Mondelez International Inc Blue Ocean Strategy Guide & Analysis| Assignment Help
Here’s a Blue Ocean Strategy analysis for Mondelez International Inc., designed to identify uncontested market spaces and drive sustainable growth through value innovation.
Part 1: Current State Assessment
Industry Analysis
Mondelez International operates across several major business units, including snacks (biscuits, chocolate, gum & candy), and beverages. The competitive landscape is fragmented.
- Biscuits: Key competitors include Kellogg’s (Keebler), Campbell Soup Company (Pepperidge Farm), and private label brands. Market share is highly competitive, with Mondelez holding a significant, but not dominant, position in many regions.
- Chocolate: Competitors include Mars, Nestle, Hershey, and Ferrero. Market share varies geographically, with Mondelez holding strong positions in Europe and Latin America.
- Gum & Candy: Competitors include Mars Wrigley, Perfetti Van Melle, and Hershey. This segment faces declining overall consumption in developed markets.
- Beverages: This segment is smaller for Mondelez, competing with giants like PepsiCo and Coca-Cola in specific categories.
Industry standards involve heavy investment in advertising, promotion, and distribution. Accepted limitations include price sensitivity, health concerns related to sugar content, and the maturity of certain categories. Overall industry profitability varies by segment, with premium chocolate and healthier snacks showing higher growth potential. Euromonitor data indicates a global snacks market growth rate of approximately 3-4% annually, with faster growth in emerging markets.
Strategic Canvas Creation
Let’s focus on the Chocolate business unit for this example.
Key Competing Factors:
- Price
- Brand Reputation
- Product Variety (flavors, formats)
- Distribution Reach
- Advertising Spend
- Premium Ingredients
- Health & Wellness Focus
- Sustainability Initiatives
(Imagine a graph here. The X-axis lists the factors above. The Y-axis represents the offering level, from low to high.)
Competitor Value Curves:
- Mars: High on Price, Brand Reputation, Advertising Spend, Product Variety, Distribution Reach. Lower on Premium Ingredients, Health & Wellness, Sustainability.
- Nestle: Similar to Mars, but slightly higher on Brand Reputation and Distribution Reach.
- Hershey: High on Price (in North America), Brand Reputation, Distribution Reach. Lower on Product Variety, Premium Ingredients, Health & Wellness, Sustainability.
- Ferrero: High on Premium Ingredients, Brand Reputation, and Product Variety (specialty chocolates). Lower on Distribution Reach (more focused).
Draw your company’s current value curve
(Imagine Mondelez’s value curve plotted on the same graph.)
- Mondelez (Chocolate): High on Brand Reputation, Product Variety, Distribution Reach, and Advertising Spend. Moderate on Price, Premium Ingredients, Health & Wellness, and Sustainability.
Mondelez’s offerings mirror competitors in areas like advertising spend and distribution reach, indicating intense competition. Differentiation exists in product variety and brand reputation, but there’s room for improvement in premium ingredients, health & wellness, and sustainability.
Voice of Customer Analysis
(Based on hypothetical, but realistic, customer research):
Current Customers (30):
- Pain Points: High sugar content, lack of healthy options, concerns about sourcing practices, limited customization options, packaging waste.
- Unmet Needs: Guilt-free indulgence, personalized chocolate experiences, transparent supply chains, sustainable packaging, options for dietary restrictions (e.g., vegan, gluten-free).
- Desired Improvements: Lower sugar alternatives, ethically sourced ingredients, recyclable packaging, smaller portion sizes, unique flavor combinations.
Non-Customers (20):
- Reasons for Not Using: Too much sugar, unhealthy image, perceived lack of quality compared to artisanal brands, ethical concerns, price too high for the perceived value, limited options for specific dietary needs.
- Soon-to-be Non-Customers: Switching to healthier alternatives, exploring artisanal chocolate brands, reducing overall sugar consumption.
- Refusing Non-Customers: Strong aversion to processed foods, distrust of large corporations, preference for local and organic options.
- Unexplored Non-Customers: Individuals with specific dietary restrictions (e.g., diabetics, vegans) who believe chocolate is off-limits.
Part 2: Four Actions Framework
(Focusing on the Chocolate business unit):
Eliminate: Which factors the industry takes for granted that should be eliminated'
- Excessive Sugar Content: The industry standard of high sugar levels in mainstream chocolate should be challenged.
- Minimal value, significant cost (health, brand perception).
- Exists because it’s “always been done.”
- Customers are increasingly seeking lower sugar options.
- Complex Artificial Ingredients: Eliminate artificial flavors, colors, and preservatives.
- Adds minimal value, increases production complexity.
- Customers are increasingly demanding clean labels.
- Opaque Supply Chains: Lack of transparency regarding cocoa sourcing and labor practices.
- Adds minimal value, increases risk of reputational damage.
- Customers are increasingly concerned about ethical sourcing.
Reduce: Which factors should be reduced well below industry standards'
- Advertising Spend on Mass Media: Reduce reliance on traditional TV and print advertising.
- Over-delivering relative to customer needs (authenticity, personalized experiences).
- Focus on targeted digital marketing and influencer collaborations.
- Packaging Waste: Reduce the amount of non-recyclable packaging.
- Over-delivering relative to customer needs (sustainability).
- Implement eco-friendly packaging alternatives.
- Number of Stock Keeping Units (SKUs) in Saturated Segments: Reduce the proliferation of similar flavors and formats.
- Premium features serve only a small segment of customers.
- Streamline the product portfolio to focus on high-demand, differentiated offerings.
Raise: Which factors should be raised well above industry standards'
- Premium Ingredients: Increase the use of high-quality, ethically sourced cocoa beans and natural sweeteners.
- Pain point: Perceived lack of quality compared to artisanal brands.
- Creates substantial new value: Superior taste, improved health profile.
- Health & Wellness Focus: Develop chocolate products with lower sugar content, added nutrients, and options for dietary restrictions.
- Pain point: High sugar content, lack of healthy options.
- Creates substantial new value: Guilt-free indulgence, expanded customer base.
- Transparency & Traceability: Provide detailed information about the origin of cocoa beans and the company’s ethical sourcing practices.
- Limitation: Lack of transparency in the industry.
- Creates substantial new value: Builds trust, enhances brand reputation.
Create: Which factors should be created that the industry has never offered'
- Personalized Chocolate Experiences: Offer customized chocolate bars with unique flavor combinations and ingredients.
- New source of value: Tailored indulgence, enhanced customer engagement.
- Unaddressed need: Desire for personalized products.
- Subscription-Based Chocolate Clubs: Curate monthly boxes of premium chocolate with unique flavors and educational content.
- New source of value: Recurring revenue, enhanced customer loyalty.
- Unaddressed need: Desire for discovery and convenience.
- Partnerships with Local Artisans: Collaborate with small-batch chocolate makers to create limited-edition products.
- Capabilities from adjacent industries: Artisanal chocolate making.
- Problems solved separately: Consumers seeking unique and high-quality chocolate.
Part 3: ERRC Grid Development
(Focusing on the Chocolate business unit):
| Factor | Eliminate | Reduce | Raise | Create
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