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.
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