INDUSTRY PROJECT ON

MENTOS
GROUP NO.7
DIVYA LODHA|MOHIT CHOPRA|MONISHA MOHAN|NIKHIL
SHARMA|SRIRAM CHEPURI|SUPREET AGRAWAL

SITUATIONAL ANALYSIS

COMPANY

Perfetti Van Melle Italy was incorporated in 1946.

It is the worlds third largest confectionery group with its presence in over
150 countries worldwide.
First offering Centre fresh followed by Big Babol and Alpenlibe in 1995 in
India.
A total estimated market size of Rs.5,500 crore with 15 brands like
Mentos, Happydent, Chlormint, Alpenlibele etc. under its umbrella.
PVMI has a network of around 4,000 (app.) distributors spread across
1,500 urban towns and covers 7,000 towns through its extended network
of 10,000 (app.) sub-stockists.
Mentos launched in India in 1999

CONTEXT

COLLABORATO
RS
Perfetti group of Italy acquired Van Melle of Netherlands
to form the group in 2001.
TERI - Solar Electrification project in Uttarkhand
Amazing Spider Man- On pack branding,TVC for
AlpelibeLe
Mumbai Dabbawalas- Mangofillz
McKann Erickson and O&M Reeling out quirky and
creative campaigns
Coca-Cola : Diet coke and Mentos viral marketing in
2006
Eepy Bird :mentos geyser history in Cinncinnati in 2007
setting Guinness record.

CUSTOMERS

Indian confectionery market is expected to grow at a CAGR of more than

18% during 2012-2015.

Wide range of customers from age group of 10-25

age group.

In the wholesale and convenience channel sugar confectionery is worth

622m and growing 1.8% year on year, according to Nestl
Confectionery.

Diverse demographic profiles kids, migrant

workers, corporates

Fluctuating sugar prices- Sugar accounts for 40% to 50% of the weight
in a 2-4 gm piece and at least 20% of the total production cost.

Retailers,Kiranas,Mom&Pop stores,Hotels etc.

COMPETITORS
SWOT
AnalysisAND SWOT
COMPETITORS
Global
trends

Sales in India 2013 (Mn)

[CELLRAN
GE],
[PERCENT
[CELLRAN
AGE]
GE],
[PERCENT
AN
AGE]

ENT
]

[CELLRAN
GE],
[PERCENT
AGE]

AN

ENT
]
Nestle India

Source: Capitaline

Ferrero India

CUSTOMER OBSERVATION - AEIOU FRAMEWORK

One fifth of confectionary purchase are made in Paanwaala stores. The

layout of stores are generally a cubical structure which is divided into
shelves. There is a counter in the front marking the boundary of the shop
and various containers of mints, gums and Claris are stocked.
Customers observed in Andheri west were a good mix of both the working
class and students, These can be attributed to the presence of small scale
industries and universities in the area. They came in groups and seemed
like regular visitors from the conversations they had with the shopkeeper
and amongst themselves.
The shops roughly measured 7ftx7ft. The shopkeepers were nestled within
the displays in chairs. The products displayed were predominantly
cigarettes, mints, clairs , gums, biscuits, detergent sachets, soaps etc.
The demographic profiles of the consumers varied depending on the
location of the shop. While in a few shops we observed a cordial relationship
between the shopkeeper and the customers in others there was minimal
interaction. In the area sampled Andheri West, people came to shops alone
rather than in groups. Detailed observations of few of the customers have

GENERAL LAYOUT OF THE STO

SHELVES
S
H
E
L
V
E
S

MINI
FRID
GE

ENTRANCE

It is a low involvement purchase where customers buy what is available or

what they are familiar with. There is no rigid preference amongst consumers.
They buy what is available.

CHAIR

TABLES WITH CONTAINER

DISPLAYS

S
H
E
L
V
E
S

CUSTOMER WATCH
1.Pujari General Shop (2 customers observed)
Located opposite Vrindavan,Andheri West.
Customers are mostly students from the Bhavans Campus which is just
100m away and also those who come to eat at Vrindavan.
Located near a tea shop, therefore customers visit the paanwaala to get
biscuits or mints after a smoke.
The shop displayed predominantly ITC products such as Mint-ogol,Candyman, Sunfest, Wills,Goldflakes,Scissors etc. Besides these
they also have Happydent,Melody, Marie Gold, loose sweets and snacks,
tobacco sachets etc.
Mentos was not available in the shop.
CUSTOMER A
CUSTOMER B
A middle aged man dressed in his sportswear.
An educated, well groomed in his early thirties,
Could be returning home from Andheri sports
The customer asked for a mint and the shopkeeper
complex.
offered Happydent.
He bought a cigarette and the shopkeeper did
There was no interaction between the customer and
not have any change in return. Therefore offered
the seller.
a few eclairs.
It was a shortlived transaction and the customer
Customer insisted on getting mentos but only the
looked like he was in a hurry.
strawberry flavor was available. Hence refused
A very low involvement purchase

CUSTOMER
WATCH

2.Rajkumar Bidi shop (2 customers observed)

Located near Raj Palace, Andheri West.
Customers who visit the store range from 17 to 60 years
There is a small scale industry behind the shop and therefore most of its
customers are the labourers who come in groups.
The shop displayed products like cigarettes, Happydent, Gems, Parle G,
Tide,Surf excel, Ariel, mint-o-gol and loosely sold sweets
Mentos was not available in the shop.
Passers by, roadside vendors and groups of migrant workers.
The shopkeeper had a very cordial relationship with his customers
It seemed like most of them were repeat customers.

