Mondelez-International.Pdf

Mondelez

August 2019 Table of Contents

• Executive Summary Slide 3 • Company Insight Slide 4 ‒ Company Overview • Strategy & Strategic Plan Slide 7 ‒ Business Strategy/Priorities Slide 7 ‒ Business Challenges Slide 23 • Marketing Insight Slide 26 ‒ Marketing Overview Slide 27 ‒ Marketing Priorities Slide 26 ‒ Marketing Spend Slide 35 ‒ Marketing Agency Slide 36 ‒ Marketing Technology Stacks Slide 37 • Executive Insight Slide 38 • Quotes Slide 45

| 2 Mondelez Executive Summary

OVERVIEW BUSINESS STRATEGY BUSINESS CHALLENGES MARKETING PRIORITIES • Mondelez International • Mondelez is accelerating • Mondelez is facing challenge • Mondelez is transforming its manufactures and sells consumer centric growth to in North America as the marketing and digital snacks, including biscuits, gain insights about snacking company is still recovering capabilities to increase ROI chocolates, gums & candies behaviors and occasion from past cyber attack • as well as various cheese & Mondelez developed a more grocery and powdered • The company is driving • The company is struggling to locally-oriented commercial products operational excellence achieve omni-channel structure to drive greater through sales execution, excellence, deliver consumer focus, improve • The company’s portfolio marketing and supply chain consumer-centric digital speed and reduce complexity includes iconic snack brands marketing and improve its • To accelerate growth, the • Mondelez is working to put such as Cadbury, Toblerone overall digital capabilities and Oreo company is shifting towards purpose at the center of a more agile, digital and local • Another disruptive force that Mondelez’s brand • Mondelez plans to transition first approach challenges Mondelez’s communication from being a cost focused business is its local consumer company to a more growth– oriented company

Source: Business Brainz Analysis | 3 COMPANY INSIGHT Mondelez International Company Overview (1/2)

Headquarters Employees Sales and Operation Deerfield, Illinois 80,000 (FY2018) • Operations in 80+ countries (Plans to move HQ to Chicago • Sales in 150+ countries in April 2020)

Revenue Net income Major competitors $25.9 billion (FY2018) $3.4 billion (FY2018) Campbell, Coca-Cola, Colgate-Palmolive , Danone, General Mills, Hershey, Kellogg's, Kraft Heinz, Nestle

Source: Company website and reports | 5 Mondelez International Company Overview (2/2)

• Overview: ‒ Mondelez International is one of the largest snack companies with global net revenue of $25.9 billion and net earning of $3.4 billion in 2018 ‒ The company operates in more than 80 countries and sells its products in over 150 countries around the world ‒ Mondelez manufactures and sells snack, including biscuits (cookies, crackers and salted snacks), chocolates, gums & candies as well as various cheese & grocery and powdered beverage products ‒ The company’s portfolio includes snack brands such as Cadbury, Milka and Toblerone chocolate; Oreo, belBita and LU biscuits; Halls candy; Trident gum and Tang powdered beverages ‒ Mondelez was formed in 2012 after the spin-off of its North American grocery business, Kraft Foods Group • Operating Segments ‒ Mondelez’s operation and management structure are organized around four operating segments: Latin America; Asia, Middle East, and Africa (“AMEA”); Europe and North America. Each segment contributed net revenue of $3.2 billion, $5.7 billion, $10.1 billion and $6.8 billion respectively in 2018 ‒ Mondelez’s brands span five categories: Biscuits, Chocolate, Gum & Candy, Beverages and Cheese & Grocery. In 2018, each category contributed 43.1%, 31.5%, 13.4%, 4.6% and 7.7% respectively to the company’s net revenue in 2018

Source: Company website and reports, industry reporting | 6 BUSINESS STRATEGY & PRIORITIES Mondelez International Business Strategy (1/15)

Mission: To lead the future of snacking around the world by offering the right snack, for the right moment, made the right way

• Modelez International is building itself as the best snacking company in the world by focusing on three strategic priorities ‒ Mondelez is accelerating consumer centric growth by taking a broader approach to snacking, balancing its investment across global and local brands, transforming its marketing and investing in key markets and adjacencies ‒ The company is driving operational excellence in sales execution, marketing, supply chain and generating continuous cost and quality improvement across the business ‒ Mondelez is building a winning growth culture that more effectively leverages local commercial expertise, investing in talent and key capabilities to move with greater speed and agility

Mondelez Business Strategy

Accelerate Consumer- Drive Operational Build a Winning Growth centric Growth Excellence Culture

Source: Company website and reports | 8 Mondelez International Business Strategy (2/15)

Source: Company website and reports, industry reporting | 9 Mondelez International Business Strategy (3/15)

“Our new strategic plan built on these fundamental advantages and it's focused on executing on these three strategies to create a more consumer-centric organization. The first strategy is about accelerating our topline growth, the second, about driving operational excellence, and the third, about creating a winning consumer focused culture. The combination of these three leaves us well positioned to create sustainable long-term shareholder value” - Dirk Van de Put, CEO, Mondelez International (April 2019)

Source: Company website and reports | 10 Mondelez International Business Strategy (4/15)

• Mondelez’s strategy to accelerate consumer centric growth is driven by deep and proprietary insights about snacking behaviors and occasions. The company aims to meet consumers’ need for what they eat, why they buy and where they buy.

