Brand

Analysis

Project title: Nutella Brand Analysis

Deadline: 07.01.2016
Student name: Brandiu Gabriella
Section: Finance & Banks
Group: 8541 (I)

Contents
1.Executive Summary.......................................................................................................................................1
1.1 Competitive Situation..............................................................................................................................1
1.2 Target Buyer or End User Situation........................................................................................................2
2.SWOT Analysis Summary.............................................................................................................................3
2.1 Internal Analysis Summary.....................................................................................................................3
2.2.1. STRENGTHS.................................................................................................................................3
2.2.2. WEAKNESSES..............................................................................................................................3
2.2 External Analysis Summary....................................................................................................................4
2.2.1. OPPORTUNITIES..........................................................................................................................4
3. Marketing Goals and Objectives..................................................................................................................5
3.1 Nutellas Mission Statement...................................................................................................................5
3.2 Market Definition.....................................................................................................................................5
3.3 Financial Objectives...............................................................................................................................5
3.4 Target Market..........................................................................................................................................6
4.Marketing mix................................................................................................................................................7
4.1 Product mix.............................................................................................................................................7
4.2 Pricing Mix..............................................................................................................................................7
4.3 Promotion Mix.........................................................................................................................................7
4.4 Place Mix................................................................................................................................................7

1.Executive Summary
Nutellas company, Ferrero is the largest confectionary group in Italy and the fourth largest in the world . As
written on the jar, Nutella is a delicious blend of fresh hazelnut, skim milk, and cocoa.
We have identified and divided the American market into three promising segments:
Children between the ages of 4 and 13 and their parents (targeted for peanut butter-Nutella swirls
and Nutella-peanut butter swirls)
College students (targeted for Nutella bars)
Southerners along with wealthy/successful individuals and elders (targeted for Original Nutella
chocolate hazelnut)
By implementing our marketing plan, we hope to achieve several goals and objectives
within 3 years:
Improve brand awareness
Become leading general spread and breakfast in the U.S.
Achieve greater market share by 35% increase in profits.

1.1 Competitive Situation

Key competitors for Nutella and its product extensions are listed below:
TWIST: is a real Dutch chocolate it is banana flavored milk chocolate spread imported from Holland.
We dont believe that Twist will have a significant impact on our company, because Nutella and
peanut butter swirls such high quality taste, nutrition, and natural ingredients. In addition, they do not have
high market share or sales in the U.S. or world market.
Strengths
Low price ($1.99)
Weaknesses
Low company name and brand awareness
Artificial flavoring
Not as nutritious as Nutella
Not advertised much
MILKY WAY: is a chocolate flavored spread imported from Poland by master foods Polsa.
Milky way is not very well known by the world or U.S. market. Also the company; Kozuszki Parcel
is not well known. In addition, the product is not selling well and has very little awareness and market
share.
Strengths:
Slightly bigger jar than Nutellas
Weaknesses
1

Low company name and brand awareness

Artificial flavored chocolate
Not advertised much
On average priced .60 cents higher than Nutella.

JIF: is a peanut butter.

Originally a product of Crisco and Proctor and Gamble, now is part of the Smucker Company. Jif is
the top selling peanut butter in the U.S. with significant market share and sales.
Strengths:
All American breakfast
Well known brand name and awareness
Lots of advertisement
Priced on average two dollars less than Nutella
Weaknesses:
Not unique
Not as healthy as Nutella
Not very versatile
NUTRI-GRAIN: are cereal bars with whole grain oats, wheat, and fruit.
Nutri-grain bars might have a potential impact on the sale of Nutella bars. Not only is Nutri-grain
one of the top selling breakfast bars in the U.S it is very well known, and might pose a potential threat to
Nutella bars.
Strengths:.
Well known brand and in U.S. market
Very healthy, specially for breakfast
Weaknesses:
In general does not taste as good as chocolate or Nutella
Not unique

1.2 Target Buyer or End User Situation

Our target buyers will include, children between the ages of 4 and 13 and their parents, college students,
and southerners and wealthy or successful Americans and elders.
In addition their wants, needs, attitudes, and perceptions are define in detail in the market
segments and target analysis in section five of this marketing plan.

2.SWOT Analysis Summary

2.1 Internal Analysis Summary
2.2.1. STRENGTHS
Nutella has captured the European market
Nutella is already the leading breakfast spread in Germany, and a popular after-school snack in France and
Italy. It is widely available everywhere. However, Nutella has not been as popular in the US.
Product is positioned as unique and of high-quality in taste and nutrition
Nutella is a very unique product in the U.S. and is of high quality. It has a one of the kind taste that is very
delicious. Nutella is a high quality product with fine ingredients that offers nutrition as well as taste.
Broad appeal to many market segments
Nutella appeals to a wide variety of people, not just specific segments. Nutella appeals to so many different
segments ranging from children, to upper middle class mature adults. Since Nutella appeals to so many
people, they do not have to depend only on sales from a small market; there are many profitable
opportunities.
Variety of consumption methods
Nutella can be eaten in a variety of ways on many different things- it can be eaten on bread, donuts,
bagels, crackers, fruits, anything! It is a versatile spread put on anything that needs some customer is more
likely to be satisfied with the product.
High company awareness from other popular brands (Tic Tac, Rocher)
Many people already know about other brands that Ferrero makes like Tic Tacs, Kinder Surprise Eggs, and
Rocher candy. Tic Tac is very popular in the US and advertised well on television. If Nutella is linked with
Tic Tac somehow through price bundles or joint advertising, Nutella brand awareness can increase. Also, if
one brand has a good name, it can have a good effect on another brand from that same company.

