Marketing Communication Report: Ferrero Nutella UK Marketing Strategy

This report provides a comprehensive analysis of Ferrero's Nutella marketing strategy within the UK market. It begins with an introduction to marketing communication and its significance in business success, followed by an overview of the Ferrero Company and its product range, with a specific focus on Nutella. The report analyzes Nutella's target market, particularly in the UK, and evaluates the effectiveness of various marketing communication tools like advertising, sales promotion, public relations, direct marketing, and personal selling. It also examines the characteristics of Nutella and its nutritional benefits. A SWOT analysis is conducted to assess the company's strengths, weaknesses, opportunities, and threats. The marketing mix, including product, price, place, and promotion strategies, is detailed. Furthermore, the report applies Porter's Five Forces model to analyze the competitive landscape in the UK market. The report concludes with a strategic marketing communication plan designed to effectively market Nutella in the UK.

Marketing Communication

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
a. Analysis the organisation's range of products and analysis of the specific product................1
b. Devise a strategic marketing communication plan to market the product in the UK..............6
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Marketing communication plays an important role in business success. It also helps in
building and maintaining relationship with customers, prospects and other important
stakeholders within the organisation (Jaichuen, Vongmongkol and Tangcharoensathien, 2019).
Advertisement and sales promotion continue to play important roles in the marketing
communication mix. Present study is based on Ferrero Company, which is food industry and
own different kinds of products and services. Furthermore, they are branded for chocolate and
confectionery products which is the second biggest chocolate producer company in the whole
world.
Present study consist of discussion on organisation's range of products and analysis
specific product which produced by the company. Furthermore, it covers product and profiling
within the target market. Therefore, it considered critically evaluates characteristics, features and
effectiveness of the marketing communication tools within the selected business enterprise. In
addition to this, report devise strategic marketing communication plan in the market for the
selected product that is Nutella.
MAIN BODY
a. Analysis the organisation's range of products and analysis of the specific product
Ferrero Company consist their functions and operations in manufacturing of branded
chocolates and confectionery products. It is second biggest company who produce chocolates in
the whole world. The company provides different kinds of products that assists to lead with
significant advantages to deliver it in larger market. For example, hazelnut spread, pocket coffee,
etc.
Nutella is a good quality chocolate which is successfully owned by Ferrero Company.
This product is produced by the company from 1964. Therefore, they continuously determine
development of the organisation with annual hazelnut supply. Main ingredients of Nutella
consist sugar and palm oil. It also includes cocoa solids and skimmed milk. This product is
marketed as hazelnut cream in different nations. This product of Ferrero Company is good
because it contain several nutritious which generally includes vitamins and minerals that are
needed for good health (Koschate-Fischer, Huber and Hoyer, 2016).
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Target market: Main target market of Nutella product is UK. In this consideration,
different people such as female and male for school children between age group of 5 to 14 years,
teenagers and college students are generally targeted by Ferrero Company. In this regard, it can
be stated that all kinds of people are targeted in UK by the company.
Features and effectiveness of marketing communication tools in Ferrero Company
Features of marketing communication tools
In Ferrero Company, generally it aids in promote the organisation in high level that is
useful to lead success and positive outcomes (Al-Haroon, Haroun and Yahiaoui, 2017).
Following are different kinds of marketing communication tools that assists in developing
significant advantages and effectiveness in the business: Advertising: Advertising is the highly usable marketing communication tool that assists
to provide message to target audience. In this context, Ferrero Company can use different
types of advertising such as magazine, radio, internet advertising, newspaper, etc. It is the
most effective source that assists to lead in general formula AIDA (attention, interest,
desire and action). In this context, the chosen business will get success to promote their
Nutella product in larger market (Koschate-Fischer, Huber and Hoyer, 2016). Sales promotion: As critical evaluation, sales promotion is one of the another useful way
that helps to determine effective communication marketing tool. In this consideration,
products demonstrates, contests, display, free sample, etc. Generally, Ferrero Company
use this method to promote their Nutella with buy one get one, coupons and other kind of
alternative. Main goal of this tool is to set short term sales which increasing awareness
within successful brand. Therefore, company strive to build successful results (Jaichuen,
Vongmongkol and Tangcharoensathien, 2019). Public relations: However, public relations is one of the important marketing
communication tool that assists in business to ensure positive business results. In this
regard, public image develop with largest online business resources for Nutella. The main
goal behind this is help customers to better understand company and its products. It is
generally includes interviews, press releases and sponsorship of major sporting events
(Thaichon, Jebarajakirthy and Gajbhiyeb, 2018). Direct marketing: Direct marketing is another way of effective communication
marketing tool. It can be include mail and email promotion. Therefore, it considered
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catalogues with direct response promotions on radio and television (Thaichon,
Jebarajakirthy and Gajbhiyeb, 2018). For instance, Ferrero Company can promote their
Nutella with using direct marketing on these tools. Result of this is that direct marketing
can be easily measure unlike most communication marketing tool.
