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Product and SWOT analysis of kinder bueno

Kinder Bueno is a chocolate bar from Ferrero. Ferrero SpA is a producer of chocolate in Italian with other confectionery products. It founded by confectioner Pietro Ferrero in 1946 and based in Pino Torinese, Italy. There is a Reputation Institute’s 2009 examination ranks that Ferrero is the most trustworthy company in the world. Ferrero is a private firm owned by the Ferrero family. It has been described as “one of the world’s most secretive company” (wapedia, 2010).

Strengths

The Ferrero success story as a main result of the strengths is its brands. In the Ferrero family, all best in their types: Ferrero Rocher, Nutella, Kinder Bueno, Kinder Surprise, Tic Tac…... Although Kinder Bueno is a chocolate bar, it is so characteristic. Firstly, Kinder Bueno is 43g. So it is light and it easy to take. Here is an example. Chocolate is the most popular snake for people’s life. Almost of people can put some chocolate into their bags. When someone is hungry and he cannot go anywhere. The chocolate is the best choice. Kinder Bueno has two bars inside. They are detached pack. If people want to share with friend, that is a good idea.

Secondly, Kinder Bueno is delicious combination. It includes crispy wafer and creamy hazelnut filling all wrapped up in smooth milk chocolate (kinder bueno, 2010). By explanation, milk is a wholesome healthy food, and the fact that Kinder Bueno has increased milk and decreased cocoa.

Thirdly, Kinder Bueno has two kinds of taste: milk chocolate and white chocolate. People get one more choice.

Weaknesses

Chocolate market is one of the most competitive and crowded in the world, with more than 500 brands and many kinds of taste products. For any brand, they need try their best to achieve standout in such a scene is a hard job. In these companies, Ferrero does not have the price superiority. If price is a bit higher than other brands, people in Australia prefer Cadbury, Nestlé or other substitutions. For instance, the net weight is the same such as hazelnut chocolate. The price of Kinder Bueno 43g is $1.15, but Cadbury Dairy Milk Hazelnut gives a lower price ($1.09) in Woolworths. If these two companies have the similar quality and credit worthiness, more customers may prefer Cadbury Daily Milk Hazelnut rather than Kinder Bueno.

The second disadvantage is type. Now there are so many types of chocolate in the market. For example, black chocolate, milk chocolate, with fruit and so on. People not only choose with hazelnut today. So it will be reduced profit.

The last one, Kinder Bueno just has one package. One package only has two bars. If Kinder Bueno has four bars or six bars each package and price decreases 5-10 cent, it will keep some customers.

Opportunities

Chocolate is the most popular in people’s life in Australia. Almost of people eat chocolate every day. Kinder is as a German word which the meaning is children (Kinder-chocolate.com, 2009). Today Kinder strives to provide an alternative to the traditional brands, and it has instituted itself as a strong player in the children’s chocolate confectionery market. As a confectionery brand, offering a wide range of products including chocolates, biscuits and toys.

Kinder planed particularly for children. Children are important customers in the market. Parents hope their child is healthy and has a happy life. All Kinder products get free from artificial colourings and preservatives. Although there are many kinds taste of chocolate in the market, but Kinder still have more than five kinds of products. They are Kinder Chocolate, Kinder Schocolade, Kinder Surprise Eggs, Kinder Happy Hippo Cocoa, Kinder Bueno, Kinder Happy Hippo Hazelnut, Kinder Country, Kinder Shoko-Bons, Kinder Riegel and so on(12 kinds of products)(Wikipedia, 2010). Each of products has their own character. So both of points, they can keep a lot of children and parents. Anyway, Australia as important as stockbreeding, so milk is specialty in Australia. Using local milk, Ferrero SpA can get some profit.

Threats

Today, we can see more and more different kind taste of chocolate or different brands in supermarket. As well as we know that more and more substitutions, Cadbury, Nestlé, Lindt and so on. If Ferrero has no new goods or special goods, it’s hard to keep some customers. Today, there are some new competitors in chocolate market. Because of Kinder Bueno package is made of plastic, it can not be recycled. It must pollute environment.