CUSTOMER C

CUSTOMER D

A tourist car driver in his late thirties dressed in a

white uniform.
He stopped at the shop asked for Happy dent
and bought close to 10 of them.
Then, he smoked a cigarette, popped one of
these gums into the mouth, stocked the rest in
his car and left.

A group of migrant workers from a small scale industry

close to the shop
They spent about 15 minutes together chatting over a
smoke.
One of them specifically asked for a mentos however
the shopkeeper gave him a mint-o-gol. The customer
accepted it and could not differentiate between mentos
and mintogol.

CONSUMER BEHAVIOUR
Know-Do-Feel A low involvement purchase
High involvement
Market consideration:

CONSUMER DECISION MAKING PROCESS

KTC Availability and Brand salience

TTC- Break in purchase cycle of the consumer.

Problem/Need
recognition

Information search

Low involvement

Reason of purchase

Evaluation of
options

4, 13%

6, 20%

36%

27%

14, 47%

Post purchase

10, 33%
9, 30%

21-26

27-32

4, 13%

33-38

Buy what is available or what the

consumer is familiar with

11, 37%

17%

15-20

An almost non existent stage in

the buying behavior in this product
category.

Place of purchase

Purchase decision

2, 7%

20%

Passive information search

Hedonistic
Findings

Age group

The need to consume mint

triggered by the need for fresh
breath, advertisements.

Flavour
Chewey
Freshness
No particular reason

Kirana stores
Paanwaala

Retail outlets
Etailers

Meeting expectations

SEGMENTATION AND
TARGETING
Segment Name

Sensory

Socializers

Independent

Benefit sought

Sweetness and
flavour

Fresh breath

Replacement of
change

Demographics

Children

Youth

Middle aged

Behavioural traits

Pester power

Smokers

Impulse

Personality

Self involvement

Sociable

Autonomy

Brand preferred

Cofitos, Chocoleibe,
mangofillz

Mentos, Cholormint,
Minto

Happydent, orbit,

TARGETING
Youth these days socialize
thoroughly
and
are
particular
about
their
breath. Their purchase is
generally planned
Promotions of mentos
involve a lot of fun and
showcase street smart
nature
which
youth
associate to

POSITIONING

Brand Ladder
Value

Smart thinking

Emotional

Fun and irreverence

Functional

Freshness and flavours

Attributes

Consumer Insight: On
a lookout for mints that
will serve multiple
purposes such as
freshness of breath,
flavour, teeth whitening
etc.

Chewy draggy , hard outer

cover and soft inner

consumer need
state: Desire to
feel fresh

Consumer takeaway:
Mentos gives the
consumers a fun filled
experience of
freshness and
smartness.

Positioning statement: For the fun loving youth of India mentos is a chewy dragee confectionary that gives them a fun
filled experience of freshness because it is hard exterior and soft core.

MARKETING MIX 4Ps

Product
Mentos is a product of Perfetti Van Melle (PVM) which is the worlds second largest
sugar confectionery
Mentos candies fall in the category of chewy dragee. The candies have the unique
positioning of being hard and crunchy on the outside, which when chewed
disintegrates to a soft gum-like consistency and releases its breath freshening
characteristics.
Mentos is produced in India in 3 flavors: mint, strawberry and lime but is also
available in grape and mixed fruit by importing packages from Arab countries and
repackaging it in India. Assorted flavors are also imported and repackaged.
The candies are packaged in mono-packs or rolls of thirteen and the weight of each
individual candy is 37.5 gms.
PVM India focuses primarily on the mono-packs, which form 90% of Mentos market.
This strategy is derived from the fact that India is largely a mono-pack market as
against the global scenario, where confectioneries are largely a multi-pack market.

MARKETING MIX 4Ps

Place
Mentos is distributed across India by Perfetti Van Melees strong distribution network
which has around 4500 distributors across 2000 urban towns.
It is stocked at over 20 lakh outlets of which 25% are paan shops.
The bulk of the sales are derived from unorganized mom-and-pop stores paan
wallahs and kirana shops. This leads to significant logistical difficulties.
The retailers have an operating margin of 10-15% while it is 5-7% for the distributors.
This is lower than the industry standard of 15-17% and 7-10% for retailers and
distributors respectively.
Perfetti is now selling its products including mentos through e commerce platform
Bigger SKUs are available for sale in hyper markets

MARKETING MIX 4Ps

Promotion

Target segment is youth and college going students who relate to fun
and street smartness

Mentos banks more on psychological benefit of smartness than on

functional benefit

Freshness is portrayed not as an attribute but a state of mind

Killer campaigns such as Dimag ki batti jalao and mentos zindagi, aam
zindagi

Advertising done by Ogilvy and Mather

Launched online games such as Mentos kiss fight

MARKETING MIX 4Ps

Promotion

Perfetti recently launched mentoshelpline.com, a spoof call centre

which uses a flash-based video to interact with users and offer quirky
responses to their grievances.

