Marketing Strategy Analysis for Ferrero Group (Course: Marketing)

This report provides a detailed analysis of the marketing strategies employed by the Ferrero Group, a prominent player in the confectionery market. It begins with an executive summary and an introduction to the company's marketing approach. The report then delves into environmental analysis, utilizing PESTLE analysis to assess the socio-cultural, technological, and other external factors influencing the business. Current marketing strategies are compared to those of competitors like Cadbury, focusing on the marketing mix elements: product, price, place, promotion, people, process, and physical evidence. The Ansoff matrix is applied to evaluate market penetration, product development, market development, and diversification strategies. A USP (Unique Selling Proposition) analysis is conducted to identify Ferrero's competitive advantages. The report examines the company's performance, including financial statements, product offerings, and competitive positioning. Furthermore, it explores the BCG matrix, STP (Segmentation, Targeting, and Positioning), marketing objectives, and potential new product features. Finally, the report concludes with recommendations for effective marketing strategies to enhance the company's future profitability and sustainability.

Marketing Strategy for
Ferrero Group

EXECUTIVE SUMMARY
The project summary is all about explaining marketing strategies of Ferrero chocolates. It
covers various aspects of that can help in increasing market share and growth for the company.
In order to analysis there performance Ansoff matrix and share matrix is being used. After
evaluating there market situation various useful suggestion is made to make business more
profitable in coming times. The need to cut down there prices of product as they are little at
higher side. Because in some nation, it is difficult to grab maximum customer because they are
more prices sensitive. The overall project is delivering positive outcomes for the company.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Environmental analysis..........................................................................................................1
Current marketing strategies...................................................................................................3
Ansoff matrix .........................................................................................................................4
USP analysis...........................................................................................................................4
Performance of the company:.................................................................................................4
Analysis of competitive advantage.........................................................................................5
PART 2............................................................................................................................................6
Product rationale and specification........................................................................................6
BCG matrix of Ferrero group.................................................................................................8
STP (Segmentation, Targeting and positioning)....................................................................9
Marketing objectives and goals............................................................................................11
Feature and benefits of a new products: ..............................................................................12
Recommendation and use of effective marketing strategies................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Marketing strategy is a systematic game plan through which company can introduce their
products in the market. The strategies of Ferrero group contains value proposition, key marketing
messages, information about target customers and other aspects. It informs the marketing plan
which is a document that lays various types and timing of market activities. In short, it is an
action plan that is designed to promote and sell products and services into various destinations.
This project explains about various strategies those are used by Ferrero group in order to increase
their productivity as well as growth (Andres Coca-Stefaniak, Parker and Rees, 2010). It consists
of marketing audit of current market strategies and position regarding their products that are
available in the market. Evaluation of brand competitive edge with other competitors are
analysed effectively. Determination target segment, objectives and benefits of new products are
examine under this. Overall, analysis is presented by providing recommendations that can help in
attaining the future profit and sustainability for company.
PART 1
Environmental analysis
Market is a place where there is gathering of people for the purchase and sale of
provision and other products. The demand of customers varies according to their tastes and
preferences. In order to cope up with their particular needs, company makes well organised
strategies according to the demand of customers. A marketing strategy grows out of Ferrero
group's value proposition. It can help them to gain competitive advantages over competitors that
are selling the same kind of products. The demand of chocolates is seen in almost every age
group such as children and young people. The market share of chocolates is high as compared to
other confectionery items.
According to its durability, confectionery market can be divided into various categories
such as chocolates, sugar, gum cereal bars and other items. Major part of raw material is used in
the formulation of chocolates i.e. cocoa and sugar (Bosomworth, 2015). It has been seen in the
UK that manufacturers use better components as it is an easier way to rising nation will have an
effect on growth of confectionery market. Marketing research report on chocolate confectionery
sector consists of market audit, industry analysis and total size of data. But in order to introduce
new product into the same segment, Ferrero needs to conduct effective environmental analysis so
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that they can go with current requirements of customer’s tastes which are demanded by them. In
order to analyse the current situation, well organised environmental analysis is required to be
done. It is a process to determine all external and internal components that are affecting the
business. Analysis entails assessing various opportunities and threats that are presented with the
business. As, market changes continuously every times and at the same time taste and need of
customers are also varies (Shankar, Carpenter and Farley, 2012). These factors can help in
controlling all those effects which are affecting the business growth.
PESTLE analysis of Ferrero group
As it has been identified that Ferrero is one of the world’s well recognised confectionery
brands which is consists of production, distribution and marketing of chocolates related
commodities. It has been notified that Ferrero is having more than 38 operating companies at
international level which are connected directly or indirectly with 14 factories at the global level.
It can be recommended that company is generating global entity with turnover in access of
$9,142.9 million. There are about 21600 people that are currently working in this company. In
order to evaluate environment analysis of Ferrero follows aspects are explain underneath:
Socio-cultural: It has been observed that change is an effective indicator that helps in
increasing the market share of chocolates (Mohaghar and et. al., 2012). As, its is core business
of ferrero group is related in chocolate business. It has been predicted that more than 54% is the
target of company to provide products to its customers. It has been seen that any improvement
that are taking place at external department of Ferrero that could impact on the new strategies.
Like for example, if the birth rate fall, expectancy will be enhance. Because of this, huge demand
on confectionery items will increase for middle level customers. While, if the birth rate will
increase it assume that demand of chocolates can maximum in young people. In some situation,
fashion can be the other aspects that can change people taste and there mind set.
Technological: As technology is making huge impacts on every possible segment of the
business. Such as operations, supply chain management and distribution that are aimed at
incurring cost efficiency for the company. With the help of internet, innovation and creativity in
large variety of chocolates can be gained. In the current market trend manufacturing is more
high. It is all because of high technology machines and equipment. It will also help factories to
change high quality of production. Internet is a perfect place to sell various products such as
confectionery items (Borland and Lindgreen, 2013).
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Current marketing strategies
Comparison of marketing mix
MARKETING MIX FERRERO Group CADBURY
Product It is associated with production
of unique products taste mix
with hazelnut and other essential
ingredients that can enhance the
essence of chocolates like
Nutella, Ferrero Rocher, kinder
Joy and tic-tac etc.
It is related with the production of
various chocolates products such as
Dairy milk, 5 star, Eclairs, perk and
gems. These are one of the finest
product which are manufactured by
this company.
Price The presence of their products
are at international level. People
can easily get it from there near
store, malls and other shops.
It is more common for every buyer
because they can find it from
everywhere. It is easily available to
local as well as global market.
Place The presence of there products
are in international level. People
can easily get from near store,
malls and other shops.
It is more common for every buyer
because they can find it from every
where. It is easily available to local
as well as global market.
Promotion They connect with customer by
the way of utilised media and
TV or parts such as sponsorship
partners.
They used to do both below and
above the line promotions. It can
be done through newspaper and
hoarding, etc.
People There are various skilled people
are working with this company
in order to deliver more
effective outcomes for them.
All people those are directly or
indirectly impact the sensed value
of product and services that
consists of workers skills and
employees attitudes.
Process It has been seen that deliver of
products are more often done
It is associated with total amount of
cost customer is ready to pay for
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with customer presence. the products are determine under
this.
Physical evidence Every intelligent aspects those
are related with customers are
included under this process.
It is the material part of a service. It
does not have any physical
attributes to a service so customer
tends to trust on product evidence.
Ansoff matrix
Penetration: It is situation in which marketers tries to sell the current product to its
present customers. It can be attain through multiple ways. Like for example: changing pricing or
by including some minor feature into latest brand of chocolates.
Product Development: Ferrero rocher implemented chocolates chips and crunch bite in
their outlets in order to achieve its current customers. Most of whom were becoming more health
conscious. As they are exactly opposite of Ferrero products.
Market development: Introducing existing goods in various marketplace is perhaps one
of the crucial used planning to exact full advantages of a successful project.
Diversification: It is kind of situation in which market introduces completely new
products to a entirely new market. According to demand and taste of customers Ferrero company
has decided to shift there business into various parts of the nation.
USP analysis
A unique selling proposition can make business stand out from the total population.
