Mondelez preps innovation drive to bolster sales in local to regional marketing shift
Mondelez is to increase its marketing spend for the remainder of the year in an attempt to accelerate sales amid its ongoing switch from local to regional initiatives.
The company is slated to launch existing innovative products – including Oreo Thins, Cadbury’s Marvelous Creations, and its belvita line – into new markets around the world to expand opportunities for items that have already seen success.
In the gum and candy realm, Mondelez is rolling out new items and introducing key brands into new territories.
It recently launched Trident Unwrapped in the US, which the company says is the first slab gum consumers can buy in a bottle.
After introducing its Stride gum brand in China, it plans to bring Trident to the region as well.
The move aims to bolster the gains made by its switch from local to regional initiatives, which has already seen Europe and North America come on board ahead of Latin America, Asia Pacific and EEMEA regions.
Irene Rosenfeld, chief executive of Mondelez, told analysts on a conference call today (29 April) discussing the company’s first quarter earnings: “To accelerate revenue and category growth for the remainder of the year we're stepping up marketing support behind our power brands and innovation platforms, as well as increasing investments behind in-store execution.”
Revenue dropped 10.2 per cent to $7.76bn, falling for the sixth consecutive quarter. However, it was still hgher analysts' forecasts due to the cost cuts and higher prices the company has employed to help improve its margins.
Sign up for The Drum's Daily US newsletter to keep up with the latest in American marketing and media.