Mondelez International -

Toblerone

Final Project
December 5, 2014

By:
Dea Handayani
Accounting 2 2014
008201400025

President University
Bekasi
2014

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 I. Background

Mondelez International is a company from Europe. It is the largest chocolatier and biscuit
baker, the second largest maker of candy and coffee and the third largest producer of gum.
Actually Mondelez International is Kraft Foods Company, but on 2012, Kraft Foods spun off
its grocery company and the remainder of Kraft Foods Company renamed as Mondelez
International that focuses on snack and confection company. There are lots of brands included
in Mondelez International. One of them is Toblerone.
The company has its origin as National Dairy Products Corporation. It was established on
10th of December 1923 by Thomas H. Mclnnerney. At that time, National Dairy Products
merged with Rieck Mcjunkin Dairy co. and listed in stock exchange with 125,000 shared have
been oversubscribed. On 1930, National Dairy Products became the largest dairy company in
United Stated and all over the world. In that year as well, National Dairy Products merged
with Kraft. Between 1923 until 1931, National Dairy Products purchased more than 55 firms.

I.1 Krafts History

1903 James L. Kraft moved to United States and started a wholesale door-to-door cheese
business in Chicago.

1909 Kraft joined his four brothers to form J L. Kraft and Bros Company.

1911 Advertisement were used by the company.

1912 They established headquarters in New York City for its international expansion.

1914 31 varieties of cheeses were being sold around US and opening a wholly cheese
factory in Illinois.

1915 The company invented pasteurized processed cheese that did not need refrigerator,
which will give a longer life than other cheese.

1916 The process was patented and began national advertising and made its first acquisition.

1924 Changed name to Kraft Cheese Company and listed on Chicago stock exchange.

1927 Kraft established sales offices in UK and Hamburg, Germany. At that time, the sales
were $60.4 million.

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1929 Kraft merged with Hershey and Colgate.

1930 Kraft merged with National Dairy Products Company.

1969 Changed their name from National Dairy Products Company to Kraft co.

1972 The firm transferred to Glenview, Illinois, which is located in Midwestern United
States.

1976 Changed name to Kraft Inc.

1980 Merged with Dart industries to form Dart and Kraft.

1988 Phillip Morris Company purchased Kraft for $12.9 billion. In the next year, Kraft
merged with Phillip Morris general foods unit.

1995 Changed name to Kraft Foods Inc.

2004 It was a year of declining sales for Kraft. The company announced the closures of its
19 production facilities worldwide and the reduction of 5,500 jobs as well as the sales
of 10% of its branded products.

2009 On 7th of September, Kraft purchased Cadbury for 10.2 billion. It is a long-term
strategy of Irene Rosenfeld or the CEO of Kraft. The purchase of Cadbury helps Kraft
to develop in new markets, which is in Brazil and India because of the strong presence
of Cadbury in market.

2011 On August, Kraft announced plans to split into two publicly traded companies, which
is snack food and Grocery Company.

2012 - On October, Kraft Foods Inc. change its name to Mondelez International.

I.2 Toblerones History

1868 Theodor Toblers father, which is Jean Tobler owned a shop in Bern, Switzerland,
producing chocolate from products supplied by other manufacturers.

1899 Tobler opened his own chocolate factory.

1900 On June 19, Jean Tobler handed over the company to his son, Theodor Tobler.

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1908 Theodor Tobler and Emil Baumann, which is Theodor Toblers cousin, invented a
chocolate bar named Toblerone.

1909 Toblerone brand was orally registered in Bern.

1920 The image of eagle on the package was replaced by a bear.

1969 Dark Toblerone chocolate was launched.

1973 White Toblerone chocolate was launched.

1990 Acquired by Kraft Foods.

2007 New taste was launched. Toblerone Fruit & Nut was launched. It is a Swiss milk
chocolate with the addition of honey, almond nougat, and Juicy Californian raisins.

I.3 Brands in Mondelez International

Above is the picture of brands in Mondelez International. Mondelez International has

well-known snack brands around the world. It includes cookies and crackers, chocolate, and
gum and candy. The brands that are available are Cadbury, Cadbury Dairy Milk, Oreo, Ritz,
Tiger, Tuc, and Toblerone. Most of the brands that are available in Indonesia are considered
as famous brands.

