Nutella

Nutella  is the brand name of a hazelnut chocolate spread. Nutella, manufactured by the Italian company Ferrero, was introduced on the market in 1963. The recipe was developed from an earlier Ferrero spread released in 1944.

History

Pietro Ferrero, who owned a bakery in Alba, in the Langhe district of Piedmont, an area known for the production of hazelnuts, sold an initial batch of 300 kilograms (660 lb) of "Pasta Gianduja" in 1946. This was originally a solid block, but Ferrero started to sell a creamy version in 1951 as "Supercrema".

In 1963, Ferrero's son Michele Ferrero revamped Supercrema with the intention of marketing it across Europe. Its composition was modified and it was renamed "Nutella". The first jar of Nutella left the Ferrero factory in Alba on 20 April 1964. The product was an instant success and remains widely popular.

In France, senator Yves Daudigny proposed a tax increase on palm oil from €100 to €400 per metric tonne. At 20%, palm oil is one of Nutella's main ingredients and the tax was dubbed "the Nutella tax" in the media.

World Nutella Day is February 5th. 

SWOT Analysis

STRENGTHS

1. Nutella has captured the European market2. Product is positioned as unique and of high-quality in taste and nutrition3. Broad appeal to many market segments4. Variety of consumption methods5. High company awareness from other popular brands (Tic Tac, Rocher)

WEAKNESSES

1. Low Nutella brand awareness in the US2. Not advertised well3. Higher price than peanut butter competitors4. Not placed on shelf in eye-catching spot5. Americans perceive chocolate as being unhealthy

OPPORTUNITIES

1. Faster pace of life, less time to cook2. Internet usage has greatly increased3. Americans watch many hours of TV per week4. American love of European trends

THREATS

1. High competition from leading peanut butter brands2. Imitation chocolate spreads3. Bad economic cycles / states

Nutella Company Marketing strategy

Nutella Company uses their  advertisement,ingredients and environmental ethics and protocols to appeal to the consumer. That way, if a consumer thinks that he/she is buying a product that supports a good cause they will go back to purchase the product over and over again.

Ingredients ethics

Ethical Source of Cocoa: Ferrero is involved in working towards the economic and social development of the world's cocoa farming communities, as well towards a supply chain free of forced child and adult labour.Ferrero participates in the common industry commitment established in 2001 under the Harkin-Engel Protocol, aimed at developing standards for certification that cocoa beans and their derivates have been grown and processed without any of the worst forms of child labor.

Advertising Ethics

Although the existence of a direct link between advertising and children's eating habits has not been proven, Ferrero agrees that it is preferable to avoid directing advertising to children when they are most likely exposed to commercial communications without parental supervision.

Advertising Messaging .1Ferrero will not advertise its products to media audiences with a majority of children under the age of 12, except for:

products which fulfil specific nutrition criteria, consistent with established scientific evidence and/or applicable national and international dietary guidelines; non product-specific brand campaigns advocating a healthy lifestyle by promoting physical activity and/or sports.

Advertising Messaging .2The advertising of Ferrero products fulfilling specific nutrition criteria, consistent with established scientific evidence and/or applicable national and international dietary guidelines will also reference or be in the context of promoting healthy dietary choices and/or physical activity.

Advertising in schoolsFerrero will not carry out any communication related to its products in primary schools,

except where specifically requested by, or agreed with, the school administration for educational purposes. 

Use of products in interactive gamesThere will be no intentional placement of Ferrero products in any interactive games primarily directed to media audiences with a majority of children under 12, unless the interactive game incorporates or is consistent with healthy dietary choices under Advertising Messaging 1 above.

Environmental Ethics

We manage our factories by the efficient and rational use of energy, materials and natural resources; pursue the reduction of environmental impact, waste and refuse where possible We are aware of the fact that the conservation of water quality and quantity is not solely an environmental problem but a challenge that embraces the entire agricultural, economic and social system. We are therefore committed to the responsible management of water resources