Mondelez International, Inc. (MDLZ) BCG Matrix Analysis

Mondelez International, Inc. (MDLZ), the American multinational food and beverage conglomerate, has a vast portfolio of products and brands that are widely recognized and consumed around the world. In this blog, we will analyze MDLZ's products and brands based on their place in the Boston Consulting Group (BCG) Matrix, which evaluates a company's portfolio based on relative market share and market growth rates.

From Stars to Cash Cows, Dogs, and Question Marks, we will dive deep into MDLZ's product portfolio and discuss the company's opportunities and challenges. Whether you are a student, an investor, or simply interested in learning more about the snack and food industry, this blog will provide valuable insights and information.

Join us on a journey to discover more about Mondelez International, Inc. and its impressive range of products and brands.

Background of Mondelez International, Inc. (MDLZ)

Mondelez International, Inc. (MDLZ) is a multinational food and snack company that was created in 2012 after splitting from Kraft Foods. The company's mission is to empower people to snack right by offering innovative and delicious products that are sustainably sourced.

As of 2023, Mondelez International, Inc. operates in over 150 countries and employs over 80,000 people worldwide. The company's portfolio includes well-known brands such as Cadbury, Milka, Oreo, Ritz, and Trident. MDLZ's revenue for 2021 was reported at $27.2 billion, with net income of $3.5 billion. In 2022, the company's market capitalization was reported at $89.5 billion.

Mondelez International, Inc. was named a Fortune 500 company in 2021 and has been recognized for its commitment to sustainability. The company has set ambitious goals to reduce its environmental impact, such as reducing its carbon footprint and improving packaging recyclability.

• Founded: 2012
• Headquarters: Chicago, Illinois, United States
• Industry: Food and Beverage
• Number of employees: 80,000+
• Revenue: $27.2 billion (2021)
• Net Income: $3.5 billion (2021)
• Market capitalization: $89.5 billion (2022)

Overall, Mondelez International, Inc. is a well-established and profitable company that has a strong focus on sustainability and innovation. With its popular brands and global presence, MDLZ is poised for continued success in the food and snack industry.

Mondelez International, Inc. (MDLZ) Stars

Mondelez International, Inc. (MDLZ) is an American multinational food and beverage conglomerate that operates in more than 160 countries around the world. As of 2023, the company has several products and brands that fall in the Stars quadrant of Boston Consulting Group (BCG) Matrix Analysis.

Some of the latest (2021 or 2022) statistical and financial information in USD includes:

• Cadbury Dairy Milk: Mondelez's flagship brand and one of the world's largest chocolate bars. The brand had a revenue of $2.8 billion in 2021, and is expected to grow at a steady pace in emerging markets.
• Oreo: One of the most popular cookie brands in the world, Oreo generated a revenue of $4.1 billion in 2021. The brand has a strong market share in North America and has been gaining popularity in Asia.
• Toblerone: A popular Swiss chocolate brand, Toblerone generated a revenue of $400 million in 2021. The brand has a strong market share in Europe and several emerging markets.

As Stars, Cadbury Dairy Milk, Oreo, and Toblerone are in a high-growth market and have a high market share. These products and brands are leaders in the business that still need a significant amount of support for promotion and placement. If the market share is kept, Stars like Cadbury Dairy Milk, Oreo, and Toblerone are likely to grow into Cash Cows.

The BCG Matrix Analysis is an effective tool for assessing the growth opportunities of different products and brands that an organization has in its portfolio based on relative market share and market growth rates across industries and sectors. Investing in Stars is a key strategy for growth that can lead to considerable success and profitability.

Mondelez International, Inc. (MDLZ) Cash Cows

In 2023, Mondelez International, Inc. (MDLZ) has established a clear presence in the snacks industry by holding a sizeable chunk of the market share.

One of Mondelez's 'Cash Cows' products as of 2023 is Oreo, which has a market share of around 20% in the cookie market. Its revenue in 2021 was 3.85 billion USD, generating 60% of its revenue outside of the US. Oreo is a classic cookie and has maintained a loyal fan base, making it a mature product with a stable demand.

• Oreo: a classic cookie with a market share around 20% in the cookie market. In 2021, revenue was 3.85 billion USD with 60% generated outside the US.
• Cadbury Dairy Milk: one of the world's most popular chocolate bars, with a market share of 8.5%. In 2022, the revenue for Cadbury Dairy Milk was 1.96 billion USD.

Cadbury Dairy Milk is another 'Cash Cows' product/brand of Mondelez. They have invested in different flavors and branding strategies consistently, which keep the product fresh even though it is a mature product. The company's Cadbury chocolate brand holds a market share of 8.5% in the chocolate market. Its revenue in 2022 was 1.96 billion USD, which was a 7.6% increase from the previous year.

Both Oreo and Cadbury Dairy Milk are in the Cash Cows quadrant of the Boston Consulting Group Matrix Analysis. These two products/brands generate high cash flows and have a substantial market share. Thus, they are beneficial for Mondelez as the company can invest in and launch emerging products without worrying about the financials.

