Case Study: Analysis of Nutella Brand Community and Marketing

This case study analyzes the Nutella brand community, focusing on the challenges and opportunities presented by the shift in power from the brand to its virtual community. The analysis identifies issues such as the influence of online communities on product pricing and production, particularly for convenience products. The report applies Keller's Customer-Based Brand Equity (CBBE) Model to address these issues, outlining strategies to re-establish the brand's identity, define its meaning, analyze customer responses, and enhance brand resonance. The study also answers case-related questions, discussing brand community elements and effective marketing strategies, including team building, digital marketing, partnerships, and consistency. The study highlights how marketing strategies can effectively build brand communities, providing insights into the factors that contribute to the success and engagement within the brand community.

Development of Brand and Marketing
Student Details
9/23/2019

Contents
Overview of the issues in the case...................................................................................................3
Analysis of Relevant Branding Theory...........................................................................................3
Overview of the Model................................................................................................................4
Model in Use................................................................................................................................5
Relevant Branding Theory Link with Practical Issues Described In the Case................................5
a) Identity of Brand...................................................................................................................6
b) Brand Meaning.....................................................................................................................6
c) Response of the Brand..........................................................................................................6
d) Resonance of the Brand........................................................................................................6
Appropriateness of Solutions to Case Discussion Questions..........................................................7
Answer One..................................................................................................................................7
Answer Two.................................................................................................................................8
Answer Three...............................................................................................................................8
Bibliography..................................................................................................................................10

Overview of the issues in the case
Brand community is such community, which primarily conduct activities related to brand
consumption and utilization in a well-defined social culture of community. Brand communities
are establishing their operations in virtual world as well and conducting its various activities
from various digital Medias (Gabrielli & Baghi, 2016). In the considered case of “my Nutella the
Community”, the issue of increased influence of virtual brand community has been shown over
the influence of original brand in the marketplace on the customers.
The case identified the issue of power shift from brand to virtual brand community of the
Nutella. In order to deal with the power, shift the brand of Nutella can adopt some strategies,
which are talked in the case study. The case also discussed the issue of virtual brand
communities of convenience products rather than on luxury or niche market. In this report, the
issues discussed in the considered case study of Nutella are identified and analyzed (Cova &
Pace, 2006). Relevant brand theories are also analyzed as well as linked with the identified issues
in the case. The report also answered case related question in effective and efficient manner.
Analysis of Relevant Branding Theory
Brand is said to be the picture of the consumer. Furthermore, the distinctive features were
constantly created to distinguish real products from the rivals. Thus, a product is a product as
well as service that adds features that distinguish it from various products or services intended to
meet the same needs in some manner (Chong, Bian, & Zhang, 2016). Factors which affect
the brand image as well as brand perception among various marketing communication plans that
implemented for the public to bring brand perception, brand plans, brand image as well as brand
equity (Gillespie, 2015). Many variables affect a specific product as well as brand's strength. If
people know these variables, they can believe about how to efficiently launch a fresh product,
how to transform a brand that is struggling into a profitable one. The model's title is Brand
Equity Model from Keller. The model is defined in the mentioned paragraphs with the different
components:
Overview of the Model
Keller's Brand Equity Model is popularly known as the Customer-Based Brand Equity
(CBBE) Model. It was developed and published by Kevin Lane Keller,

