Nutella Brand Community: Marketing Strategies, Risks, and Brand Equity

This report provides a comprehensive analysis of Nutella's brand community, examining its core concepts, marketing strategies, and associated risks. The analysis begins by defining brand community and brand equity, emphasizing their importance in consumer relationships and commercial value. The report then explores Nutella's marketing strategies, including the use of Ferrero as a marketing tool, online ethnography, and social media platforms, highlighting how these strategies aim to enhance brand equity and engage consumers. Furthermore, the report identifies potential risks associated with Nutella's customer empowerment approach, such as the spread of negative consumer reviews and the potential decrease in brand value. Finally, the report references relevant academic literature to support its findings, providing a well-rounded understanding of Nutella's brand community dynamics and their implications.

Brand Development

BRAND DEVELOPMENT 1
Questions-Answers
Answer 1.
Brand Community is a community which is developed on the basis of attachment to a
product. Brand Community defined as the self-selected group of actors those shares the values,
standards and representations. It helps in sharing consciousness, traditions, rituals and a sense of
ritual responsibility. The concept of brand community mainly focuses on the relations with the
consumers (Baldus, Voorhees, & Calantone, 2015).
Brand Equity is the commercial value that derives from opinion of consumers towards
the brand name of a specific product or services. There are many ways in which the marketers
enhance the brand equity of the company (Coelho, Rita, & Santos, 2018). The marketers
introduce the product in the market with the all features and qualities. It is a fact the large
number of consumers attracted towards the attractive product and purchases those products that
information has been provided by the marketers to consumers so that they can buy those
products easily. Marketers introduce the products in the market with the different campaigns and
promotion strategy due to which the consumers gets the information about the product and they
get more or more services or product. Providing the information about the product with the
features helps to target the more or more customer towards the company which directly helps to
enhance the brand equity (Rice, 2010).
Marketers provide the product to consumer according to the trends and competitors in the
market. It is observed that the demand of consumers is high towards the new or trendy products
as they always wants to wants to purchase trendy products instead of old products in the market.
Marketers provide the trendy products in the market due to which the chance of satisfaction of

BRAND DEVELOPMENT 2
customers is high. The large numbers of consumers attracted towards the product or services of
the company due to trendy products provided by the marketers. It increases the satisfaction level
of consumers which directly related to the brand equity. Marketers implement the trendy
products technique to enhance the brand equity (Keller, & Brexendorf, 2017).
Monitoring the competitor’s strategy also helps to enhance the brand equity of the
company. In today’s world, the competition among the companies as there are huge numbers of
companies enters the similar industries with the new strategies and techniques in order to
compete with each other. Monitoring the strategies and techniques of the competitors helps the
organization to provide the unique services or product to consumers. It is required for the
marketers to analyze or monitor the competitors so that they can operate the business effectively
or smoothly in the market.
The marketers capture all customer feedback in order to provide the satisfactory product
in the market. Since the real power of a brand exists in the mind of consumers, it is necessary for
marketers to always capture and analyze customer feedback. It is observed that the consumers
are main drivers of the company that helps to generate the revenue in the market. It is required
for the company to capture the feedback of consumers and provides them services according to
their feedback. Providing the services to consumers according to their feedback helps to offers
the higher level of satisfaction. The method of capturing the feedback of consumers not only
helps to satisfy the demand of consumers but also improves the quality of product. It helps to
enhance the brand equity of the company. The marketers have to implement this method that
helps to build the brand equity.
Answer 2.