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 II. Human Resources

II.1 Organizational Structure

Irene Rosenfeld

Lawrence
Karen May Gustavo
MacDougall Daniel Myers Abelenda

Tim Cofer Mark Clouse Gerhard Pleuhs David Brearton

James Kehoe
Hubert Weber Tracey Belcourt Jean Spence

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II.2 Career Development
Besides producing food, Mondelez
International also offer careers for people around
the world in sales and also manufacturing part.
They are providing careers for graduates, interns,
A level school-leavers, apprenticeships and also
field sales executives. They provide complete
process on how to apply to Mondelez International
in their website.

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II.3 Example of Job Vacancy in Indonesia

Not only outside Indonesia, Mondelez

International also provides job vacancy in Indonesia
for some division in the company. The information
about the requirement is explained on the picture
given.

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 III. SWOT Analysis

III.1 Strengths
Unique shape and packaging, which is the prism shape.
Good quality products, because they use honey as one of their ingredients, which
makes it different from the other chocolate because most of the chocolate only use
milk, while Toblerone use honey, and we know that honey have benefit for humans
body as well.
Easy to find in supermarket.
Have factory in several countries around the world, so there are lots of people that
know Toblerone.

III.2 Weaknesses
The price is quiet expensive for lower class citizen, so they cannot afford to buy
Toblerone. It is different for middle to upper class people.
Among all of the available chocolate brands in Indonesia and all over the world, there
is few variety of Toblerone chocolate, which will make the possibilities that people
will get bored with the flavor of the chocolate.
Lack of promotion in Indonesia that is why the shares are low, because not so many
people know the brands. Only people that live in urban area that know the product.
The market share in Indonesia can be seen in the business level part below.

III.3 Opportunities
Make lots of promotion in television, newspaper, and many others, so that known by
lots of people around the world.
Make other variety, so that the consumers will not get bored.
Make smaller gift package.
Make any other packaging beside prism shape or make another design of the
packaging, not only plain yellow color.
Expand their products to growing cities and Retail Company in developing countries.

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III.4 Threats
Other competing chocolate make more unique packaging with lots of flavor and also
cheaper price.
Because of the expensive price, other brands that have cheaper price and already have
name in Indonesia, for example like Silverqueen, can take the market and make
Toblerone become out of the market.
People that conscious about the calorie will not buy the product.
Hard to find the raw materials, because to make chocolate, they need cocoa tree and
not all cocoa tree will produce good quality of cocoa. As a worldwide company, of
course they want to produce products with good quality because they dont want to
lose their consumers.

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 IV. Marketing Mix
IV.1 Products
Toblerone is a chocolate bar brand which
is originated in Switzerland. It is produced in
Bern and well known for its shape, which is
prism shape. It is one of the chocolate brands that
is included in Kraft Foods family. Toblerone
was created by Theodor Tobler in 1908. It is the
combination of Tobler and Torrone or the
Italian word for nougat. As we can see from the
logo, it is a picture of a mountain, which is Matterhorn High Mountain and there is an image
of a bear hidden in the middle of the mountain, which is the symbol of Bern city. Tobler uses
Matterhorn Mountain as his products logo to symbolize the place where the chocolate was
produced. Toblerone became the first patented milk chocolate bar with almonds and honey.

Toblerone have several variants of flavor all over the world, such as:
Toblerone Milk, Dark, and White.
Toblerone Honeycomb Crisp.
Toblerone Fruit & Nut.
Toblerone Tebelle.
Snow-Capped
Filled edition
One by one
Toblerone pralines
Berner bar.

The one that are available in Indonesia are Toblerone Milk in 35g, 50g, 100g, and 200g,
Toblerone Dark in 100g, and Toblerone White in 100g and 200g. During some special event
like Ied Mubarak, they make a special package, like 1 prism box contain 3 50g Toblerone
with less price.

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 In Indonesia, Toblerone is not only sold in a form of
boxes that we usually see in the market. There is a place called
Istana Martabak Toblerone dan Nutella, which is located in
Serpong Utara, Tangerang that sold Martabak with Toblerone
and Nutella as the topping.

