Marketing concept using the example of Nutella

Term Paper , 2008 , 29 Pages , Grade: 1.3

Business economics - Offline Marketing and Online Marketing

The content of this term paper is a marketing concept for Nutella - the nut nougat cream from Ferrero. It contains all the components of a complete marketing concept. The authors wanted to find out whether there is still room for improvement in the marketing of such a successful product as Nutella.

Table of contents

Introduction

A. The situation analysis
1. Market analysis
1.1 Market definition
2. Target group or customer analysis
2.1 Needs
2.2 Decision criteria
2.3 Behaviors when buying
2.4 Purchase frequency – purchase quantity
2.5 Target group definition
3. Company analysis
4. Instrumental analysis
4.1 Performance
4.2 Distribution
4.3 Contraction
4.4 Communication
5. Competition or competition analysis
5.1. Market analysis
5.2. Target group or customer analysis
5.3. Company analysis
6. Environment analysis
7. Trading Analysis
8. Supplier analysis

B. Marketing goals

C. Marketing Strategy

D. Marketing tools
1. Performance policy
2. Contraction policy
3. Distribution policy
4. Communication policy

Introduction

The authors of this work produce a marketing concept for Nutella – a nut-chocolate cream from Ferrero. The reasons for this were their own conviction of the consumption of the product, the presence through current advertising measures and, above all, the challenging question of whether there is still room for improvement in the marketing of Nutella.

A. The situation analysis

1. Market analysis

1.1 Market definition

The needs that can lead to the purchase of a product characterize the different markets where the product is offered and competes with other products.

Nutella has the following three markets:

1. fast and practical breakfast and snack – market

2."rewarding yourself with a small chocolatey sin" and "I treat myself to that" – Market

This also includes the needs to pamper yourself, to wanting to do something good ("balm for the soul"), the desire for snacking, something Want to enjoy chocolatey and the like.

3. make your own children happy and fulfill their wishes – Market

In all other points of this marketing concept, we will specifically address the "rewarding yourself with a small chocolatey sin" and "I treat myself to that" market.

1.2 Market structures and processes

Abbildung in dieser Leseprobe nicht enthalten

Figure Market participants and market relationship¹

Ferrero distributes Nutella through retail trade to end users (i.e. private individuals and restaurants).

Our competitors on the selected "reward yourself with a small chocolate sin" and "I treat myself to that" market are chocolate bars (Milka, Lind, Ritter Sport), chocolate pudding (Landliebe, Lünebest), chocolate queens, chocolate yoghurt (Ehrmann), chocolate ice cream (Langnese, Mövenpick) and other nut-nugat creams (e.g. Nusspli).

2. Target group or customer analysis

2.1 Needs

The most important needs that can lead to the purchase of Nutella and are market-decisive have already been listed in point 1.1 market definitions.

In addition, there are of course other needs that influence the purchase decision: First of all, the quality aspect – here the customer attaches importance to freshness, uncomplicated storage, sufficient durability, high-quality ingredients, etc. In addition, this includes a good price-performance ratio, recommendations and own experience with the product. Secondly, various aspects of packaging play a role, such as environmentally friendly, recyclable material, attractive design (label, shape, color) and high-yielding sizes. The last category of needs concerns the topic of availability, i.e. the customer wants to be able to easily buy the product anywhere in order to avoid detours when shopping and resulting time losses.

2.2 Decision criteria

In order to develop the needs mentioned above (in points 1.1 and 2.1), we have compiled preparatory purchase or decision criteria that play a role in the purchase of Nutella (or nut noodle cream in general). We came up with the following result – broken down by category:

1. "Pampering factor"

- "Balm for the soul"
- "Attitude to life"
- pleasure
- brand image

2. Quality

- Storage (practical, uncomplicated)
- taste
- durability
- as host: "Nutella tastes good to everyone"
- Test results (organic farming, etc.)
- ingredients
- recommendation
- own experience
- Idol emulating (testimonials)
- productiveness
- Spread resistance

3. Packaging

- fresh-sealed closure / opening
- design
- form
- colour
- size
- Material (environmentally friendly, recycling)
- Price (relative to size)

4. (Product) extras

- (Special) offerings
- Add-ons (stickers, football pictures)
- Sponsoring activities
- advertising
- Availability in retail and different countries

2.3 Behaviors when buying

The behaviors when buying are about when the need arises to buy the product Nutella. The initial spark is decisive for the decision to buy. They then trigger all further events.

