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Marketing Presentation 1

COB Analysis

Akshay Raman

on 19 March 2013

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Transcript of Marketing Presentation 1

Presentation #1 - COB Analysis Ferrero SpA - The Chocolatier Group #7 Akshay Raman
Alicia Wee
Joanne Guo Chenqi
Joel Tan Jun Rong
Poh Yu Hua Historical Background and Interesting Facts Target Market Segmentation Competitor Analysis History of Ferrero SpA 1942 : Pietro Ferrero begins selling fine chocolates to the masses. Products are made with base ingredients of hazelnut and cocoa. 1946 : Ferrero begins industrial production 1950 - 70 : Ferrero develops a wide variety of confections including
brands include Nutella® hazelnut spread, Kinder® chocolates and Tic Tac® mints 1968 : Kinder brand of chocolate products for children debuts 1982 - Ferrero Rocher® becomes known for its distinctive gold foil wrapper, unique premium packaging and high quality hazelnut chocolates 1985 - Ferrero Rocher® chocolates are first distributed regionally in the United States History of Ferrero SpA 2000 - 2006 : In 2001, the Ferrero Prestige brand is launched to introduce a wider assortment of Ferrero confections to a growing premium chocolate category. 2007 : Ferrero launches Ferrero Rondnoir® dark chocolates in the US. Two new delectable flavors in addition to Rocher® chocolates, Rondnoir® dark chocolates and Ferrero Garden Coconut confections 2009 & Beyond : Ferrero continues to innovate in the premium chocolate category by satisfying the growing consumer demand for high quality confections Interesting Facts Fact One
Athena Hohenburg from San Diego sued Ferrero for false advertising
“Nutella is made with simple, quality ingredients like hazelnuts, skim milk and a hint of cocoa”
Gave a false impression that Nutella is a nutritious breakfast spread when it in fact contained dangerous levels of saturated fats and sugar
She won the $3 million class-action lawsuit Interesting Facts Fact Two
Kinder Surprise Eggs are banned in the United States of America
Currently, there is a petition created on the White House website to end the ban and they are required to gather 100, 000 signatures by April 8 Behavioral Segmentation Occasions: Festivals, Social Functions, Valentine’s Day, Easter Day
Brand loyalty
For example : the Ambassador’s reception advertisement which was very popular in the United Kingdom created an image that Ferrero Rocher chocolates should be bought and served on special occasions and holidays. A still from 'The Ambasssador's Reception" advertisement campaign Demographic Segmentation Age : 12 – 40 years old
Gender : Unisex
Income : Middle and upper income group
Ethnicity : All culture Depiction of 'The seven ages' of man by Shakespeare Geographic Segmentation Can be found all around the world
Mostly sold in supermarkets and departmental stores
Developed neighborhood where people have higher spending powers SWOT Analysis Major Competitors Nestle
Hershey's Kit Kat Mar’s Bar Ferrero Rocher Cadbury Hershey’s Lindt Chocolate Social Media Popularity Competitor Comparison Global Market Share Pie Chart SWOT Analysis Strengths Though their marketing and management is weak, the quality of the products still manages to generate an annual profit of 6.7 Billion USD at a growth rate of 4.3% Diverse product line
Excellent taste
Wide variety of gift based chocolates
Excellent packaging Weaknesses Image as a gift and season based chocolatier
Pricing is higher compared to other brands
Lack of dedicated outlets of the brand
Lack of effective advertising Increasing popularity of bar based chocolates
More child friendly and attractive packaging possible
Acceptance as seasonal chocolatier provides base for expansion Threats Chocolate is a daily consumable commodity - difficult to establish brand loyalty
Surge in the number of chocolate brands and counterfeiters
Strategic Myopia due to company's positioning Opportunities Inference Conclusion A still from 'Food of the Gods' ad campaign Physical attributes
Brand name
Environmental Friendly
5R - removal, reduction, Recyclability, reuse and renewal
Emphasis on healthy lifestyle
Nutritional value
Size portions Product differentiation Main issue:
Falling market share
Slow growth rate
Ferrero is a household brand that we grow up with
Solutions of problems
Opportunities for project
Evaluation of alternatives Conclusion Thank You !

Q & A Session General Trends in Chocolate consumption Geographic distribution Global Chocolate retail market value
Full transcript