Source: Company website and reports | 11 Mondelez International Business Strategy (5/15)

New Marketing Playbook

Mondelez is transforming its marketing and digital capabilities to increase ROI and achieve consumer centric growth • Mondelez is reinventing its marketing playbook through its new and proprietary consumer insight which allows the company to refine its campaigns and capture growth as consumers change how they engage with brands they care about ‒ In its new global Oreo campaign in China, the company leveraged insights to deliver highly localized effect. Through this, Mondelez was able to make its ‘Oreo’ brand culturally relevant in China, connect Oreo with traditional Chinese occasions and as an outcome increased Oreo sales by double digit in the country (Q1 2019) ‒ In Brazil, a new campaign for Trident called Chew2Relax made use of consumer insight to reposition the gum brand, driving a strong consumption recovery and helped the company to regain its share • Mondelez is accelerating its digital and analytics capability. Mondelez has developed a new approach, which the company calls demand spaces, to identify and address how consumers snack across different emotional or functional needs and occasions ‒ In September 2018, Mondelez developed a proprietary snacking database based on interviews with an estimated 170,000 customers. The database allowed the company to evaluate how consumers snack across different emotional or functional needs and occasions ‒ In 2017, Mondelez initiated a pilot project ‘Sherlock’, that helped the company see which items are sold through online channels, who bought them and how much it cost to get items from the factory floor to a customer’s doorstep. It helped the company to gain better understanding of what drives revenue growth and to figure out the most efficient way to deliver products • Mondelez is raising its investment in advertising and commercial activities. Approximately 40% of Mondelez’s media budget will be spent on digital in 2019 ‒ In 2019, the company is increasing its investment by about $150 million that largely goes to advertising and commercial activities. Dividing advertising and commercial activities between local brands and global brands, the preference is given to its local brands over its global brands

Source: Company website and reports, industry reporting | 12 Mondelez International Business Strategy (6/15)

Leveraging partnerships and M&A

• Mondelez International is leveraging partnership and mergers & acquisitions as a strategic tool to drive additional growth

• The company has laid out following criteria for its merger and acquisition: ‒ Build Scale: Build higher scale in priority markets ‒ New segments & categories: Access higher growth snacking adjacencies ‒ New capabilities: Add new business capabilities in core categories ‒ Portfolio optimization: Continue to shape snacking focused portfolio • In June 2019, Mondelez announced to acquire a majority interest in Perfect Snacks, a key player in the refrigerated nutrition bars segment. The acquisition helps Mondelez further expand its position in broader snacking space

• In April 2019, Mondelez announced a collaboration agreement with The Kitchen, Israel’s only FoodTech-focused incubator and one of the first FoodTech incubators in the world. Through the collaboration, Mondelez will have access and visibility to world’s leading FoodTech ecosystem

• In March 2019, Mondelez collaborated with The Hatchery Chicago, a non-profit food business incubator. Through the partnership, the company will be able to connect with the local food and beverage start-up community and work together to accelerate and scale innovation

• In June 2018, Mondelez acquired Tate’s Bake Shop for approximately $500 million. The acquisition helped Mondelez to expand portfolio of brand that consumers love and provide entry into the fast growing premium cookie segment

Source: Company website and reports, industry reporting | 13 Mondelez International Business Strategy (7/15)

• The focus of the company’s agile innovation approach is on Agile Innovation Approach

testing ideas in small launches, capturing learning and then ‒ The announcement reflects the company’s purpose to scaling them across more markets empower people to snack right by offering the right snack at • In June 2019, in India, Mondelez International launched Cadbury the right time. This ensures that company’s products are made Dairy Mild with 30% less sugar and no added artificial sweeteners with ingredients that are sustainably sourced, produced and ‒ The innovation underscores the company’s commitment to delivered, with positive impact along the supply chain empower consumers to snack right and to provide them with • In the first quarter of 2019, Mondelez launched PataMilka in choice, by creating new eating experience France, which according to the company, went from idea to • In January 2019, Mondelez joined the Loop initiative, founded by market in six months recycling leader TerraCycle, which aims to tackle packaging waste ‒ The company is taking the Milka chocolate brand and with a new subscription-based model for distributing consumer expanding it into the broader snacking category of spreads, goods to homes in reusable containers which provides the opportunity in a country where chocolate ‒ In October 2018, Mondelez made commitment to make all spread is a key part of afternoon snacking rituals packaging recyclable and provide recycling information by 2025

Source: Company website and reports, industry reporting | 14 Mondelez International Business Strategy (8/15)

• In January 2019, Mondelez launched Cadbury Dairy Milk Freddo Agile Innovation Approach (continued…)

