Wrigley has dominated the global gum market for over 100 years but faces new challenges adapting to changing consumer preferences and increasing competition. To strengthen its position, Wrigley is exploring social media marketing, focusing on health benefits to appeal to developing markets like China, and diversifying its product portfolio through the Mars acquisition. Wrigley's strengths include strong brands and R&D but it relies heavily on the US market and faces threats from low-cost competitors. Adapting to marketing trends and leveraging partnerships will be important to sustain growth in China's expanding confectionery industry.

1. CHEW! YES, WE

2. Innovation in China’s Confectionery Market

3. Objective Examine the reason hiding behind Wrigley’s Success in China via various channel, give out constructive recommendations

4. Introduction The Chinese Market S.W.O.T. Analysis Recommendation

5. William Wrigley Jr. Company founded in 1891 Originally sold and Headquarters located in Chicago, Illinois Introduction

6. 1892- William Wrigley Jr. began packaging the chewing gum with the cans of baking powder. Eventually the chewing gum became more popular and the company began producing chewing gum.

7. Wrigley started his own chewing gum brands: -Lotta- targeted the general market -Vassar- targeted women -Spearmint- cool and minty flavor That next year, Juicy Fruit, a sweet fruit-flavored gum was introduced.

8. Tell em’ quick Yeah, I’m the one who Advertise Tell em’ often

9. Production facilities expanded throughout the following 100 years, eventually reaching 19 facilities in 19 countries. Wrigley currently sells its products in over 180 countries.

10. 2005

11. 2008

13. Global Confectionery Market Confectionery includes chocolate, sugar confectionery and chewing gum. In 2007, the global confectionery market size was around $141billion expected to grow to $145billion by 2010.

15. 14% The World’s largest Confectionary company

16. Wrigley were relatively weak in the sugar confectionery market whereas Mars and Wrigley were strong in the chocolate and chewing gum market, respectively.

17. 2 Aggressive Expansion Functional Confectionary

19. Developed markets- Wrigley focused more advanced benefits like natural and organic ingredients, sensational pleasure, convenience, more sophisticated innovations for different target customers. Developing regions- Wrigley focused on fundamental benefits of oral health and new flavors.

20. The Chinese Market

21. China’s largest Confectionary company

24. Chinese 0.7kg/capita/year Global Average 2.8kg/capita/year Developed Countries 7.0kg/capita/year

25. Chocolate Consumption Take a closer look Japan & Korea 1.4kg/capita/year Global Average 8.0kg/capita/year Chinese 0.5kg/capita/year

27. Why is that?

28. That’s right! We are all Price Sensitive!

29. “礼多人不怪” “civility costs nothing”

30. “礼多人不怪” “you never blame a man with a gift in his hand”

34. China has been growing on average at a double –digit rate—and profitable each year– since we started manufacturing locally back in 1993. We are also not resting on past success, but are keenly focused on gleaning additional marketplace insights to drive innovation that is both relevant and motivating to consumers across China. - William Wrigley Jr.II

35. The success in a 4P sense

37. Extra Xylitol

38. New convenient package

39. Extra Xylitol and the Whitening series

41. fashionable and healthy image

43. 2.2 million distribution points, or over 90% retail penetration

46. Strengths Weaknesses Opportunities Threats Leading market position:World’s largest gum company - 63% of global market share in 2007. It was also the - Fourth largest confectionary company in the worldAlso in 2007, of the 7 top countries in terms of confectionery sales in retail, Wrigley was a top confectionery player in 6 and the industry leader in gum in 5. Allows Wrigley to compete aggressively in every nation and leverage its presence wherever it competes.

47. Strengths Weaknesses Opportunities Threats Strong financial performance: Robust financial performance in FY2005-07 periods: - Revenue increase from $4,159.3 (32442.54HKD) in FY2005 to $5,389.1 ($42,034.89HKD) in FY2007, a CAGR of 14%. Operating profit increased from $776.3 ($6055.14HKD) million in FY2005 to $962.8 ($ million in FY2007, CAGR growth of 11%. Net profit followed the same pattern with an increase of 11% in FY2007. Strong financial performance enhances its stakeholder’s confidence.

48. Strengths Weaknesses Opportunities Threats Research and Development capabilities: Wrigley has strong research and development (R&D) capabilities. Its R&D expenses were $60,796 ($474,208.8HKD) in FY2007. Has 80+ innovations in products or packaging thanks to R&D. - “5” Gum’s Rain and Cobalt flavors ranked first and third.Innovation in packaging is increasing consumption of other brands. - Germany’s launch of a premium bottle package - Poland’s new peg bag pouch provides added value to consumers. In FY2007, new products accounted for approximately 20% of its net sales.

49. Strengths Weaknesses Opportunities Threats Diversification of confectionary business: Wrigley acquired by Mars, Inc. in October 2008.Combined, now commands over $27 billion in sales and employs more than 64,000 associates worldwide.Strong foundation of established brands in 6 core categories: - Chocolate - Non-chocolate confectionery - Gum - Food - Drinks - Pet care

50. Strengths Weaknesses Opportunities Threats Brands include: M&Ms Snickers Mars Orbit ExtraDoublemintHas strengthened, diversified, Enhanced growth potential and given us a competitive advantage.