 Personal selling: Personal selling is another way that is highly pervasive communication
marketing tool. In this consideration, companies consider inside and outside sales to
market their products to consumers and enterprises. Main advantage of this tool in
Ferrero Company is that it consider two way communication. Hence, consumer can ask
questions easily towards products and services then they can make decisions to buy it
(Marjanova, Sofijanova and Temjanovski, 2017).
Effectiveness of marketing communication tools
 Marketing communication tools considered promotion of business products in different
areas of the world so that several customers will be attracted in the enterprise easily.
 Furthermore, in Ferrero Company different tools and techniques has been used that
assists to identifying types of marketing communication tool that assists to address
knowledge gaps.
 This also assists to examine benefits of Nutella in different areas of the world that assists
to lead in respective manner.
Characteristics of Nutella
 Nutella product is created with cheaper alternative to chocolate which is combining
hazenuts that are easily available locally and little cocoa (Nagyová, Kosiciarová and
Sedliaková, 2017).
 As critical evaluation, this product began life as a solid block which consider sliced and
served on bread but after this it contain spreadable version which called supercrema.
 The Nutella consist iron and calcium so that it assists to fulfil needs of calcium among
several people. Iron assists in body to make red blood cells that assists in health of
immune system. However, it also supports in health to make bones and teeth with
reducing blood pressure as well. Getting plenty of calcium also reduce risk of stroke and
cancer (Colley, Fretwell and Bourdeau, 2017).
Marketing theories :
SWOT analysis
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Strength Weaknesses
 Ferrero Company is consist their
operations and functions in all over the
world so that it assists to lead more
success and positive outcomes in the
business.
 In this regard, strong brand availability
helps to maintain high customer loyalty
for Nutella.
 In addition to this, another strength of
the company is attractive packaging
and quality products which assists to
the company to deal in large areas of
the world.
 It is globally available so that
renewable energy consist important
role.
 Along with this, chocolates of the
company is ideal for gifting so that it
demonstrate effective consideration.
 However, there are several weaknesses
that possess in the business which
impact negatively on the results.
 In this regard, it can be stated that
strong competition exists in the market
which create impact on product Nutella
of Ferrero Company.
 Therefore, there is limited market
share.
 Many chocolates brands in the market
considered high brand switching which
create negative impact on the results.
Opportunities Threats
 Ferrero company possess several
opportunities that impact positively on
its functions and operations.
 In this regard, it can be stated that the
company can easily introduce new
varieties of chocolates in all over the
world.
 In this regard, advertisement considered
on different platforms which is useful
 Moreover, Ferrero Company has threat
of high competition in the market.
 Therefore, in this consideration fear of
cheaper imitations, health
consciousness amongst people and
unstable global economic condition is
threat in front of the organisation
towards Nutella.
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to deal innovative functions and
operations.
