2004 Turning the Map a Deeper Purple, Presentation by Jean...

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Jean-Marc Saubade MD, Western Europe

Transcript of 2004 Turning the Map a Deeper Purple, Presentation by Jean...

Page 1: 2004 Turning the Map a Deeper Purple, Presentation by Jean ...files.investis.com/cadbury_ir/reports/AnalystPresejmsaubade.pdf · Cadbury France Market Shares: Gum, Chocolate, Sugar

Jean-Marc SaubadeMD, Western Europe

Page 2: 2004 Turning the Map a Deeper Purple, Presentation by Jean ...files.investis.com/cadbury_ir/reports/AnalystPresejmsaubade.pdf · Cadbury France Market Shares: Gum, Chocolate, Sugar

• One winning strategy for two countries

• Advantage of multi-category participation

• Focus, Investment, Speed

Page 3: 2004 Turning the Map a Deeper Purple, Presentation by Jean ...files.investis.com/cadbury_ir/reports/AnalystPresejmsaubade.pdf · Cadbury France Market Shares: Gum, Chocolate, Sugar

Chewing-Gum Market Shares (%)

Hollywood

- Sugar

- Sugar free

45.3

15.0

30.3

47.0

11.2

35.8

49.9

8.6

41.3

2002 2003 2004 Ytd

Source : Nielsen Grocery – Market share in value – Ytd P9

Page 4: 2004 Turning the Map a Deeper Purple, Presentation by Jean ...files.investis.com/cadbury_ir/reports/AnalystPresejmsaubade.pdf · Cadbury France Market Shares: Gum, Chocolate, Sugar

Chewing-Gum Market Shares (%)

Hollywood

- Sugar

- Sugar free

45.3

15.0

30.3

47.0

11.2

35.8

49.9

8.6

41.3

2002 2003 2004 Ytd

Source : Nielsen Grocery – Market share in value – Ytd P9

Page 5: 2004 Turning the Map a Deeper Purple, Presentation by Jean ...files.investis.com/cadbury_ir/reports/AnalystPresejmsaubade.pdf · Cadbury France Market Shares: Gum, Chocolate, Sugar

Chewing-Gum Market Shares (%)

Source : Nielsen Grocery – Market share in value – Ytd P9

Cadbury Schweppes

- Hollywood

- Other brands

51.0

45.3

5.7

51.0

47.0

4.0

52.9

49.9

3.0

2002 2003 2004 Ytd

Page 6: 2004 Turning the Map a Deeper Purple, Presentation by Jean ...files.investis.com/cadbury_ir/reports/AnalystPresejmsaubade.pdf · Cadbury France Market Shares: Gum, Chocolate, Sugar

Chewing-Gum Market Shares (%)

Cadbury Schweppes

- Hollywood

- Other brands

51.0

45.3

5.7

51.0

47.0

4.0

52.9

49.9

3.0

Wrigley’s

- Freedent

- Other brands

48.3

34.2

14.1

47.5

30.8

16.7

45.4

32.1

13.3

Others 0.7 1.5 1.7

Source : Nielsen Grocery – Market share in value

2002 2003 2004 Ytd

Page 7: 2004 Turning the Map a Deeper Purple, Presentation by Jean ...files.investis.com/cadbury_ir/reports/AnalystPresejmsaubade.pdf · Cadbury France Market Shares: Gum, Chocolate, Sugar

Chewing-Gum Market Growth (%)

Source : Nielsen Grocery – Value

Market growth +16.2 +10.7 +7.1

2002 2003 2004 Ytd

Page 8: 2004 Turning the Map a Deeper Purple, Presentation by Jean ...files.investis.com/cadbury_ir/reports/AnalystPresejmsaubade.pdf · Cadbury France Market Shares: Gum, Chocolate, Sugar

Chewing-Gum Market Growth (%)

Source : Nielsen Grocery – Value

2002 2003 2004 Ytd

Market growth +16.2 +10.7 +7.1

Hollywood +20.8 +14.9 +16.6

Wrigley’s +21.0 +8.9 (0.1)

Page 9: 2004 Turning the Map a Deeper Purple, Presentation by Jean ...files.investis.com/cadbury_ir/reports/AnalystPresejmsaubade.pdf · Cadbury France Market Shares: Gum, Chocolate, Sugar

• Hollywood masterbrand

• Cadbury France leadership and multi-category business model

Two Competitive Advantages

Page 10: 2004 Turning the Map a Deeper Purple, Presentation by Jean ...files.investis.com/cadbury_ir/reports/AnalystPresejmsaubade.pdf · Cadbury France Market Shares: Gum, Chocolate, Sugar

• Brand awareness

• Best taste

• Best availability

• Largest variety

• Brand that I trust

• Preferred brand

Best brand for young peopleBest brand for young people

Hollywood Brand Image: N° 1

Page 11: 2004 Turning the Map a Deeper Purple, Presentation by Jean ...files.investis.com/cadbury_ir/reports/AnalystPresejmsaubade.pdf · Cadbury France Market Shares: Gum, Chocolate, Sugar

Chewing-Gum Market Segmentation

TO TAKE CARETO TAKE CARE

DENTAL CARE

FRESH BREATH

WELL BEINGWELL BEING

STIMULATION

VAPOUR ACTION

NATURAL

PLEASUREPLEASURE

UNCONVENTIONAL

FUN

INDULGENCE

Page 12: 2004 Turning the Map a Deeper Purple, Presentation by Jean ...files.investis.com/cadbury_ir/reports/AnalystPresejmsaubade.pdf · Cadbury France Market Shares: Gum, Chocolate, Sugar

