ferror origin

1. Founded in 1942 by Pietro Ferrero, the company is specialized in
confectionary products such as snacks (Bueno, Delice, Pinguì, Fetta al
latte), sugar sweets (Tic Tac), crémes (Nutella) and drinks (Estathè).
Since the beginning the firm has been managed by the Ferrero’s family
that started the activity in a small laboratory in Alba, which then became
the administrative and legal headquarter followed by the expansion in
Pino Torinese, where the commercial and directive branch is placed.
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2. Pralines
 Snacks
 Fresh snacks
 Others
Product line and product portfolio decisions
Product line length
Product
mix
width
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3. Products characteristics
Quality
Design
Naturalness
Safety
Deliciousness
Practicality
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4. Packaging
Brand name
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5. Price
On average Discounts
Since we are not talking
about handmade or
patisserie, but neither
of cheap and low quality
products, prices are
more or less in line with
the market.
Since the company is focused
on differentiation, there isn’t
so much attention on
discounts: in fact, it’s
important to maintain a
certain level of quality and
fame which somehow justify
also the price.
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6. Promotion
Ferrero’s promotion activity has two main purposes:
- attracting many targets of consumers through different types of
advertisement
- letting people understand the role of nutrition, diet and physical activity
in order to achieve a globally healthy and active lifestyle
Marketing communications of the
company are directed primarily to
the adults who make the
household purchasing decisions
and then to young people.
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7. Regarding the communication channels, Ferrero especially exploits the
huge power of diffusion of television in order to let its commercials reach
almost each target of people.
Moreover, to increase its notoriety and gain the confidence of the audience,
the firm has advertised its products with the help of many Italian and
international sportsmen and sportswomen that cannot exclude cocoa and
milk snacks from their daily diet.
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8. Over the years the company has launched plenty
of initiatives in order to obtain the interest of
possible consumers for their products through
some attracting contests with prizes.
For instance, Regalissimi® 2014 is the most famous
and successful promotion in our country which
consists in winning some fantastic prizes, after
having collected a certain amount of points (each of
them is located in the package).
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9. Ferrero’s products are available in every kind of supermarket, also in the
small ones, because they are inescapable in the breakfast or in the
afternoon break of the majority of Italians and people all over the world. In
fact, they are one of the most worldwide admired company thanks to the
transparency, competence and diligence it employs continuously in its
sector.
Placement
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10. Strenghts & Strategies
The principal mission of Ferrero is to satisfy real needs with cheap and good
quality products.
Over the time the company has never proceed with any outside acquisition;
It always worked to develop its own production lines.
The products become:
Innovative and a cultural icons
Then, Ferrero has always invested a lot on the communication level.
Promotion: used to
explain carefully what
makes up the product.
Collaboration: sustain of
important societies and
participation to relevant
events.
This helps the firm to create an image of itself made up by health and
reliability. 10

11. The most successful factor is the “product policy”, that means every product
is treated as a company itself.
Ferrero’s success respect to the competitors is linked to its knowhow, which
it is able to satisfy both market and technological needs.
This way it creates a product that attract consumers and give monetary and
productive advantages to the company.
This lead to:
The creation of always new
markets.
Extremely competitive
positions.
A very significant example is the case of Kinder Ferrero.
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12. Weaknesses & Competitors
Ferrero offers in the market an high range of products, different from one
another. So it is subjected to many treats coming from enterpises more
specialized on a single product.
Ferrero has two kind of products
Differentiated Undifferentiated
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13. Regarding the ‘‘product policy’’, once that a business unit has been able to
aim its target, it can be seen as a new firm.
This happens when different products, from the same enterprise, have
different aims and goals and the single product focuses on a single target
can have a different core business compared to the main one.
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14. So, Ferrero is not responsable to face the different competitors. The single
product such as TicTac, Estathè, Kinder, etc. use their know-how to defend
their position in the market.
A curiosity is that Barilla and Ferrero are not listed, because both of them
are 100 per cent made in Italy and still owned by the family that founded
those two companies which do not allow foreigns investments.
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15. TARGETS PRODUCTS
FERRERO Family, Adult, Children,
Sportman
Beverage, choccolate,
sweets, fresh products,
confectionaries, snacks
BARILLA Family, Children Pasta, biscuits,
confectionaries
MILKA (+PHILADELPHIA) All (no fine products) Milka + Philadelphia is
good but Nutella is better.
LINDT Adult, Children Fine products
Competitors’ table
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