Treasures to meet the parent’s demand for kid friendly treats ‒ Led by chief growth officer Tim Cofer, it has been tasked with ‒ At 76 calories per pack, Cadbury Dairy Milk Freddo Treasures is contributing $100m to revenue growth by 2022. As of aligned with Public Health England’s ‘under 100 calories’ February 2019, it had already seen the launch of products guidance on kids’ snacks including Cadbury Joy Fills in the UK and Oreo Rainbow • As the company shifts towards a focus from bottom-line cost- products in China cutting to top-line growth, according to Mondelez, it involves “re- energising” its so-called ‘power brands’

‒ As of early 2019, one such innovation hub included SnackFuture, focused on opportunities in wellbeing, the premium market and digital platforms, bringing together teams from brand marketing, consumer insights, research and development, innovation and corporate development to identify areas of growth for the snacks business

Source: Company website and reports, industry reporting | 15 Mondelez International Business Strategy (9/15)

Expansion of Channels and Key Markets

• Mondelez is increasing its investments for growth of its underdeveloped channels such as discount, traditional trade, c-store, drug and eCommerce ‒ With a continued expansion of its distribution in the traditional trade in Indonesia, the company gained double digit sales growth in first quarter of 2019 ‒ Mondelez expanded its presence in the impulse channel in South Central Europe business. Through its investment in route-to-market and sales capabilities as well as A&C and price pack architecture, the company was able to gain double-digit growth of the total business in the first quarter of 2019 ‒ Mondelez repositioned Base Trident as “Flavor Bursting Gum” and made significant upgrades to meet evolving consumer needs in areas such as packaging, convenience channel and eCommerce • Mondelez is accelerating its exposure into high growth geographies. For instance, Mondelez sees key growth opportunities for its biscuits in India and Australia; and its chocolates in Mexico and Southeast Asia ‒ India is one of the fastest growing market for Mondelez. In 2018, Mondelez added 200k outlets and installed an extra 70,000 mini fridges in India. According to Mondelez in July 2019, “the big bulk” of a $150 million increase in global investment this year - the first hike in five years - will be in rural India ‒ In August 2018, Mondelez expanded its presence in South Asia by establishing operations in Bangladesh. The company's Tang powdered beverage brand has performed well in Bangladesh for many years ‒ In August 2018, Mondelez announced investment of $7 million in chocolate market in Mexico. Mexico has been a growth engine for the company in the Latin American region, and this launch formed part of its expansion strategy to compete in new segments of snacking

Source: Company website and reports, industry reporting | 16 Mondelez International Business Strategy (10/15)

Invest in Global and Local brands Focus on broader snacking • Another focus area of Mondelez’s growth strategy is to make the • Mondelez International is also innovating brands across the broader snacking space most of its portfolio by balancing investment in both global and • In January 2019, the company expanded Chocobakery in India local heritage brands to achieve higher growth under the Cadbury and Oreo brands after successful expansion in ‒ While in the past Mondelez focused mostly on its global Europe brand, with its new strategy, Mondelez is achieving a better ‒ Chocobakery is an extension of its chocolate brands into biscuits and cakes. With this premium offering, it helped the balance between investment in global brands like Oreo, Milka company to gain biscuit market share in India and belVita and local jewels like Fontaneda in Spain or LU in • In 2019, Mondelez launched Cadbury Little Treasures in the UK, France; Freia, Marabou in the Nordics; Kinh Do in Vietnam which is a portion controlled amount of chocolate, combined with a series of collectible toys ‒ The combination of global and local brands is generating ‒ The launch helped the company increase overall Cadbury Daily stronger growth than with focus on global brands alone for the Milk sales in the UK company. All combined, the brands drove overall net revenue • Mondelez has plans of building a global savory snacking platform through its Ritz crackers brand growth of 2.5% in its fourth quarter of 2018 • The company is also expanding its Oreo brand across multiple ‒ Mondelez local and global brands are benefiting from its areas within snacking increased investment in advertising, creativity and innovation

Source: Company website and reports, industry reporting | 17 Mondelez International Business Strategy (11/15)

Mondelez strategy to drive operational excellence is aimed at translating its consumer-centric growth model into incremental sales and margins, by focusing on improving execution across all elements of its business. The company is doing so particularly by focusing on four key areas:

Source: Company website and reports, industry reporting | 18 Mondelez International Business Strategy (12/15)

Drive Operational Excellence

• The company has four major pillars around its strategy to drive operational excellence: ‒ Leverage power of its direct-to-store distribution (DSD) model and in-store optimization to achieve operational excellence in sales ‒ Drive marketing excellence through digital marketing and eventually maximize its ROI ‒ Optimize its supply chain operation through digitalization, parametric bidding, robotics and automation tools ‒ Optimize its cost with help of its supply chain, Zero Based Budgeting (ZBB) and Mondelez International Business Service (MBS) to drive operational excellence • For the year 2019 and beyond, with a particular focus in North America, the company is making significant improvements to its supply chain as well as leveraging power of its direct-to-store distribution (DSD) model

• With the company’s improved supply chain and direct-to-store distribution model, according to Mondelez in Q1 2019, it helped to gain single digit consumption growth and its feature and display conversion grew double digit, particularly behind its launch of Game of Thrones themed to Oreo pack

• Mondelez has launched initiatives to drive e-commerce excellence with key partners in China, where online sales as well as and overall growth is been increasing

