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Today ferrero is one of the largest confectionary companies in the world. Ferrero has sales product all around the world. The ferrero family keeps on delight its universal consumers with a seemingly inexhaustible line of single, high-quality product, not only in the spread and candy aisles, but also in the bakery and beverage part. Kinder Bueno is one of the best-sellers of the company and at the heart of ferrero success. Kinder Bueno is sold at 30 countries around the world. Kinder Bueno has great market power in the world.
The aim of this report is to evaluate the marketing strategy of Kinder Bueno.
This report will mention all aspects of Kinder Bueno's marketing mix, these include: product, price, place and promotion.
Kinder Bueno is a chocolate bar comes from Ferrero. It is a hazelnut cream filled wafer with some smoothly chocolate covering. The brand of Kinder was launched in 1968 which products for children debuts. Kinder Bueno chocolate bar originally comes from Germany, where it was first come out in 1990. It is the most principle and significant source of income for Ferrero. Ferrero use its recipe for their own product, which was available from 1946.
Ferrero produce special package for Kinder Bueno. As we know Kinder Bueno is special package like that. This package contains chocolate bar like small candy so that can easily and convenience to storage and enjoy it everywhere at any time.
Moreover, Kinder Bueno label contains "Kinder Bueno" and picture of glass and half milk and hazelnut. It illustrates their special recipe for making milk chocolate with hazelnut.
Kinder Bueno 43g
$4.53 per 100g
$6.20 per 100g
Mars bar 80g
$2.6 per 100 g
Good product is a crucial point. However, price has a significant impact on customers as well. Setting an appropriate price is also a key to launch the product widely and successfully. When pricing goods, the very important factor is the cost and feature of goods itself. Obviously, the cost of produce the original chocolate is not so expensive. Producing original chocolate is a traditional production project, Ferrero had started with chocolate.
Tables above are determine whether price is different between packages and compare with competitor products. This price based on products sold in Woolworths price at this time. The other two competitor's product, one is Timeout which is Cadbury's product, this company is the world's largest confectionary producer established in the year 1824 in London. The other one is Mars which is a famous chocolate factory called Mars, Inc. Established in United Kingdom in 1932.
According to the research and price table above from supermarket comparison it is easy to find that Kinder Bueno is not winning by price competition. We can easily know the Kinder Bueno's price is the middle price of this three company's product. The highest one is Timeout which is $6.2 per 100g; second one is Kinder Bueno which is $4.53 per 100g. The third one is Mars bar which is the cheapest one on the shop shelf is $2.6 per 100g. Although its price is a little higher than others (such as small differences in price can't play a leading role in customers' choice), Kinder Bueno focuses on non-price competition. They emphasises distinctive product features and quality to distinguish its chocolate bar from its competing brands. Kinder Bueno develops diversified products focusing on health care. And also because of its prestige products and long history, Kinder Bueno has a great advantage of building customer loyalty. For prestige products, it seems to sell better at high prices than at low ones, just like Kinder Bueno. Because of a proper price and such famous brand, all target customers from the child to the old ready to try it.
When a commodity is labeled well the price, the next procedure is that how to distribute to customers rapidly and widely. In supermarket, they display the product as sort. All of confectionery goods are arranged together. Ferrero's product displayed large part of confectionery section, because Ferrero have lots of different products than other company. It increase chance to be choose by customer. And Ferrero product often display at other section especially at Woolworth. It is kind of advertising that customer can pick it up at any place.
Next important part of place is which distribution channels should company uses to sell it. In fast moving consumer goods (FMCG) market, most company choose channel C to sell their product. Channel C is a long-standing channel, especially for consumer products, it takes goods from the producer to wholesaler, then to a retailer, and finally to consumers.
Global distribution makes Kinder Bueno spread every corner of the world. Products' flows from manufacturers to retailers free and fast accelerate the speed of final transaction. Aside from convenience stores, large retail stores such as Coles, Woolworths, Safeway, and Franklins in Australia, many Grocery Stores are also played a significant role in the distribution of Kinder Bueno. Except that, internet has a powerful distributor, either. Shopping online becomes fashion trends. Professional website such as EBay, amaze, provide formal platforms to put goods. These are big advantages for Kinder Bueno, because there would be more room in the stores for them, increasing the chance of sales.
The company's marketing strategy to take a positive, long-term with clients to establish and maintain good relations. The overall role of promotion is to boost product demand. Marketers also indirectly facilitate favorable connection by focusing information about company goods and activities on interest groups, hidden and current investors, societies in general, and regulatory agencies. For maximum benefit from sale efforts, marketers strive for correct planning, execution, and control of communications. When an organization mix specific methods to promote a special product, that combination establish the promotion mix for that product. The four possible factors of a promotion mix are personal selling, advertising, sales promotion and public relations. For some products, firms use all four ingredients, but for other products, maybe only two or three.
For Method, the company uses the advertising to promote the products. Advertising is a non-personal communication about an institution and its products transmitted to a target customer through mass media such as radio, television, Internet, magazines, newspapers, direct mail, and signs on mass transit vehicles. Method businesses will be combined with other promotional activities for companies such as according to the magazines that are about family or healthy; to introduce the products for home clear or personal clear.
Promotion is the best way to increase income and benefits and let customer know their brand.The promotion is essential to Kinder Bueno. They use promotion to let more costumers be aware of their product to get an advantage in competition between other companies which have similar product for their good quality. Therefore, Ferrero can gain profits from this product by increasing demand. There are lots of ways to promote. In generally, the company will reduce its price and make advertisement.
The Ferrero Company uses promotional tools to publicize their product, such as advertising, TV, radio, online advertising, catalogues and in store advertisements. The Ferrero spends a large of money to publicize their products to customers in order to get a high awareness of new costumers and maintain the number of loyal customers. Product advertising promotes the exterior appearance, features, and benefits of products. These effective tools let the consumers realize their existence in the market. That's the reason why Ferrero is the most popular chocolate maker in global market.
Additional, in 2007, Kinder Bueno was aimed to the new market, the teenage market with a new advertise, the advert can make an impression in customers' mind, so the advert is very important to a product. So the Kinder Bueno has a good impression in customers' mind. The firm should develop new technology into producing new products with new style and higher quality and new tastes to take over more market share. To capture more market, the company should look for better locations for sales to improve the profit. And use the adoption of strategic alliances to the international marketing.
SWOT Matrix - 6 Marks
Product: _ Ferrero---Kinder Bueno_
Largest global confectionery supplier
Operate 30 countries and sell almost every country
Brand is well known to people
Kinder Bueno is one of the world's most famous brand names
Kinder Bueno is the most consumed chocolate in UK, Australia and India
Maintain a stable growth
New dynamic in advertising
Kinder Bueno world
Small range of products
Too much fat
Weak experience in world market
Recall chocolate bars over salmonella fears
Exist to expand to new markets
Grow of fast moving consumer goods (FMCG) market
Introduction of more health-conscious products
Taken over by Kraft - expand market
Consumer health trends