Product

Ferrero SpA provides many brands. It excludes Nutella, it still produces many different products: the chocolates Ferrero Rocher, Confetteria Raffaello(coconut candy), Pocket Coffee, Giotto(wapedia, 2010). Kinder product series include Kinder Chocolate, Kinder Surprise Eggs, Kinder Happy Hippo Cocoa, Kinder Happy Hippo Hazelnut, Kinder Bueno, Kinder Schocolade, Kinder Country, Kinder Shoko-Bons, Kinder Riegel ,Kinder Delice and so on(Wikipedia, 2010). People can choose any taste or needs if they want. Ferrero SpA also provides other parts of goods such as drink.

However no more competitors provide these different kinds of goods in the supermarkets, like Woolworths, Coles and so on. They consider the market of special customers, designing the packaging easy to open. For example, Kinder Surprise Eggs, as well as we know that children are main customers for Kinder series of products, so the packaging must to be easy to open for children. In addition, a small one is easy to take such as Kinder Bueno 43g.

Ferrero SpA was established in 1946 which company has a long history. The older brand may affect consumers. When people buy some goods, they more like to choose the brand which they have heard it before. In another words, awareness index of a brand may influence people to rely and accept its goods. Ferrero has the advantage in this area. That makes Ferrero steadier in people’s mind. The Kinder brand as one successful brand of all Ferrero Brands whose has a secret “the ability to convert a TRADEMARK into a strong and powerful BRAND” (Brioni.G, 2009). As well as we know that children are main customers for the Kinder, so that sits in children’s minds and has a strong attachment to their hearts.

Ferrero has another advantage is the packaging. About the packaging, Ferrero has two unique features make them so appreciated by consumers. Kinder Bueno is packaged in boxes with two small chocolate bars. It has individually-wrapped in order to better keep the product and allow the portion control. Another special packaging is Ferrero Rocher. It’s an imaginable way to celebrate the holidays, birthday and other special day and show that special someone who you care. Some heart shaped boxes and square boxes look like so beautiful. They are clear plastic boxes. Ferrero Rocher is available in all sorts of different sized. The small size has three packs inside. The big size is called Ferrero Collection has three taste (Rocher, Raffaello and Rondnoir ) (amazon.com, 2010). It looks like so amazing.

Every Ferrero series product can has a nutrition label printed in the wrapping paper. Customers can see the different number of energy, protein, fat-total and sodium in different kinds of chocolate. For example, Kinder Bueno 43g per package has two packs. So quantity per 100g has energy is 2365kj and protein is 9.3g or quantity per serve has energy 508kj and protein is 1.9g. Chocolate can get some benefits for people’s health.

It clear to know that, cacao is included in chocolate which contains antibacterial agents that battle tooth decay (momscapers, 2010). The smell of chocolate can increases brain waves, making people relaxation. Chocolate also contains phenyl ethylamine which makes people mood mild. For example, people like eating chocolate who lives a year longer than those who do not (momscape, 2010). According to a study shows that 8000 male Harvard graduates of chocoholics lived longer than abstainers (chocolate, 2010). Accidentally or not, there are many oldest super centenarians in the world such as Jeanne Calment (1875-1997) and Sarah Knauss (1880-1999) were chocoholics and overpoweringly love of chocolate. Jeanne Calment habitually ate two pounds of chocolate per week, but her physician induced her to give up sweets at the age of 119 until after three years her death aged 122. These rich benefits are reason to purchase these goods.

Price

As we all know that price and demand are Mutual Influence. When the price increases, the demand will decrease. And when the firm finds the quantity of the consumers purchase is too low, they will try to decrease the price to improve the demand.

There are two factors to influence the changing of the price. The first one is the competitors. In fact that Ferrero SpA has many mighty competitors such as Cadbury, Nestlé and so on. Ferrero does not have the price superiority in the market. If price is a bit higher than other brands, people prefer Cadbury or Nestlé or other substitutions in Australia. But Ferrero give special price of Kinder Bueno for customers in supermarket such as $0.99 for each one. Sometimes, it is reduced about 2 for $1.5. Some consumers who do not care the brand will choose the cheaper one as the substitutes. The other factor is the cost. Australia is a predominantly agricultural country. Australia milk is really popular in the world. If Ferrero series products use the preponderant location to reduce the cost of production, that can get a higher profit to Ferreo firm.