• In India, the company made significant enhancement to its sales and route to market excellence, where the company has been increasing and been investing heavily for growth

Source: Company website and reports, industry reporting | 19 Mondelez International Business Strategy (13/15)

Drive Operational Excellence (continued…)

• Mondelez is working on ‘Digital Accelerator’, a platform that aims to engage its brands and marketers with the latest technologies including voice, artificial intelligence, augmented and virtual reality

• Mondelez plans to continue to improve efficiency by leveraging its global shared service platform, driving greater efficiencies in its supply chain and continuing to utilize Zero-Based Budgeting (ZBB) across its operation

• In April 2018, Mondelez invested $90 million in the state-of-the-art biscuit manufacturing plant in the Kingdom of Bahrain. This serves as a hub for exports to Gulf region, the Levant and Africa, reducing delivery cost and improving freshness which will be instrumental to the success of its growth plan

• In June 2018, Mondelez announced it has invested $200 million since 2014 in its Opava biscuit manufacturing facility. The investment supports the company’s growth strategy to create a best-in-class integrated supply chain and to deliver consumer inspired quality and innovation that meet changing consumer preference

• Mondelez is leveraging its customer supply and logistics capabilities to deliver better in-store presence and availability

• The company’s continuous improvement through Omni-channel Excellence, ISC Flexibility & Optimization, Consumer & Brand-Centric Digital Marketing and Consumer- Centric Insight & Foresight drives more sophisticated consumer communications and optimization of supply chain operations

Source: Company website and reports, industry reporting | 20 Mondelez International Business Strategy (14/15)

Build Winning Growth Culture

• Mondelez third area of strategic priority is about winning consumer focused culture. To accelerate growth, Mondelez is shifting towards a more agile, digital and local first commercial focus. The company is accelerating training across its business, focused on growth capabilities and growth mindset

• Local First Commercial Focus

‒ The company’s local focus includes empowerment of sales and marketing teams on the ground in specific markets. In the first quarter of 2019, Mondelez implemented a new more locally oriented commercial structure with 13 business units within its existing regional framework to achieve a local focused winning culture o Mondelez is giving its local teams more autonomy to drive commercial and innovation plans as they are closer to the needs as desire of consumers o In March 2018, Mondelez called out team of five people to oversee its marketing across the globe as part of new regionalized structure. The goal is to put marketing executives closer to the countries they oversee, so that the company can quickly respond to shifts in consumer demand ‒ In 2018, Mondelez spent its marketing spend by more than $150 millions as it pushed further into Russia, China and India – emerging markets which represent 80% of the growth potential in snacking around the world o The company has prioritized its local brands over its global brands out of its $1.5 billion+ ad spend

Source: Company website and reports, industry reporting | 21 Mondelez International Business Strategy (15/15)

Build Winning Growth Culture (continued…)

• Speed, Agility and Simplicity

‒ Shift to local first approach reduces the company’s complexity, improve its speed and encourages more entrepreneurial approaches to marketing, sales and product development

‒ Mondelez is encouraging its colleagues to test, learn and scale, which reflects that the company is implementing a faster, more cost-effective and locally driven approach to innovation

‒ The company’s digital transformation program helps to enable consumer demand and sales opportunities. Mondelez believes these shifts will help drive profitable top-line growth

o In June 2018, Mondelez International signed a new multi-year agreement with Genpact, a global professional service firm focused on digital transformation

o The expanded engagement allows the two companies to continue to co-innovate and drive faster, smarter insights from finance data. Genpact supports Mondelez International’s global finance operations in 75 countries, delivering simplified and standardized operations across more than 150 finance and accounting processes

Source: Company website and reports, industry reporting | 22 BUSINESS CHALLENGES Mondelez International Business Challenges (1/2)

• In June 2019, Mondelez participated at an event, AIPA Summit Americas, to help the company resolve issues regarding packaging and sustainability ‒ The company appears to be seeking communication channel to help consumers better understand how to recycle its product and packaging feature that can act as a packaging integrity feature • Digital and changing consumer needs ‒ Mondelez business has been adversely impacted by the revolutions in digital and changing consumer needs. According to MarketingWeek, Mondelēz admits it has been slow to keep up, held back by a lack of investment in progressive technologies and old ways of working (October 2018) ‒ Driven by that, the company restructured its marketing team in 2018 bringing in four regional chief marketing officers under one global CMO. The move was aimed at elevating the role of marketing, bringing Mondelēz into the 21st century and making sure it has speed and closeness to local consumers and local markets ‒ Though Mondelez seems to have taken some positive steps, there is a long way ahead for the company in this ever evolving and changing space • In June 2017, a devastating malware strain dubbed NotPetya caused significant damage to Mondelez ‒ The infection comprised two individual servers before spreading to more than 1,700 servers and 24,000 laptops, rending them permanently defected ‒ Mondelez also suffered business interruption in the form of property damage, commercial supply and distribution disruptions, unfilled customer orders, reduced margins and other covered losses in excess of $100 million

Source: Company website and reports, industry reporting, Marketing Week | 24 Mondelez International Business Challenges (2/2)

