In 1940’s in Italy, Pietro Ferrero, a pastry maker and founder of the Ferrero Company, created Nutella, by mixing cocoa with cocoa butter, toasted hazelnuts and vegetable oils into the spread. At this time, children could go to the local food store with a slice of bread and ask for a “smear” of the spread, for more less a penny. Nowadays, Nutella is number one spread in Italy, France and many other European countries. In most of them, Nutella is eaten primarily at breakfast or as a snack. (http://www. nutellausa. com/history. tm) In Poland, Nutella continues to be a primer provider in chocolate spreads, and seeks to make this product affordable to everyone. The market research shows, that the present preferences in Poland made Nutella a part of the weekly shopping. Major challenge face this spread in the future is new overseas manufactures, entering the country recently, after Poland became a part of the EU. That will raise the competition in the chocolate spread market. (http://www. cee-foodindustry. com) Polish population according to a statistics from 2005 is 38. 635,144 million people.
Then total students, in thousands, of higher education institution are only an 1858. 7. (http://www. stat. gov. pl) Nevertheless, they can be a new, strong, full of potential market target for Nutella. Numerous studies document the direct value of this spread for our menu. Furthermore, students are the society that needs nutritious, vitamins in there diet. However, because of their style of life, especially students that lives in dorms, it has to be something easy to reach, to made, and tasty. In addition, something, what is going to give them more energy to study. Those are the requirements, which Nutella can satisfy.
This chocolate hazelnut spread provides also some of the daily needs in proteins and calcium. (Personal analysis) The student society in Poland is about 1858. 7 thousands, but we know that not all of them will reach for our product. Some of them, especially girls will fear about their figure, teeth. However, since Nutella is not very expansive, targeting students will be a good idea, because most of them will buy what they like, but also what they can afforded. Although we can estimate size of our target market, which probably will be around a 15 percent of the whole student population. Personal analysis) Nutella’s advertising budget is not very limited, what can actually help us to get to a higher percentage of our target. The company will have TV commercials, where Nutella will be promoted as a nutritive breakfast or a snack spread on fresh breads, cakes, and on the fruits, which gives you a lot of energy to study. They will also have special events at universities. During those events, the company representative will give away free samples, T-shirts with the company logo, jars of Nutella.
This type of the procedures will help to raise awareness for the product and increase the demand for its availability. After those trials, several focused groups of the marketers will be responsible for developing a plan for the adoption of Nutella into regular manus of campus dining facilities. (Personal analysis) Nutella’s mission is to provide the customer the finest chocolate hazelnut spread, to attract and maintain different then typical, children’s market. Nutella’s marketing mix is comprised of these fallowing approaches to pricing, distribution, advertising and promotion, and maintaining customers.
Pricing. Nutella’s pricing system is that the product cost is around 40 % of the total retail price. (“Fundamentals of international business”, by M. Czinkota, personal analysis) •Distribution. Nutella will be distributed trough the food stores, campus cafeterias, school parties. Advertising and Promotion. The most successful advertising will be giving samples at the special events, which can include bringing some movie or sport star. Students like a free samples, but they also susceptible to a commercial life and famous people.
Packaging relates largely to the promotional aspect, especially labels. Packaging the product, we have to think about something easy to store, what will be a plus for students living in dorms. The spread cannot be put in to the huge jars; it should be a small, easy to keep fresh containers. The label should catch customer attention at the first look. For example, we can put on the label a picture of the Nutella jar bursting at the seams from the energy that the product provides. A good idea is also put on it some slogan, like: “Start your day with delicious energy”.
Another great idea to promote this product, would be advertising Nutella on the packages of other products, which we can use together, like milk, cookies, bred. Moreover, giving some inspiration for the consumers, for instance mixing Nutella with hot milk can give us a tasty chocolate hazelnut drink. (“Fundamentals of international business”, by M. Czinkota, personal analysis) •Maintaining Customers. This is a part of marketing plan, which company thinks about principally. Whatever needs to be done to make a customer happy must occur, even at the expense of short-term profits.
Still if the company will lose some money on the beginning, by doing all those events and advertising by giving free samples, in the long term this investment will pay-off with a loyal student customers. Even after other European companies will enter polish market, if the buyers are satisfied, they would stay faithful to this product. Very aggressive and devastating actions by competitors could be one of the factors of risk to this product on the market. However, having loyal customers can overcome this problem. (Personal analysis, information from the “Fundamentals of international business”, by M. Czinkota) To be aware of the problems and risk that may occur, company need to do frequently a market research and competitive analysis, providing information regarding other companies offering similar product. What can give them the idea about accuracy their prices, quality, and customers needs. (Personal analysis) Nutella is in polish business since many years, where the biggest market target so far was children. However, to expand this market, we need to look for new target, new potential, which we can find in students population.
Biography:
1.Personal analysis
2.Information from the textbook “ Fundamentals of international business”, by M. Czinkota, I. Ronkainen, M. Moffett
3.http://www.cee-foodindustry.com/news/ng.asp?n=54174-spreads-and-fats
4.http://www.stat.gov.pl/opracowania_zbiorcze/maly_rocznik_stat/2004/dzial9/obrazy9/rys18.htm
5.http://www.cia.gov/cia/publications/factbook/geos/pl.html
