Ferrero Spa

Topics: Ferrero SpA, Marketing, Eastern Europe Pages: 12 (3999 words) Published: December 16, 2011
Ferrero SpA: internazionalization process

Ferrero background

The industry Ferrero was born in 1946 in Alba in Piedmont and its history can be seen, perhaps, as the most representative example of Italian capitalism. Since its establishment until today, different stages of development can be identified, each characterized by specific product, technological, commercial and organizational innovations. The company started its activities immediately after the World War II. During this time, Piera and Pietro Ferrero were able to turn a small bar and pastry shop into a factory. These early and decisive steps are due to the products, in fact, "invented" by Pietro Ferrero, but also to the efficient sales network organized by his brother Giovanni. In 1950, in fact, Ferrero had its own and efficient distribution network with a fleet of vans that, in a few years, exceeded a thousand units and was able to deliver to shopkeepers fresh and perfect products. In the mid-fifties, the company began to exceed the national dimension to acquire a European one. In 1956, Ferrero opened a plant in Germany in Allendorf (about 150 km from Frankfurt), which would represent the first example of the internationalization of Italian industry in the confectionery sector. Ferrero began working with one product (the Cremalba) followed by the start of production of the Mon Cheri, that immediately gained significant market success.
In 1957, Michele Ferrero, Pietro's son, assumed control of the company and was able to renew its facilities in order to encourage the increase of production: the greatest changes occurred with the use of increasingly sophisticated technologies and more efficient equipment. These are the years of Italian "reconstruction", in which Ferrero developed new initiatives and new insights that made itself innovative on the market and allowed its continued growth, with greater flexibility, in the less immediate future. In fact, they created new products and improved existing ones.
In 1960, Ferrero opened new subsidiaries in France and Belgium. Within a few years, thanks to the preparation of an adequate commercial network, an expansion project that brought the company throughout the European continent was made: subsidiaries were opened in The Netherlands, Luxembourg, The United Kingdom, Austria, Denmark, Sweden and Switzerland. The company's widespread presence in the European market became one of its strengths: in fact, it provided the stimulus to increase production and, above all, to incorporate the different tastes of foreign consumers in order to create new products that can completely satisfy them.

At the end of the sixties, the rapid expansion of the company and the results achieved in its first twenty years permitted Ferrero to work on the European market with eight companies. In Italy, the programs of growth paralleled to those undertaken abroad: in 1960 the system of Pozzuolo Martesana, near Milan, was inaugurated, which allows the company to expand its ability to offer and to obtain new customers. It worked with just one product, Brioss, which marked the onset of Ferrero products in the field of so-called bakery products. Next, it was opened a plant in Avellino (south of Italy) used for the processing of hazelnuts. The sixties were years of "economic boom", crucial for the entrepreneurial growth of Ferrero. The requests increased in volume as well as the demands of consumers in terms of quality and variety. There was a return to the chocolate and the company proceeded to the creation of new products: in 1964, it introduced Nutella. In those years, there was also the so-called "baby boom", which implied recognition of the important role played by youngest people as consumers. This new...
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