BRAND DEVELOPMENT 3
According to the case study, it has been analyzed that Ferrero is a marketing strategy that
the organization used to enhance the brand equity. Ferrero is a famous actor of Italy in the
advertising sector. All the big brands request the actor to spread the awareness about their
product to consumers. It is one of the best marketing strategies of Nutella as the demand of the
consumers is increasing. As per this strategy, the company does not have to convey the messages
and communicate with the consumers. In this strategy, there is no framework is used just get the
benefits of fans which follows the Ferrero. Ferrero organize the Nutella website in such a way to
deliver the high quality of services to consumers. He also offers the opportunity to consumers to
share their pictures with them in order to share their relationship with the brand. This strategy
helps the organization to know about the brand equity in the market. People share more or more
pictures on the site which indicates the high brand value of the product in the market and also
increasing the demand of consumers.
According to analysis of case study, it is observed that the online ethnography or
netnography was the core methods that are adopted by the company to explore the online Nutella
community. Using the online media helps the organization to enhance the brand equity. It is
observed that the netnography states the written account that emerge from online, computer
mediated or internet based communication. Online marketing strategy defines that the company
shares the information with the large number of consumers through online media. Social media
is the only platform that helps the organization to promote their product in large number of
people even across the border or all over the world. The company designs its own website with
the name of “My Nutella The Community web site” with the different sections that helps the
visitors to get the information about the product in the market. The company posts the different
attractive pictures that help to attract the consumers towards the product in the market (Tuten, &

BRAND DEVELOPMENT 4
Solomon, 2017). The company does not provide the chat section but provide blog and picture
section to consumers so that the consumers can post there pictures on the website. There are 200
pictures posted by the company on the web site from the different sections. It helps to attract the
large number of consumers towards the services of the company. This strategy helps the
organization to build the brand equity in the market as the people have the opportunity to
represent their religion and tradition.
Answer 3.
As per the case study, it has been founded that the company implement the market strategies in
order to enhance the brand equity of the company. As the company implements the market
strategies due to which the chances of risk for losing the consumers is high. Some of the risks
that the company has been arise due to implementing the market strategies and these are
discussed below:
Consumer of Nutella developed their own page in order to represent their thoughts and
ideas which enhance the brand equity but it also raise the risk for the company. The people share
their own personal thoughts towards the Nutella through this page due to which the chances of
risk of conflict is raising. Some of the people share their own personal positive thoughts towards
the product but there are some of the other consumers that have a negative experience with the
Nutella due to which they share the negative thoughts towards the product. Sharing the negative
thoughts about the product on the page spread the negativity among the new consumers that
directly affects the brand image of the company (Iankova, Davies, Archer-Brown, Marder, &
Yau, 2019). One negative review of consumers change the perception of other consumers due to

BRAND DEVELOPMENT 5
which the brand image is affected. This approach affects the brand community as the new
consumers are not able to develop the relation with the community.
Another factor of risk is decreasing brand value in the market of the company. It is observed that
the people visit the website of the company but does not interact with each other. They just come
and visit the website in order to share their pictures on it. It is beneficial for the company as the
more or more people share their images without any comment but it is also a risk as the real
brand equality of the company is decreasing. The value of brand equity is decreasing due to
providing all the facilities to consumers. In this strategy, everyone can see the pictures even
across the nation or means all over the world due to which the chances of using the pictures is
high that directly affects the personal life of consumers as well.

BRAND DEVELOPMENT 6
References
Baldus, B. J., Voorhees, C., & Calantone, R. (2015). Online brand community engagement:
Scale development and validation. Journal of Business Research, 68(5), 978-985.
Coelho, P. S., Rita, P., & Santos, Z. R. (2018). On the relationship between consumer-brand
identification, brand community, and brand loyalty. Journal of Retailing and Consumer Services,
43, 101-110.
Iankova, S., Davies, I., Archer-Brown, C., Marder, B., & Yau, A. (2019). A comparison of social
media marketing between B2B, B2C and mixed business models. Industrial Marketing
Management, 81, 169-179.
Keller, K. L., & Brexendorf, T. O. (2017). Measuring brand equity. Handbuch Markenführung,
1-32.
Rice, B. (2010). 5 Steps for Building Strong Brand Equity. Retrieved From:
https://www.business2community.com/branding/5-steps-for-building-strong-brand-equity-0287
Tuten, T. L., & Solomon, M. R. (2017). Social media marketing. Sage.