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THE ART OF BEING A LEADER
 SUMMARY

I. INTRODUCTION 5

II. PRESENTATION OF THE GROUP............................................................................ 6

A) CHRONOLOGY OF A LEADER

B) FERRERO IN NUMBERS…....................................................................................................................... 7

III. THE FERRERO ENVIRONMENT............................................................... 8

A) THE CHOCOLATE AND CONFECTIONERY MARKET...................................................................... 8

B) COMPETITION................................................................................................................................... 10

C) THE STRATEGIC BUSINESS AREAS OF FERRERO......................................................... 12

The Nut Spread Market....................................................................................................................... 12
2. The Market for Individual Pastries........................................................................................................... 12
3. Chocolate Tablet Markett .................................................................................................................... 12
4. Pocket Candy Market................................................................................................................... 13
5. Chocolate confectionery market................................................................................................................ 13

IV. MARKETING STRATEGY................................................................................ 15

A) The marketing mix........................................................................................................................................... 15

The pricing policyx 15
2. The product policy15
3. The communication policyn ...................................................................................................................... 15
4. The distribution policy16

B) Ferrero, an example of a strategy entirely based on innovation....................................................... 17

C) THE IMAGE

V. STRATEGIC ANALYSIS................................................................................... 20

A)SWOT

B) MODEL OF STRATEGIC GROUPS.......................................................................................... 21

 Identity card
Legal form Group

Creation 1946

Head office Dawn Italy

Sectorsof activities Chocolate shop confectionery

Products Spreads, snacks, candies

Effective 18,500

Numberbusiness 5.7 billion euros (2004)

Website http://www.ferrero.it

Information Chocolaterie, confectionery

legal 18 Rue Jacques Monod - 76130 MONT ST AIGNAN
SIRET : 60201889700168
SA: limited liability of shareholders
Capital social : 15.394.608,00 EURO

Dirigeant(s) PCA M. VANOLI Antonio

DG M. CAPURSO Marco
Administrateur M. FERRUA Filippo
Administrator Mr. Giovanni FERRERO
Administrator M. FASSINOTTI Antonio

Establishment(s) Non-refrigerated storage activity

Adresse Avenue de Bonport 76320 ST Pierre Les Elbeuf

Refrigerated storage activity

Address Avenue Eugène Varlin 76120 Le Grand Quevilly
I. INTRODUCTION

FERRERO is a family-owned company founded in the aftermath of the war, it has

among the largest candy groups and its products, among the best-sellers in the industry
chocolatier: Mon Chéri, Ferrero Rocher, Pocket Coffee, Kinder Surprise, and finally Nutella,
spread that contains only a tiny portion of cocoa, are sold in confectioneries and
pastry from around the world.

Innovative and prestigious brands have forged the undeniable success of FERRERO.
The company is present in several markets where its products hold a leading position.
Today, the Ferrero Group is ranked 4th in the world in the chocolate sector.
confectionery, with a leading position in Europe in Germany, Italy, and France.

To what extent do Ferrero's innovation and marketing strategy

confer a leading position?
II. PRESENTATION OF THE GROUP

For over 55 years, the brands of the Ferrero group have been cherished by millions of consumers in Europe.
and around the world. In France, Ferrero produces and/or distributes nearly fifteen products for the
happiness for both small and big food lovers.

A) CHRONOLOGY OF A LEADER

1946: The Italian company Ferrero was born in Alba, a city located in Piedmont, in the north of
Italy. At the origin of this large Group is Pietro Ferrero, who was a small pastry chef at the time.
Pietro Ferrero invents a new recipe, a spread based on cocoa and hazelnuts, which
quickly achieves great success to become the futureNutella.

1949: Upon the death of Pietro Ferrero, it is his son Michele Ferrero who succeeds him and becomes
the sole leader of the company. Thanks to his genius, his insights, and his business sense,
the company will experience, over the first 10 yearsyesa rapid progression.
In the 1950s, a great success was achieved in Italy with products such as
Nutellaou My Darlinglaunched in 1956.
These various successes are accompanied by the establishment of factories in Germany and in
France.
1970s: Launch of the marquechildrenwith Kinder Chocolate, followed 6 years later by
Kinder Surprise. Very quickly Ferrero crosses the oceans by introducing its products in America,
Australia and Southeast Asia.

