The paper "Ferrero’ s Five-Year Marketing Plan " is an outstanding example of a marketing case study. Ferrero’ s five-year marketing plan is set for the purposes of growth, mapping for funding and inform its employees of the firm’ s status and direction. Although the company launched its operations in China some few years ago, its products are now a recognizable brand with a greater-than-anticipated demand. The trend reveals that the target market full of snacks enthusiasts and young consumers can buy more than what the company offers. The company is interested to extend its product line by adding new product lines.
In addition, Ferrero plans to explore opportunities by reaching the mainland. The marketing environment appears receptive to the company’ s high-quality products- branded products with prices that reflect the interests of the customers. Over the next five years, Ferrero can extend its distribution, win new customers and offer new products. Background Information Ferrero is a family-owned company that has operated in Europe for almost a century in the food industry. Its products include a wide range of confectionery and different brands of chocolate and snacks.
It is a world leader in chocolate production and distribution. In 2007, the company set up a manufacturing unit in China and got a 12% market share in 2014 (Nieburg, 2015). Ferrero has one recognizable chocolate brand known as Ferrero Rotcher in China. Product Chinese customers perceive Ferrero Rotcher as expensive and accessible luxury. The larger number of buyers comprises of young children, teenagers, and young adults. Apart from being an accessible snack mostly when on outdoor, Ferrero Rotcher is expensive and highly likeable to Chinese consumers who are obsessed with status.
Chinese also like to buy brands from foreign markets as well as being identified with high-quality products and brands that are the attributes of Ferrero Rotcher (Allen, 2010). The product is also accessible as the company places it at the conspicuous position of the major consumer products outlets. Ferrero Rotcher is packed in different sizes starting from 50g, 100g, 200g, 300g and 600g. They also have very clever advertising campaigns like when launched; they referred to it as ‘ gold sand’ (Yang, 2007). The Marketing Environment and Market Analysis Ferrero Rotcher’ s microenvironment will have a greater impact on the product.
The way the product will be bought depends on how the firm develops a reputation among retailers not only in the cities but also in the mainland. Ferrero must prove to be reliable manufacture and deliver the requested products on schedule. In turn, it needs to establish and maintain strong relationships with distributors and retailers (Teo, Mohamad & Fernando, 2010). SWOT Analysis SWOT Analysis Strengths Great products and tastes Excellent brand name and high brand loyalty Unique/wide range of sizes and product packaging Famous company- a global company that deals with chocolate brand Product reflecting status - expensive chocolate products Weaknesses Not easily available in all places Opportunities Launch more varieties and customized gift packages Tap market on the mainland, retail chains, and growing cities through the promotion Threats Calories conscious consumers Established local competitors and major chocolate brands PESTEL Analysis Economic and social factors mainly affect Ferrero Rotcher.
Chinese consumers are likely to move towards relatively expensive products making pricing offer an important marketing strategy for the brand. Additionally, confectionery products in China have seen higher demand. However, consumer highly looks for a soothing experience and thus, the promotional offer should be considered in the marketing strategy (Allen, 2010).
Furthermore, the main customers for the brand include children and young adults with a low level of brand loyalty. In turn, Ferrero must keep its concepts fresh and come up with new product lines to retain its consumers. Social media is a factor to consider and exploit adequately.
Allen, L. L. (2010). Chocolate Fortunes: The battle for the hearts, minds, and wallets of China's consumers. Thunderbird International Business Review,52(1), 13-20.
Checchinato, F., Lala, H., & Vescovi, T. (2014). Do distributors really know the product? Approaching emerging markets through exports. Approaching Emerging Markets Through Exports (October 1, 2014). Department of Management, Università Ca'Foscari Venezia Working Paper, (2014/19).
Guercini, S., & Ranfagni, S. (2012). Rebranding strategies for the Chinese market. Finanza, Marketing e produzione, 30(4), 153-175.
Nieburg, O. (March 2015). Ferrero Plans first factory in strategic Chinese market. Confectionery, Retrieved [2 May, 2015] from http://wwwconfectionerynewscom/Manufacturers/.
Teo, P. C., Mohamad, O., & Fernando, Y. (2010). Chocolate Brand Familiarity and Product-Country Evaluation Among Young Consumers In Malaysia.Research Journal Of The Institute Of Business Administration Karachi-Pakistan, 5(1), 117.
Yang, L. (2007). Why are Chinese crazy about Ferrero Rocher chocolates? Quora, Retrieved [22 April 2015] from http://wwwquoracom/.