marketing management professor at Dartmouth College's School of Business, in his widely
popular textbook "Strategic Brand Management." When individuals have strong brand equity,
they will buy more from the customers (Kuhn, Alpert, & Pope, 2008). They will suggest the
brand to others as well. The idea behind the Brand Equity Model (BEM) is easy: people need to
form how clients believe and feel regarding their products in order to create a powerful brand.
The Keller's Brand Equity Model includes the four measures to be followed in order to create
powerful brand equity such as:
Source: The Keller’s Model of Branding (Kuhn, Alpert, & Pope, 2008)
a) Identity of the Brand: The company's first objective is to generate "brand salience," or
consciousness. In different words, the owners must ensure that the brand is outstanding
and that clients acknowledge it and are conscious of it.
b) Meaning of the Brand: This step defines and delivers the meaning of the brand related
to the needs of an individual as well as what it stands for. Performance as well as imagery
are the two construction blocks in this phase. Performance
demonstrate how appropriately the product meets the demands of the clients of the
company. It relates to how well the product brand cater the social as well
as psychological demands of business clients.
c) Responses for the Brand: Clients additionally react to the brand image as per how it
affects them. Brand image can bring out sentiments straight forwardly, yet they
additionally react sincerely to how a brand makes them experience about themselves. As
indicated by the model, there are 6 positive brand related sentiments: warmth, energy,
fun, security, confidence and social endorsement.

d) Relationships of the Brand: Brand resonance or connection says the brand's connection
to the world's various factors. Brand resonance is at the topmost level of brand equity
pyramid as it is the hardest level to achieve. When their clients feel a profound,
psychological relationship with the product, the businesses have accomplished brand
resonance.
Model in Use
The Keller’s brand equity model is discussed in above lines by following a set of steps
that in together facilities the strength of brands in the market. With the help of this branding
model, even new brands can follow the steps to set themselves effectively and efficiently in the
market among their competitors (Tiago & Manu, 2014). Many small brands of Australia have
adopted this model intentionally or unintentionally in order to establish the image of their brand
sin the market. With the help of this model in the particular case, the Ferrero Group can re-
establish its brand among public by taking the power in their hands. The link of this model with
the issues faced by Ferrero Group as per the case are described in upcoming paragraphs.
Relevant Branding Theory Link with Practical Issues Described In the Case
The Keller’s Branding model that is discussed in above lines can influence the brand
image of various products if used in effective and efficient manner. In the considered case of
“my Nutella the Community”, the power shift from company to its brand community can be
rectified with the help of the Keller’s model of branding. The model discussed four stages which
in together facilities the image of brand from unknown to popularly known. The case discussed
some issues faced by Ferrero Group with respect to a virtual brand community made by
consumers for Nutella and actually are influencing the price as well as production of Nutella on a
large scale (Correia, Gnoth, Kozak, & Fyall, 2015). The case also discussed control of virtual
branding communities on the convenience products rather than on niche market products or
luxury products. It mainly focused on convenience products and power of control shifting in the
hands of virtual branding communities. These issues discussed in the considered case of virtual
branding communities identified and solved by Keller’s branding model in an effective manner.
According to Keller’s model of branding, there are four stages and by going through them,
the problem facing by Ferrero Group or any other convenience product company related to their

brands can be resolved effectively (Gabrielli & Baghi, 2016). The company needed to take some
steps to overcome the problem they are facing such as:
a) Identity of Brand
The company must reestablish the actual identity of Nutella or other convenience products as
this can help them in defining the product again with its new undiscovered use, benefits and
importance for the customers. This can in turn help the brand to get its new identity from before
and the company starts getting control in their hands (Freitas & Almeida, 2017).
b) Brand Meaning
The company of Nutella must go for defining the meaning of the Nutella to its consumers
after identifying the brand among public. The meaning can be related to the use of Hazel nut in
increased quantity, innovation of mixture of hazel nut with chocolate, etc. the company should
tell its customers why they have chosen this product to produce with such ingredients.
c) Response of the Brand
It is related to response of customer in favor or in against of the particular brand. After
establishing the identity as well as the meaning of branding, the next step is to record and
analyze the responses made by customer regarding Nutella brand or any other convenience
product. The responses must be recorded and analyzed by brand owner in efficient manner in
order to identify various comments in favor or against of it so that in future necessary changes
can be made. In this way, the whole control of brand can stay in the hands of Nutella brand
owner (Wirtz, Ramaseshan, Klundert, Canli, & Kandampully, 2013).
d) Resonance of the Brand
This is related to the overall image of the brand in the market on a large scale. It deals with
the degree to which the image of the brand is spread in the market. The strong resonance of the
Nutella brand is important; however, it is also important to have this resonance in favor of brand
owner and must be independently controlled by him or her (Suki, 2010). In the case, the
resonance of Nutella was there but the control or power was shifted from the hands of Nutella
brand owner to the virtual brand community. With the help of various steps of this model, the
resonance of Nutella can be reestablished however, this time the controlling power could stay in
the hands of Nutella brand owner not the virtual brand community (Melancon & Dalakas, 2018).