Online competitions like Mentos Dimag ki Batti jalao contest offering

25 lakhs for solving puzzles

Advertising through Youtube

Create a caption contest on facebook and twitter like they asked a

caption for this Dimag Ki batti jala de pic

Video contest to harness the media frenzy created by mixing mentos

and coke

MARKETING MIX 4Ps

Price
Mentos is a low involvement, impulse purchase
product which is priced at 50 paise for the monopacks and Rs 5 for the rolls
Competitors, however, have similarly priced products
and stiff competition has made sure that prices are
largely constant. Thus, price is not really a
differentiator in this category.

However due to its price of 50p it is difficult to pass on

any increase in taxes or input costs to the customer.

PROBLEMS/CHALLENGES
FACED
Lack of awareness - From our primary research we see that most of the consumers are unable to
differentiate Mentos from the other available options. Especially with names as similar as mint-o-gol
and with similar looking packaging from color to design, Mentos faces a high risk of losing its market
share.
Clutter - PVMI is cluttered with its own products in the same category Chloro-mint, Centre fresh
and Mentos. Intense competition from Nestle, Wrigleys, ITC etc. in a low involvement purchase
category driven by impulse.
Distribution chain - 25% of sales of mints is through paanwaalas where ITC has a strong foothold.
Most of the paanwaals are supplied with all ITC products from cigarettes, soaps, detergents to
mints, biscuits, candies, and are given high margins for their sales. Our primary research gave us an
important insight that paanwaalas purposely do not stock Mentos as the sales of ITCs Mint-o-gol
gets hit and thereby their margins.
Stock rotation -Perfetti wholesalers visit the paanwaalas thrice every week to replenish the stock
while ITCs visits are more regular Shopkeeper of a paan store at Andheri West, Mumbai.

RECOMMENDATIONS
Differentiate via packaging: The mints segment in the Indian confectionary market is
dominated by mono packs. To differentiate itself, Mentos should come up with an innovative
packaging for its mono pack mints.
Managing variants: Mentoss sweet flavored variants are more prevalent in Paanwaala shops
that we sampled, than the mints. It would be more profitable for the company to primarily focus
on mints at Paanwaalas and the variants like strawberry and lime at retail outlets. Since the
variants are welcomed among the young teens, Mentos can consider introducing its
international flavors such as cinnamon and pineapple in India.
Widen target market: The variants can also be used to widen Mentoss target segments to
kids who prefer sweet and flavored cheweys based on our STP presented earlier. The fact that
it is not categorized as a gum will play to its advantage by making it easy for Mentos to
influence parents. Also, it can appeal to the student community by funding outstanding students
who cannot afford their education. This will also be in line with its smart thinking positioning.
Product innovation: Mentos can come up with rolls which has all its variants wrapped
separately and packed into a roll. This way its first time consumers can get a taste of its

BIBLIOGRAPHY

http://www.rediff.com/money/special/spec-perfetti-success-in-india/20090818
http://articles.economictimes.indiatimes.com/2011-01-19/news/28432106_1_perfetti-van-melle-indiapvmi-sameer-suneja
http://www.exchange4media.com/e4m/news/printpage.asp?section_id=3&news_id=10951&tag=5584
http://www.business-standard.com/article/companies/mentos-starts-whacky-helpline107030501025_1.html
http://www.exchange4media.com/29788_mentos-reveals-the-%E2%80%98actual%E2%80%99-theory-ofevolution-of-man.html
http://www.thehindubusinessline.com/companies/perfettiindia-ties-up-with-the-amazing-spiderman2/article5959160.ece
http://articles.economictimes.indiatimes.com/2010-04-05/news/27621419_1_barbers-godrej-shavingkanwariyas
http://www.indiaprwire.com/pressrelease/food/2010031946118.htm
http://www.apnnews.com/2013/05/06/perfetti-van-melle-india-announces-launch-of-solar-electrificationproject-in-uttarakhand-in-collaboration-with-teri-lighting-a-billion-lives-campaign/
Mentos Viral Marketing Case Study Turning unexpected online attention to your advantage
www.perfettivanmelle.in
Capitaline
Thomson Reuters

APPENDIX

Confectionary Industry
figures

Survey Data

Link to the
survey
https://docs.google.com/a/spjimr.org/forms/d/1E0px5KGv6b52vaaWrMuElWRJixpZ2M0VYYpMMUcGfmc/vie
wform?c=0&w=1&usp=mail_form_link