IV.2 Price
From the entire variants of Toblerone, there are only several types of Toblerone
available in Indonesia, such as Toblerone Milk, Dark, and White. Below is the price of
Toblerone that I found around the market located in Bekasi and also the price of Martabak
Toblerone with different flavor.

Milk Dark White

35g Rp 11.600 - -
50g Rp 18.400 Rp 18.400 Rp 18.400
100g Rp 28.990 Rp 28.990 Rp 28.990
200g Rp 52.900 Rp 52.900 Rp 52.900

Price in Giant Jababeka

Price in Hypermart Lippo Mall

Price in Alfamart Citywalk

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Jababeka
IV.3 Promotion

Facebook

Twitter

Newspaper

YouTube

Promotion of Toblerone is done by doing an advertisement through newspaper,

billboard, television, magazines, and making an account in several social media, such as
Twitter and Facebook. It is a good way to advertise their product because nowadays, people
usually use social media. The example of Toblerone promotion shown in television can be
seen in YouTube just like the pictures above, but it is not shown in Indonesia TV.

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IV.4 Place
Toblerone are available at stores or groceries and mall, supermarket, minimarket, and
many others, which is located in several areas around Indonesia.

Mondelez International offices are spread all over the world. The office in Indonesia is
located in South Jakarta in Graha Inti Fauzi 10th floor, which is in Buncit Raya street No. 22.
The picture above is the map of the Mondelez International office. There are several types of
Mondelez offices in Indonesia, such as the office that is located in South Jakarta itself,
manufacturing, and trading office.

The picture above is the map of Martabak Toblerone and Nutella that is located in
Serpong Utara, Tangerang.

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 V. STP Analysis
V.1 Segmentation and Targeting
The target market of Toblerone is commonly all types of consumers, but mainly, it
focus on children and youth. They are not advising old people to eat Toblerone, but if they
want, they may.

Age: The age of people that can buy Toblerone is around 4 to 50 years old. It is only until 50
years old because elder people tend to have diabetic and it is not good for their health because
chocolate is sweet. It does not mean that people above 50 years old cannot buy Toblerone. For
people above 50 years old, they can buy it actually, because it can be that they buy it not for
themselves but for other people. So, if people above 50 years old want to try or eat Toblerone,
they may.

Occupation: Everyone can eat Toblerone starting from student until businessmen.

Social class: Actually everyone can eat Toblerone, but the one that can afford to buy
Toblerone is medium to upper class people, because the price of Toblerone is not cheap.

Occasions: For purchasing or eat Toblerone, no special occasion needed. People can easily
purchase and eat Toblerone anytime they want to eat chocolate.

Climate: Tropic

Benefit: The benefit that people will get if people buy and eat is the taste, because the taste is
different from the other chocolate brands. Toblerone use honey, while there are few other
brands that use honey as their materials. The other one is the supply chain, because we can
find Toblerone anywhere, so it is easy for people to find Toblerone.

Income: According to the information above, the price of Toblerone is quiet expensive for
lower class people, while it is affordable for medium to upper class people. So, people that
want to buy Toblerone need to have high income. The amount of the income is depending on
how often they buy the chocolate.

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Generation: The generation is not really affecting the target market of Toblerone. People
from all generation can eat and buy Toblerone if they want.

V.2 Logo

The logo of Toblerone is the picture of a mountain, which is Matterhorn High

Mountain and there is an image of a bear hidden in the middle of the mountain, which is the
symbol of Bern city. Matterhorn Mountain used as the logo of Toblerone to symbolize the
place where the chocolate was produced. Beside the mountain, there is the name of the brand,
which is Toblerone

V.3 Positioning
The position of Toblerone is as the premium global chocolate brand with a pyramid shape.

V.4 Tagline
Lose yourself in the Toblerone triangle

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 VI. Product Life Cycle

Introduction Grow Maturity Decline

2009 2010 2011

Introduction Grow Maturity Decline

1923 2007 2008 2009

From the data above, we can see that the sales are increasing until 2008. On 2009, the
sales are decreasing. Because of that, Irene Rosenfeld think that it is going to be a good start
to develop in new markets if they purchase Cadbury. So, at that time they purchase Cadbury,
which makes Mondelez International re-grow their business. After they purchase Cadbury, the
sales are increasing until 2011 and it stays constant until 2013. We dont know yet what
happen in 2014, because the annual report is not published yet.

