Final Project

Front page
on Mondelez International
by Juhi Bareria
DM21B25
PGDM 2
Table of contents
1. FMCG Overview
2. Growth/De-growth pattern
3. Porter’s 5 Forces
4. Company Snapshot
5. Product Portfolio
6. Tang
7. Product Life Cycle
8. Competitor Analysis
9. SWOT Analysis
10. STP
11. BCG Matrix
12. Financial Summary
13. Financial Data
14. Organisation structure
15. JD & JS
16. Training needs
17. Organisation culture
18. Conclusion
19. Bibliography
FMCG Overview

 Global FMCG Packaging Market is expected

India's contribution in FMCG
to reach $622.5 Billion by 2027 (market share)
 India’s FMCG market was valued at $110 $110.00B

billion (US dollars) in 2020. Compared to Other

India
2012, the market size of fast-moving
consumer goods had tripled.
 Fast-moving consumer goods (FMCG) sector
$404.40B
is India’s fourth-largest sector with
household and personal care accounting for
50% of FMCG sales in India.
 Growth/De-growth
Pattern
Factors affecting FMCG sector

1) Increased in the population of the working

women.

2) Disposable income and per capita expenditure.

3)  Purchasing power of the customers has

increased.

4)  Awareness of online shopping.

5)  Higher brand recall

(Segments) Estimated Contribution to Growth in FY Growth in FY
Revenue(Rs overall revenue 21 2022(Estimated)
6)  Constant change in consumer preferences. Crore)
Food 210,000 50% 6-7% 8-10%
7)  Banking policies and government regulations. Personal Care 126,000 30% 4-5% 11-13%
Home Care 84,000 20% 6-7% 8-10%
Overall 420,000   5-6% 10-12%
8)  Growing interest for foreign investors.   
Porter’s 5 Forces

With the increase in bargaining power Due to substitutes available at

of suppliers, the company has to competitive prices, there’s
strategize decisions based on supplier always a constant threat to
availability and has to exhaust Bargaining power Threat to
substitute
resources to find a consistent supplier. of suppliers substitutes

Industry
There is a constant threat to the Rivalry
companies in this sector due to low with the rising customer awareness
entry barrier. Thus, we see a rise in
Threat of new Bargaining power and decision making, customers are
demand of the local brands as well more willing to choose other brands
who are able to cater to the needs of entrants of buyers as well.
the customer in a better manner and
fill in the market gap with product
customizations.
Company Snapshot

Type Public
Industry Food processing
Predecessor Kraft Foods Inc.
Founded December 10, 1923; 97 years ago (original
company)
Chicago, Illinois, U.S.
October 1, 2012; 9 years ago (current form)[1]
Founder Thomas H. McInnerney
Headquarter Chicago, Illinois, U.S.
s
Area served Worldwide
Key people Dirk Van de Put (Chairman​ and CEO)
Products Baby food, coffee, dairy products, 
breakfast cereals, confectionery, bottled water, 
ice cream, pet foods
Revenue  US$25.87 billion (2019)
Operating in  US$3.843 billion (2019)
come
Net income  US$3.87 billion (2019)
Total assets  US$64.55 billion (2019)
Total equity  US$27.275 billion (2019)
Number of  80,000 (2020)
employees
 Product Portfolio

With the punch line of “Snacking made right”, the company

manufactures chocolate, cookies, biscuits, gum, confectionery,
and powdered beverages.

The campaign's target audience to the 35–44 age group, which

had a 79% brand recall.
 Tang

Tang was introduced in 1957 and

is enjoyed across Asia, Latin
America, and the middle east, it is
a leading brand under category
powdered beverages.