2.2.2. WEAKNESSES
Low Nutella brand awareness in the US
Many people do not even know what Nutella is in the US. If Nutella were better known more people would
probably be willing to buy it. It should be advertised on television and with coupons in supermarkets.
Not advertised well

Nutella has not been advertised well in the US. Nutella needs to be widely advertised with television
commercials and in-store samples, promotions, and coupons. If Nutella is advertised better, sales will most
likely increase because Americans will be more aware of the product.

Higher price than peanut butter competitors

Nutella is priced higher than its biggest competition in the US- peanut butter. Peanut butter is a longstanding tradition in the US, so Nutella should kept its price comparable to peanut butter. Many Americans
will not pay more for Nutella over peanut butter unless they are convinced that Nutella is somehow better
and of higher quality. If Nutella wants to keep their high price, they rally need to convince the American
market that it is worth that price. Nutella must emphasize their uniqueness and high quality to the market.
Buyers must become loyal to the Nutella brand, so that price does notmatter because they must have the
product.

Not placed on shelf in eye-catching spot

Nutella is not really placed on the shelves in an eye-catching spot. It is placed right next to its biggest
competition, peanut butter. This is not a good place for it to be shelved because most Americans would just
buy peanut butter without even looking for Nutella. Also, Nutella is usually placed down low or in a spot not
easy to find. If it paid stores to put it in a better spot, it would probably sell better. Maybe some coupons
placed under it would attract buyers as well.

Americans perceive chocolate as being unhealthy

From the CSUN poll, it was found that many people perceive Nutella as being Unhealthy. Since it contains
cocoa, Americans think peanut butter is healthier. Nutella should advertise to the American market that their
product is indeed healthy. The ingredients including skim milk and hazelnuts should be emphasized in the
advertisements.

2.2 External Analysis Summary

2.2.1. OPPORTUNITIES
Faster pace of life, less time to cook
People have less time to cook in the morning, and want to make something that is quick. Nutella hazelnut
spread solves this problem. All onehas to do is spread it on bagels, bread, muffins, crackers, anything. It is
fast and addsinstant flavor to any breakfast.

Americans watch many hours of TV per week

4

Most people find out about products from the ads they see on TV or hear on the radio. This is a big
opportunity to advertise Nutella. If some television ads for Nutella are aired, the millions of TV viewers will
see these ads and become aware of this product.

American love of European trends

Many Americans love the European culture. European lifestyles and cultures are portrayed as cool in the
media through magazines, TV shows, and European films. Nutella can be seen as a trendy European
spread. Those who like Europe and all the things that go along with it should be targeted.

3. Marketing Goals and

Objectives
3.1 Nutellas Mission Statement
Due to their great success in the European market, Ferrero is ready to introduce Nutella to all American
people, from various backgrounds, ages, and lifestyles. At Fererro, our primary mission is to introduce
Nutella to all people around the U.S., as being a unique and of excellent quality in taste and ingredients.

3.2 Market Definition

Nutella- the original and supreme chocolate hazelnut spread in the world- will deliver taste, nutrition,
versatility, and convieneince to the American breakfast tables. In addition, both the mission statement and
the market definition for Nutella indicates Ferreros incentive to introduce itself to the U.S market as a
unique product that will promise ultimate satisfaction and excellence to its buyers.

3.3 Financial Objectives

Increase the overall sale by 35% within the first 12 months and 50 percent within the following two
years.
Ferrero will try to increase sale by 35 percent by 2003, and 50 percent by 2005.
The first year increase in sales wont be affected by technological changes.
Nutellas annual sales has bee estimated to be 1.2 million a year in U.S. market, which is relatively
low compared to overall spreads in the U.S.

 Allocation of the required funds for our advertising campaign.

Proctor and Gamble, the manufacturer of Jif Peanut butter spends several million on advertising
for
an established name brand, which has accounted for its success.
Accordingly, for Nutella, in order to create strong brand awareness, a similar size budget will be
required.
We estimate that we will spend approximately between 35-45percent of our profits on advertising
and promotions.

3.4 Target Market

For the most part, Ferrero has captured the European market with Nutella hazelnut chocolate spread.
Some of these countries include: Germany, France, and Italy. Our goal is to make Nutella an all American
Breakfast and convenient spread.

Three market and three versions of Nutella

Product line extension of Nutella will consist of:
Original Nutella chocolate-hazelnut spread
Peanut butter-Nutella swirls and Nutella-Peanut butter swirls
Nutella bars

Target market

Nutella product

4-14 year olds and parents

Peanut butter-Nutella swirls and NutellaPeanut butter swirls

Nutella bars
Original Nutella chocolate-hazelnut spread

Collage Students
Southerners and elders Wealthy/Successful
individuals

Children Between 4-13 And Their Parents

Concisely, for the children between the ages of four and thirteen along with their parents we will propose a
combination of Nutella and peanut butter spread swirls as a transition product.We predict that this group
will like the Nutella chocolate and peanut butter swirls so much, that
they will eventually go for a Jar of original Nutella hazelnut spread instead of a jar of peanut butter or
Nutella and peanut butter swirls.

College Students

Similarly, for the college students, we will propose the Nutella bars. Since most college students are busy
and dont have much time to cook breakfast, Nutella bars will be a great alternative. It is made especially
for people on the go who want to have a quick breakfast.

Southerners and Wealthy/Successful People and elders

This group has the time and money to have a traditional breakfast. Hence, we will attempt to encourage
this group to try and buy original Nutella chocolatehazelnut spread since they can afford the higher price.

4.Marketing mix
4.1 Product mix
Sales Task
Competitive advantages
Product safety

4.2 Pricing Mix

Pricing strategy for various produsct

4.3 Promotion Mix

Sales promotions and public relations

Advertising
Sales promotional advertising
Public relations

4.4 Place Mix

Distribution strategy for retailers
Distribution strategy for the manufacturer