The paper "Marketing History of the Ferrero Group" is an outstanding example of a marketing case study. This report aims at presenting a company profile of the Ferrero group. Through an analysis of the global, European, and Indian confectionery markets, the paper will highlight Ferrero’ s strengths and weaknesses and use it to present a SWOT analysis. Contrariwise, the SWOT analysis will be instrumental in determining future strategic action in new product introduction. This retrospect paper utilizes information from market sources, the company profile and specific business-related texts and journals to formulate a strategy for action.
The objective of the paper is twofold, to propose a new product for the company that seeks to strengthen its position in the Indian market and increase the propensity of greater market consolidation in gaining competitive advantage. 1.0 Company Profile Ferrero Group is an Italian family-owned company, which is one of the most secretive and closed companies in the world. Many investment bankers have made offers to the company, and there have been offered for takeovers and mergers by industry giants but the company has remained steadfast (Manuela and Mesco 2013).
The company began in 1946 during the Second World War. The founder, Pietro Ferrero, set up a lab with which he planned to support a pastry shop he and his wife owned. However, there was cocoa rationing during the time, and Pietro came up with the idea of using hazelnuts, plentiful in the area, as a substitute. This was to be the foundation for what would become the world-famous Nutella brand. Pietro passed on in 1949, with his brother taking over the company briefly before passing it on to Pietro’ s son.
He grew the company aggressively in overseas markets and developed new products (Forbes 2015). Presently, the Ferrero Group has 72 affiliated companies, with 15 production plants, 38 business units, and three social enterprises. It has over 21000 employees and a market presence in over 100 countries worldwide. It is one of the most successful chocolate companies, with a recording gross sales of over 7.87 billion euros in 2011 (USBE 2013).
Ajita S 2014, Unwrapped, Business Today, viewed 20th April, 2015
Forbes 2015, Michelle Ferrero and Family, Forbes, viewed on 20th April, 2015
Manuela and Mesco 2013, Maker of Nutella and Tic Tacs Confident in Family Hands, The Wall Street Journal, Viewed on 20Th April, 2015
Mittal P & Ravinder D 2012, ‘Consumer Buying Behavior & Perception towards Chocolates Brands and Its Consumption’ International Journal of Business and Management Tomorrow, Vol. 2, No. 9 PP. 1- 10
Neil Kokemuller 2015, Market Segmentation Variables & Characteristics, Chron, viewed on 20th April, 2015
Okoroafo SC & Koh A 2009, ‘The Impact of the Marketing Activities of Family Owned Businesses on Consumer Purchase Intentions’ International Journal of Business Management vol. 4, No 10 PP. 3-13
USBE 2013, Ferrero U.S.A. Inc.: Thinking Globally, Acting Locally, US Business Executive, Viewed 20th April, 2015
Fromm J Lindell C & Decker L 2011, American Millennial: Deciphering the Enigma Generation, Barkley, viewed 20th April, 2015