SUBJECT : MARKETING MANAGEMENT
TOPIC : FERRERO ROCHER CASE STUDY
Ferrero Rocher is an Italian based confectionary company known for its high quality and uniqueness. The history of the company dates back to 1946 in Alba, Italy where Pietro Ferrero created a confectionary out of 50% hazelnut and 50% cacao beans. The ferrero chocolates were an instant hit in the market and the creamy spread Nutella introduced by Pietro’s son Michele took the company to great new heights. Even decades after the company was founded the company structure is still based on solid family values.
Ferrero Rocher currently holds 7.3 percent of the global market share (Businessweek, 2010) and 13.2 percent of Western Europe’s share. Today the company has more than thirty business units, fifteen production plants and three social enterprises the Ferrero Rocher’s consolidated turnover is 7218 million euro, a 9.1% increase than the previous year (Ferrero, 2010). Ferrero is best known for its high and consistent quality over the decades focusing on consumers and their strategic understanding of global consumer needs enables their company to rapidly foray into global markets making Ferrero Rocher chocolates globally favourite. Ferrero also ensures that they keep a secure retail supply chain thus ensuring a good relationship with their marketing intermediaries as well.
Ferrero Australia was started in 1974 to delight the Australian consumers with the unique experience of high quality chocolates and it has been a growing market ever since. Ferrero currently employs over 300 people for their operations in Australia. The company does extensive testing of their products in Australia before the actual release showing how careful they are about retaining the high brand image they have attained. Today even with major competitors like Cadburys and Hershey’s, Ferrero still retains its brand image as one of the premium and unique confectionary available over the counter.
Answer 1:- Evaluation of Ferrero’s online boutique in Australia and its impacts.
Ferrero Australia’s Online Boutique is one of the newest additions to the Ferrero Family. Started in 2010 the online boutique sells premium gift boxes and corporate gifts containing ferrero products. The online boutique was started as a result of continuous request from customers in Australia particularly during the holiday season for chocolate gift boxes. With the price ranging from $45 to $360 for premium and special occasion gifting purposes, the online boutique also has an option for corporate gifting.
Ferrero’s online boutique is a unique strategy which opens a distribution channel that directly connects the consumers to the company and hence creates a personalised relationship with the consumers providing the consumers with a refreshing shopping experience. The online store also provides easier accessibility to consumers nationwide against the conventional shopping hence reaching a wider audience. This not only improves the sales but also creates a great brand awareness of the product. It is this easier accessibility that will encourage people all over Australia to use the online boutique especially during the festival seasons.
The online Boutique in Australia offers a premium chocolate collection which is targeted at the upper middle class and the High class as they have the essential buying power and hence will take full opportunity of utilising the online boutique services. It also provides a refreshing experience by providing personalised packaging options like keepsake boxes and themed covers and special cards for writing to your loved ones that makes them feel special. The assortments available in the online boutique is not available in the retail outlets, this creates a special feeling among...