030 Key Business Models : Omni Channel
OMNI slated to be 3.5x by 2030, 1/3 of Grocery

Market Share 10 yr. CAGR

Model Key Proposition
(Est) (Est)
Hyper- Assortment High
Offline ( Modern Trade) 16%+
Supers- Value Medium

Market Places Assortment Low

30%-40%
E - grocery Value Medium

Quick Commerce Convenience Low 40%-50%

E-pharma, Chemist
-
Emerging Specialized : Niche Low
Social Commerce : Value Low -

DEVISE A DISTINCT ADVANTAGE FOR MONDELEZ INDIA IN THE OMNI-CHANNEL

McKinsey Report, 2021
 THE ASK
❖Identify CAPABILITY AREAS for OMNI-CHANNEL
❖ Explore the current business models, growth trajectories, consumer journey, evolution and other trends in the
organized trade in India
❖ EvaluatE kEy ‘Capability arEas’ for omniChannEl GroWth ( E.G., diGital & data, supply modEls, nEtWork intEGration,
dedicated assortment etc.)
❖ IDENTIFY/Establish the following, with reasons/examples:
o A Key CAPABILITY area TO BUILD for OMNICHANNEL EXPERTISE
o DIFFERENTIATED SOLUTIONS for ADDRESSING THE ABOVE CAPABILITY NEEDS
o Scalability for the IDENTIFIED CAPABILITY, across partners

❖sharE your “biG idEa”

❖ for thE idEntifiEd CapabIlIty arEa, What should bE thE "biG IdEa" for mondElēz to buIld lonG-term Distinct Advantage in
Omni-channel in India (Pick one you feel will maximize DIFFERENTIATION & SCALE)

❖tEll us “hoW to Win”

❖ Build a plan to launch this capability with a key partner covering the below
o Infrastructure/resource requirement to be built
o Win-Win Play : How does this yield a win-win for us as well as the retailer
o How does this build a Long-term DIFFERENTIATED advantage for mondElēz in the channel vs Snacking Competition
ALL THE BEST!
APPENDIX
 DEVISE A DISTINCT ADVANTAGE FOR MONDELEZ INDIA IN THE OMNI-CHANNEL
Key Business Models : Omni Channel
India Grocery to reach $650Bn by 2030
OMNI slated to be 3.5x by 2030, 1/3 of Grocery
Estimated Estimated
Model Key Proposition Business Model Trends
Share % (of Omni) 10 yr. CAGR
Inventory led model with wide & deep assortment,
Hyper- Assortment High
targeting a larger catchment.
Moving Towards adding online ordering with
Offline ( Modern Trade) Inventory led model of sharp & shallow assortment, delivery/Pick up from store, leading to expansion of 16%+
Supers- Value targeting a small locality catchment. Moving towards stores as well Medium
adding online ordering with delivery/Pick up from store

D+2 delivery, providing a wide assortment through

Initial Ecommerce Model, has slowed down a little
multiple sellers and hence options of value* cross
Market Places Assortment
delivery. Bolstered through inventory at brand
post the advent of E-grocery Low
& Quick commerce
preferred sellers
30%-40%

Inventory led model of a sharp assortment akin to

Has stabilized in metros, expanding in
E - grocery Value Supers, discovery online, delivery from
tier2 + markets
Medium
consolidated fulfilment centres at D+1

Dark Stores + Inventory + ~ 1 Hr delivery. Sharp + niche

Has emerged as one of the fastest growing models
Quick Commerce Convenience assortment, extremely Shallow depth, focus on driving
in the Metro Cities
Low 40%-50%
stock up as a top up along with impulse

Pharma is scaling up and growing, the others

E-pharma, Specialized : Niche Delivery of specialized needs ( Pharma, Gifts etc.) -
are still niche Low
Emerging
Inventory, Low ASP assortment, targeted to community Hasn’t scaled up in India, has shown
Social Commerce : Value -
buying success in China in the past Low