Analysis of the Nutella Case Study on Brand Community and Consumer Empowerment

This report analyses the Nutella case study on brand community and consumer empowerment. It discusses the marketing strategies used by Nutella, risks related to consumer empowerment, and issues faced by Nutella in implementing brand community.

Running head: ANALYSIS OF THE CASE STUDY
ANALYSIS OF THE CASE STUDY
Name of the Student
Name of the University
Author Note

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ANALYSIS OF THE CASE STUDY
Executive Summary
The report is based on the analysis of the case study of Nutella which has applied the concept
of brand community for creating a loyal customer base. The ways by which the online
communities are used by the marketers is also analysed in the report. The marketing
strategies that have been used by Nutella in the case study is analysed. The risks that are
related to the use of consumer empowerment is examined in the report. The analysis also
details about the issues that have been faced by Nutella in the implementation of brand
community.

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ANALYSIS OF THE CASE STUDY
Table of Contents
Overview of the case study............................................................................................3
Analysis of the relevant branding theory.......................................................................3
Ability to link relevant branding theory with practical issues in the case.....................4
Solutions to the case study questions.............................................................................5
Answer to Question 1.................................................................................................5
Answer to Question 2.................................................................................................5
Answer to Question 3.................................................................................................6
References......................................................................................................................7

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ANALYSIS OF THE CASE STUDY
Overview of the case study
The case study is mainly based on the concept of brand community that has been
developed by the organizations which provide products that are targeted towards a niche
market. The marketers have many doubts regarding the effectiveness of brand community for
the purpose of providing advantages to the organizations. The ownership that is claimed by
the members of the brand community on the companies or the brand of which they are a part
is a major issue that has been described in the case. The process of consumer empowerment
has thereby led to another which is termed as brand hijack (Cova & Pace, 2006). The
marketers of the organization have lost control over the ways by which the brand will be
represented in the industry. The customers who are a part of the communities have taken
control of the ways by which the brand will be represented among the members. The case
study is totally based on the research of the experience of Nutella based on the ways by
which the “my Nutella The Community” had been created in the year 2004. The
empowerment of consumers was a major issue that was being faced by Ferrero and its brand
Nutella. The strategy that was appointed by Nutella in Italy has been a major focus in the case
(Cova & Pace, 2006).
Analysis of the relevant branding theory
Consumer empowerment – The opinion that the customers have about the products of
a brand or an organization is important for the productivity of the organizations. The
customers were not given importance by the traditional business organizations. However, the
consumers have gained much more importance in the recent business environment. The
companies have also started listening to the issues that are faced by the consumers regarding
the products and services. This has given importance to the concept of consumer

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ANALYSIS OF THE CASE STUDY
empowerment. The major brands have started providing high levels of importance to the
consumers and their desires as well. The concept of consumer empowerment exists is all
types of modern organizations has gained utmost importance in various industries (Keller,
2003).
Brand hijack – Brand hijacking can also be termed as brandjacking. This term mainly
combines the notions that are related to branding and hijacking. The process of brand
hijacking can be defined as the ways by which a particular brand and the perceptions about
the brand can be changed in an effective manner. A brand hijacker may try to use the
reputation that has been created by a brand for some selfish reasons (West, Ford & Ibrahim,
2015).
Brand repositioning – The concept of brand repositioning is mainly based on the ways
by which the brands are able to change the ways by which customers associate with the
products and the services that are offered by the brand. This process further helps in changing
the notion of the brand and the features that are offered to the customers. The brand thereby
tries to communicate with the customers with the help of the changed promises and features
(Menon et al., 2015).
Ability to link relevant branding theory with practical issues in the case
The consumer empowerment based theory has been implemented in the case of
Nutella where the company had created a community for the purpose of empowering the
various communities in Italy who were not able to associate themselves with the products that
are offered by Nutella. The tribal branding process has been undertaken by Ferrero to create a
new base of customers in the country within a short period of time (Morgan, Pritchard &
Piggott, 2002).