• Alister Greenwood, Head of Global eCommerce Insights & Analytics, Mondelez, speaking on current and upcoming challenges or disruptors to e-commerce: “Supply chain costs and inefficiencies as well as complexity of getting to the right pack types at the right price points. The ever- increasing competition for traffic and precariousness of retailer margins are significant challenges for e-commerce.” (November 2018)

• During 2012-2017 period, gains in Mondelez have been half as compared to those of the S&P 500 companies. The company has struggled to grow sales in recent years as customers taste is changing

‒ Every viable small town now has a sushi bar, Korean Barbecue and artisanal doughnut shop. Even middle-American diners crave food with hot spices, vinegar and fresh cilantro with hot-sweet-sour-salt over the palate

‒ The factory-made American combination of wheat flour, sugar and salt seems pale. The priority for items like Oreo Cookies and Ritz Crackers are not high as it used to be

• Another disruptive force that challenges Mondelez’s business is its local consumer

‒ The differences between consumer behaviors and what they want is increasing. It’s largely driven by online and availability of product at anytime, anywhere

‒ The company is looking forward to change its innovation, marketing, the way it does branding and overall how it moves and operates as a company

Source: Company website and reports, industry reporting, Marketing Week | 25 MARKETING INSIGHT Mondelez International Marketing Overview

Marketing Overview

• Mondelez generally sells its products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores and other retail food outlets

• Mondelez distributes its products through store delivery, company-owned and satellite warehouse, distribution centers and other facilities. The company uses the service of independent sales officers and agents in some of its international locations

• Through its global e-commerce organization and capabilities, Mondelez pursues online growth with partners in key markets around the world, including both pure e-tailers and brick-and-mortar retailers. The company continues to invest in both talent and digital capabilities

• Mondelez conducts marketing efforts through three principal sets of activities:

‒ Consumer marketing and advertising including on-air, print, outdoor, digital and social media and other product promotions

‒ Consumer sales incentives such as coupons and rebates

‒ Trade promotions to support price features, displays and other merchandising of its products by its customers

Source: Company website and reports, industry reporting | 27 Mondelez International Marketing Priorities (1/7)

• As part of the company’s commitment to reinvent marketing, Mondelez International is making incremental investment across areas including:

‒ Transforming its marketing and digital capabilities to increase ROI

‒ Increasing the use of technology such as social listening and advanced analytics to better understand the consumers’ need

‒ Focused on local heritage brands to achieve higher growth

‒ Focus on marketing transformation. Mondelez is working to put ‘purpose’ at the center of brands’ communication

Mondelez Marketing Priorities

Increase Local First Approach Focus on Purpose Digital Capabilities

Source: Company website and reports, industry reporting | 28 Mondelez International Marketing Priorities (2/7)

In order to make growth driven strategy a success, Mondelez is Increase Digital Capabilities changing its ways of working by increasing its digital capabilities to • On the consumer facing side, Mondelez is increasing its use of provoke a shift in mindset and behaviors of consumers social listening and advanced analytics to better understand the • In May 2019, Mondelez decided to focus 10% of its marketing consumers’ needs and react faster on emerging needs

investment on innovation outside the core. While this spend ‒ In October 2018, Mondelez opened new R&D centre in India won’t generate the same return on investment as Mondelez’s and is strongly leveraging data analytics to expand its typical model, it gives the company the freedom to take distribution across India’s vast hinterlands calculated risk ‒ In September 2018, Mondelez developed a proprietary ‒ The strategy has enabled the group to experiment with voice snacking database to evaluate how consumers snack across and audio tests – tipped as the next big thing in marketing – as different emotional or functional needs and occasion well as established its digital accelerator, Ignite Labs

‒ Ignite was setup by the UK marketing team and as of May 2019, had taken 21 finalists in a digital innovation competition to pitch to the company’s European Leadership team

Source: Company website and reports, industry reporting, Food Navigator | 29 Mondelez International Marketing Priorities (3/7)

• Mondelez is reinventing its marketing playbook through Increase Digital Capabilities (continued…)

customer-focused digital marketing, increased use of technology ‒ In March 2019, Mondelez and Alipay jointly launched an to better understand consumer needs, accelerating Mondelez’s augmented reality game in China to provide better user digital and analytics capabilities and raising investment in experience by leveraging advanced gravity sensing technology, advertising and commercial activities AR panaromic technology and AI technology

‒ In 2018, Mondelez spent approximately 40% of global media ‒ In Brazil, a new campaign for Trident called Chew2Relax made budget on increasing digital capabilities use of consumer insight to reposition the gum brand, driving a ‒ In its new global Oreo campaign in China, Mondelez leveraged strong consumption recovery and helped the company to insights to deliver highly localized effect. Through its digital regain share capabilities, Mondelez made its ‘Oreo’ brand culturally relevant in China, connect its ‘Oreo’ brand with traditional Chinese occasion and as an outcome increased Oreo sales by double digit in the country (Q1 2019)

Source: Company website and reports, industry reporting, Food Navigator | 30 Mondelez International Marketing Priorities (4/7)

Increase Digital Capabilities (continued…)

• Mondelez is increasingly leveraging digital capabilities to achieve personalization among its consumers