At Nutella, the purchase is triggered by the following initial sparks:

- Nutella is empty, you have to buy it new
- through advertising to try it out
- through recommendations to try it out

For our market, the "most important" initial spark is that Nutella is empty and you have to buy new Nutella to commit the next sin. Then it is remembered for the next purchase that you have to buy Nutella. Possibly offers of the different dealers are still reviewed and compared according to size and price of the Nutella, which is rather the exception. In addition, it is considered whether another product is suitable for sin.

2.4 Purchase frequency – purchase quantity

Every year, about 100 million glasses of Nutella are sold in Germany. Out of a total of 39,178,000² For households in Germany, it turns out that a household buys an average of 2.55 glasses of Nutella per year.

2.5 Target group definition

On the selected market, the Nutella target group can best be described with the word "average German" or "average family", as in principle everyone has the need to pamper themselves, to do something good and to snack on something chocolatey.³

In this concept, we describe these "average Germans" on the basis of the Müller family, who inhabit the "average living room of the Germans", which the advertising agency Jung von Matt has developed and designed at its headquarters in Hamburg:

Sabine (42) and Thomas Müller (45) are both working. Sabine half-day, because Alexander (15) still goes to school. They are a normal family who travel to the Baltic Sea or Bavaria in their VW Passat during the summer holidays, have subscribed to a regional daily newspaper, buy a large part of their basic foodstuffs from Aldi, buy their clothes from C&A, H&M and Peek&Cloppenburg or order them from Quelle and Otto and prefer to spend time in and with the family.

The family lives in a three-and-a-half-room apartment with 89.4 m² in an apartment building and pays 408 euros rent per month.

Sabine

This year Sabine celebrated her 42nd birthday. She has the intermediate maturity, works as an office clerk and earns € 1,394.50 gross. Since the birth of her son, however, she has only had a half-time job – after all, she also wants to be with Alexander. After work Sabine takes care of the household, i.e. cooking, washing clothes, rinsing and cleaning. She is also the one who does the shopping – usually around 4 or 5 p.m. Like most women, Sabine has a soft spot for horoscopes. She almost always reads them. When she is alone at home, Sabine sometimes makes herself really comfortable in the living room. Then she sets up fresh flowers, lights candles, drinks a red wine or tea, listens to Cat Stevens or something classic, lies down wrapped in a wool blanket between the pillows on the sofa and reads a good book.

Thomas

Thomas is 45 years old. After graduating from secondary school, he trained as a commercial employee. Today he works in a mechanical engineering company. On average, around 40 hours a week. This brings in 3,946 € gross per month. Thomas drives to work and back by car. He loves his end of work: When he comes home, he first slips into comfortable casual clothes and treats himself to his after-work beer in the living room. For him, this is the well-deserved respite from and after work.

Alexander

Alexander turned 15 this year. He is in the tenth grade of the Maximilian-Kolbe-Gymnasium in Cologne. School usually starts at eight in the morning, then he has six lessons ahead of him. Unfortunately, Alexander is not the most diligent student. It looks like he's expected to graduate from secondary school next year and then leave school. His grades offer little perspective for the upper school. The fact that he is not particularly hardworking does not mean that Alexander does not like to go to school. He likes sports, maths and English best. He's a happy teenager. He likes to do sports, play a lot outside, meet up with friends, ride a bike, watch TV and are interested in computer games. He finds the latter much more exciting than reading and watching TV.

To make the family even more imaginable, here is a picture that shows all three family members:

Abbildung in dieser Leseprobe nicht enthalten

(from left: Thomas, Sabine and Alexander)⁴

3. Company analysis

History

The product Nutella is one of the many brand products of the company Ferrero. The Ferrero company was founded in 1946 by the pastry chef Pietro Ferrero in Italy Alba / Piedmont and is now in the third generation in family ownership. Pietro Ferrero then created a spread made from roasted hazelnuts and cocoa called "Pasta Gianduja", renamed "Supercrema" in 1951 after changing the recipe and finally called "Nutella" in 1964 due to the ban on "Super" in product names in Italy.⁵ This is a made-up word from the English word "nut" (to german "nut") and the Italian female diminution form -ella. Ferrero Germany was founded in 1956, first under the name Assia GmbH (Assia = Italian for Hesse), which is located in Stadtallendorf, 120 km from Frankfurt. The breakthrough on the German confectionery market was not achieved with Nutella, but already in 1957 with the cherry praline Mon Chéri. With the Nutella spread, Ferrero created the hitherto unknown market for nut-noodle creams and still holds the dominant position in the market today.