1980s: Launch of Ferrero Rocher.

1990s: Launch of Kinder Bueno. The Group establishes itself in South America with
the construction of two factories in Argentina and Brazil.

2004 The Ferrero Company continues its expansion with the development of a structure in
China, in South Africa and Sri Lanka as well as the construction of a factory in Canada.
B) FERRERO IN NUMBERS...

Today the Ferrero Group is the 3rd largest confectionery producer in Europe.
continental and the 4th global group in the chocolate confectionery sector.

Ferrero in France:

Ferrero therefore seems to be one of the essential references in this market, we are going to
So now we ask about the reasons for this success.
III. THE FERRERO ENVIRONMENT

A) THE CHOCOLATE AND CONFECTIONERY MARKET

The permanent confectionery has never been so dynamic. Aware that the bars or the
balls have a limited development potential on adults, the industry focuses on their
efforts on this target in the box aisle. Only Ferrero rises to the adult challenge on the bars.
In 2004, these candies were responsible for 60% of the growth in the department, their sales
The business shows an increase of 23.6%.

With a presence and consumption worldwide, the chocolate market is in

constant evolution. It's a seasonal market for prestigious chocolatiers who offer
often other products during the off-peak periods (Jeff de Bruges and his dragees by
example).

Regarding France, chocolate consumption has been constantly evolving since

1988. And we are still waiting for it to grow. Year after year, the consumer doesn’t get tired of it.
No. And for good reason, chocolate has a magical side: that of making the eyes of children and adults shine.
great, because in addition to being good, it is a festive product.
97% of French people consume chocolate at least once a week, or 6.8kg of
chocolate per capita per year, which corresponds to the European average of 6.7 kg per capita
and per year.
Thus, the consumption of these 17 million French people corresponds to an annual production.
403,000 tonnes of chocolate, which represents 16% of the European market. France is located
so at 3theEuropean ranking behind Germany and the United Kingdom? 13,000 people work
in chocolate in France, where the annual turnover is 115 million euros.

In France, the market amounts to more than 2.6 billion euros. It is distributed as follows
next :
 Chocolate and Confectionery Magazine - September 2004

The growth of sweet cocoa powder and spreads reflects the increasing success of
chocolate for breakfast.
The term "chocolate confectionery" refers to chocolate candies, coated bars and
bites.
In the field of semi-finished chocolate products, chocolate couverture, pure chocolate paste
cocoa and semi-finished products (butter, unsweetened powder, imitation couverture products)
is the subject of a very significant progress.
B) THE COMPETITION

Lindt & Sprüngli

Lindt, a well-known brand, is mainly present in supermarkets and stores.
popular.

The House of Chocolate

The brand differentiates itself from its competitors through subtle and innovative associations of
natural flavors in chocolates from different origins.
La Maison du chocolat sells its products only in its own retail outlets.
L’entreprise fait très peu de publicité: elle base sa communication sur l’organisation de séances
tasting events led by master chocolatiers and on the search for partnerships with
various companies (suggestions for companies to offer chocolates from the brand, for
different occasions, to their clients, suppliers,...

Lanvin (NESTLE)
The brand has gained great notoriety thanks to its Burgundy snails, created in
1930. Since then, it has been present in all the major distributors.

After Eight (NESTLE)

This brand enjoys very strong recognition (over 95%). It differentiates itself from its
competitors due to its originality: its individual packaging, the shape of its chocolate, and its taste.
Its packaging allows consumers to easily find the product on the shelf.
The box has an original shape reminiscent of a tea box, which evokes a very 'British' aspect.
given to the product, accentuated by a classic writing, an English green, and a clock reminiscent of
the mythical hour that gave its name to chocolate.
The brand has launched orange chocolates and others (with cookie for example) in order to
broaden the range a bit. This brand is available in supermarkets and in stores
popular.

Jeff de Bruges
The brand has a reputation that has been steadily growing for several years (60%
More and more consumers know and appreciate Jeff de Bruges.
This year, the brand is launching a limited series of boxes and has chosen two colors for it.
caractériser : le marron et le bleu.

