Marketing Strategies and Brand Promotion for Nutella's Brand Community

Running Head: Marketing Strategies and Brand Promotion
NUTELLA’S BRAND
COMMUNITY

Marketing Strategies and Brand Promotion 1
Executive Summary
This report present’s the case of brand management of Nutella which is an Italian company
engaged in the business of manufacturing of hazelnut chocolate spread. The company has
successfully managed to maintain in brand in the market using various important branding
theories such as brand equity, brand resonance, brand positioning and brand valuation. Each
of these brand theories helped the company in creating its unique identity in the market. The
online brand community formation (My Nutella My Community) of the company through its
customer empowerment approach has allowed it to reach its maximum recognition in the
market. However, the said approach has always imposed a consistent risk of brand hijacking
on the company. Brand Hijack is the situation when the consumers take away the control over
the brand of company from the marketing professionals by re-appropriating it.

Marketing Strategies and Brand Promotion 2
Table of Contents
Executive Summary...............................................................................................................................1
Analysis of various concepts of branding:.............................................................................................4
Relevant Branding Theories:..................................................................................................................4
Question 1: Brand Community and its used to enhance brand equity:...................................................6
Question 2: Key marketing strategies that Nutella implemented to build its brand community:...........8
Question 3: Risks for Nutella in using customer empowerment" approach to creating a brand
community...........................................................................................................................................12
Recommendations:..............................................................................................................................13
References:..........................................................................................................................................14

Marketing Strategies and Brand Promotion 3
Analysis of various concepts of branding:
A brand is a name, design, symbol or a term that is used by the seller for the unique
identification of its product or services in the market so as to differentiate it from the products
or services of other sellers in the market. In the present case the concepts of brand
community, brand loyalty and brand equity are analysed as these concepts are closely
connected with the brand management system of any organisation. However, with the
creation of brand communities with its customers, the company has to face the risk of brand
hijacking throughout the life of its product.
Relevant Branding Theories:
Strategic brand management of a company mainly comprises of various branding theories
which ultimately leads to creating brand equity for the firm. These theories are:
Brand positioning:
This theory is directly related to the success or downfall of the brand in the international
markets. When the company decides its target market it needs to draw the basis to position its
market by defining clearly the points of parity and differences.
Brand resonance:
This theory reveals the companies relevant ways to maintain sound relationships with its
customers.
Brand elements: