On 21 Aug our strategy class presented their analysis on the Chupa Chups case study – Pravesh, Christina, James, Nishkam, Sonali. The name Chupa Chups comes from the Spanish word for suck – chupar. The team did a great analysis and there were lollipops for all in the audience. Cristina our student from Spain also joined-in to share some interesting anecdotes on Chupa Chups. Reshma from Semester I and Gaurav from Semester III also participated actively. Chupa Chups case discussions always evokes much enthusiasm.

Sweet on a stick

In the days before lollipops children messed up their hands, faces and clothes with sweets – Enric Bernat spotted the ‘felt need’ of moms and came-up with the idea of a sweet on a stick – lollipop. Thus Chupa Chups value proposition was aimed at ‘moms’.

In the 60s Enric Bernat created a strong distribution network in Spain: an large fleet of 600 ‘Seat’ cars were used to distribute Chupa Chups lollipops among 300.000 outlets all around the country. Each car was decorated with the Chupa Chups design so that people could recognize them in the streets – a simple yet effective advertising.
Enric Bernat’s visionary leadership to expand aggressively worldwide was powered by an organizational capability that had a ‘killer instinct’. Imagine with just one product range of lollipops they entered almost all the continents in the world successfully.

Chupa Chups first developed in Spain their core competency in ‘process technology’ for high volumes and leveraged them across its operations across the world.

Chupa Chups changes nationality

The Bernat family owned Chupa Chups for more than 50 years. In 2006 they sold the famous lollipop to Italy’s Perfetti Van Melle (PVM), the world’s fourth-largest manufacturer of chewing gum and candy after Cadbury, Wrigley and Haribo. Perfetti’s internationally known brands include Alpenliebe, Daygum, Golia, Happydent, Mentos (the Freshmaker!) and Vivident, as well as the Airheads brand of candy in the US.With not many innovations or star products coming up and the difficulty of replacing its charismatic founder, the Bernat family decided to sell the company. No product apart from Chupa Chups achieved the same level of success.PVM proved to be the best choice among the many contenders. In Perfetti’s hands the brand no longer will be Spanish but its future is secure.

Indian Market

Perfetti Van Melle already in India in since has set up three factories in various parts of the country. PVM market share is more than 25% share of the confectionery market today. The company’s success, say experts, is mainly due to its innovative products – it was the first company to launch center-filled gums and candies in India.
But for the confectionery market in India it is not price points alone but also challenge of weaning away the Indian consumers from the traditional ‘Mithai’. Competition in the Indian market is fierce with the main players being Nutrine, Ravalgon, Parry and Parle among domestic players as well as multinationals such as Nestlé, Wrigley and Spain’s Joyco.

In India Perfetti leads the Indian sugar confectionery market with more than 25 per cent of the value share of the market. Perfetti India, launched its first brand in the Indian market in1994, the popular brand, Center Fresh.
Customer involvement in confectionery brands is quite low as such Perfetti has ramped up its ad budget heavily to gain build brand recall and break through the clutter.

Chupa Chups Wacky Ads – “Life Less Serious with Chupa Chups

”Chupa Chups communication strategies have been through wacky ad campaigns. Ads have always been catchy – it all started with Eric making a request to the renowned Salvador Dali a Spanish surrealist painter to design the Chupa Chups logo. Dali created the exciting brilliant red and yellow wrapper that has become Chupa’s brand identity around the globe.

With Perfetti Van Melle’s too the fun goes on – “Life Less Serious with Chupa Chups” central to the campaign is Chuck Chupa Chups new global mascot a puppet who personifies the “blithe attitude of youth and always remains unfazed, no matter what life throws at him”. He is featured in stressful scenarios like being pressured by a distressed girlfriend and getting yelled at by an overzealous personal trainer. In both situations, his reaction is to suck on a Chupa Chups, with his signature deadpan expression.

Teenagers, leading ever more stressful and serious lives, crave for a moment’s escape. Sucking on a Chupa Chups is that temporary solution -Will Chupa Chups be a hit with kids in India too?

Reshma asked an interesting question – why Chupa Chups is not seen in shops in India? In Pune a shop in MG road sells them for Rs 50 a lollipop .I’m a Chupa Chups boy! Knowing the irresistible appeal of Chupa Chups for kids can brand Chupa Chups break free from the strangle hold of a low-price point market? Should Perfetti introduce Chupa Chups aggressively in premium market or be content in pushing low priced Alpenliebes & Mentos with a distribution-driven strategy?