Leonidas
The principle of this brand is to make Belgian pralines accessible to all.
very high-end. Léonidas's expansion is harmonious, it relies on customer loyalty.
clients. The brand is present in more than forty countries and has over 1,700 points of
sale. Léonidas became known thanks to the awards that his pastry chef won for his
chocolate confectioneries.

In the market for chocolate bars, Ferrero and its flagship products are facing
a competition, but one that worries them little, as the Ferrero group alone holds more than
37% market share in this sector. Moreover, the various competitors mentioned earlier
 Ferrero ranks number 1 in the field of chocolate bars with 4 of its products.
placing in the Top 10.
 C) THE STRATEGIC BUSINESS AREAS OF FERRERO

The Ferrero company is present in five markets:

The Nut Spread Market

Supported by significant advertising investments and attractive promotions,

The Nutella brand has become a true myth in 40 years.
For a long time, Nutella was positioned as a product meant for a snack,
The brand is now trying to position itself on the breakfast market as well.

Most consumed FERRERO product in France,

Nutella is the undisputed leader in the spread market.
spreading, with 83.3% in 2006.
Nearly one in two households buys the famous spreadable chocolate cream.
at least once a year, and with extraordinary loyalty.
More than 88 million jars are consumed each year in
France. The spread records global sales
about 830 million euros, of which 1/3 in France.
However, the product faces a hurdle with the brand extension, in 2003, it launched Nutella.
Snack&Drink, which is not achieving the expected success. To revitalize the market, Nutella is launching a
1.5 kg and 3 kg pots for occasions such as Christmas or Candlemas.

2. The Market for Individual Pastries

Kinder Delight:
With two complementary flavors, cocoa and coconut, Kinder Délice is the snack that
allows the mother of the family to reconcile taste and nutritional benefits. With Kinder Délice and
Kinder Frais, Ferrero is the market leader in value for the individual filled pastry market.

Kinder Pingui:
It is a fresh milk mousse with cocoa and coconut flavor coated in a thin layer of
crispy chocolate. Launched in 1996, Kinder Pingui is the new generation of snacks.
with a fresh taste.

3. Chocolate tablet market

A milk chocolate bar with a milk filling, Kinder Chocolate is the first
Ferrero product, specially designed for children (portion tablet), to make its
Apparition in 1978. Kinder Chocolate quickly gained unanimous support from mothers for its values.
nutritional as well as with children for its good milk chocolate taste. One household on
three with child(ren) buy Kinder Chocolate.
It represents the first sale at the market reference for chocolate bars.
 4. Pocket confectionery market
Tic Tac, launched in France in 1971, created the pocket confectionery market: the case.
Tic Tac is indeed the first 'distributor' packaging for tablets.
take everywhere with oneself.
Today available in 5 fragrances (Mint, Orange, Lime & Orange, Strong Mint and
Green Mint Chlorophyll), Tic Tac owes its success and longevity to its unique recipe: a heart
freshness wrapped in a layer of sweetness. Besides its recipe, Tic Tac is greatly appreciated.
due to its timeless transparent box, its typical opening and its famous "
cling cling » characteristic, caused by the impact of the tablets against each other.
It is therefore for all these reasons that Tic Tac is one of the most loved brands among
consumers of small candies and the best known in its market: 95% of the French know it
know!

5. Chocolate confectionery market

Kinder Bueno: "Kinder Bueno, the treat we indulge in for small cravings"
A melting and crunchy bar filled with milk and hazelnut, made of 2 thin
wafer biscuits coated in delicious milk chocolate. Kinder Bueno is the ideal solution.
to satisfy daily small cravings.
Launched in 1991 and made in France since 1995, Kinder Bueno is now among the
best-selling bars in France.
It is the leader in value of bars and it is the first sale at the market reference.

Kinder Maxi: "Kinder Maxi, created for children, perfect for everyone"
A stick of milk coated in delicious milk chocolate. Launched in 1996, Kinder Maxi is
quickly became a reference in the chocolate bar market, thanks to a
progression every year very strong and regular.
Second rotation at the market reference for bars and fourth penetration rate of the
bar market.

Kinder Country: 'Kinder Country, ideal at 10 AM for a good lunch'

A bar coated in good milk chocolate with 4 puffed cereals, Kinder Country
provides children with calcium and the right dose of energy to last until noon without
cut the appetite. It is the first investor in the market and the 6th sale at the market reference.