Place

The distribution component of the marketing mix focuses on the decision and actions involved in the making products available to customers when and where they want to purchase them. Ferrero using special channel which moves good from the producer to a retailer and then to customers. Ferrero firm has their own logistic team deliver their products to different retail stores and supermarkets. The three types of utilities (time, place and possession) are suitable to put in the Ferrero daily business operation. They need to analysis how long will the quantities of chocolate sell out; which location is the best place to sell to customers and estimates the number of stock to sell the products.

Intensity of market coverage

Kinder Bueno marketers must determine the intensity of coverage of the product should get such as the number and kinds of outlets in which it will be sold. Kinder Bueno is a convenience product, so it uses intensive distribution method to distribute their products to all available outlets.

With the strong coverage of the well established local network and high quality of the support service. Ferrero products can be found in the supermarkets, school, mass retail stores, primacies, convenience stores and many other food selling stores…etc.

Promotion

Kinder Bueno spends lots of money on the promotion part to stimulate product demand. Through different methods of promotion, Kinder Bueno can gain several benefits such as create awareness, stimulate demand, retain loyal customers to achieve company’s sales goal. There are four elements in the promotion mix: advertising, personal selling, public relations and sales promotion. Kinder Bueno uses those four elements to promote its product.

Advertising

Chocolate is a convenience product. It is easy to buy in the market. Kinder Bueno spend huge amount of money on the advertisement to promote their brands product. The mass media such as television, radio, the internet, newspapers, magazines, outdoor display and signs on mass transit vehicles are the main tools to get the target market group attention.

Personal Selling

In general, Kinder Bueno is rare to use this method to promote their product. This is due to Kinder Bueno has enough image in the customer’s mind. The cost of reaching one person through personal selling is considerably more than through advertising. Kinder Bueno will only use this method when it lounge new products.

Public relations

Cause of personal or environmental reason, a lot of healthy problems are paid close attention to. The big problem is over-eating. The incidence of obesity and its rapid growth make Ferrero SpA to support food education and sponsored together with the Health and Consumer Protection Directorate of the European Commission actively (ferrero, 2009).

Sales Promotion

In Australia, there is almost of chocolate is being sold in the supermarket. Woolworths, Big W, Coles and Frinklin share in the mass retail store sector. Therefore, Kinder Bueno does lots of sales promotion in those supermakkets. The sales promotion includes have a special price on buying 2 or 3 items in the same time; discount ont the individual package product. Kinder Bueno also use the point of purchase material likes outside signs, window display, display racks and self-service cartons to attract attention.

Conclusion

Through doing the marketing mix analysis and select the target customers, companies will know the product sell to which type of customers. They can put more resources on promoting the selected target customers to receive maximize profit. Company also can set a goal and make a long term marketing plan to achieve the goal and for the long term growth of the company. Frerro SpA is one of the most successful companies on building their brand equity, positioning itself in the market and expands their product line to enhance their target customers.

Reference lists

Amazon.com, 2010, viewed 02/09/2010

<http://www.amazon.com/Ferrero-Collection-Rocher-Raffaello-Rondnoir/dp/B001THYKHW/ref=pd_sim_gro_3>

Brioni.G, 2009, “TRADE MARKS AND BRANDS”, PP.2, viewed 02/09/2010

Chocolate, “chocolate: Directory Of Chocolate”, viewed 02/09/2010

http://www.chocolate.org/index.html

Ferrero, 2009, “COMMUNICATIONS POLICIES”, viewed 09/09/2010

<http://www.ferrero.com/social-responsibility/communication-policies/

Kinder bueno, viewed 02/09/2010.

< http://kinderbueno.ca/site/index.html>

Kinder-chocolate.com, 2009, “Kinder”, viewed 02/09/2010

http://www.kinder-chocolate.com/

Momscapes, “The Health Benefits of Chocolate: Can Chocolate Benefit Your Health?” viewed 02/09/2010

<http://www.momscape.com/articles/chocolate.htm>

Wapedia, “Ferrero SpA”, modified 02/09/2010, viewed 02/09/2010.

< http://wapedia.mobi/en/Ferrero_SpA>

Wikipedia, “Kinder Chocolate”, modified 26/07/2010, viewed 02/09/2010

< http://en.wikipedia.org/wiki/Kinder_Chocolate>

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