| 2008 is the Chinese biscuit confectionery industry | | | | implementation of market strategy, first cover the |
| can feel the rush the pace of the world's giant merger | | | | amount of urban centers on the basis of the original |
| year. | | | | double, and then with neighboring cities to explore |
| In October 2008, Mars announced a 23 billion | | | | ways to cover the number of cities to three times the |
| U.S. dollars acquisition of Wrigley, Cadbury and thus | | | | original. In order to implement a two-step marketing |
| beyond the world's largest confectionery company. | | | | strategy, Kraft will increase a full range of branded |
| Mars's Wrigley as a stand-alone business unit, Mars | | | | products Distribution volume of traditional retail |
| product groups in the non-chocolate confectionery | | | | channels, the terminal stores the distribution, wholesale |
| sugar brands such as rainbow, star bursts, and is | | | | market management and market coverage suburban |
| located in Australia, the Czech Republic, Mexico, candy | | | | district towns. |
| manufacturing plant will be transferred to other units | | | | There are the domestic biscuit industry, |
| under the management of Wrigley . Mars and | | | | domestic biscuit to middle and low end products, mainly |
| Wrigley's business in China could be completed in 2009 | | | | occupy the rural areas and small towns such as |
| integration. | | | | 34-line market. This time can be integrated Ka Fuda, is |
| In November 2008, Kraft Foods China Co., Ltd. | | | | bound to occupy the 12 lines on the basis of the |
| announced that, with the Kraft China headquarters to | | | | market continue to be pressed three or four-line |
| Shanghai, and Kraft for Danone biscuit business in | | | | market. If domestic enterprises do not change, failed to |
| China has basically completed the merger integration is | | | | avoid being acquired or squat keep their own small |
| expected early next year, packing the "Danone" logo | | | | positions in a difficult situation. |
| disappeared from the domestic biscuit market. Kraft | | | | Indulge in the domestic confectionery brand |
| Foods will occupy the Chinese biscuit market share of | | | | positioning in the end, rabbits, Hsu Fu Chi, Ya-off, Le |
| more than 20% or more, becoming the oldest Chinese | | | | Conte, snub-nosed monkey and other brands have a |
| biscuit market. | | | | certain degree of market competition. But this may |
| In December 2008, from the world's largest | | | | also mean a positive confrontation confectionery |
| food and convenience food production cereal Kellogg's | | | | industry will be arisen even earlier. |
| acquisition of businesses in northern China, Qingdao, an | | | | |
| important manufacturer of biscuits are Air China Foods | | | | ■ local industries to upgrade in the competition urgent |
| Limited and its Yishui, after the established production | | | | ZHU Nian-lin said that the face of transnational |
| bases in Fushun Kellogg (Qingdao ) Food Co., Ltd. | | | | mergers and acquisitions brought changes in the |
| moved to new premises, indicating that Kellogg | | | | market should be viewed in two ways. On the positive |
| acquired the new group of enterprises will be opened | | | | side, no doubt, multinational companies operating at the |
| to enter the Chinese market a new page. | | | | same time the Chinese market, bringing high-quality |
| Industry expert analysis, transnational mergers | | | | products, advanced equipment and technology, |
| and acquisitions intensive initiatives, is not a simple | | | | globalization of standards, modern marketing, |
| merger of strong opponents, the weak action, but | | | | management philosophy, which had virtually driven the |
| show a strong combination with a complementary | | | | domestic home the progress of enterprises, and |
| advantages, strategic layout of the characteristics of | | | | promoted to enhance the level of the domestic |
| industry-wide market. Mars and Wrigley is a typical | | | | industry as a whole. From the crisis side, multinational |
| case of mergers and acquisitions. Mars is the world's | | | | giants gradual monopolization of the market has indeed |
| largest chocolate maker, Wrigley is the world's largest | | | | reduced the survival of local enterprises, which requires |
| chewing gum manufacturers. According to the | | | | domestic businesses to enhance competitiveness and |
| analysis, chocolate manufacturers believe that | | | | industrial upgrading and differentiation to find a way out, |
| chocolate foods reflects the low profitability of the | | | | if you only stick to low-end and low-cost competitive |
| market is still a lack of integration, while chewing gum | | | | strategy, it will be difficult to survive. |
| compared to a higher profit margin, and showed high | | | | Local enterprises should be a solid low end, |
| growth in Asia. The chewing gum manufacturers are | | | | mass-market basis, to mid-market development. |
| hoping for more candy, chocolate, brand integration, | | | | Low-end, low-price products are often low-tech |
| strengthen the economy down during the anti-risk | | | | products in this area is difficult to form a brand, it is |
| capability and increase its influence on the pathway. | | | | difficult to form a loyal consumer base and, therefore, it |
| Kraft on the acquisition of Danone biscuit | | | | is difficult to obtain a firm's competitiveness. Improve |
| business, even more multinational companies to | | | | product quality, with a certain degree of technical |
| strengthen a profession emerged in the field of brand | | | | content, the establishment of a certain brand, in order |
| concentration of food, access to market the initiative | | | | to have a stable market. Able to produce quality and |
| of the strategic perspective. For Kraft, the acquisition | | | | affordable products. The same quality products, local |
| "devour" a strong competitor, expand market share, | | | | businesses more cost-effective, it will be in the future |
| and with the second camp distanced themselves from | | | | survival of local enterprises to develop core |
| competitors. For up to be able to run, get rid of some | | | | competitive advantages to be achieved. |
| decline in business, concentrated Specializes in dairy | | | | Respond to the fierce competition in the future, |
| products and beverages. | | | | local companies should also be through technological |
| ■ Recent did not form a direct competitive threat | | | | innovation, a rich new products, development of health |
| Will integrate acquisitions of transnational | | | | products, functional products, with the local regional |
| corporations to step up local Chinese biscuits, candy | | | | characteristics of the product, look for market |
| and related businesses of greater competition resulting | | | | segments and follow the road of difference. For |
| pressure? | | | | example, YaKe vitamin-rich foods through the |
| On this issue, China's Bakery & | | | | development of the sandwich candy, accurate market |
| Confectionery Industry Association ZHU Nian-lin in the | | | | positioning, the rapid expansion of the market share. Is |
| interview with this reporter said that at present foreign | | | | the local enterprises seeking to differentiate the good |
| companies biscuits, confectionery businesses targeting | | | | case. |
| the high-end, China's domestic product positioning in the | | | | To industry sources, China's biscuits, |
| low end, it is not the formation of a direct competitive | | | | confectionery market has a rich variety of consumer |
| threat. However, with the brand concentration | | | | demand, there are many sub-species to be developed. |
| increased, multinational companies to increase market | | | | Local enterprises are familiar with local culture as long |
| coverage, low-end products to penetrate and positive | | | | as the focus on improving quality, technical innovation, |
| competition in the future is inevitable. | | | | can prop up the market one days, to avoid being |
| Chinese companies, according to Kraft, at | | | | eliminated in the industry reshuffle. |
| present, Kraft biscuit in China, is a two-step | | | | |