Duplo:
Duplo is very popular, 83% of people say they like this product after tasting.
(market average: 70%). Duplo's market share by value is 4.5%.

Ferrero Rocher
Everyone loves its milk chocolate and its crispy wafer that gives under the
dents and reveals a creamy filling enveloping a whole hazelnut. The different formats
allow to meet the needs for sharing and gifting.
The brand is a leader in its market in terms of volume and value while maintaining a level
of high growth.
Ferrero Rocher in France: Leading in market share in the box segment
chocolates.
 Raffaello:
Coconut and whole almond: a multitude of flavors and sensations for a
truly a light 'gourmet revelation' that allows it to be consumed at any time
of the day throughout the year.
Seventh in market share in the praline sector (in value).

My Darling: '2 words of love in a chocolate'

A cherry in liqueur wrapped in a dark chocolate shell.
The brand is now the second player in its market with a pace of
constant growth: Second in market share in the Pralines sector (in value).

Kinder Surprise
Kinder Surprise brings happiness to children, but also to adult collectors for
which the surprises have become "cult". By launching Kinder Surprise in 1976, Ferrero
introduced the concept of surprise egg in France.
To maintain a real element of surprise, Kinder Surprise toys are updated.
permanently, a team working exclusively on their design and manufacture: It
there are over 100 different surprises renewed each year. It holds 80% market share
market and is the leader in chocolate confectionery (in value).
Kinder Surprise is a strong concept, often imitated but never equaled, completely innovative.
at its inception, quickly established itself to become a leader.
IV. MARKETING STRATEGY
A) The marketing mix
1. The pricing policy
Several factors explain the relative high price of Ferrero products.
First of all, there is a historical factor: their products are almost always the first.
appearing in the different market segments they target and they quickly become
successes. The group can therefore afford to set a fairly high price.
Then there is a quality factor that needs to be compensated. For example, for its product
Nutella, the Ferrero group buys 90% of Turkey's hazelnut production because 'that's where they
are the best." Ferrero products, to have that unique taste, are made of
best ingredients. Moreover, being a group strongly focused on innovation, Ferrero supports
significant R&D costs.
Finally, Ferrero products are often in a quasi-monopoly situation in the segments
that they occupy, hence the lack of competition on costs and therefore a freedom to set prices
due to the absence of substitute products with the same quality.
Ferrero group products are therefore related to premium products that
they still appeal to even low-income families.

2. Product policy
This strange mixture of tradition and modernity serves a strategy that, in its design,
the manufacturing and communication of products, avoids the beaten paths. Ferrero creates few
brands, but always in very high value-added niches, where they quickly become
leaders. Because rather than sticking to a market need identified by the umpteenth marketing test
Not all companies in the sector have it, Ferrero leverages latent demands. More than
The Italian group invents new ways of consuming confectionery products.
With Nutella, the spread was born; and forty years later, Ferrero still holds nearly
60% of the French market. Thanks to Kinder, children have discovered their first chocolate. And the
Five branded products (Kinder Surprise, Kinder Country...) now account for nearly
30% of the group's turnover.
But Ferrero goes even further with the logic of exclusivity: only those are launched
products whose manufacturing is so complex and the investment so heavy that they deter
imitators. "We only do what others have not yet done." The secret of patents
is very well kept: every new process invented by the Ferrero laboratories is
industrialized by its subsidiary in equipment goods.
Ferrero products benefit from a long life cycle and are almost all in
maturity phase.
The packaging, on the other hand, is evolving but without major disruption. For example, the Nutella product.
has always been sold in a glass jar, and the dominant colors are red and black.

3. The communication policy

The communication strategy is separate. Not that advertising is neglected: in Italy,

the group is the 2ndadvertisers on television behind Procter & Gamble, and in Germany
(its second market), the eighth, all brands and all media combined. But, Ferrero,
who has never renounced his rural roots, remains very down to earth: the product, nothing but the product. The
advertisement touts the nutritional benefits - Kinder, it's more milk, less cocoa. It
It even explains how to consume it – Pocket Coffee is the anti-slump solution at the office.
With Ferrero products, indulgence is no longer a sin but a necessity. Formidable.
find ! Like all the other links in the chain, and unlike what happens in
many other food groups, advertising is an integrated service within the company, which
has its own management, Publiregia.
With a golden rule: never communicate about the name Ferrero. Because the Ferrero label is
hidden behind its brands.