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 VII. Triangle of Brand

I met 15 students of President University around dormitory area and asked them to list
10 chocolate brands that they knew. This is the result.
Toblerone : 25%
Silverqueen : 25%
Cadbury : 20%
Delfi : 15%
Hershey : 10%
Others : 5%

Toblerone
Top of Silverqueen
Mind
Cadbury
Delfi
Brand Recall
Hershey
Others
Brand Recognition

Unaware Brand

According to the result, most of the people mention Silverqueen, Cadbury, Toblerone,
Delfi, and Hersheys, which means that they are included in the Top of Mind part. On the other
hand, the one that are included in Brand Recall part is the brand that are not really popular in
the market, for example Dove, Bounty, Godiva, and many others.

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 VIII. The Business Level

According to the data above, if we see it from the parents of the brand, in global
market share, Mondelez International and Mars is the winner compared to other chocolate
company. But if we see the data from figure 12, the winner is Petra Foods, while Mondelez
International is included in the top 10 companies.

If we see it from the brand itself, in Indonesia, the winner is Silverqueen, while
Toblerone is in the top 10 chocolate brands. So, to summarize the information, the business
level of chocolate bar in Indonesia market is:

Winner : Silverqueen.
Top 10 : Cadbury, Toblerone, Delfi, Lindt, etc.
Followers : Ayam Jago, Coklat coin, and other local brands that not listed in
national sales.
Participant : Unknown.

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 IX. Conclusion and Recommendation

IX.1 Conclusion

Toblerone is a well-known chocolate brand in some places in Indonesia that is why

Toblerone becomes the top of mind only in some places in Indonesia.
Toblerones direct competitors are Silverqueen, Cadbury, Lindt, Delfi, etc.
Toblerone is included in top 10 on business level in Indonesia.
Sales of Toblerone are not really high in Indonesia compared to other chocolate brands
because of lack promotion. So, they need to think about the strategy to promote their
product in Indonesia.

IX.2 Recommendation

Toblerone need to do some innovation and promotion in Indonesia in order to become

the winner on business level. The innovation can be by making new packaging and
add more flavors, so that the consumers will not get bored. The new idea of the
packaging can be like changing the background of the package, so it is not only plain
yellow color. Toblerone also need to promote their product in Indonesia, because it is
rare to see Toblerones advertisement in Indonesia. By promoting in Indonesia, it can
help them to increase their sales because people are aware of their product.
Expand the distribution of the product to more retail not only in Indonesia, but also all
over the world. Because as we can see from the information in the business level part,
it says that the share of Toblerone in Indonesia is only about 2.4%, which means it is
very small.
Toblerone can make an attraction like Cadbury World or Magnum Caf in several
areas of the countries to attract more consumers around the world.

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 X. References

en, (2014). Mondelez ANZ. [online] Available at:

http://www.mondelezinternational.com.au/ [Accessed 6 Dec. 2014].
Ir.mondelezinternational.com, (n.d.). Mondelez International, Inc. - Annual
Report. [online] Available at:
http://ir.mondelezinternational.com/secfiling.cfm?filingID=1193125-14-
79175&CIK=1103982 [Accessed 6 Dec. 2014].
Karir.itb.ac.id, (n.d.). ITB Career Center. [online] Available at:
https://karir.itb.ac.id/job_details/33928 [Accessed 6 Dec. 2014].
Mondelz International, Inc. - Home. (n.d.). [online] Available at:
http://www.mondelezinternational.com/ [Accessed 6 Dec. 2014].
Nutella, I. (n.d.). Istana Martabak Toblerone & Nutella - Jakarta. [online]
Zomato. Available at: https://www.zomato.com/jakarta/istana-martabak-
toblerone-nutella-serpong-utara [Accessed 6 Dec. 2014].
uk, (n.d.). Toblerone - Home. [online] Available at:
http://www.toblerone.co.uk/ [Accessed 6 Dec. 2014].
file:///Users/dea/Downloads/KFT-20080225-10K-20071231%20(1).pdf
file:///Users/dea/Downloads/KFT-20100225-10K-20091231%20(1).pdf
The citation is from www.citethisforme.com

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