51. Strengths Weaknesses Opportunities Threats High dependence on the US markets for revenue generation: The US accounts for approximately 90% of its North America’s net sales and assets. 29.4% of its total revenue in FY2007 was the from US. This makes Wrigley’s in the US more exposed to country specific factors such as labor strikes, changes in economic conditions and increasing competition.

52. Strengths Weaknesses Opportunities Threats High dependence on the US markets for revenue generation: The US accounts for approximately 90% of its North America’s net sales and assets. 29.4% of its total revenue in FY2007 was the from US. This makes Wrigley’s in the US more exposed to country specific factors such as labor strikes, changes in economic conditions and increasing competition.

53. Strengths Weaknesses Opportunities Threats Seal of acceptance from the American Dental Association likely to push up sales: American Dental Association’s (ADA) Seal of Approval for Extra, Eclipse and Orbit in September 2007. ADA is the nation's largest non-profit dental association, representing more than 155,000 dentists The ADA Seal displays that chewing Wrigley's sugar-free gums can help maintain good oral health.The seal is also highly influential in increasing purchases among consumers. More than 92% of consumers said their purchase intent increased when they saw the ADA seal.

54. Strengths Weaknesses Opportunities Threats Emerging economies of China and Russia to boost its revenues: In China, and Russia the company is seeing double-digit category growth rates. China is the third-largest economy in the world and Wrigley is China’s largest confectionery company.Wrigley has built greater retail distribution than any other consumer product company - ACNielsen. However, it still remains toward the lower end of the global scale. Despite this, Wrigley’s full range of confectionery offerings has established a strong foundation for future business expansion.

55. Strengths Weaknesses Opportunities Threats Growing Hispanic population in US: Hispanics are the most rapidly growing ethnic group in the US. The US Census estimates that by 2020, the Hispanic population will reach 59.7 million or almost 17.8% of the total US population. Nielsen Media Research estimates that the buying power of Hispanics will exceed $1 trillion USD by 2008 (a 55% increase over 2003 levels)Wrigley has appointed the Bravo Group (Bravo) agency of record for Hispanic creative and promotional marketing efforts in the US.

56. Strengths Weaknesses Opportunities Threats Intense competition: Wrigley faces stiff competition from big multinational companies – primarily with Cadbury. Second-largest producer of chewing gum in the worldRecently, Cadbury strengthened its position after acquiring Intergum, a low-cost Turkish gum producer. Cadbury was the one to launch Trident and Dentyne gum brands in the UK. This severely dented Wrigley’s near 100% market share in the UK Trident Splash brand of gums is taking over market shares. Cadbury’s sugar-free gums in the US. Wrigley also competes with Hershey in other non-chocolate categories (e.g. hard and chewy candy including mints).

57. Strengths Weaknesses Opportunities Threats Chewing gum tax: Governments, especially Ireland and England, are imposing new policies on chewing gum companies. Forces them to pay towards the cost of cleaning up their products. The Irish government persuaded Wrigley, to make a contribution of $7million towards clean-up costs after it threatened to impose a purchase tax on the manufacturer. Westminster Council is also urging ministers to follow the example of the Irish government.

58. Social media and Wrigley

60. Mars Merged with Wrigley Making it the worlds largest confectionery company.

63. Attention was given to a nation where human centricity and the character of spirituality overcame the challenges of diversity. 3.0 Must Make Use of Media: Expressive Social media: Blogs, Twitter, YouTube etc. Collaborative media: Wiki, Rotten Tomatoes, Craigslist. ( People can do there own homework now and Choose)

64. PERCEPTIONS & Choice http://www.ted.com/talks/lang/eng/sheena_iyengar_on_the_art_of_choosing.html 8:40s to 10:15 -- Ideas to think about- Wrigley's started as a soap Co. – started giving out one stick of gum with xyz product…. Bring this back: In China: Only have sticks of gum in Dental and health facilities. Chinese buy Avg. 10 sticks of Gum a year American’s Avg. 160 Taiwan Avg. 70-80 A Manager of Wrigley said “ I don’t think People know how global Wrigley’s is” In the past they have always branded Locally

65. Reaching the Market Today 3.0 A Blogger “all it is repackaged Wrigley spearmint” This may be true however they have found a way to recapture the attention of the there target Audience (Marketing 3.0) http://www.youtube.com/watch?v=RE4CHTiHS_8

66. Growing up on Gum in the West vs. it just being introduced in 1989/ Guangzhou What is Chewing Gum “fragranced breath candy” -What is Disney concept- TED Clip– Ref.

68. Managing weight

69. Relieves stress

70. Some research suggested—Increased the flow of blood to the brain by 20-40%In the coming 5 to 10 years. It shall be challenging for Wrigley to go beyond gum and compete in the larger confectionary market in order to sustain its growth in China.

71. Next Make partnerships and business ventures with the local community “Get involved” Dental is a start Gum/ Fast Food Wrigley / fitness gym

72. Thank You Sourced by: