Case Study on Wm Wrigley Jr.Company.

Topics: Confectionery, Chewing gum, Sugar substitute Pages: 8 (2137 words) Published: April 3, 2011
The University of Hong Kong

Case Study on WM Wrigley JR.Company.
Individual Written Assignment

Table of Contents

Executive Summary1
Analysis of the Issues2
Porter’s Five Forces Analysis2
Current Rivalry (yellow zone)2
Substitute (yellow zone)3
New Market Entrants (green zone)3
Supplier (green zone)4
Customer (red zone)4
Major Issues5
Analysis of Options5
Positioning at medium to high end in sugar confectionery5
Developing new concepts in sugar confectionery6
Exploring new functionality in sugar confectionery6
Occupying the marriage market7
Designing innovative packaging7
Promoting the bright image of chewing gum7

Executive Summary
As a market leader in chewing gum market and owning Mar’s sugar confectionery business, Wrigley is facing both infinite opportunities and rigorous challenges.

This report aims to provide detailed analysis for Wrigley’s management’s decision making. It is envisioned that Wrigley would maintain the prosperity in gum business as well as sustainable business expanding in sugar confectionery business.

However, there is distance between the reality and the great vision. This report firstly discusses the current issues that deserve the management’s attention, particularly “how to explore the sugar confectionery market”, “how to differentiate”, “how to maintain the market share”, and “how to keep customer loyalty”.

Following the discussion of major issues, options are presented in the report. An integrated recommendation to abridge the reality and the vision is presented at the end of this report. The implementation of recommended options would be divided into three aspects: establishing new concept, differentiation in the product design, and building new brand in sugar confectionery market.

(Report length 1822 words, excluding executive summary and cover page)

WM Wrigley JR. Company is the world’s largest gum-maker. It had been leading innovation in the gum market for a long time. In April 2008, Wrigley, announced a US$23 billion friendly takeover by Mars, a global leader in confectionery. And after the takeover, Mars granted the whole operation of both gum and sugar confectionery business to Wrigley. Mars has the largest market share in chocolate business and Wrigley wins in the gum business, however, Mars’s and Wrigley’s presence in sugar confectionery is relatively weak. Facing both challenging and opportunity, Wrigley needs to find a strategy that allows it to sustain the growth in the gum and no-gum markets over the next five to ten years.

This essay will firstly present the current issues that obstruct Wrigley from attaining the goal. After that, options to abridge the reality and the vision will be discussed. And the last part of this essay will integrate all the possible options and form an implementable solution for the company.

Analysis of the Issues
In this section of this essay, Porter’s Five Forces analysis will be applied in order to find out and prioritize the major issues which Wrigley Company may need to pay more attention on. Porter’s Five Forces Analysis

Current Rivalry (yellow zone)
First of all, compared to multinationals, Wrigley succeeds in chewing gum market as the largest gum brand in China. The only competitor in the gum market is Lotte (China) Foods Co. Ltd. The competition in sugar confectionery is relatively weak. However, if Wrigley wants to explore the chocolate market, it will definitely compete with the parent company Mars which has the largest market share in China. Furthermore, Wrigley is face competition with domestic traditional confectionery manufacturers who enjoys a big market share and customer loyalty.

All in all, the degree of danger in this aspect is medium to high. And it is recommended that Wrigley would better not compete with Mars in Chocolate market, in order not to have conflict of interest with the parent...
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