The company in Germany moved its administration to Frankfurt in 1965, although production is still located in Stadtallendorf.

Facts

Ferrero Germany now employs approximately 3,600 people, approximately 16,000 employees worldwide and consists of 28 operating companies, 31 trading offices and 15 production sites worldwide. Ferrero Holding is based in Luxembourg. The annual turnover of the entire Ferrero Group amounts to more than € 4 billion. In total, the company has 27 branded products in Germany, although not all of them are products, as there are other products on the market in some countries that are not offered in Germany. All Ferrero products can only be found in the food sector and there in the confectionery range.

War-deciding

Decisive for Ferrero is the access to trade and the scandal-free quality of Nutella, e.g. no harmful ingredients etc. Without these two criteria, Ferrero Nutella would not be able to sell through the trade.

Abnormalities

Everyone is familiar with Ferrero's collective image campaign for the Football World Cup and the European Championship in cooperation with the German Football Association (DFB). In 2005, FIFA wanted to prohibit Ferrero from using "Our DFB team at the 2006 World Cup", mainly the use of the brands "World Cup 2006", "World Cup Germany" and "Football World Cup Germany". The football organisation had had these terms protected under trademark law and had taken action against Ferrero. It was decided that FIFA ferrero cannot prohibit the use of the designation "World Cup 2006" in the overall designation "Our DFB team at the World Cup 2006".

The Company Ferrero leads under the umbrella brand "ki nder" many different products, e.g. ki nder Schokolade (chocolate bar), ki nder Schoko-Bons (filled chocolate eggs) or ki nder Riegel (filled chocolate bar). The company filed a complaint against competitor Haribo, whose product is called "Kinder Kram". The court rejected the claim that Ferrero could only claim the graphic design for itself, but not the word component "children". This word is purely descriptive and cannot claim trademark protection on its own.

Ferrero also filed a complaint against some domain names that had the term "children" in their domain. For example against an Austrian agency for online media MediaClan, whose domain is "kinder.at": Ferrero sued for the domain to be transferred, but this lawsuit failed.

Ferrero was successful in the lawsuit against the domain "gnutella.de". The domain was used to download free software, music, movies, etc. Due to impending costs, the previous operator signed a cease-and-desist declaration. The site is now offline. Ferrero justified herself by saying that Nutella's image is being damaged by no longer thinking of nut-noodle cream for children, but of copyright pirates and child friends.⁶

Other domain operators with the similar domain were also asked to sign a cease-and-desist declaration.

The company Ferrero donated about 255,646 € to the Hessian CDU, which did not appear in its accounts. They received a fine of €511,000. In addition, it was found that Ferrero had paid too little advance business tax for the production site in Stadtallendorf, Hessian, for years. Ferrero had to pay trade tax in the amount of 52 million marks. The interest gains that Ferrero generated as a result are estimated at 13 million marks.

[...]

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¹ Source: own presentation

² Information from the Statistisches Bundesamt (by e-mail), 05.11.2007

³ http://www.jvm-wozi.de/?page_id=5, 18.12.2007

⁴ Picture from the Galileo report " Das Wohnzimmer der Deutschen" (2005)

⁵ Ferrero Deutschland GmbH, Contact Person Public Relations Linda Egelseder; http://www.ferrero.de/ferrero2.aspx?pageurl=unternehmen/default.aspx, 26.09.07

⁶ http://www.heise.de/newsticker/meldung/15617, 30.09.07

• College: Wirtschaftsakademie Schleswig-Holstein
• Grade: 1.3
• Authors: Julia Hülsebeck (Author), Katrin Becker (Author)
• Publication Year: 2008
• Pages: 29
• Catalog Number: V1216450
• ISBN (PDF): 9783346628152
• Language: English
• Tags: marketing, nutella