Swot and Pestel on Ferrero and Morocco

Topics: Morocco, Tax, Economy of Morocco Pages: 5 (1664 words) Published: February 2, 2013


For the SWOT Analysis we have the Strengths and Weaknesses of the company and the Opportunities and Threats that the company might face in the new Market of Morocco. We acknowledge as strengths the high in quality products that Ferrero produces and more specific Nutella and also the worldwide awareness the Ferrero Brand causes. With these main factors Ferrero can depend on for its expansion among the globe and be able to attract more and more customers every day, every hour. People just by hearing the name Ferrero or Nutella will be always more keen to buy a product from this company than from another more infamous one. Furthermore the packaging of the product by itself can promote it and have an instant customer recognition. We also believe that the great amount of funds that the company has at its disposal is a huge advantage, because in case there is need for money to promote more the products or to save the company's face from a bad situation they could do it very easily and without worrying on where they'll find the funds. We can consider as weaknesses the company not investing a lot in advertising, so there are very few and rare ad campaigns which do not help a lot for improving the brand awareness for the company and its products. Also the perception that chocolates and chocolate confectioneries are unhealthy might be a reason for consumers not to buy the company's products. Concerning now the Nutella itself a great weakness is that one of its ingredients is palm oil which production causes deforestation and is really environmental unfriendly so people with environmental concerns will not buy it and maybe do a negative marketing of the product. Now, on the industrial part, we think that a great opportunity is the ability of the company to launch new products and reach more people and more maybe forgotten target groups, such as the diabetics. Also, what Ferrero produces and sells can be considered as an affordable indulgence, an affordable little treat for ourselves, especially now because of the Worldwide Financial Crisis. Another opportunity can be considered the emerging economies to where Ferrero can go and either produce at lower costs or sell its products. Finally, the threats that Ferrero faces are quite few but almost all of them, with the right handling, are manageable. To begin with chocolate and chocolate confectioneries, which Ferrero main products are in this category, are more seasonal and therefore we might have a great reduction of sales in places/countries where for example the summer is too hot and people do not want something too heavy as a chocolate or they image of a melted chocolate might destroy the company's image. Furthermore, as we already mentioned consumers are growing more and more to healthy diet and foods and therefore such high in fat and calories products will not be appealing to them and Ferrero might lose a lot of potential customers, because for example mothers that do not allow their kids to eat sweets will reduce the sales and also these kids will grow into these healthy diet and will not buy the products nor for themselves nor for their own kids, it would be a chain reaction with sales dropping as a result. As threats are also considered the many and different substitute products that Ferrero has to deal with, from other chocolate companies to sweets manufacturers to beverages, restaurants, pastry shops etc etc. All these make Ferrero to have to “fight” harder and compete with so many rivals that will have to spend a great amount of money in advertising and making its products better and better and more appealing to people. Also exactly because of those substitutes there is also intense rivalry, which leads to fewer sales to fewer profits and have to be considered and find ways to overcome it and be profitable enough. Last but not least there is the threat caused by Greenpeace because of the negative valuation the organization gave to Ferrero for the use of...
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