It comes in different flavours as

per the taste and preferences of
the countries.
 Product Life Cycle

 Tang has a 7 per cent value share of the

Rs 900-crore powdered drinks category
and occupies a third position after
brands such as Glucon D and Rasna in
the Indian market.( The Hindu Business
Line) 14-Nov-2017

 Major markets include: Argentina,

Brazil, Canada, China, Colombia,
Mexico, Middle East, New Zealand,
Puerto Rico, Turkey, United States,
Venezuela
 Competitor
Analysis

The main international competitors of Mondelez

International include General Mills (GIS), Hershey
(HSY), Tyson Foods (TSN), Hormel Foods (HRL),
McCormick & Company, Incorporated (MKC),
Kellogg (K), Conagra Brands (CAG), J. M.
Smucker (SJM), Campbell Soup (CPB), and
Pilgrim's Pride (PPC). These companies are all part
of the "packaged foods & meats" industry.
 SWOT Analysis
• Strong portfolio
• World-class technology
• Significant market share
• Free cashflow of $3.1 Billion
• Opportunities to expand
to Key markets of other countries
• Adjacent growth opportunities by
acquiring leading local brands in
adjacent product categories
• Opportunities for core
renovations to cover PPA gaps
 Decline in net revenue
 Fluctuating Earning per share
Strength Weakness  Decline in sales of product
categories of gum and candy due
to low on-the-go consumption
• Volatile nature of commodity and
other input costs
Opportunitie • Threat of new entrants
Threat
s • Threat to substitute
• Bargaining power of buyers
 STP Analysis

Segmentation
35-44 years age
Targeting
Different geographic Positioning
Major target markets:
locations
China Biscuits
Consumer shifting to UK chocolate
Strategic competitive
smaller meal portions US Biscuits advantage due to:
Australia chocolate  Sustainable profitable growth
Russia chocolate  Fast-growing categories
India Chocolate  Advantaged geographic
footprint
 Brand superiority
 Leading innovative platforms
 Strong routes-to-market
BCG Matrix
 Financial Summary

 Net revenues were approximately $26.6

billion in 2020 and $25.9 billion in 2019, an
increase of 2.8% in 2020 and a decrease of
0.3% in 2019.
 Organic Net Revenue increased 3.7% to
$26.8 billion in 2020 and increased 4.1% to
$26.9 billion in 2019.
 The acquisition dated April 1, 2020 of Give &
Go added incremental net revenues of $390
million and the July 16, 2019 acquisition of a
majority interest in Perfect Snacks added
incremental net revenues of $55 million in
2020.
 Financial Data

Valuation Ratios

P/E Excl Extra24.42

Price to Book 3.1
P/E Normalized 20.77
Price to Sales 3.16
Quick Ratio 0.48
Current Ratio 0.66
Asset Turnover 0.4%
Organisation
Structure

Top
manage
ment
(Board
Membe
Middle levelrs)
management
comprising of Country level
heads, functional department
heads and key decision makers

Root level managers, Customer care team, Distributers,

Supply chain management team, Manufacturing team,
Audit team, IT & PR team
 Job Description and Specification

Job Description 1
2
Business Unit
Job Title
Sales & Marketing
Perfect Store Manager

Job Analysis
3 Incumbent Name CMO
To develop a comprehensive view of what great looks like in retail
enterprises for our categories and create market-leading capabilities
in managing space, range and distribution to maximize category
Main purpose of growth throughout all retail channels and environments and track and
4 the job measure performance of space against forecast plans.
Responsible for attracting new client and bring business to the
OBJECTIVE organisation.
Supervision
5 excercised Sales Executives
Supervision
6 received Area Manager / Territory Sales Manager
1. Deliver our Mondelēz International Perfect Store agenda
Roles & identifying relevant growth potentials via customer & shopper
7 responsibilites analysis and implement/develop actionable measures
2. Design Picture of Success for our key customers in regard of shelf,
secondary placement and promotion efficiency
3. Lead Category Management projects with key customers
4. Equip Sales Teams with relevant materials and tools and train/steer
them to efficiently execute perfect store related topics. Support
development of annual trade negotiations.
5. Develop plans and ideas to drive and improve future business of
Mondelēz International in light of perfect store related topics
6. Close collaboration with multiple functions internally and external
stakeholders
Qualification
8
required MBA or equivalent degree
Experience
Required 3-5 years
9 Skills Required Technical skills
Knowledge of productivity tools and software.
Soft skills
Store excellence and routes-to-market
Ability to develop good relationships with current and potential
clients.
Delivering a strategic plan, measuring and monitoring results and
making recommendations to achieve growth targets
Influencing stakeholders and interacting effectively with others, with
the courage and resilience to hold an alternative point of view
Sales in a fast-moving consumer goods or consumer packaged goods
industry a distinct advantage
10 CTC 9-12 Lakhs
11 Position holder : Recrutier
12 Name: Juhi Bareria
13 Signature: Juhi
Training need Identify
Evaluation what
training How will
Major Tasks of Training/Development need this be Training
Positions Required? (Yes/No) exists achieved? When? Provider
Store excellence        
Planning and
1. Performance Gap Analysis monitoring        
Category management          
2. Root Cause Analysis Sales and Marketing          
Data Analysis          
3. 360-degree feedback Process Management          

What do we want to achieve in the period ahead?

______________________________________________________________________________
_
Where can you/we see your career moving in the next two years?
______________________________________________________________________________
_
How are we going to make this happen?
______________________________________________________________________________
_
What will you need from the company to assist you to reach your career goals?
______________________________________________________________________________
______________________________________________________________________________
__
 Organisation
Culture

Key Pillars of Organisation culture:

 To establish representation goals that reflect the

diversity of the local market
 Invest in multi-year education to build cultural
competency for all employees in 2021
 Mentoring and leadership development
programs
 Expand investments in early career programs
 Recognize, celebrate and advocate for inclusive
culture and communities.
 Promote diversity and conclusion through
reporting, storytelling and volunteering
Conclusion
 Mondelez International has been a major player in FMCG market with a percent share of 65%
in India and 30-35% overall.
 The product portfolio is attractive and some of the leading brands like Oreo, Cadbury and
Tang are well established and consider star products of the company. These products are in
the maturity stage of the product life cycle as they have been introduced in 1900s and have
penetrated in the market in the long run.
 The company further aims to have a focus strategy and work on the existing categories which
they term as core categories.
 Biscuits earn the most revenue among all the product segment and lead with a revenue share
of 48%, followed by chocolate 31%.
 Gum and Candy are a comparatively new product category and had net negative revenues in
2020 due to mandatory lockdowns through various locations and less on-the-go consumption.
 Company states it’s major challenge to be procurement of natural resources as ‘cocoa’ which
is used in making chocolate is impacted easily by seasonal variations.
 References

https://in.mondelezinternational.com/about-us/india-business
https://www.mondelezinternational.com/About-Us/Who-We-Are/Growth-Strategy
https://www.mondelezinternational.com/-/media/Mondelez/PDFs/MPDF/MONDELEZ-INTERNATIONAL-INC_10K_2021.pdf
https://ir.mondelezinternational.com/static-files/7db3f10c-13ff-4c62-9e86-bf11bce1e0ad
https://www.mondelezinternational.com/Careers
https://wd3.myworkdaysite.com/en-US/recruiting/mdlz/External/job/Mumbai-India/Perfect-Store-Manager_R-40279-1
https://www.marketscreener.com/quote/stock/MONDELEZ-INTERNATIONAL-I-11499018/financials/
https://www.businesswire.com/news/home/20210218005526/en/Global-FMCG-Packaging-Market-Report-2020-Market-to-Reach-622.5-Billion-
by-2027---Food-Segment-to-Account-for-160.3-Billion---ResearchAndMarkets.com
https://in.mondelezinternational.com/about-us/india-business
https://in.investing.com/equities/mondelez-international-inc-ratios?period_type=fiscalYear
https://www.marketscreener.com/quote/stock/MONDELEZ-INTERNATIONAL-I-11499018/charts-sector/
http://www.aceanalyser.com/
https://www.ambitionbox.com/reviews/mondelez-international-reviews