MARKETING

STRATEGY
OF FERRERO
IN
AUSTRALIA
By
Eka Ristandi
Denma R Willyando
MM Program
Universitas Bakrie,
2016

Introduction
Ferrero SpA is an Italian manufacturer of branded chocolate and
confectionery products and it is the third biggest chocolate producer
and confectionery company in the world (Dana Cimilluca, 2009).
Reputation Institute's 2009 survey ranks Ferrero as the most
reputable company in the world.
The company saw a period of tremendous growth and success under
Pietro's son Michele Ferrero, who in turn handed over the daily
operations to his sons. His son Pietro (the founder's grandson), who
oversaw global business.
The Ferrero Group worldwide now headed by CEO Giovanni Ferrero
includes 38 trading companies, 18 factories,
approximately
21,500 employees and produces around 365,000 tonnes of Nutella
each year. Ferrero International SA's headquarters is in Luxembourg.
Its German factory is the largest of all
Ferrero SpA produced All time days food, from breakfast (Nutella)
to dessert (Ferrero Rocher) and any time between (Kinder
Chocolates, Bueno and Surprise, and ever popular Tic Tac)

Products

Ferrero, Story
Founded By Pietro Ferrero
Produced 50% Hazelnut & 50%
Cocoa Confection (Pasta gianduja
block)
Expanded Business to Europe
and built chocolate factory at
Luxemburg, Germany
1946

1951

1956

Established the business at Australia,

With mission delighted customer with
unique product of the highest quality
and well being of employers,
costumer and the company

1963

Because of product hit, on 1951

decided to turn Pasta Gianduja
into creamy spread. Ferrero was
marketing this as Supercrema
Ferreros Son (Mitchel F) modified
recipe and marketed it as a
immensely popular Nutella.
Now they by more than 67000 jar
Nutella a year only at Italy

1974

2003

In Australia, started marketing

through Internet to reach out
the Parent and Children. And
First Launching of online store
boutique
www.ferreroboutique.com.au,
using facebook, and iPhone
application

- First Launching of online store

boutique
www.ferreroboutique.com.au, with
product of premium gift 45$ -360$
and gift boxes for special occasions
- Expansive promotion through
Football Federation (increase 15.1 to
16.3%)

2010
Engage in many community
program, such as welfare
agencies, food bank, breast
cancer research, abolition of
child worker and forest
conservation

SWOT Analysis

STRENGHT

WEAKNESS

OPPORTUNITY

THREAT

Strenght
1. Strong brand name worldwide

2. High Customer loyalty

3. Attractive packaging and quality products

4. Globally available

5. CSR in the AU areas, engaged in many

community program

6. Product Innovation
7.

Online

Boutique

&

Social

Media

Weakness
1. Perception of candies being unhealthy
2. Did not take
competitor

intend

to

challenge

Opportuntiy
1. Introducing new varieties and flavours of
products.

2. Advertising on different platforms

3. Establishment of the online shop

Threat
1. High competition from other chocolate
brands

2. Unstable global economic condition

3. Many brands in the market brings out

possibility of brand switching

4. Increasing trends of healthier alternatives

replacing candies

Question
1. Evaluate Ferrero Australias decision to
open an online boutique. Will this have any
impact on those company businesss other
business segment?
2. How can Ferrero use new technology to
market its product better.

Question 1 . Evaluate Ferrero Australias decision to open an

online boutique. Will this have any impact on those company
businesss other business segments?

The decision to open an online boutique is a good decision and an appropriate

marketing strategy. Because, Ferrero Australia can increase their channel
management for the broader market in Australia. They can reach their
consumers in Australia easily by accessing the Ferroro boutique. Channel
managemnt is a way for company to deliver their product or service to
customer (Browns & Smith, 204). Its mean how Ferrero Australia can promote,
sell and deliver the product to consumers by using their internet marketing
strategy.
Beside use channel managemnt, Ferrero Australia also use pull strategy to
attact the consumer directly. Pull strategy is formed by customer demand. Its
promotion strategy that is aim directly to costumer or ens uder (Rimlinger,
2011). They use this strategy to build up new relationship to custumer in
Australia and Interact directly with the end user,
Ferrero boutique also can increase brand awarness of their product, especially
all products which are sale in Ferrero Boutique. Brand Awarness is ability to
remenber and realize a brand in memory customer. Brand awarness is
important factor when the customer will make decision to buy a product (Tsuji,
2007). The way to increase brand awarness of Ferrero with interisting
advertisement of product and good design of Ferrero boutique which is upadate
by Ferrero Australia Routinely. In this case Ferrero Australia buitl online
boutique www.ferreroboutique.com.au to expand new market in australia. The
strategy of marketing is quite attractiv, because they use internet marketing
strategy as a media to promote the product. Internet and social networking

In 2011, the number of interest users in Osceania (South Pacific Island, New
Zeland and Australia) reach 23,927,457 users (miniwatts Marketing Group,
2012). This is a good opportunity and challenge for ferrero Australia to Increase
their sales especially with internet marketing.
Opening Ferrero Boutique in australia will not have impact for other business of
Ferrero company, Because the opening of Ferrero Boutique is to expand the
new target market of company that previuosly exist in Australia. Market
segment is targeting groups of consumer who have simillar needs and wants
(Kotler and Keller, 2006) Ferrero boutique has different target market, because
they concern to use internet marketing strategy. The target market of Ferrero
boutique are executive, corporate and consumer who want give gift for special
occasions whit premium product with range price $45 - $360.
Ferrero bountique will not spoil the market of previous product of Ferrero
Company as well. The reason of the product of Ferrero boutique is product line
of ferrero Rocher. Product line is development of product whit same platform
and module that can be addeed to accomodate the differentiation of costumer
rwquirement (Kotler and Keller, 2006). The product line which is sold by Ferrero
butique including traditional praline chocolate such as the dark chocolate
Ferrero Rondnoir and the white chocolate Raffaello (Kotler and Keller, 2012).
The product which are sold by ferrero boutique are Grande Impression, Medio,
Hat Box Hampper, Grande and Piccolo (Ferrero Boutique, 2012). All product
sold by Ferrero boutique have different characteristic according to needs and
wants from consumer. The company makes good packaging for the product so
its looks unique, luxurious, excusive, and sitable for gifts with special occasions
such as corporate gift, Birtday, Baby Showers, Get Well soon and spesial event
(Chrismas, mother day, ets). Beside having some kind of choice product
offered, consumer also can choose the different boxes, wrapping and gets

Conclusion
As Australia is a very posh, urban, full of literates, diversified and aware of
western culture the idea of opening online boutique was breakthrough for the
company that targets the niche market. Through the discussion above it is implied
that the online boutique will not have any negative impact on the other business
segments as the distribution channels for online boutique and stores products are
different and both focus on different needs of consumers. Store products focus on
daily needs of a person where as online boutique on special needs like gift items.
Positively it creates brand awareness for all products.

Question 2. How can Ferrero use new technology to market its

product better ?
New Technology is a way for company to promote their
product. Technology provides new tools of marketing,
especially internet marketing. Ferrero can use technology as a
media to promote the product. In this case, Ferrero use
internet for their marketing strategy to reach market wider.
Not only reach market tarhet in Australia, but also use newer
technology in order to improve market in the world. Mainly in
south American dan Asians as well.

Conclusion
With the emerging technologies, it is implied that ferreo has wide range of
technologies to build customer relationship which is the main motto of the
company that includes blogging, creating new communities, use of social media,
sending personalised emails or messages, advertising in corporate blogs, mobile
marketing as well as SEO to create long term relationship with customers and
create new customers and make more brand awareness.