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 ϖ 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. [...]
[...] This partnership is an undeniable element of communication for the brand, and the item fits perfectly into its marketing strategy to make Nutella a legendary product, a partner of vitality and energy of children. They are particularly sensitive to the association of a team (consisting of "stars") to a brand they consume. This sponsorship also allows Nutella to change the product packaging (jars decorated with pictures of players) and communicate around the event (organizing contests to meet a member of Team France). [...]
[...] The brand has jealously guarded its secret manufacturing process, and ensures careful selection of ingredients that are used such as high-quality nuts, cocoa beans roasted within the company, and skim milk from the Norman region. Today, fewer than ten people in the world know the exact recipe for Nutella! The Nutella range comes in several packages; from the portion of the g 3 kg pots (sold at Christmas), to the family pot of 750g. Thus over the years, the packaging has changed: cups, mugs, trays and special glasses have succeeded, until the production of the now legendary pot. [...]
[...] ϖ Packaging: Nutella will be presented in jars, cups and glasses which are collectibles, or plastic containers. There are pots of 125 and 750g. Although in some countries the product is sold in plastic pots, the original pot-shape continues even today, which is been the dream partner for bread since its inception. By developing a strategy for modernizing the product and its progress in monopolizing the purchase of a variety of nuts, the brand wants to create a mythical product, with a unique quality. [...]
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