Award Winner – The Chupa Chups Badge
Cheers! THE CHUPA CHUPs BADGE Dilip Sharma and Gaurav Arora are awarded the Chupa Chups Badge for their spirited participation and comments!

About dilipnaidu

An open mind! Love to share my thoughts and a keenness to learn. An engineer and a MBA I had a wonderful innings in the Army and later moved to consultancy and teaching. My current interests are reading, music, growing culinary herbs, playing golf and yoga. I am serious on "Living life less seriously". A warm welcome to you be well and be cheerful always.

15 responses »

  1. Lígia says:

    Hello, my name is Lígia.
    I’m a university student from portugal and i’m studying marketing. And i was looking for information about the chupa chups brand and i found your case study. In fact, this year i’ve done a work for the Marketing Plan subject about this brand. i dont know if you can send me but i would love to see it, to compare our works. I really like this global brand and i think your work could help me to develop even more my knowledge about the brand.

    Best regards
    Lígia Gonçalves

    Like

    • Dilip says:

      Hi Lígia,

      Welcome and great to know that you are designing Chupa Chups marketing plan for Portugal your lovely country. As you can read in this post Chupa Chups has not made a serious impact on consumers in India.

      Its price is not affordable to the masses. There no ad campaigns which means that Perfetti the new owners of the Chupa Chups brand are content in the pushing low priced Alpenliebes & Mentos with a distribution-driven strategy in the Indian market?

      When you do come with something for your Chupa Chups marketing plan please do share with our readers some interesting highlights,

      Thank you for your visit and a big hello from India to all your friends in your class.

      Cheers!

      Like

  2. vedraj kushwaha says:

    Hi dear Sir,

    this case give us good learning – before making a strategy of launching any product in different cultures or country, in this tradition MITTAI beat CHUPA CHUPS in INDIA, we Indians love mother’s cooked food and sweets which gives satisfaction to our soul – our Indian Mittai is like that…

    Like

  3. prabin sarma says:

    hi to all. I m Prabin Sarma, student of Asian School Of Management Pune. I m doing MBA…. it’s my pleasure to write my words in Dilip sir’s blog. Here i am trying to write few words on chupa chup case………….
    i think chupa chup has to enter in to the Indian market.

    To find out the target customers in Indian market. company has to enter in to the niche market segment.
    to decide the different types of segment. they have to concentrate on segmentation. accordingly they can go for demographic, geographic and behavioral segment. Customer requirement change according to area, class, occupation, income, occasion so they have to differentiate their product to enter into Indian market.

    Like

    • Dilip says:

      Thanks Prabin … good one … Chupa Chups the world over has captured the hearts of young and old. For India we see it in the premium retail at a high price. So not popular with the price conscious segment. The big question is does it make sense to push it further through Ads for the mid-segment or maintain status-quo?

      Thanks for participating and come back again. Regards.

      Like

  4. Dilip says:

    Dear Prof. Surendra,

    I share your views adding Chupa Chups new ownership writeup as an annexure to the case. I find students in all the three Tasmac campuses are taking keen interest in case study analysis. That sure is a positive trend.

    I am honored by you visit and look forward to some tips for our students of and on.

    Withe warm regards,

    Dilip

    Like

  5. Surendra says:

    Dear Mr Dilip Naidu,
    That was an excellent coverage of Chupas Chups by the whole TASMAC Pune!!!
    We can perhaps include an annexure to the Chupa Chups case about the changes in the company ownership etc.
    Regards
    Surendra

    Like

  6. Dilip says:

    Dear Cristina,

    I extend a warm welcome to you and I am so happy to read your insightful comments on the three posts:

    @ Chupa Chups – you being from the great country of Spain … what you have said has great authenticity … this case is simply unstoppable in terms of its popularity among the students and in the teaching faculty. Everyone wants Chupa Chups … I mean the case discussion🙂 Unfortunately the lollipop is not available in India. I thank you for adding value in class during the presentation.

    @ Samsung – yes the Samsung case can be analyzed well only by keeping the Korean country culture in perspective … Korean companies like LG, Kia, Hyundai & others are all part of the great Chaebol companies. Such companies get great support from the Govt. Good to hear from you about their hardworking attributes.

