Ferrero, the maker of Nutella, plans to expand into the US market by targeting 3 segments: children ages 4-13 and their parents, college students, and wealthy individuals in the South. The plan is to increase brand awareness, market share, and profits by 35% within 3 years through advertising, product placement in supermarkets, and promotional activities like samples and coupons. Financial projections estimate $1.2 million in annual sales growing 50% over the next 2 years.

2. • Executive Summary.
• Objectives and goals .
• Situation Analysis.
• Product and Customer Analysis.
• Marketing Strategy .
• Financial Projections .
• Implementation Plan .
• Appendix.

3. Executive Summary :
 Nutella’s company, Ferrero is the largest dessert group
in Italy and the fourth Largest in the world.
 We have identified and divided the American market into
three promising segments:
1. Children between the ages of 4 and 13 and their parents .
2. College students
3. South along with wealthy/successful individuals and elders
By implementing our marketing plan, we hope to achieve several goals and objectives
within 3 years:
 Improve brand awareness
 Become leading general spread and breakfast in the U.S.
 Achieve greater market share by 35% increase in profits.
We will use a differentiated strategy to position ourselves as the leader in the breakfast
market, as well as our excellent quality through our taste, and
through the positive image and high prestige of our company name.
Moreover, we will focus our marketing efforts on shelving Nutella in an eye-catching
spot in supermarkets, as well as advertisements on the radio, television, newspapers, and
magazine. Also, our sale promotion will include samples and coupons.

4. Marketing Goals and
Objectives:
 Nutella’s Mission Statement:
Because of their great success in the European market, Ferrero is ready to introduce Nutella
to all American people. At Fererro, our primary mission is to introduce Nutella to all people around
the U.S.A.
In addition, we want all Americans to gain trust that Nutella- the original and most delicious
chocolate hazelnut spread in the
world- is the best choice for them.
 Market Definition:
The market definition for Nutella point to Ferrero’s incentive to introduce itself to the U.S.A market
as the only product that will promise maximum satisfaction and excellence to its buyers.

5.  Increase the overall sale by 35% within
the first 12 months and 50 percent within the following two years
 The first year increase in sales wont be affected by
technological changes.
 Nutella’s annual sales has be estimated to be 1.2 million a year in U.S.A market.
Allocation of the required funds for our advertising campaign :
 Accordingly, for Nutella, in order to create strong brand awareness, a
similar size budget will be required.
 We estimate that we will spend approximately between 35-45 percent of our profits on
advertising and promotions.
Allocation for required funds for improving shipping and handling :
 By comparing and contrasting the two options reviewed in section 4.2, we conclude that the
second option- which will help us achieve faster and effective delivery service- will help Nutella
be distributed in a more cost effective way.
Financial Objectives:

6. Situation Analysis:
Strengths :
 Nutella has captures European Market
 The only product with high quality in taste
 Wide attraction to many market segments .
 Set of consumption ways .
Weaknesses:
 Low Nutella brand knowledge in U.S. A
 Not advertised well .
 Higher price than peanut butter competitors.
 Not placed on shelf in eye-catching spot.
 Americans perception that chocolate is
unhealthy.
Opportunities:
 Faster pace of life, less time to cook.
 Internet usage has greatly increased.
 Americans watch many hours of TV per
week.
Threats :
 High competition from leading peanut butter
brands.
 Tradition chocolate spreads.
 Bad economic cycles / states.

7. segmentation:
Anyone who likes to have a tasty and nutritious snack.
 The first target market, the 4-13 year olds and their parents, will
generally be targeted toward middle and low class income families.
 The college students will be targeted for behavioral variables.
 Finally, the Southern U.S.A, and seniors along with middle and upper class individuals will be
targeted
because studies show that they are more likely to have breakfast.

