Chapter 8 - Segmenting and Targeting Markets

Ferrero uses many different market targeting and segmentation tactics. In order to sell their products around the world, with so many different cultures, they need to use geographic segmentation, and they use it very effectively. The way they do it is that they hire local marketing agency to sell their product, because locals know the best way to sell a product to their fellow neighbors. Ferrero acquired a decent market share in Europe, South America, North America and Australia. Their next target market is Asia, and they already started promoting  their products there. Also, Asia is a huge market and is very populated, by acquiring it they would generate unimaginable sales.

Marketing Segmentation strategy that Ferrero uses is certainly demographic segmentation. Their products are usually promoted to different age groups. Kinder Eggs to children, Kinder Bueno to teens, Nutella for the whole family and Ferrero for adults. In addition to that, they demonstrate effective psychographic  segmentation, by promoting some of their products in an elegant and classy environment.

Chapter 15 - Marketing Communications

In order to describe Marketing Communications of Ferrero, I will describe my story when I encountered some of their products. First of four AIDA concept is attention. . Coming out of Socialist Yugoslavia, which was relatively closed to the global market, with it's own products and industry, which were relatively good, but far  from what world had to offer. I remember when i first encountered with Ferrero Eggs. It was 1998, I saw this commercial on TV, and it got my attention, because I saw a kid opening something that looked like an egg wrapped up in white and red paper. As soon as he opened it I saw chocolate, I was stunned, I never loved eggs but I loved chocolate, and my mother always got angry because I didn't want to eat eggs, and I thought I might eat chocolate egg. I was really interested, and I had a great desire to taste it. On the first day after school I asked my mother to buy me one of those eggs and guess, she did. But there was a part that they didn't show on commercial, nobody told me about the toy inside the Kinder Egg, imagine my happiness when I saw that. I was immediately in love with Kinder Eggs, me and all kids around me.

Ferrero's commercials are designed to get our attention, always showing beautiful chocolate, melted in a way that chocolate in that moment looks very desirable. I don't think many people can watch those commercials and not think about eating chocolate at that moment. Also, their way of packaging their products is unique, especially Ferrero Rocher with it's golden and very elegant style.

Chapter 10 - Product Concepts

Products of Ferrero are primary convenience products, relatively inexpensive items that  merits little shopping effort. Ferrero has several completely unique product lines, some of them, upon their arrival created new categories in chocolate industry. As I mentioned, there is no need for extensive search to buy products of Ferrero, they are available almost on every corner, although, they are more seen in Europe than in the United States.

Ferrero always offers high-end quality products, with elegant packaging to go with the delightful taste. Also, some of their product lines, most notably Kinder, rarely changes it's packaging. In 1950's they have created packaging for Kinder, with a picture of a kid on it, because Kinder means kid on German. Now, kid that is still on Kinder is around 60 years old. Most important thing about Ferrero's products is a brand. They have created a brand out of each product, and customers see that and return to Ferrero's products occasionally. It is hard to imagine childhood without Kinder Eggs, middle school without Kinder Bueno, and holidays without Ferrero Rocher.

Chapter 17 - Personal Selling and Sales Promotion

Personal Selling is the first kind of selling that we know of, and is probably the most important. However, Ferrero is not doing a lot of it, I think it is because they usually don't have any contact with ending consumer. There is only a few Ferrero stores, as I previously mentioned, they are usually located at the airports. Also, that is not a coincidence, because their products are often used as gifts to family, friends or loved ones. Ferrero stores are elegant, modern and golden, with amazing staff that is there to guide and help you to make your decision. Gold is color that represents Ferrero company.

I think their Personal Selling is unseen to customers, mainly because it is between Ferrero and stores that sell Ferrero's products. They always try to keep an excellent relationship with store owners, by  ensuring that delivery of goods  is performed as promised, and that all products are high quality. Unfortunately, they can not influence consumer decision with personal selling, and for sure they can not rely on independent store owners to sell their products. That is way they are making sure  to bring high quality and tasty products on the market, advertise them smart and then sell them.