‒ Mondelez is investing in digital capabilities to allow consumers to personalize products and packaging online. In March 2019, Mondelez launched Oreo Rainbow exclusively on Alibaba’s Tmall online marketplace. The platform allows users to curate an assortment of Oreo cookie flavors

• In 2017, Mondelez initiated a pilot project ‘Sherlock’, that helped the company understand which items are sold through online channels, who bought them and how much it cost to get items from the factory floor to a customer’s doorstep

‒ The goal was to gain better understanding of what drives revenue growth and to figure out the most efficient way to deliver products

“With this new methodology, we are able to segment snacking needs based on all possible drivers like state of hunger, time of the day, location, emotional need, demographics and so on. All this allows us to sharpen our brand positioning, improve our communication, ensure our portfolio remains incremental and avoid overlap, and it also identifies innovation and renovation opportunities. All of this is leading to a better consumer connection with increased sales and higher returns on our marketing and innovation investments” -Dirk Van de Put, CEO (September 2018)

Source: Company website and reports, industry reporting, Food Navigator | 31 Mondelez International Marketing Priorities (5/7)

Local First Approach

Mondelez International developed a more locally-oriented commercial structure to drive greater consumer focus, improve speed and reduce complexity

• Mondelez is taking a more local approach to its global marketing. The company will now take five people to do the job once performed by formal global CMO ‒ In March 2018, the company created four new Regional Chief Marketing Officers where Debora Koyama oversees European marketing; Jason Levine for North America (left Mondelez in March 2019); Maria Mujica for Latin America and Mie-leng Wong leads marketing in Asia, Middle East and Africa ‒ The regional marketing officer for Europe, Debora Koyama, focuses on elevating marketing from a capabilities standpoint and unlock the talent and power from portfolio of brand the company has- globally and specifically in Europe ‒ Chief Marketing Officer for North America commonly would focus on building iconic brand and push Mondelez towards more consumer- centric approach to building its brands (James Levine left Mondelez in March 2019) ‒ The goal of adding chief marketing officer roles is to put marketing executives closer to the countries they oversee, so that the company can quickly respond to shifts in consumer demand. It marks a significant strategic shift for the company, which had relied on a more centralized global approach ‒ The company’s new global CMO Martin Renaud will oversee broader functions like brand strategy, agency relationships, marketing capability as well as media and digital ‒ At Mondelez, the regional CMOs will report directly to regional presidents, but still have a dotted line report into the global CMO

Source: Company website and reports, industry reporting | 32 Mondelez International Marketing Priorities (6/7)

Local First Approach (continued…)

‒ In 2018 Mondelez increased its marketing spend by more than $150 million (which included product R&D) as it pushed further into Russia, China, and India – emerging markets which represents 80% of the growth potential in snacking around the world

‒ The company has prioritized its local brands over its global brands out of its $1.5 billion+ ad spend

‒ Mondelez has around 65 “local jewels” that generated 47% of total revenue for the company in 2018. In 2019, the company is investing in local jewels like Fontaneda in Spain or LU in France, Freia, Marabou in the Nordics, Kinh Do in Vietnam

‒ The company’s local focus also will include the empowerment of sales and marketing teams on the ground in specific markets. In 2018, 15 markets around the world accounted for 79% of Mondelez’s revenue

‒ Mondelez has opportunity to use local strength in one category to boost its growth in the other. The company will also empower its local teams to move faster, launch more relevant local innovations and hold them accountable for accelerated growth

“Investing in a new regional CMO model will not only bring deep expertise to our marketing practice, but also increase connection and collaboration between our Global CMO, our P&L leaders and the global team. This new structure will change the trajectory of our Marketing function, empowering our fearless commercial talent to drive growth and allowing us to move at the speed of our consumer” – Tim Cofer, Chief Growth Officer (March 2018)

Source: Company website and reports, industry reporting | 33 Mondelez International Marketing Priorities (7/7)

Focus on Purpose

With a focus on marketing transformation, Mondelez is working to put purpose at the center of Mondelez’s brand communication

• With ‘purpose’ at its center, the company is leveraging the potential of its power brands that have previously seen sluggish sales trend ‒ In May 2019 , according to European Chief Marketing Officer, Debora Koyoma, Mondelez has “iconic, powerful, emotional brands” with high awareness and household penetration, as Cadbury has 88% household penetration in the UK, while Milka has 53% household penetration in Germany ‒ Cadbury’s recent performance as a “lighthouse” brand showed other parts of the business how purpose can be leveraged to increase sales ‒ The brand went from declining sales to mid-single digit growth by leveraging the entrepreneurial story of how it was founded by Quaker John Cadbury • In September 2018, Mondelez unveiled its new tagline and purpose, “snacking made right” in which they offer consumers “the right snack, for the right moment, made the right way” ‒ It aims to “empower people to snack right” from both a sustainability and social standpoint as well as helping people make healthier choices and being more aware of the quality and production of products

“We have power as businesses to really do something. People are choosing brands based on what companies stand for. That is a huge opportunity and responsibility. Purpose is not just something nice to do, it really drives business. It drives purchase intent” – Debora Koyama, Chief Marketing Officer, Europe (May 2019)

