Chapter 4 - Marketing Environment

From the day they opened Ferrero decided to be the company affordable to everyone. They have a big product selection,some expensive and some of them very affordable. If you need to put an accent on somebody, then their main target would be children.

Ferrero is smart about marketing to children, and not just for the short term period, but also they are focusing on implementing some kind of tradition to kid's  life so they can continue to use Ferrero's products when they grow up, and then the real money comes in.

Beside just marketing to children Ferrero uses Ferrero Rocher as an elegant,classy,refined and golden chocolate product. Ferrero Rocher is primarily advertised as an upper class chocolate, to fit some kind of lifestyle that people live, or would like to live. It's also a little bit pricey for common people.

Ferrero is making almost 40% of their profits on holiday season. Their products are marketed as an perfect gift for everybody, no matter the age, color or lifestyle.That is also way you will see more of Ferrero's commercials before holiday season.

Chapter 18- Social Media and Marketing

Ferrero started engaging in social media about 5 years ago. They have many social media accounts. For every product they have, they have created separate social media account. They are focusing on promoting their products, and also updating and improving their existing products based on feedback's of their customers.

Communication Department is mainly responsible for answering to those feedback's, beside them almost every employee in the company has the ability to do the exact same thing. Their presence on Facebook,Instagram and the rest of social media websites gives them great opportunity to promote and market their products to new customers.

Diovanni Ferrero sad that social media will play a huge part in their marketing strategy in the future,and that social media budget will constantly rise over time.

Chapter 2- Strategic Planning for Competitive Advantage

As of 2015 Ferrero is the third largest chocolate producer in the world, with net sales reaching 10,911 million U.S. dollars. You probably wonder how they do such a great job in selling chocolate .

Ferrero has a long history, it was founded in 1946, next year will be 70 years of it's existence. From the first day until now it's family owned company. That is one of the main reasons why Ferrero is so big. They have product differentiation and sustainable competitive advantage.

Ferrero's product differentiation is close to magnificent. They make products like Nutella, Ferrero Roche, Kinder and Tic-Tac. All of those products were completely unique when they first entered the market, some of those even invented new categories in chocolate business. All of those products rarely change packaging or ingredients, Ferrero is very traditionally oriented company and they like to make a good products and make a brand out of each one of them.

Also, their sustainable competitive advantage is that they are one of five most secretive companies in the world. Their way of making their product is hardly known to anyone. Ferrero has a team of engineers  that design and build their own machines for producing chocolate.

CEO of the Company Giovanni Ferrero sad: “Today, the group’s main objective is to expand internationally, by establishing its products globally,” added Ferrero, saying that the company’s growth strategy will be based on brand development, innovation and markets outside Europe.

Chapter 1- Overview of Marketing ( Brief History and Mission Statement)

Mission Statement

High quality, crafted precision, product freshness, careful selection of the finest raw materials, respect and consideration for our customers: these are Ferrero’s “key words” and values which have helped make its confectionery well-known and loved by millions of consumers all over the world. Its products are the result of innovative ideas, and are therefore often inimitable, despite being widely distributed, and have become part of the collective memory and customs of many countries, where they are often considered true cultural icons.

Ferrero also means caring about hygiene, the environment, social issues and the local communities where the company is present, as well as its own human resources.
Today many Ferrero products are “global”, in that they are sold everywhere. Ferrero is one of the largest confectionery groups in the world.

However Ferrero’s distinguishing characteristic is that it is “glocal” (think globally, act locally), a company which is both global and local, which focuses on international development, without losing sight of its relationship with local communities.

The consumer is always at the centre of our strategy. Ferrero’s relationship with its consumers is based on longstanding and mutual trust, built up over the years with expertise, experience, understanding and intuition. This is a measure of Ferrero’s interest in consumer needs, and this is a key factor of the company’s success.

About Ferrero, 
 
Ferrero is an Italian manufacturer of branded chocolate and confectionery products and it is the third biggest chocolate producer in the world. It was founded in 1946 in Alba, Piedmont, Italy by Pietro Ferrero.
 
The Story of a family 

  The great leader of the Group’s development is Michele Ferrero. With the desire to make and create new products with state-of-the-art ideas, he has revolutionised the food habits of millions of consumers.Thanks to his consistent and efficient partnership with his wife Maria Franca, he was the first Italian manufacturer after World War II to open production sites and offices abroad in the confectionary sector, turning the Company into a truly international Group.We have to return to the ‘40s to discover the roots of this success. These were the years when Piera and Pietro, Michele’s parents, transformed a pastry shop into a factory.These first and decisive steps forward were thanks to the products “invented” by Pietro Ferrero and his son Michele, who was then very young. Another key to success was the effective sales network organised by Giovanni, Pietro’s brother, who died in 1949.And now Ferrero’s story has reached the third generation. Pietro and Giovanni Ferrero, sons of Michele and Maria Franca, worked together at the top of the Group as Managing Directors for more than 10 years. In April 2011, Pietro Ferrero tragically died in South Africa while working on a humanitarian mission, inspired and driven by him, that aimed to relaunch the Ferrero Social Enterprises.Today, Giovanni Ferrero continues to run the Company successfully, aiming to reach even more ambitious goals and ensuring that the company inspiration and motivation that was so strongly shared with his parents and his brother. Today, just as yesterday, it is a structure based on solid family values.In short, behind the trademark, the turnover and the expansion of a multinational company, there is the story of a brilliant and strong-willed Piedmontese family that gathers its extraordinary strength for growth from the Ferrero Foundation’s motto: “Work Create Donate”.