Developing a USP starts with selecting targeting audience. According to mention company
which is operating in chocolates sector so there target customers will be all age group people. It
will be helpful in order to pull out one or two things that can make organisation more effective
(Lusch and Webster Jr, 2011). It can be determine through preparing a complete list of
competitors those are operating in same business. It would be effective in marketing strategy
formulation in order to identify demand of customers.
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Performance of the company:
The Ferrero group presented its consolidated financial statements as on year ended 31st
August,2016 with a turnover of 10.3 billion Euro. They are generated an essential increase in
sales. They are continuing to boost investment in its brand value and maintain wide level of
operating income as well as internal department. The Net sale of finished goods were seen great
increase. The company is making sufficient amount of expansion of its production capacity with
total investment around 631m. Ferrero is the leading confectioner with a well effective share of
5% behind Mondelez, Mars and Nestle (Zeriti and et. al., 2014). Profitability rate of the company
is more efficient in recent time as compare to previous year.
List of products manufactured by Frrero are as under:
 Mon cheri
 Rocher
 Pocket coffee
 kuccschen
 Raffaello
 Giotto
 Rondnoir
Competitors vs Rogers chocolates
Products Quality Pricing Packaging
Godiva below higher Modern
Bernard Callebaut high High Superior
Lindt Less then 50% Minimum Mid range
Purdy's Lower Low Very good
Analysis of competitive advantage
To have a competitive advantages, a company need to have efficient and effective
business system that can separate them from other competitors. As in 2015, it has been seen that
Ferrero is one of the fastest growing company in chocolates segment in the world. The have the
total net sale of 10911 m. Its product differentiation is more close to impressive. It has been seen
that Ferrero has purchased Oltan Group which is the worlds largest hazelnut producers.
However, they are securing their future competitive advantage and make proper measure for its
production from last few decades. They are directly or indirectly associated with their
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positioning and market share. The wide size of Ferrero group can be the competitive benefits
because they are available at any near shops, supermarket and departmental store in the market
which they are operated. It is very traditionally based company so they tried to make attractive
products in order to increase their brand image.
They are having a sustainable competitive advantage is that they are one of top most five
more secretive companies in chocolates business. The quality of product manufacturing is more
hardly known to anyone. There are various engineers those are responsible for making product
design and develop their own machine for developing chocolates.
Table: 1 Showing growth performance of various products
Products Company 2016 2017
Ferrero Rocher Ferrero Ltd 15.51 16.21
Kitkat Nestle company 7.67 7.69
Snickers Mars foods Inc 3.86 4.12
Cadbury's Daily Milk Cadbury Singapore Pvt Ltd 2.85 2.92
F errero R oc h er K itk a t S n ic k ers C a d b u ry 's D a ily
Milk
0
5
1 0
1 5
2 0
2 5
3 0
3 5
1 5 .5 1
7 .6 7 3 .8 6 2 .8 5
1 6 .2 1
7 .6 9
4 .1 2 2 .9 2
C o lu m n c h a rt
Pro d u c t g ro w th ra te
2 0 1 7 2 0 1 6
From the above chart, it has been seen that Ferrero company is having more sufficient
and effective growth potential as compare to other products. They are getting great chance of
gaining competitive advantages over other products of the company.
Brand awareness: According to the implementation of new chocolates into the market in
order to increase revenue and market share of the company. This can only be possible through
providing more attractive cover of rapper. Such as it was mention in the Kinder Joy chocolates.
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PART 2
Product rationale and specification
Owing to a huge market industry expertise and knowledge of this particular business.
They are delivering more delicious and attractive feature products to its customers. In accordance
with the well set standards of FMCG sector, this array is a processed through using perfect
ingredients (Nobre and Silva, 2014). Also, they are responsible for offering several packing
options for wide range of products to there customers. It consists of following features such as:
 Rich Aroma: They are offering good essence of aroma in chocolates product those are
being offered by Ferrero to its customers.
 Optimum freshness: The main aim of company is to provide more fresh ingredients into
the product so that they can last for long time.