Source: Company website and reports, industry reporting | 34 Mondelez International Marketing Insight - Spend

Marketing Spend

• Mondelez promotes its products with marketing and advertising programs. The programs include, but are not limited to, cooperative advertising, in-store displays and consumer marketing promotions

• As part of company’s commitment to reinvent Marketing, Mondelez International is making incremental investments, setting the stage for the function to lead its growth agenda in the short and long term

• According to Mondelez’s annual filings, the accrued expenses for marketing and advertising in 2018 was $1,756 million where as for 2017 the company spent $1,728 million

• Consultancy R3, which counts Mondelez as a client, estimates that the company’s annual global paid media spend to be approximately in the range of $800 million to $1 billion, though past estimates have been as high as $1.5 billion

• According to the Ad Age Datacenter, Mondelez is the world’s 91st largest advertiser. Its total ad spending fell 10.6% to reach $1.25 billion, or 4.8% of sales, in 2017 Year Advertising Expenses % Change • Similarly, Mondelez global advertising expenses were: 2018 $1,173 million -6% 2017 $1,248 million -10.6% 2016 $1,396 million -9.46%

Source: Company website and reports, industry reporting | 35 Mondelez International Marketing Insight - Agency

Marketing Agency Mondelez is based in the US but does the bulk of its business internationally Europe is its biggest market, followed by North America, then Asia, Middle East and Africa, and Latin America • In 2018, Mondelez selected Spark Foundry and Vayner Media to handle its North America media business, then subsequently moved on to review its global media business • In August 2018, Mondelez finalized a comprehensive media review for global regions and chose Spark Foundry to handle media in the Middle East, North Africa, Southeast Asia and China • Mondelez finalized GroupM’s Wavemaker and Mindshare to handle media in India, Australia, New Zealand and Japan • Mondelez split the European region between Wavemaker and Carat • The company has kept Latin America with Spark Foundry • IPG and WPP currently handles the majority of creative work around the world for Mondelez brands like Oreo, Chips Ahoy and Ritz via networks such as Ogilvy, FCB and The Martin Agency • TalkWalker provides insight on Mondelez’s performance on social media through its social media analytics

Source: Company website and reports, industry reporting | 36 Mondelez International Marketing Insight - Technology Stack

Marketing Technology Stack

Mondelez International appears to be leveraging the following tools and technologies for its marketing and advertising purposes:

Marketing: Marketing: Analytics and Data Science Sales and BD • Beaconinside Proximity DMP • OneSpot • Evrythng • Conjoint.ly • CARMA • Oracle Datalogix • Google Analytics • PURVEYANCE • Carnival Mobile • Pokkt • CollectiveBias • ROXIMITY • LatentView • Pocketbiz • Crisp Mobile • Sysomos Expion • ORION EDI • ThinkSmartOne • Google Tag Manager • TWT Interactive • Qlik • eMarketer • GUmGUm • Tracx • SAP BusinessObject BI • Hello World • TrendKite • Janrain • Vayner Media • SocrateBI • Krux • iProspect • mTraction • Market Logic Software • Movable Ink

Source: Company website and reports, industry reporting | 37 KEY EXECUTIVES Mondelez International Key Executives (1/6)

Chief Marketing Officer/ Regional Chief Marketing Officer

Global Chief Marketing Officer Chief Marketing Officer, LATAM

Martin Renaud Maria Mujica § Leads marketing at Mondelez Latin § Oversees broader marketing America, captaining a team of varied functions like brand strategy, functions from media, consumer agency relationships, marketing engagement, brand planning, capability as well as media and digital marketing capabilities, demand growth and E-commerce

Chief Marketing Officer, AMEA Chief Marketing Officer, Europe

Mie-Leng Wong Debora Kayoma § Responsible for marketing function § Responsible for driving marketing in Europe like consumer insights & excellence across the portfolio of analytics, brand strategies, brands like Oreo, Cadbury, Milka, Belvita, Ritz, Tang, Trident and innovation platforms, content, Stride in Asia, Middle East and design, media & digital Africa transformation

Source: Company website and reports, industry reporting | 39 Mondelez International Key Executives (2/6)

Marketing Executives

Vice President, Marketing Global VP, Digital, Media & Data Transformation & Excellence Jonathan Halvorson Katie Williams § Katie is experienced in building Global § Track record of delivering successful Brands across both developed and brand building, advertising, and emerging markets. At Mondelez, Katie operational initiatives. He delivers leads transformational marketing scaled impact through active on ground agenda across North American support of local market initiative, Biscuits and Confections portfolio innovation and execution

Global Media and Digital Analytics Manager Sr Manager, Digital & Social Media

Ipsitaa Panigrahi Kelly Amatangelo § Digital media specialist with § Multiplatform marketer. extensive experience and Accomplished in defining platform specialization in advertising, roles & developing content strategies marketing, social media, analytics across digital and social media and story-telling

Source: Company website and reports, industry reporting | 40 Mondelez International Key Executives (3/6)