8. Target Market:
Extend the Nutella success to the U.S.A.
For the most part, Ferrero has captured the European market with Nutella hazelnut
chocolate spread. Some of these countries include: Germany, France, and Italy. In general,
Nutella has been marketed and has captured kids twelve and younger, as well as adults and
teens. Like peanut butter is “America’s favorite,” Nutella is European’s choice. We propose a
plan to expand the market segments from the European market to the United States market.
Our goal is to make Nutella an all American Breakfast.
Three market and three versions of Nutella
Product line extension of Nutella will consist of:
Original Nutella chocolate-hazelnut spread
Peanut butter-Nutella swirls and Nutella-Peanut butter swirls
Nutella bars

9. Positioning :
As a healthy and tasty breakfast for kids .
In trying to implement our plan, we will take a differentiation strategy way.
Nutella’s position is based on its:
 Uniqueness.
 Excellence in quality through our Great taste.
 Convenience and Versatility.
In addition, the different lines of Nutella:
 including the original Nutella-chocolate hazelnut spread, the Nutella and peanut butter swirls,
and the Nutella bar appeal and meet the specific wants of each market segment.
 market leader in the United States as it has been in Europe.
 And to paint a more clear picture we have pretend Nutella’s position as
compared with Twist and Peanut butter on different characteristics.

10. Three Branding Strategies That Made
Nutella a Business Success :
This year hazelnut spread Nutella turned 50, Nutella has crossed the sill from being a simple food
product to national obsession, and its rise to the top could be a case study for business men on
how to run a business.
Consider this: a jar of Nutella is sold every 2.5 seconds. And its owner, Michele Ferrero, is the
richest man in Italy, according to Bloomberg.
While its popularity grew , the product really took off after the company employed three smart branding
strategies:
1. It focused on the breakfast market.
In 2009, Nutella began focusing its branding almost purely on becoming a breakfast staple. This
move helped consumers understand the product’s best use.
2. It tapped into a universal desire.
3. It capitalized on social proof

11. Financial Projections :
 Nutella sells 11million jars annually.
 In Britain alone sales of the spread are up by 22 per cent year-on-year.
 Nutella sales increased 11.9 percent in 2013, and Nutella's hazelnut and chocolate spread
accounts for 70 percent of sales.
 Sales of Nutella increased 5.9 percent in 2013 in the U.S. and 6.4 percent worldwide to $2.46
billion.
 In the U.S.A, Nutella sales were up 5.9 percent.
 Ferrero uses 25 percent of the world's hazelnut supply,
with each 13-ounce jar of Nutella requiring more than 50 hazelnuts.
 Nutella original chocolate hazelnut price
is on average $3.99-$4.29.
 Nutella peanut butter swirls
price: between $1.99 and $2.95
 Nutella Bars At a retail range
of $2.79 to $3.05 per box
of (6-8) Nutella Bars

12. Implementation plan:
 The marketing budget will consistently equal almost 35-45 percent of sales.
 The advertising strategy Nutella will consist of advertising in the following media:
Radio 10% Television 45%
Newspaper: Sunday News, Daily Times 25%
Magazines: Highlights, People, Times, and various cooking magazines 15%
Direct Mail: Flyers sent to mailing list 5%
 These expenders will be based on 35-45 percent of total sales for the first two years, and then
reduced to 25-35 percent of total sales thereafter.
Sales promotional advertising:
Samples : it will introduce new product line.
*The samples will be accompanied with a “bounce-back offer” using a buy
one get one free offer that promotes the customer to make an after sample purchase
Coupons : Coupons will stimulate sales of Nutella and promote early trial
of our new products.

13. Please circle appropriate answers:
 Do you know what “Nutella” chocolate hazelnut spread is? (Yes or No)
 If yes, answer section A only
 If no, answer section B only
Section A:
1. How old are you?
a. 18-28 b. 29-38 c. 39-49 d. 50 or older
2. How often do you buy Nutella?
a. Regularly (every few weeks)
b. Often (every few months)
c. Rarely (couple times a year)
4. If you don’t buy and eat Nutella on a regular basis, why not? (Circle all
that apply)
a. Too expensive
b. Don’t like it so much
c. Can’t find it easily
d. Other, please specify:

14. 3. Can you find Nutella easily in supermarkets? (Yes or No)
4. What do you eat usually for breakfast?
a. Creal
b. Peanut butter
c. Cream cheese
d. Other, Please specify:
Section B:
(1) Do you think you would try this product? (Yes or No)
(1a) Why or Why not? Please specify:
(2) What do you usually have for breakfast?
a. Creal
b. Peanut butter
c. Cream cheese
d. Other, Please specify:
(3) How old are you?
a. 18-28 b. 29-38 c. 39-49 d. 50 or older