Some examples of communication:

TV spot: the product Kinder Bueno

Office colleagues have a "little hunger." They meet in front of a vending machine.
snacks, but when it comes to choosing, it gets complicated. One thing not being good, the other being
too heavy and too rich for the young lady. That's when one of the women finds the solution to
all their problems: Kinder Bueno, which is super good, super light...!

The launch of Kinder Pingui Coconut, Kinder Milk Slice, and Kinder Maxi
King in 1999:
As usual, Ferrero relied on a series of studies (Cyble Institute
Marketing) and large-scale test markets before moving on to the national launch. Thus,
for a year, the products and their performances were monitored in the Sens areas (Scannel
Sécodip), Angers (MarketingScan) and the RTL area (Lorraine).
In total, more than 2 million consumers have been connected with at least
one of the new products of the brand and their communication.

4. The distribution policy

A little history of distribution:

From the wholesaler to the retail chain:

In the 70s, the salespeople, numbering fifty, are true pioneers of the
sales. Their main mission is to introduce FERRERO products to everyone
the French distribution.
Before the development of large retail stores, the main customers of FERRERO France were
wholesalers. They accounted for more than 50% of the revenue. The Christmas holidays and
Easter represented for these merchants times of high activity. However, the arrival
Large retailers allow consumers to compare prices at the expense of retailers.
The year 1982 is going to be a difficult year for FERRERO France. Indeed, the company will face the
removal of the 'Intermarché' brands. This incident will result in a decrease
immediately of 7% of the turnover. Everything returns to normal the following year and FERRERO
will again be able to sell its products in the 'Intermarché'.

2. The organization of distribution:

To better distribute its products and meet the needs of its customers,
produce better, improve the supply of its distribution network and the management of
Goods movements from its warehouses, the company Ferrero France equipped itself, from the very beginning
from the year 2000, from Skep Forecasting published by Dynasys and from Infolog GE published by DL
Consultant.
 These two tools allow for tracking production on a weekly basis taking into account
each customer and product at the same time as events (promotions, seasonality...)
more than 15,000 lines of forecasts. The use of Infolog GE and Skep Forescasting has
revealed source of time savings, but above all of efficiency. These two solutions used by Ferrero
France today allows for reliability of information, an average gap between forecasts.
in one month and sales reaching 5% but also an improvement in the gaps on the
forecasts at the rate of 8% observed over the course of a year.
A choice that meets management needs under constraints: supply through the
distribution network (160 clients), multiplication of packaging, freshness of certain
product families and seasonality to manage.

In this way, FERRERO continuously anticipates customer expectations and allows them
to be present in 5 main markets (spreadable cream, individual pastries, tablets of
chocolate, pocket confectionery, chocolate confectionery) with products positioned very
targeted.

B) Ferrero, an example of a strategy entirely based on innovation

History of the emergence of products

It has now been 45 years since the first Ferrero product was born. Indeed, the chocolate...
cherry liqueur was the first to be developed. Since then, 13 products have emerged. Nevertheless,
The last two created have more difficulties establishing themselves in the market.

Ferrero is proof that innovation must be approached differently, it is not because

his competitor launches ten products a year, and we must do the same. Despite competition
Fierce, the Italian confectioner releases his new delights sparingly. And it works for him. Rather
Instead of dispersing, he put all his resources into a single breakthrough product, developed in
internet. After developing it, by protecting it with a large number of patents. Ferrero it
test for three years in a country and then judge the relevance of the innovation. It is after
this step that the family business is launching everywhere in the world.

But Ferrero goes even further with the logic of exclusivity: only the products are launched
the manufacturing of which is so complex and the investment so heavy that they deter imitators.
We only do what others have not done yet, assures an employee of the group.
the secret of patents is well kept: any new process invented by laboratories
Ferrero is industrialized by its subsidiary in equipment goods.

