The company mission: FERRERO France is involved in the production and marketing of chocolate confectionery brands such as Kinder, Nutella, Ferrero Rocher and so on. It has a place in different markets, selling spreads, pastry equipment (ultra cool and dry snacks), chocolate, confectionery, and pocket chocolate confectionery.
The company is ranked 6th in the global confectionery and chocolate industry. Its turnover amounted to 653 million Euros in 2002 and 820 million Euros for the period 2003-2004.
The owner is Michel Ferrero, the son of the founder Pietro Ferrero, and has been leading the organization since 1946. Its subsidiary in France is the DULCE Company which is controlled by Ferrero. The motivations of the leaders are to expand and internationalize the brand. The target of the overall brand is general for the product, but Nutella Snack & Drink, targets teenagers and young adults.
The technologies used are not too well known. The functions of the products are to serve as snacks, a light meal, for coffee breaks or for "pleasure". It may be noted that the marketing strategy of the company is product specialization.
The issues are: - Is it wise to mix a product to be served chilled with a product that is usually eaten at room temperature? ? Is the term "snack" not a little derogatory? Is there not a disagreement between the notion of individualism that returns this term, and the image of conviviality that the brand wants to convey? - With full knowledge of the current trend, how can the company successfully promote the merits of such a product?
It is necessary to reconsider the position and therefore the marketing mix of the product to ensure its survival.
The company's Ferrero's strategy relies mainly on the fact that their manufacturing process is totally unique and therefore, the products can not but be innovative. The copy is impossible, the company makes sure to create a myth around each product.
Competition becoming increasingly important, Ferrero prefer not to take any risk in terms of manufacturing and decided to remove the brands of machines to avoid plagiarism.
Strategically, the company Nutella France adds a production line which can increase yields and to cope with high demand (6000 jarsof Nutella out of the factory every day and 1.2 million Kinder Bueno).
In addition, the company produces slowly (new product on average every two years) because it is better to take the time to be sure that the product will immediately be successful.
Despite marked efforts to pull itself together, the results are dropping, so the company should consider reviewing its position and thereforethe marketing mix that accompanies it.
Now it is really important for the company to redefine its target accurately and adapt its communication function thereof. From observations, one can define children as a new target, focus on it and develop an operational component around this.
Tags: Nutella, brand strategy, marketing
[...] Consumers often associate with Nutella calories. In addition, Esta tea is very famous in Italy, but very few in France. T (technology) Since January 2003, we can find the product Sanck & Drink in commerce, either individually, but also conditioned by two. E (ecological) 3 in 1 product: biscuit, Nutella and sweet drink, suitable for active people who work in offices or who travel. This is an important part of the population. In addition, there is a benefit for the environment and recycling: we no longer have a package instead of three. [...]
[...] The owner is Michele Ferrero Ferrero, the founder's son, Pietro was running the Company since 1997. In France: DULCEA company is controlled by Ferrero. The motivations of the leaders were to expand and internationalize the brand The history of the company Pietro Ferrero invented the recipe for the chocolate spread. In 1949, Michel Ferrero took over the company and was an instant success. Around 1961-1963, the company entered the French market and launched the "tartinose". In 1966, chocolate spread Nutella had its name. [...]
[...] That said, the product also shows disadvantages such as temperature, taste tea peach, its low volume. Advantage does not allow sales to take off and disadvantages are a significant impediment to the purchase. Snack & Drink does not have a satisfactory image with consumers. It is conceivable that in responding to problems such as temperature, branding, the name has a pejorative connotation, the current trend does not carry the product and its positioning, it could increase its sales and restart the product. [...]
[...] Summary table of the diagnosis OPPORTUNITIES -Society increasingly dynamic. – Competition THREATS -Snacking market down -Current trend is Organic STRENGTHS -good brand - Good response to the product promotion - Packaging and solid practice - Taste of Nutella - Innovative - Ease of snack - Product developed - modernity WEAKENESSES -Terminology of the word "snack" negative - Poor conservation of products - Drink not adopted by the proposed children - Consumer unfriendly - High price There are limits and factors to be taken into account in setting a new price. [...]
[...] ) Inside the pack Snack & Drink to attract children. − Sponsor events known to young audiences that focuses on the product. − Set up competitions (drawing, dancing, etc . ) Which children can participate in when they have learned about through the purchase of the product. Even if the child has the role of the prescriber, the parent still has a say, so it should not be overlooked in the rigging of the communication strategy adults. you Can − distribute promotional offers that are very interesting as the launch in 2003. [...]
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