    @ Life less serious – my thoughts are – lets each do something about it whichever situation we are in! Even if it makes a small difference – collectively will lead to a wave.

    Thank you and please remain in touch! Kind regards.

    Like

  7. Cristina says:

    Dear sir and friends,

    We have talked about entrepreneurs so many times during classes. Here we have Enric Bernat, who in my opinion was a real entrepreneur, who sorted out all the obstacules in the way. We have to look carefully at the context where Enric started: In the 60 Spain was a closed economy, which had have a civil war no many years back, where plans of exportation were difficult to carry out and family economies were not very wealthy. However he managed to create a great Spanish market for Chupa chups, thanks to simple innovation (same characteristic that the product itself). Moreover, he managed to make a great expansion in Europe, taking some brave decisions as open a factory in France to avoid Spanish legislation.
    And he did all of that without forgetting the business values, which were present in the company all over its history. In this case study we can observe most of the key values for success that we see in our SM lectures. They didn´t just focuss about benefits, but also in employees satisfaction, innovation, and adaptation to new cultures.

    Finally i´d like to say that this is a company which started being a very small company, with no much capital investment in it, and which has become in a multinational which is present in many countries around the world. I cannot think a better example to learn about Strategic Management and to encourage anyone who is interested in setting up a company.

    Regards,

    CRISTINA

    Like

  8. Dilip says:

    Hey Parthiv … it’s Gaurav Arora who deserves the credit for suggesting this mode. You are abs right – Chupa Chups case covers several strategic issues in a exciting and inspiring way.

    Will try to locate the on-line version and mail it to you. And request the James and his team for their PPT.

    Thank you for your interest. Its encouraging.

    Best regards!

    Like

  9. Parthiv Dave says:

    Hello Sir,

    Unfortunately, we didn’t have this case in our SM class. It’s interesting to see innovative ways to make case study presentations live and happening.

    I am sure this post is just the tip of an iceberg. Where can I find the case of Chupa-chups? I want to read the case for more detail about this interesting brand and firm.

    Also, if possible, please share the presentation made by the students in this blog. It will be a good learning material for all of us.

    Regards,
    Parthiv

    Like

  10. Dilip says:

    Interesting take on Chupa Chups Geetha. You are right the location of the company HQ is not important – it is the brand that is global.

    Hey many thanks for your kind wishes on Teachers Day🙂 Wish you all the best!

    Like

  11. Geetha says:

    Dear Sir,

    Thank you very much for this post on Chupa Chups.

    “Teenagers, leading ever more stressful and serious lives, crave for a moment’s escape. Sucking on a Chupa Chups is that temporary solution”

    Chups Chups must be an awesome “comfort food” cutting across gender, age and national identity too! Here’s hoping and wishing that this sweetmeat, irrespective of being Spanish or Italian, produces more and more blithe spirits who remain unfazed while facing all the curve balls that life keeps throwing at them!

    But to wean away the Indian consumers from their traditional “Mithai”? That’s a tough job indeed!

    And kudos to Dilip Sharma and Gaurav Arora for being the proud recipients of the Chupa Chups Badge!

    Thanks and regards,

    Geetha

    Like

  12. Gaurav R Arora says:

    I like what Mr Bernat stated “Problems are everywhere ,and Mafia may be everywhere.But customer are everywhere,also and they eat every day”

    The Best thing I liked about Chupa Chups that they where able to manage Global Efficiency and At s ame time were Responsive to all Nations.

    Chupa Chups has covered all the lessons that one need to learn in Strategic management- Leadership,Packaging ,Marketing, Alliances…..

    I am very happy to be part of such a great case presentation.

    Thanks and regards,

    Gaurav R Arora

    Like

  13. Dilip Sharma says:

    Dear sir

    I really enjoyed the presentation of chupa chups bcoz it was different in way of lolipop distributed,
    The case is quite interesting as it shows a different kind of product has formed an brand image in consumers mind allover the world.
    They should lower their price of premium segment lolipop into Indian market with an decrease in price compared Rs.50 per lolipop now.
    Well best part of case was which i liked was their strategy of introducing ALPENLIBE lolipop into indian market which has formed brand image “Lolipop=Alpenlibe” intp Indian market.

    Regards

    Dilip Sharma

    Like

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