Unanimous hat-tip from the competition to the latest technological feat of the
Ferrero house: the Pocket Coffee, already launched in Italy, tested in Germany and France. Much more
bad as a chocolate flavored with coffee, it's a sweet espresso that you drink after biting into it.
chocolate shell. Six years of research were needed to adjust the process of
preservation of the aroma.
 But once a new Ferrero product is launched, the automation of the production lines will
offers a rarely matched price advantage. In the English market, the Ferrero Rocher is sold for 2
euros cheaper than its competitors.

That Ferrero is an industrial group fundamentally focused on innovation does not

will surprise no one. Indeed, it is already with a new product that the company is launching with the
famous 'Nutella', a hazelnut spread. A few years later still, this
"Kinder Surprise" are appearing. Twenty years ago, it was the turn of "Ferrero Rocher," a
new range of waffle pralines.
What interests this respectable old lady is to bring forth new concepts.
that do not yet exist, invent new modes of consumption. All of this, well
understood, in what constitutes his specialty, chocolate-based products, confectionery.
How? The simplest way in the world, but with original technologies. If the products
are particularly original and difficult to copy, it is because they also require some
completely specific processes, developed internally, with machines built within the
group in 80% of cases (by the subsidiary Ferrero Engineering). It is not surprising then that the creation,
the development and testing of a new product takes five to seven years. Because it is necessary to
developed and tested prototypes ensuring mass production and quality. It is necessary
also ensuring that the product meets consumer expectations, which implies
many tests in real-life situations, in panels of stores of varying sizes.

But beyond that, Ferrero also cultivates a listening to customers and a policy of skills.
Of course, because anticipating customer tastes involves constant listening: in France,
More than 20,000 consumer interviews are conducted each year. But this implies
also a culture of innovation in the company, with its corollaries which are: "team spirit,
high professional requirements, skills development, and recognition of value
people.
The results achieved by the Ferrero group are in line with this clear innovation strategy.
relying on rigorously organized creativity and non-research investments
negligible (3% of industrial revenue).

Today, the Ferrero Group ranks fourth in the world in the chocolate industry.
confectionery, with a leading position in Germany, Italy, and France. It employs 16,500
employees spread across a large number of factories around the world and four centers of
research in Europe. Closer to us, Ferrero Ardennes is a centerpiece in the
innovation policy of the group. Because what we may know less is that the Arlon factory has
was created to develop new products: this is its main purpose, even if at
a Kinder Surprise production was entrusted to him to help him get started. This is also
In Arlon, one of the four research centers of the group is also located; these centers
are gathered in Soremartec, a subsidiary entirely dedicated to research in the fields of
of marketing and technique. Ferrero is therefore a perfect example of the innovation strategy.
Their factories symbolize this spirit of creativity, places where innovations are the bread.
daily.
And the results are not long in coming. It is indeed the Arlon factory that develops Raffaëllo, 'of
fine wafers filled and coated with coconut with a whole almond," an original product
providing "a multitude of tastes and sensations for a true 'gourmet revelation'."
Let's add Kinder Circus, Kinder Schoko-bons, and finally Ferrero Cappuccino, a product in
launch phase and tested all over the world. It is also at the Arlon factory that was
designed and installed the first fully automated line for the 'Kinder Surprise' case,
various surprises being placed in a known and orderly manner inside the packaging
same.
 Invent new consumption methods, regularly launch products.
originals, with no equivalent and very difficult to replicate, thus creating almost niches.
sheltered from competition but reaching significant volumes over a long period, and
So not attackable... This is Ferrero's strategy.

C) THE IMAGE
The Man: vocation of Ferrero

A high-performing collaborator is a fulfilled collaborator.

autonomy, involvement, and recognition
well-being at work
humanist culture

They are the pillars of the Ferrero company. It is to implement its pillars that under
Under the impetus of its CEO, Marco Capurso, Ferrero France has decided to invest in its
human capital by improving the well-being of its employees through services related to life
"private." Thus, on the Rouan site, the industrialist has set up a social unit, a guard.
children on Wednesday, a nursery and a services branch.

Every year, the Great Place to Work institute awards the 'Best Workplaces' label to
companies that meet the following criteria: Credibility - Respect - Equity - Pride -
Sociability. This ranking highlights the most motivating companies that
build trust between managers and employees. For the past two years, Ferrero France has been applying for this
competition. Ferrero France took 10th place in 2005 and 7th place in 2006. With the first
place for the criterion of "company patriotism".

