Commerce Made Easy : The Art of Cannibalizing

Three plans Article no. 23

1^st plan- Reduce Cost of Delivery

MONDELEZ planning team was trying hard to reduce cost of deliver of their products meanwhile the team was also interested to pay more attention to retailer’s feedback and response. They came out with a unique plan. They divided sales team into two parts

Team A. Biscuit - beverages

Team B. Chocolate

This is how they benefited. Two different salesmen (belonging to team A as well as team B) started calling the same retailer every day but the delivery was made using one truck including both products (Biscuit – beverages and Chocolate). The products are supplied the next day.

Hence cost of delivery optimized (reduced), attention time to retailer and order picking response increased.

2^nd plan - Cannibalize

Chocolate consumption in India has increased but still it is low as per international standard. Even to meet this low scale demand lots of international and local players are competing. So the company introduced many new brands based on innovation, even though knowing the fact that those new brands will cannibalize (reduce sale of) their existing brands. They preferred cannibalizing their one brand by their other brand and avoided cannibalizing by the competitor brand. The plan worked as they are able to hold their market share (65%).

3^rd plan – New Image

Worldwide ambition of MONDELEZ is to become and recognize as snacking product co. whereas at present they are more known as chocolate producing co. In search of new Image, Within next five years, they are aiming to become best known and loved in biscuit category, and if possible in cookies and beverages and that too without shifting their focus from chocolate products which provide them regular necessary revenue to survive. They are adding capacity to build other categories to achieve their Goal of being snacking company without losing focus on chocolate category.

Q. Name the type of plans used by MONDELEZ