Marketing Executives

Head of Global eCommerce Insight & Senior Manager, E-Commerce Marketing Analytics Andrew Feldman Alistor Greenwood § § Leads strategic development of e- Leads paid and organic search performance marketing across all retailers to managing commerce analytics to drive business multi-million budgets delivering eight figure performance, digital insights to in sales in 2018. Manages annual plan and develop learning and capabilities for all marketing campaigns with sales growth company’s local eCommerce teams exceeding plan

Head of Commercial Analytics, Global Center of Excellence Global Head of Insight & Analytics

Daniel Jenski Stefania Gvillo

§ Defines price pack program, recruit § Oversees community of 200+ team resources, analyze extensive consumer insight, shopper insights purchase and competitive data, craft and analytics globally. She reports strategy and execute pricing, to Global Chief Growth officer packaging initiatives globally

Source: Company website and reports, industry reporting | 41 Mondelez International Key Executives (4/6)

Other Key Executives

Vice President - Global CTO & Digital Marketing Commercialization Lead Transformation Lead Isaac Pena Hernan Tabah § Highly skilled logistic, planning and § Responsible for overall technology project management professional with strategy for the company. Manages a more than eight years of experience in portfolio of 200 million across the industries such as beverage, globe to provide innovation and manufacturing, non-profits institutions foundational technology capabilities and tobacco

Global eCommerce Growth Lead Head of Sales, Alternative Channels Abhishek Ahluwalia Bob Arnold § Abhishek is responsible for Global eCommerce Growth Platforms. He § Dynamic, results-oriented holds a successful career with business leader that has sales & marketing experience in demonstrated an ability to be well-known CPG companies change agent for an organization

Source: Company website and reports, industry reporting | 42 Mondelez International Key Executives (5/6)

Other Key Executives

Senior Manager, Consumer Insight Global Marketing Director, OREO brand John Sommer Justin Parnell § John provides analytical leadership § Responsible for +$3 billion OREO for Mondelez International’s Franchise, including oversight for Foodservice business unit. marketing across cookie, chocolate Responsibilities include developing candy bars, licensing and good service. strategic solutions that drive Directly oversee >$150 million in NA customer value A&C investment

US Insight & Analytics Director, Cookies Senior Associate Brand Manager and Crackers Portfolio Vidushi Bhargava Christina Chiesa § Marketer with experience in brand § Leading teams and initiatives that management, strategy, and new propel businesses by anticipating product development across multiple trends, driving innovation, improving categories in the food space. Especially category to shape winning retailer passionate about natural foods and strategies sustainability

Source: Company website and reports, industry reporting | 43 Mondelez International Key Executives (6/6)

Other Key Executives

Regional Director of Retail Director, Global Sales Capabilities Tony Lawrence Cameron C. Sandler § Tony delivers direct store delivery § Cameron leads the global sales revenue for Mondelez P&L target of capabilities team resulting in a lower $150 million for the Southern cost, higher impact unified approach for California market through chain sales learning and development. She grocery, mass merchandiser and managed a budget of $5.4 million to military deliver Global Sales Learning Priorities

Director, Global Strategic Insight Sr. Associate Brand Manager, Commercial

Miles Drayton Mittal Shah

§ Responsible for rollout and § Strong marketer with analytical administration of Mondelez expertise and innate creativity for a proprietary consumer framework, unique approach to building and market research, strategic brand maintaining brands. Experienced with management, portfolio management, managing small and big brands budget oversight & trend analysis

Source: Company website and reports, industry reporting | 44 Mondelez International Quotes

“In our new strategy we are achieving a better balance between investment in global brands like Oreo, Milka and belVita and local jewels like Fontaneda in Spain or LU in France, Freia, Marabou in the Nordics. The combination of those two is generating stronger growth than focused on global brands alone”

“With strong leadership in our categories, an unparalleled portfolio of global and local brands and a solid footprint in fast-growing markets, we are uniquely positioned to lead the future of snacking. We have developed a clear strategic plan to accelerate our growth and drive attractive total returns centered around three strategic priorities: accelerate consumer-centric growth, drive operational excellence and build a winning growth culture”

- Dirk Van de Put, CEO, Mondelez International (2019)

“Investing in a new regional CMO model will not “People are choosing brands based on what companies stand for. That is a huge opportunity only bring deep expertise to our marketing practice, and responsibility. Purpose is not just something nice to do, it really drives business. It drives but also increase connection and collaboration purchase intent. It can be a path to growth with the powerful brands we have to unlock between our Global CMO, our P&L leaders and the growth through purpose” global team. This new structure will change the - Debora Koyama, European Chief Marketing Officer, Mondelez International (May 2019) trajectory of our Marketing function, empowering our fearless commercial talent to drive growth and “We’re going to touch more local brands. We’re going to spend more on local brands allowing us to move at the speed of our consumer” at the detriment of global brands. There will be a bigger increase in local brands, but - Tim Cofer, Chief Growth Officer, Mondelez we will keep momentum in global brands that we see in China or Russia” International (March 2018) - Luca Zaramella, CFO, Mondelez International (February 2019)

Source: Company website and reports, industry reporting | 45 Source: Company website Industry Insight| Account Insight | Competition Intelligence www.businessbrainz.com