Marketing mix Product: Ferrero Company is the premium luxuries chocolate products which is usually
provide as gift on special occasion. Main ingredients in this consideration includes
sugar,chocolate, cocoa butter, emulsifier and salt, wheat flour, etc. The Ferrero Rocher
chocolates is ball which consist number of layers. Inner most is hazelnut chocolate which
is the form of ball inside. It is coated with thin wafer shell. It is another coating milk
chocolate with bits of hazelnut (Colley, Fretwell and Bourdeau, 2017). Price: Ferrero Company provides premium products so that price is higher than the other
usual chocolates. Ingredients also considered expensive in form which add to the cost of
the product. They are also faces competition from companies so that they can lead in a
competitive market. In this regard, different businesses exists to whom the company
compete such as Cadbury, Nestle, Hershey, etc. (Al-Haroon, Haroun and Yahiaoui,
2017). Along with this, the company demonstrate premium brand that helps to lead in
success and to put luxurious bracket. Prices are generally lower when they are purchased
products with online method as compare to other retail store. Marketing mix pricing
strategy is premium strategy which assists to target large society (Nagyová, Kosiciarová
and Sedliaková, 2017). Place: The chosen company deals in prestige products so that there is availability of
select locations. It is generally available in malls and large supermarkets where people
can easily upscale areas. The chosen company has also availability of online in e-
commerce platforms so that they can deal in discount which is generally obtained for
Nutella. Ferrero Company has several production plant locations in more than 22 areas
across the 5 continents so that they are selling their chocolates in more than 170
countries. Furthermore, the company also employ to forecasting strengthen and monitor
with its distribution network. Promotion: There are several ways that can be adopted by Ferrero Company to promote
their products and services in international market. In this consideration, the chosen
business crafted and very appealing especially with golden wrapper. The chocolates is
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also available in different kinds of boxes so that different shapes of boxes also assists to
convey right message (Marjanova, Sofijanova and Temjanovski, 2017). Bell shaped and
pyramid shaped boxes are generally used for packaging in special occasion such as
Christmas. Therefore, each person promote Ferrero Rocher aggressively in festive
season. The selected company also advertises heavily on television so that it assists to
deal in large consideration. Furthermore, they are also using print media such as
newspapers and traditional channels in different nations. It helps to complete provide
different fashion weeks which assists on developing significant advantages in large areas
of the market.
Porter five forces model Competitive rivalry (High): In the UK market, there are several other businesses that
offer products and services same as Ferrero Company. Therefore, it considered high
competition in the market which is intense then it becomes difficult for existing players.
This is because, they are generally demonstrate hazelnuts to earn sustainable profitability.
For example,there are several other business exist that compete such as Nestle, Cadbury,
etc. Bargaining power of buyer (Low): Ferrero Company company demonstrate quality in
Nutella so that bargaining power of customers is quite low. This is because, every
customer demand for quality products which can be done through developing significant
advantages that is generally lead with gaining potential advantages from the large areas.
In other words, bargaining power is generally drives down with limiting potential of
hazelnuts. Bargaining power of supplier (Moderate): Suppliers of the chosen company possess
moderate bargaining power because there are different products considered by different
businesses that are same as Nutella. Therefore, it can be stated that moderate power of
bargaining extract higher price from the other products. Threat of new entrants (High): In the UK, there are different business take place so
there is high threat of new entrants. This is because, several other organisations take place
in the country which create impact on Nutella. In addition to this, it can be stated that due
to high threat of new entrants, the company is currently playing major role to earn less
profits which reduce threat.
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 Threat of substitute (Moderate): When threat of substitute is high, the chosen company
need to considered continuous research and development program. It create major impact
on the country's operations and functions. With this regard, it can be stated that there is
high risk for losing out to disruptors in the industry. Ferrero Company provide quality of
products so that they have moderate threat of substitute products for their chocolates.
b. Devise a strategic marketing communication plan to market the product in the UK
Marketing communication plan consist of promotion of selected product of company in
different areas of the country (Jovanov-Marjanova, Davcev and Boeva, 2016). To build great
company, it can be stated that Ferrero Company considered their promotion of Nutella in UK.
Therefore, it contain following elements to promote:
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Illustration 1: Porter five forces model
(Source: Porter five forces model)

Goals and objectives: Strategic messaging and planning assists to reduce negative impact from
the business. In this regard, it can be stated that Ferrero Company has advantage to make desired
level results with targeted customers to create appropriate customer base. The chosen company
has goal to increase customer attraction with providing Nutella products to their different age
group of people (Boelsen-Robinson, Backholer and Peeters, 2015). In all areas of UK All target
customers for Nutella are specific so that certain value of products successfully develop.
Prospects also show perception about the products so that it create long value to build perception
from content of website. However, due to high competition, the selected business need to face
more competition in the market. The selected business also put more efforts that will required to
change formed perception which is unconvinced people of a matter (Jovanov-Marjanova,
Davcev and Boeva, 2016). If the selected business is looking to increase excellent sales, it can be
stated that information is concerning which is differentiating for target customers. It includes
different kinds of product offering and description which assists to gain more success in business
(Marjanova, Sofijanova and Temjanovski, 2017).