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ANALYSIS OF THE CASE STUDY
The brand hijacking based issue was faced by Ferrero after the brand communities
were created and the products were promoted among the tribal groups in the country. The
notion that the consumers had about the brand were highly affected by the opinions that were
provided in the personal pages. The fans of the company were thereby able to create a new
thought about the products that are offered by Nutella in the community page (Cova & Pace,
2006).
Solutions to the case study questions
Answer to Question 1
Brand community is mainly a community that is formed by judging the basis of the
attachment of the consumers with the products or the brand itself. The modern business
organizations have provided a lot of stress on the ways by which the brands are perceived and
the communities are created. The behaviour of the consumers towards the brand is an
important part of the entire concept of brand community. The brand community based
concept mainly focusses on the connections that have been created among the consumers.
The consumers who are a part of the brand community mainly share similar interests related
to the brand. The members of the community mainly share a collective identity among
themselves. The marketers of an organization refer to the term brand community as the
customers and the fans of the brands (Chernatony & Riley, 1998).
The marketers of an organization are capable of using the brand communities for the
purpose of increasing the number of loyal customers. The increase in the loyal customer base
will further help in increasing the profitability of the organization and the ways by which it
operates in the environment. The brand equity is also increased in an effective manner with
the help of the loyal customers of the brand. The marketers can use the brand communities

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ANALYSIS OF THE CASE STUDY
for the purpose of increasing the customer base and providing the products and services that
are desired by the members of the community (Cova & Pace, 2006).
Answer to Question 2
Ferrero has a huge customer base in Italy as more than 90% of the population of the
country is known to use the product Nutella. The company had thereby taken the community
approach in this country for the purpose of promoting the brand in an effective manner. The
health related values that were provided by the product were used for the purpose of creating
a community. The relationship of the company with the internet was also improved for the
purpose of increasing the brand value. The organization has become much more open to the
huge opportunities that are provided by the internet. The company thereby used the internet
for creating the community named “My Nutella Fans” (Robertson, 1989). The customers or
the fans were able to create their personal pages so that they are able to connect with the
company and provide their valuable inputs. The fans are also able to narrate their daily lives
with the usage of Nutella with the help of these personal pages. The fans are also able to form
online clubs which can help them to interact with each other even without meeting. The
concept of consumer empowerment was implemented by Ferrero so that they are able to
create their own perceptions about the brand (Cova & Pace, 2006).
Answer to Question 3
Ferrero had taken a risky step by providing power of the consumers who have the
capability to reshape the entire brand. The risk that has been taken by the company has been
effective as the consumers have become an integral part of the entire operations. The process
of two step marketing has been implemented in an effective manner by Nutella. The Nutella
community includes the processes of both mass marketing and mini marketing as well. The
consumers have been able to explore the brand effectively which is the main reason behind
the success of the strategy (Cova & Pace, 2006). The website is however facing some major

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issues from those consumers who have been posting their pictures just for the purpose of
gaining attention and has not been able to provide any benefit to the company itself. The
analysis has however depicted that the online communities are not able to provide all the
major benefits that can be gained by the offline communities which can help in analysing the
real life experience of people who are a part of the consumer group (McQuiston, 2004).
References
Chernatony, L. de, & Riley, F. D. (1998). Defining a ‘brand’?: beyond the literature with
experts’ interpretations. Journal of Marketing Management, 14(5), 417–443.
doi:10.1362/026725798784867798 ISSN: 0267257X
Cova, B., & Pace, S. (2006). Brand community of convenience products: new forms of
customer empowerment–the case “my Nutella The Community”. European Journal
of Marketing, 40(9/10), 1087-1105.
Keller, K. L. (2003). Brand synthesis?: the multidimensionality of brand knowledge. Journal
of Consumer Research, 29(4), 595–600. doi:10.1086/346254 ISSN: 00935301
McQuiston, D. H. (2004). Successful branding of a commodity product: The case of RAEX
LASER steel. Industrial Marketing Management, 33(4), 345–354.
doi:10.1016/j.indmarman.2003.07.001 ISSN: 00198501
Morgan, N., Pritchard, A., & Piggott, R. (2002). New Zealand, 100% Pure. The creation of a
powerful niche destination brand. Journal of Brand Management; London, 9(4/5),
335–354. Retrieved from
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Robertson, K. (1989). Strategically desirable brand name characteristics. The Journal of
Consumer Marketing; Santa Barbara, 6(4), 61–71. Retrieved from https://search-
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