Nutrition
Alongside Auchan, Coca-Cola, Carrefour... Ferrero signed at the Ministry of Health a
commitment charter aimed at improving nutrition in France. A first.
Ainsi, le ministre de la Santé, Xavier Bertrand, a reçu le 2 février 2007 une dizaine de grands
industrialists and distributors - including Ferrero - in order to sign a charter aimed at committing them to
promote nutritional balance in France and participate in the fight against obesity and overweight.
On this occasion, Ferrero announced that it would stop all television advertising "when more
A quarter of the audience is made up of children.

The eco-organization EcoFolio

EcoFolio was created on March 1, 2006, it is the organization responsible for collecting, managing and
redistribute funds to help with the recycling of unsolicited commercial mail, in
France. EcoFolio 33 associated companies of which Ferrero is a voluntary part that will thus
payer une modeste contribution de 35€ afin de développer le recyclage.

Through humanitarian actions (Best Work Place), nutrition (fighting against obesity) and
ecological (EcoFolio) Ferrero, a discreet company, presents a positive and uplifting image.
Indeed, all these subjects are current. It is well regarded to receive a humanitarian business award.
As the press increasingly reports on suicides at work, the population is showing interest.
today greatly emphasizes the nutritional qualities of food products, Ferrero thus marks a
point in fighting against obesity. And finally, an ecological commitment against the abuse of use
The advertising paper can only position Ferrero as a conscious and responsible company.
the environment.
V. STRATEGIC ANALYSIS
A)SWOT

Forces Weaknesses

products located in the "gourmet" segments, which depend

numerous flagship products (stars or cash cows)
almost all made from the same ingredient: chocolate

renowned and valued image

recognized qualities
renewal of the range (great capacity for innovation)

Opportunities Threats

emerging markets (China, India) "that wish to consume "

government action against obesity
the western

insignificant competition in these markets

Weak competition in Europe
 B) MODEL OF STRATEGIC GROUPS

Trendy

Kinder Bueno
Mars
Snickers Kit Kat Kinder Maxi

Lion Nuts

Price
Weak Kinder Country Elevated
Duplo
MDD

Banal

We can see from this graph that Kinder Bueno and Kinder Maxi are products
connected and innovative which results in a high price. Duplo and Kinder Country the others
Ferrero products present here have a relatively high price but are not considered to be
Connected.
The Ferrero brand thus positions itself in the high-end category (with a high price) and is
generally recognized as trendy and innovative by consumers.

21
 Conclusion

There are few foods that can boast of arousing such fervor among
consumers. Chocolate is, for many, a passion that goes beyond the love of
sweets and desserts. Furthermore, the appetite for chocolate far exceeds mere indulgence.
the small ones. The big ones sometimes talk about their consumption as a consuming passion,
others describe themselves more as 'addicts', while others finally treat their 'depression' or their
stress with chocolate.
It then appears obvious that large companies are focusing on this market and have been doing so since
a long time.
On its side, the Ferrero group has based its market policy on this need for chocolate.
each individual. For each occasion, the Ferrero company has created a product, which has led to a market for
highly diversified chocolate (many products coexisting).

Ferrero products are all unique, they face very little competition.
Consequently, the company Ferrero sets these prices itself, so it can afford to keep a
a significant profit margin on these products, which earns it that its products are
listed as being high-end.

It is the creativity of products, the ability to innovate in new markets and to create.
new consumption habits that have allowed the company to address a target of
consumers are becoming increasingly diverse, with different cultures and eating habits.
Has the Ferrero group reached the end of its innovations, the latest products introduced?
on the market not having found a real place?
However, Ferrero has nothing to fear, its brands continue to progress in their
market and the company's revenue continues to increase. Will Ferrero find a
new product that will attract the whole world...

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 Bibliography

Sources used to conduct the study:

Brand's websitewww.ferrero.fr

-Press article Les Echos no. 19413 May 16, 2005

Press article Les Echos No. 19348 February 10, 2005

- www.toscanenet.com

the LSA website

- www.lexpansion.com

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