 Pure: The manufacture need to keep in mind that product must be pure and of best quality
so that it would be beneficial for them.
Anatomy of the brand: Kinder Bueno
Ferrero is dealing in wide range of products and Kinder is one of them. Generally, they
used to target children (Ferrell and et. al., 2010). Because, they are more interested in having
such kind of things. Likewise, they used to demand those products after seeing ads on TV.
 Target: They are mostly used to deliver these products to adults. They used to have these
product at many time whether in morning and evening. The target is to attract more kids
as they are more attracted and habitual to eat maximum chocolates.
 Assets: It is easy to determine Kinder Bueno by its two cream nuts bars, coated with
chocolates and wrapped up in a white and red message.
 Heritage: Kinder Bueno is known as kinder brand, basically, German belongs to have it.
Ferrero is the world leader on chocolates confectionery market in super and hyper
markets. The core market of this particular company is the children and youth those belongs to
7yr and 30yr old. Some products are basically, made after targeting families and sharing
moments.
According the current situation in the market. The company has decided to launch a new
product into the market. It would be associated with the combination of chocolates and chips. As,
it has been observe that plenty of other products are already present in the market. It is difficult
to get complete new ideas that can meet out customer needs and wants. By looking every
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aspects of market trend it has decided to introduce complete new product that can help in
increasing goodwill for the company.
New product name: Choco chips biscuits
Target market: Such kind of products are offer to kids among the age group of 5 to 10 those are
more interested in biscuits. They are responsible for consuming maximum products.
Location: It is available to supermarkets, malls and other grocery stores.
Cost: The best suitable prices that can be affordable to every customers. It would be 2 to 5
pound.
With the implementation of new packaging of chocolates chips
BCG matrix of Ferrero group
The BCG techniques can help in order to analyse the product portfolio of Ferrero group
which is shown underneath:
Illustration 1: BCG matrix for Chocolate
(Source: BCG martrix, 2010)
Cash cow: There are few products that tends to offer huge deal of financial strength to a
company which is termed as cash cow (Laroche, 2010). These products have been high acting
products in the previous year and have gained huge market share over the time. The Ferrero
segment has been a cash cow for the company in recent past as customer had huge demand for
chocolates. But it has shifted toward growth. With the implementation of new choco chips
biscuits they can increase there market share and profitability can be enhance.
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Star: Those product which are having growth potential of the industry and have good
market share has great chance of future benefits in the form of sales and revenue. Ferrero had
been able to incur a great deal of financial income from its chocolates segment. Because of new
product they can improve there segment. It is one of the important aspects that can help them to
enhance the productivity of an organization.
Question mark: With high profit generating from sale of their products there are some
goods that are not being a sources of capital stability for a firm. Under this, firm divide those
products which are not generating sufficient amount of profitability (Harris and Rae, 2010).
Investing resources in this product can be more helpful for the company's in order to incur high
market share. It has been seen that in order to protect the other products they need to take few
decision by introducing new products into the market.
Dogs: It is said to be declining stage, in this products those are consuming organisational
resources but are not able to generate more return on investment. On of the main reason, price of
chocolates are more higher than from other chocolates company.
STP(Segmentation, Targeting and positioning)
Market segmentation is perfect marketing strategies that consists of various subset of
consumers, businesses or nation those are having more common needs, interest and priorities. It
is basically based on business situation, existing and potential customers requirement. The group
is divided into small sub units based on some specific characterised. One of the main aspects of
doing segmentation is that it provide useful information to match the buyer things with there
requirements. In accordance with the segmentation of choco chips biscuits, it is crucial for
Ferrero to initially analyse the market. It is done in order to determine viability or whether they
can make any profit for the company in coming time. There are various ways through which
segmentation can be done. Such as:
 Geographic segmentation: It is categories into market on the basis of geography. Such
types of segmentation is essential for marketers as customers are associated with different
region and have their own requirements. Like example: In case of chocolates business
they need to provide products in every parts of geographical areas. There products is
commonly found more in developed and developing countries. It can be available in
supermarkets and departmental stores not very less in convenient store and common
shops. This brings us perfect solution which is perfect for developed neighbourhoods.
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