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Strategy of the Nutella brand and explanatory factors of its leadership

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case study
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13 pages
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  1. Introduction
  2. The Nutella brand and market analysis
    1. The market spreads
    2. A presentation of the company
    3. Nutella chocolate spread: a unique product
  3. How the brand Nutella has conquered the market spreads
    1. The product: a generational phenomenon
    2. The distribution and communication of Nutella for its flagship product
  4. Nutella's strategy to stay on top
    1. A strategic shift in communication to reach more consumers
    2. Close to consumer marketing
  5. Conclusion

Nutella stands for fun and enjoyment for young and old, and has been so for over forty years. Distributed by the Ferrero Group, a Product Specialist of cocoa, the pot of Nutella has become indispensable and ubiquitous in family kitchens. However, the success of this spread is based on a secret: That of its manufacture. The undisputed leader in its market, this brand of Italian origin is facing competition from private labels as well as from substitute products such as jams.

However, nothing seems to worry Nutella, since nothing seems to overshadow any of the flagship products of the firm. How has the brand managed to build and maintain its leadership in the market for chocolate spread?

In the first step, we will explore the Nutella brand and the market in which it operates, and how Nutella conquered the market it dominates today. Finally, we will describe the strategy that the brand uses to stay on top.

Who does not remember the big slices of bread with Nutella from their childhood? But do we know the origin of this creamy paste that has been accompanying the breakfast and snacks of consumers for nearly forty years?

The Ferrero Group is the fourth largest company of the chocolate and confectionery sector, with a leading position in Germany, Italy and France. Ferrero France is a company of 950 employees, consisting of three sites, including headquarters, factory and warehouse, and is present in five major markets with highly targeted product positioning. Its turnover which tripled in twelve years was estimated at 820 million Euros between 2003 and 2004. It was around 220 million Euros in 1990. Located in 3rd place behind Italy and Germany, the share of turnover in France is 17%. Ferrero France thus has five business sectors, which include spreads, dry and ultra-fresh snacks, chocolate, and confectionery (chocolate and pocket).

[...] Figure Sense of Nutella (Paperback) Nutella has now become a huge phenomenon, and books are being published on its history, recipe, method of tasting, and the mannerisms of its fans. Others write whole books of recipes using Nutella. It is common to find Nutella in the spotlight in many French, Italian, and German films. Gigi Padovani came out with a book for the 40 years of Nutella, called "Nutella - A mito italiano" which ends with a series of testimonials from stars and other celebrities who love Nutella and talk of it like an antidepressant, or recommend it as an ingredient in recipes. [...]


[...] Close to the consumer marketing ? Packaging, or how to exploit the events of the year: Well established in the minds of the French, brand Nutella has built a relationship of trust and closeness to its consumers. Indeed, the brand has decided to customize its packaging for certain occasions (Candlemas, Christmas and New years, the anniversary of the brand, and sporting events). Candlemas, a Day of Christian origin, became the day when every family eats pancakes. The Nutella crepe being one of the favorites of the French, the brand decided to celebrate the event by organizing a store operation to win trips to the United States. [...]


[...] Because, Nutella has been popular with children since its launch, the brand has always had to the aim of accompanying them every day in their discoveries, their learning and their games. Nutella launched a new advertising campaign in 2004 with the slogan "Nutella: it takes energy to be a child." It thus positions itself as a brand that has fully understood the issues of energy in a child's life and brings a solution for breakfast. Thus, it is by placing the product under specific moments (breakfast and lunch) that Nutella has managed to avoid the pitfalls of obesity, especially obesity in younger people. [...]

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