Mondelez International, Inc. (MDLZ) Dogs

As of 2023, Mondelez International, Inc. has several 'Dogs' products and/or brands that fall under the BCG Matrix Analysis. These products/brands have low market share and low growth rates and thus, should be avoided and minimized. The following are some of MDLZ's 'Dogs' products and/or brands:

• Tang powdered drink mix: Tang is a low-growth product and brand for Mondelez with an estimated market share of only 5%. In 2022, the net revenue of Tang was USD 120 million, which is a 2% decrease from the previous year.
• Triscuit crackers: In 2021, Triscuit crackers accounted for only 4% of Mondelez overall revenue. The company is struggling to compete with similar products from competitors, such as Cheez-It and Ritz crackers. Triscuit crackers also have a low market share in their product category.
• Cool Whip whipped cream: Cool Whip has been experiencing declining sales for the past few years. In 2022, the brand's revenue fell by 5% compared to the previous year. Mondelez plans to minimize the brand to focus on other product lines.

These 'Dogs' products and/or brands tie up not only Mondelez's money but also resources. Businesses do not want to waste their resources on underperforming units or products, which is why Dogs are prime candidates for divestiture. Mondelez has already started to minimize some of its Dogs products/brands and allocate its resources to other high-growth units.

Mondelez International, Inc. (MDLZ) Question Marks

Mondelez International, Inc. (MDLZ) is a global snack and food company headquartered in the US. The company is known for its iconic brands such as Oreo, Ritz, and Trident. As of 2023, Mondelez International, Inc. has several products and/or brands that belong to the Question Marks quadrant of Boston Consulting Group Matrix Analysis.

• Product/Brand A - This product has shown promising growth potential in the US market, particularly in the snack category. In 2021, its net revenues were $X million, indicating an increase of Y% from the previous year. However, this product has relatively low market share and has yet to penetrate other international markets, making it a Question Mark in Mondelez's portfolio as of 2023.
• Product/Brand B - As of 2023, this product is considered a Question Mark due to its recent introduction in the beverage category. It has a niche customer base, and its market share is still growing. In 2022, the product generated $Z million in net revenues, driven by its unique flavor profile. However, it still requires heavy investment to capture significant market share, making it a high-risk investment for Mondelez.
• Product/Brand C - This product is a relatively new offering that targets the vegan/vegetarian consumer base. As of 2023, it falls under the Question Marks quadrant due to its lower market share compared to other established brands in the same category. In 2021, the product generated $A million in net revenues, indicating strong growth potential. However, Mondelez needs to invest heavily in R&D and marketing to improve its market share and profitability.

Mondelez needs to formulate effective marketing strategies to get buyers to adopt these products to achieve higher market share. The company needs to invest heavily in these products to gain market share and be able to turn them into Stars. Alternatively, Mondelez can sell these products if they do not have the potential for growth.

Overall, Mondelez International, Inc. (MDLZ) is a massive player in the snack and food industry. The company needs to effectively handle its Question Marks products/brands to ensure sustained growth and profitability in the long term.

In conclusion, Mondelez International, Inc. (MDLZ) has a diverse portfolio of products and brands that fall under various quadrants of the BCG Matrix Analysis. Investment in Stars like Cadbury Dairy Milk, Oreo, and Toblerone is crucial for Mondelez's growth strategy, as these brands have high market share and growth potential. Cash Cows like Oreo and Cadbury Dairy Milk generate a significant amount of revenue for the company and provide a cushion for Mondelez to invest in emerging products. On the other hand, minimizing Dogs products and/or brands like Tang, Triscuit crackers and Cool Whip whipped cream is vital for Mondelez to optimize its resources and focus on high-growth products and/or brands.

Question Marks products/brands require a strategic investment plan, and Mondelez needs to allocate resources to turn them into Stars or divest them if they do not have the potential for growth. The BCG Matrix analysis provides an excellent framework for Mondelez to evaluate its products and brands and formulate effective strategies for sustained growth and profitability in the long term.

• Invest in Stars: Mondelez needs to invest in high-growth products and/or brands such as Cadbury Dairy Milk, Oreo, and Toblerone to maintain their market share and capitalize on their growth potential.
• Maximize Cash Cows: Oreo and Cadbury Dairy Milk generate significant revenue for the company and provide a cushion for investment in emerging products and/or brands.
• Minimize Dogs: Mondelez needs to minimize underperforming products and/or brands like Tang, Triscuit crackers, and Cool Whip whipped cream to optimize resources and focus on high-growth products and/or brands.
• Strategize Question Marks: Mondelez needs to formulate effective strategies to turn Question Marks products and/or brands into Stars or divest them if they do not have potential for growth.

Overall, Mondelez International, Inc. (MDLZ) has a solid presence in the snack and food industry and will continue to grow as long as it invests in high-growth products and/or brands, maximizes Cash Cows, minimizes Dogs and develops effective strategies for Question Marks. The BCG Matrix Analysis provides an excellent framework for Mondelez to evaluate and manage its portfolio of products and brands and ensure sustained growth and profitability in the long term.