The Problem

• Power brand

• Market segmentationnot covered

• Inferior product quality

• Sugar based

• Sticks

Page 13: 2004 Turning the Map a Deeper Purple, Presentation by Jean ...files.investis.com/cadbury_ir/reports/AnalystPresejmsaubade.pdf · Cadbury France Market Shares: Gum, Chocolate, Sugar

The New Deal

• Power brand

• Market segmentationnot covered

• Inferior product quality

• Sugar based

• Sticks

• Masterbrand

• Sub-brands / Innovation

• Superior product quality

• Sugar free

• Pellets

Page 14: 2004 Turning the Map a Deeper Purple, Presentation by Jean ...files.investis.com/cadbury_ir/reports/AnalystPresejmsaubade.pdf · Cadbury France Market Shares: Gum, Chocolate, Sugar

New Hollywood Range :

Page 15: 2004 Turning the Map a Deeper Purple, Presentation by Jean ...files.investis.com/cadbury_ir/reports/AnalystPresejmsaubade.pdf · Cadbury France Market Shares: Gum, Chocolate, Sugar

Bang / Oxygen

Hollywood BangHollywood Bang Hollywood OxygenHollywood Oxygen

Page 16: 2004 Turning the Map a Deeper Purple, Presentation by Jean ...files.investis.com/cadbury_ir/reports/AnalystPresejmsaubade.pdf · Cadbury France Market Shares: Gum, Chocolate, Sugar

• Hollywood masterbrand

• Cadbury France leadership and multi-category

business model

Two Competitive Advantages

Page 17: 2004 Turning the Map a Deeper Purple, Presentation by Jean ...files.investis.com/cadbury_ir/reports/AnalystPresejmsaubade.pdf · Cadbury France Market Shares: Gum, Chocolate, Sugar

Nestlé : 11.4 %

Ferrero : 10.8 %

Kraft : 10.3 %

Lindt : 7.7 %

Wrigley’s : 7.2 %

Mars : 6.1 %

Haribo : 2.5 %

Others : 16.3 %

PLB : 9.9 % Cadbury : 17.8 %

Cadbury is the Leading Confectionery Company via Multi-category Participation

Source : Nielsen Grocery 2003 – Market shares in value

Page 18: 2004 Turning the Map a Deeper Purple, Presentation by Jean ...files.investis.com/cadbury_ir/reports/AnalystPresejmsaubade.pdf · Cadbury France Market Shares: Gum, Chocolate, Sugar

52.4

51.9

47.6

46.3

42

44

46

48

50

52

54

From

28/08/00

to

24/09/00

From

25/09/00

to

22/10/00

From

23/10/00

to

19/11/00

From

20/11/00

to

17/12/00

From

18/12/00

to

14/01/01

From

15/01/01

to

11/02/01

From

12/02/01

to

11/03/01

From

12/03/01

to

08/04/01

From

09/04/01

to

06/05/01

From

07/05/01

to

03/06/01

From

04/06/01

to

01/07/01

From

02/07/01

to

29/07/01

From

30/07/01

to

26/08/01

SOM Carrefour Cadbury Gum

SOM Carrefour Wrigley's Gum

2001 New Planogram

+8.2% SOM

Chewing-Gum Market Shares at Carrefour

Source : Nielsen Scantrack - Carrefour

Page 19: 2004 Turning the Map a Deeper Purple, Presentation by Jean ...files.investis.com/cadbury_ir/reports/AnalystPresejmsaubade.pdf · Cadbury France Market Shares: Gum, Chocolate, Sugar

Hot Zone Management

• 96 % of stores equipped with cash-out displays

• + 20 % share of gum in displays

• + 4 ppts share of Hollywood

Page 20: 2004 Turning the Map a Deeper Purple, Presentation by Jean ...files.investis.com/cadbury_ir/reports/AnalystPresejmsaubade.pdf · Cadbury France Market Shares: Gum, Chocolate, Sugar

Picture: Tower Hollywood / Hollywave

Hollywood TowerHollywood Tower HollywaveHollywave

Page 21: 2004 Turning the Map a Deeper Purple, Presentation by Jean ...files.investis.com/cadbury_ir/reports/AnalystPresejmsaubade.pdf · Cadbury France Market Shares: Gum, Chocolate, Sugar

Picture: Hollywood Promotions

BEFOREBEFORE AFTERAFTER

Page 22: 2004 Turning the Map a Deeper Purple, Presentation by Jean ...files.investis.com/cadbury_ir/reports/AnalystPresejmsaubade.pdf · Cadbury France Market Shares: Gum, Chocolate, Sugar

Multi-category Promotion

Page 23: 2004 Turning the Map a Deeper Purple, Presentation by Jean ...files.investis.com/cadbury_ir/reports/AnalystPresejmsaubade.pdf · Cadbury France Market Shares: Gum, Chocolate, Sugar

Cadbury France Acquired Brands

Page 24: 2004 Turning the Map a Deeper Purple, Presentation by Jean ...files.investis.com/cadbury_ir/reports/AnalystPresejmsaubade.pdf · Cadbury France Market Shares: Gum, Chocolate, Sugar

Cadbury France Masterbrands

GUMGUM CHOCOLATECHOCOLATE SUGARSUGAR

Page 25: 2004 Turning the Map a Deeper Purple, Presentation by Jean ...files.investis.com/cadbury_ir/reports/AnalystPresejmsaubade.pdf · Cadbury France Market Shares: Gum, Chocolate, Sugar

Cadbury France Market Shares: Gum, Chocolate, Sugar (%)

Source : Nielsen Grocery – Market shares in value – Ytd P9

+/(-) vs last year2004 Ytd

Gum 52.9 +2.9ppts

Chocolate moulded 12.0 +0.5ppt

Chocolate drinks 25.1 +0.6ppt

Sugar 36.4 +0.9ppt