Mondelez International is a multinational food and beverage company based in the United States. It was spun off from Kraft Foods and operates in over 160 countries around the world. The company’s portfolio includes a wide range of popular brands, including Cadbury, Oreo, Toblerone, Milka, and Trident.
Mondelez International’s products are sold in various categories, including biscuits, chocolate, gum and candy, powdered beverages, and cheese and grocery. The company has a strong presence in both developed and emerging markets and employs approximately 80,000 people worldwide.
Let’s explore the marketing side of Mondelez International in this piece – we’ll cover Marketing Mix, STP analysis, PESTEL analysis and Porter’s five forces employed by Mondelez.
Marketing Mix (4Ps) of Mondelez International
The marketing mix, also known as the 4Ps, refers to the elements that make up a company’s marketing strategy: product, price, promotion, and place. Here is an overview of how Mondelez International applies the marketing mix to its business:
Product: Mondelez International’s product strategy is based on a diverse portfolio of snack and confectionery products. The company’s product development process is grounded in consumer insights, allowing it to identify emerging trends and preferences.
The company invests heavily in research and development, leveraging cutting-edge technology to develop new products and flavors that meet changing consumer demands.
Mondelez International’s product portfolio includes some of the world’s most well-known and iconic brands, such as Cadbury, Milka, Toblerone, Oreo, and Ritz. The company also offers a range of healthier snack options, such as fruit snacks, nuts, and vegetable chips, to cater to consumers who are looking for healthier snack options.
Price: Mondelez International’s pricing strategy is focused on offering its products at competitive price points that are aligned with consumer demand. The company conducts extensive research to determine the optimal price points for its products, taking into account factors such as production costs, market trends, and consumer behavior.
Mondelez International also uses dynamic pricing, leveraging technology to adjust prices in real-time based on factors such as supply and demand. Additionally, the company uses promotional pricing, such as discounts and special offers, to drive sales and incentivize consumers.
Promotion: Mondelez International’s promotion strategy is centered around building brand awareness, driving sales, and fostering customer loyalty. The company invests heavily in advertising campaigns that showcase the unique features and benefits of its products, such as their quality, taste, and convenience.
The company uses various advertising channels, including television, print, online, and social media. Mondelez International also uses experiential marketing, creating interactive and immersive experiences for customers to engage with its brands. The company also uses sales promotions and loyalty programs to incentivize customers and drive sales.
Place: Mondelez International’s place strategy is focused on making its products easily accessible to customers across various channels. The company sells its products through retail stores, supermarkets, convenience stores, and online retailers.
Mondelez International has a global distribution network, enabling its products to be available in markets around the world. The company also partners with distributors and wholesalers to ensure that its products are readily available to customers. Additionally, Mondelez International uses technology to optimize its supply chain, enabling it to efficiently and effectively manage inventory and distribution.
In summary, Mondelez International’s marketing mix is focused on offering high-quality and innovative snack and confectionery products at competitive prices, while making them easily accessible to customers through various distribution channels. The company’s focus on product development, pricing, promotion, and distribution enables it to effectively reach and engage with customers, driving sales and fostering customer loyalty.
STP (Segmentation, Targeting, Positioning) Analysis of Mondelez International
Segmentation: Mondelez International uses multiple segmentation variables to identify different consumer groups, including demographic, psychographic, and behavioral variables.
For demographic segmentation, the company targets different age groups, such as children, teenagers, and adults. It also considers other demographic factors such as income and gender, as these can influence purchasing decisions.
For psychographic segmentation, Mondelez International considers factors such as lifestyle, personality, and values. The company offers a range of products to cater to different psychographic segments, such as indulgent treats for consumers seeking a luxury experience or healthier snack options for health-conscious consumers.
For behavioral segmentation, Mondelez International considers factors such as purchasing behavior, brand loyalty, and usage patterns. The company develops products and marketing strategies that cater to different usage occasions, such as snacks for on-the-go or special treats for holidays and celebrations.
Targeting: Mondelez International targets a broad range of consumers across different geographies and demographics. The company’s target market includes urban areas and emerging markets, where there is high demand for convenient and affordable snacks and confectionery items.
Mondelez International uses consumer insights and data to identify high-potential markets and customers, and develops targeted marketing campaigns to engage with these audiences. For example, the company uses social media to reach younger consumers, who are more likely to use these platforms for entertainment and product discovery.
Positioning: Mondelez International positions its products as high-quality, innovative, and convenient snacks and confectionery items that are perfect for everyday snacking and special occasions.
The company uses different positioning strategies for its various brands, depending on the target audience and product characteristics. For example, Cadbury is positioned as a high-quality, indulgent treat that provides a luxury experience, while Oreo is positioned as a fun, playful snack that can be enjoyed by people of all ages.
Mondelez International also positions some of its brands as healthier snack options, such as belVita breakfast biscuits and Triscuit crackers, which cater to consumers seeking healthier snack options.
In summary, Mondelez International uses a sophisticated STP analysis to identify and analyze different consumer segments, develop targeted marketing strategies, and position its products to effectively differentiate them from competitors. By using a customer-centric approach, Mondelez International can better understand its customers and develop products and marketing campaigns that meet their unique needs and preferences.
PESTEL Analysis of Mondelez International
PESTEL analysis is a framework used to analyze the external macro-environmental factors that affect an organization. It stands for Political, Economic, Social, Technological, Environmental, and Legal factors. In the case of Mondelez International, a multinational food and beverage company, the PESTEL analysis would be as follows:
Political:
- Government stability and political risk: Mondelez operates in multiple countries, some of which may have unstable political environments that can impact the company’s operations, including supply chain disruptions and regulatory changes.
- Trade policies and agreements: Changes in trade policies and agreements can affect the company’s ability to import and export products in certain markets.
- Taxation policies: Changes in taxation policies can affect the company’s profitability and financial performance.
Economic:
- Economic growth: Economic growth can drive consumer spending, which can impact the company’s revenue and profitability.
- Exchange rates: Fluctuations in exchange rates can impact the company’s revenue and costs, particularly if the company has operations in multiple countries.
- Inflation: Rising inflation can increase the cost of production, which can impact the company’s profit margins.
Social:
- Changing consumer preferences and lifestyle trends: Consumers are increasingly seeking healthier and more sustainable food options, which can impact the company’s product portfolio and market share.
- Demographic changes: Changes in demographics, such as aging populations or shifting ethnic makeup, can impact the company’s target markets and consumer preferences.
- Cultural attitudes and values: Cultural attitudes towards food and beverage products can differ across markets, which can impact the company’s marketing and advertising strategies.
Technological:
- Advancements in manufacturing and production technology: Technological advancements can enable the company to increase efficiency and reduce costs in its manufacturing processes.
- E-commerce and digital channels: The shift towards e-commerce and digital channels can create opportunities for the company to reach consumers and sell its products.
- Data analytics: The use of data analytics can help the company better understand consumer preferences and behaviors, which can inform product development and marketing strategies.
Environmental:
- Climate change and natural disasters: Climate change and natural disasters can disrupt the company’s supply chain and operations, particularly if the company relies on agricultural inputs.
- Sustainability and environmental regulations: Increasing regulations and consumer demands for sustainable and environmentally-friendly products can impact the company’s operations and product portfolio.
Legal:
- Intellectual property protection: The company must protect its intellectual property rights to prevent competitors from copying its products or using its brand name.
- Regulatory compliance: The company must comply with various regulations related to food and beverage safety, advertising and labeling, and other areas in the countries where it operates.
- Employment laws: The company must comply with various employment laws, such as minimum wage laws and anti-discrimination laws, in the countries where it operates.
Overall, a detailed PESTEL analysis of Mondelez International highlights the importance of considering various external factors that can impact the company’s operations and success in the market. By analyzing these factors, the company can better understand the risks and opportunities in the market and adjust its strategies accordingly.
Porter’s Five Forces of Mondelez International
Porter’s 5 Forces is a framework used to analyze the competitive intensity and attractiveness of an industry. It helps to identify the sources of competition and the potential threats and opportunities in the market. In the case of Mondelez International, a multinational food and beverage company, the five forces would be as follows:
Threat of New Entrants: The food and beverage industry has a relatively low barrier to entry, which means that new competitors can enter the market easily. However, it requires significant investments in research and development, manufacturing, and distribution to establish a presence in the market. Additionally, established brands and their reputation create a significant barrier to entry for new players. Therefore, the threat of new entrants in the industry is moderate.
Bargaining Power of Suppliers: The bargaining power of suppliers in the food and beverage industry is relatively low because of the large number of suppliers available for sourcing raw materials. However, some ingredients, such as cocoa, sugar, and coffee, are controlled by a few large suppliers, which can give them bargaining power. Additionally, suppliers can influence the quality and availability of raw materials, which can impact the company’s operations and profitability.
Bargaining Power of Buyers: The bargaining power of buyers in the food and beverage industry is moderate because consumers have a wide range of choices and can switch to other brands easily. Additionally, the industry is characterized by intense price competition, which can limit the company’s ability to raise prices. However, Mondelez has a strong brand and reputation, which can give it some bargaining power over buyers.
Threat of Substitutes: The threat of substitutes in the food and beverage industry is high because consumers can choose from a wide range of products, including healthier alternatives. Additionally, the rise of alternative snacks, such as protein bars and energy drinks, has increased the threat of substitutes. However, Mondelez has a diverse product portfolio that includes well-known brands like Cadbury and Oreo, which can help reduce the threat of substitutes.
Rivalry among Existing Competitors: The intensity of rivalry among existing competitors in the food and beverage industry is high. The industry is characterized by intense price competition and aggressive marketing strategies. Additionally, there are many established players in the market, including Nestle, PepsiCo, and Coca-Cola, which increases the level of competition. However, Mondelez has a strong brand and reputation, which can help it compete effectively.
In conclusion, Porter’s Five Forces analysis of Mondelez International highlights the key sources of competition and potential threats in the food and beverage industry. By analyzing these forces, the company can identify opportunities to improve its competitiveness and mitigate the risks in the market.
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