Keller’s model of branding in this way can help in addressing various issues faced by
company’s related to establishing or reestablishing their brands in the public with respect to
control in their hands. This model can help the Ferrero Group in getting control in their hands
again from that virtual branding community (Merrilees & Frazer, 2013).
Appropriateness of Solutions to Case Discussion Questions
Answer One
Brand community is a that community that mainly carries out brand intake and usage
affiliated activities in a well-defined group social culture. It is a newly created idea dealing with
the brand equity intensity on a set of people (Jackson & Ahuja, 2016). Brand groups can be used
by marketing companies to improve brand equity by providing a wide range of brand data,
videos, blogs, events, and other characteristics that create closer client relationships and create
interaction with as well as between the brand and its clients.
Source: Brand Community facilitates Customer engagement bring Loyalty for the Brand
(Jalilvand, Samiei, & Mahdavinia, 2011)
The diagram of brand community can bring efficiency in sale of particular brands of a
company. Consumer first creates the brand community then they pass the necessary information
about it on social media and specific websites. This ultimately helps the marketer by showing
increase in the sale as the brand reach to masses.

Answer Two
In order to build a product a demanding brand of the market the marketer need to take some
necessary actions. These actions can say to be the effective marketing strategies formulated and
implemented by the marketer to build brand community of its product in the market. The Ferrero
Group have adopted many marketing strategies such as four P’s of Marketing, STP marketing
strategy, etc to attract lots of customers (O'Sullivan, Richardson, & Collins, 2011). Here are
some marketing strategies, which are adopted by Nutella to attract customers, this much that
forced the customers to build brand communities of Nutella such as:
 Strong team building and management: The internal management of the Ferrero
Group is essential in order to provide attractive product to customers. The team building
and its management of Nutella product’s company is effective (Lumen, 2019).
 Effective marketing by using digital marketing: The marketing tactics used by Ferrero
Group is both digital and standard one. They bring creativity in their marketing activities,
which attracted more customers and lead to brand community of Nutella.
 Partnering with other Companies or products: The Ferrero Company also partnered
with other products also, such as chocolates and drinks to increase its sale and bring
innovation in those products.
 Commitment towards consistency: Nutella, which is made by Ferrero Group, tastes
same from the date of its manufacturing to till now. It is maintaining the consistency in
the ingredients. This leads to brining loyalty from customers and other partnered
products.
Answer Three
In order to embrace the strategies for customer empowerment by Nutella, Ferrero
Company can face some risks. It is discussed in the case that virtual branding community of
Nutella named as “my Nutella the Community”, brings the basic control of sale as well as
manufacturing of product in their hands (Cova & Pace, 2006). They are shifting the power of
control from company to that community. It possesses many risks for the company such as:
Shift in Control: In the case study, it is discussed that the controlling power is shifting from
Ferrero Group to virtual brand community. Customer empowerment can lead to more control of
product in the hands of a group of customers of the Nutella.

Mission and Vision of company can be affected: Adverse customer empowerment can lead to
product control in their hand, which ultimately can affect or bring changes in the mission and
vision of the company.
It is recommended to Ferrero Group the manufacturer of Nutella to avoid customer
empowerment beyond the limit as this can bring above-mentioned situations in front of them.

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