In the two years since Mondelez International, Inc. (MDLZ) launched its Thins platform, products are expected to surpass $300 million in sales. Tim Cofer, chief growth officer of the Deerfield, Ill.-based company explained the reasons behind this success during a presentation at the Barclays Global Consumer Staples Conference in Boston.
1. Contemporizing of the core portfolio
“To reach this goal, we’re expanding the permissibility of our existing portfolio by simplifying and enhancing the ingredient and nutritional profile of our base business,” he said. “We’re also introducing new products.”
These three strategies were developed in response to shifts in how consumers live, eat and shop, Mr. Cofer said.
“The first shift, consumers are increasingly interested in well-being, both in developed and emerging markets,” he said.
“The second power shift is time compression. Across the world, consumers are working more hours with longer commutes, and this affects how they eat, leading to more consumption of meals. Third, a growing income gap is challenging traditional definitions of the consumer at both ends of the economic spectrum. More affluent consumers are seeking premium products, while aspirant consumers are increasingly buying branded goods. Fourth is the digital revolution. The proliferation of digital, social and mobile platforms is shaping how consumers interact with brands.”
“Contemporizing our core business begins by connecting our consumers with our iconic brands through bigger, stronger and more disruptive ideas,” Mr. Cofer said. “We call this fearless marketing. It’s our way to encourage bravery within our marketing organization and accelerate growth through better work.”
2. Filling white spaces, includes expanding premium offerings as well as more affordable formats.
The company also is increasing its presence in the U.S. chocolate category.
“We’re making a big splash in the U.S. chocolate market with a significant expansion of our Green & Blacks brand as well as the introduction of Oreo to our chocolate portfolio,” Mr. Cofer said. “The U.S. is the world’s largest chocolate market. It’s about a $14 billion market. Entering this category represents a significant growth opportunity for us.”
3. Mondelez seeks to strengthen sales and distribution capabilities across channels and enhance in-store execution in brick-and-mortar retailers.
“In the on-line arena, we’re building an industry leading e-commerce snacks business, targeting at least $1 billion in revenue by 2020,” Mr. Cofer said. “To reach this goal, we’ve staffed up with a dedicated cross-functional team of high potential internal colleagues and experienced talent from leading e-commerce companies. And to drive growth, we’re making sure we have the right assortment of our power brands in stock, ready for purchase, building strong content, including product reviews, optimizing search, and investing in compelling programs to increase traffic.”