Target audience: Each person is aware about product and market fit. It revolves around to get
high demand towards products to offer in large market as UK in which positive operations in
growing continuously. In this regard, many people tend to get right product and market fit into
message and customer. Target audience of the selected business is 5 to 14 years age group,
college students, teenager. Nutella is developing for different types and age group of children so
that new products continuously develop when they are trying to convince the customers to
purchase it. In this way, Ferrero Company need to relate company with market so that
management of an organisation look for develop and test which fits in particular tasks. In
organising business, business has right and wrong way to better place and handle certain issues
and problems to meet with needs (Koschate-Fischer, Huber and Hoyer, 2016). Another step of
strategic marketing communication consist assessment of message effectiveness. It is not easy
task to identify whether message is effective or not. In this context, Ferrero Company analyse all
metrics which can imagine to demonstrate it. Consistency is vital attribute for strategic
messaging. Any simple and highly consistent message always fruitful. Therefore, it is one of the
important to maintain consistency to talk about products and compare with different aspects
(Wu, Wen and Chen, 2015).
Strategies
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In order to promote products in international market, there are different ways to
communicate right message to target audience. In this consideration, it can be state that
advertising, sales promotion, newspapers, magazines, internet marketing, etc. tools generally
used to carry promotion of product in different areas of UK. From these, the company using
advertisement which would be helpful to consider expansion of business in large consideration.
In different areas they continuously advertise their products to get positive customer attention.
Strategic messaging is a form of communication that is value based and companies use it with
interaction which possessed with stakeholders. These are employees, partners, investors,
prospects, etc. It also create awareness of value of the products Nutella in Ferrero Company.
Therefore, it assists to define solution for certain problem. Main goal of the chosen company is
targeting children 5 to 14 years, teenager and college students. Therefore, it is essential to take
appropriate position that is related with products and marketing (Johansson, Liljenberg and
Nordin, 2016). In this stage involve picking a set of tools that will continuously use throughout
process. In this regard, it is essential to pick profile for the consumer who are target by Ferrero
Company. In addition to this, the company considered framework for strategic messaging so that
they are having target consumer framework which helps in ensure that it initial discover
interview that are perfectly recorded in perfect structured and consistent way (Maleki, Amiri
Aghdaie and Ansari, 2019). With the help of initial discovery interview, highly detailed profile
also develop customer target and include values statements. In addition to this, value also
successfully develop which can be lead to create positioning statements in the business. With this
regard, description also shows validating assumptions which carrying out other interviews.
Perfectly structured way also helpful to create more innovation in Nutella. With the help of
customers views, they can easily proceed to work and considered higher level of messaging in
positioning statement. Furthermore, it contain deeper message and information which lead to
gain success and consistently using during interview (Colley, Fretwell and Bourdeau, 2017).
This framework comprises in documents which will be used to summarised positive outcomes.
Tactics to engage target audience :
 Internal evaluation: Internal evaluation method considered insight in which team
members look for Ferrero Company and its product Nutella. With this consideration, it
can be stated that information can be gain with value and utility of product as per client.
It ensure that messaging consistency towards product and services must be maintain
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which would be helpful to lead success. With the help of internal evaluation, it can be
stated that messaging is consistent among team members which is also resonates with
different clients (Al-Haroon, Haroun and Yahiaoui, 2017). In this regard, the chosen
business need to use different kinds of internal evaluation techniques that assists to assess
target audience. For example, they can find target audience on social media with using
Facebook, Twitter, Instagram, etc.
 External evaluation: Ferrero Company need to consider external evaluation with
customer reviews and carrying out survey towards Nutella. In this consideration, it can be
stated that there are two ways to gain results. When team members convinced of doing
review of the messaging after consideration of internal evaluation, there is no
requirement of external. Therefore, it includes clear understanding of client reviews that
helps to look for products and services (Insch and Black, 2018). In this way, the selected
business will regulate their functions and operations to use information with content that
will consider as similar interest. Using email for direct feedback engage target audienceto
receive proper content.
Create Messages : Marketing is all about controlling perception for products and changing
behaviour of products in positive manner. In this regard, simplest and most accurate definition of
marketing is the term that is generally include in Ferrero Company. In this aspect, activity fit
with stated goals so that prospect's behaviour can be changed without changes of perception
(Jaichuen, Vongmongkol and Tangcharoensathien, 2019). Awareness towards Nutella also
content and gives more information to the prospects and customers as well. With the help of paid
acquisition, initiate actions that lead to conversion which is developing behavioural changes.
Hence, it includes awareness, consideration and decisions.
Choose Channels to deliver messages Email: Email is one of the important tool that assists to look for select channel that helps
to deliver right message to target audience. In this regard, Ferrero Company can provide
description and benefits of their product Nutella that assists to lead with success and
positive results. Social media: Social media is also important aspect that assists to target audience and
provide message with internet marketing. In this consideration, it can be stated that
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