Nutella Squeeze Marketing Plan

Nutella Marketing Plan Nutella Squeeze® Company Overview As a marketing team for Ferrero, we have come up with a new product that will help boost sales and will maximize profit. This slight modification to the well-known Nutella will expand and improve the company to the next level. The main reason for this paper is to provide an overview of Ferrero, introduce a new product idea, analyze primary market research, and discuss the new product’s market environment. Ferrero is an Italian manufacturer of branded chocolate and is the third biggest chocolate producer and confectionery company in the world. Ferrero was founded in 1946 in Albas, Piedmont, Italy, by Pietro Ferrero. Pietro Ferrero was a confectioner and small-time pastry maker who laid the groundwork for Nutella and famously added hazelnut to save money on chocolate. The Ferrero group worldwide includes 38 trading companies, 18 factories, approximately 21,500 employees and produces around 365,000 tons of Nutella each year. Market Environment Current Economic Situation Business has never been better for the hazelnut spread industry. In the past five years, sales have tripled to more than $240 million. This household product has become a staple in American society as both a standalone product as well as a scrumptious addition to a sandwich. From packed lunches for kids to grownups whipping together a snack, our product has surpassed its 50th anniversary, proving it’s here to stay for a very long time. Competitors & Competing Products The only competition we have in our industry is knock-off of our hazelnut product called “Nutiva”. Luckily, this brand is a small local company who steals but a small portion of our sales from one town in Nebraska. When it comes to competing products, we dominate the industry. No one has even thought of the ground-breaking idea we just introduced. Legal Issues The only concern with legal issues are two legislations called “The Nutrition Labeling and Education Act”, as well as “The Fair Packaging and Labeling Act”. We also are in the process of patenting the design so we can dominate the market. Social Issues A major social issue right now is making eco-friendly products that cause as little effect on the environment as possible. The Nutella Squeeze bottle is made from recycled plastic. Segmentation We will sell our products through all major resell chains such as Walmart and local grocery stores to reach all of our customers who already know and love Nutella from a jar. This will guarantee the success of this new type of bottle. New Product - Nutella Squeeze Differentiating Features The brand new Nutella Squeezable will have a container that you can squeeze to make it more convenient for the customer. This is made possible because of the non-stick coating on the inside of the bottle. The new product saves you the mess of having to wash your hands and a knife after dipping it into a Nutella jar. It also saves any of the softer options you could be putÝng Nutella on, such as crepes, from tearing because of a knife used for the application. Convenience is the goal of this new product by saving our customers time and making their lives just a little bit easier. Product Position The way the Nutella is packaged is what makes this product unique and convenient for the consumer. This new position will sell because of the ease of use as well as it saves you money by getÝng every bit of Nutella out of the bottle. The consumers will enjoy having hands that don’t get sticky and saving money every time they buy Nutella. Nothing will change about the product or the taste, so everyone benefits. Price Set price Nutella Squeeze will be one of the only type of squeezes on the market. Yes, there are various types of squeeze products like mayonnaise squeeze and jelly squeeze but nothing with a product that is so sweet and delicious as Nutella. We are convinced that because of the convenience factor and the high demand for Nutella, Nutella Squeeze would be selling at a higher price. A small 13 oz. jar of Nutella is roughly around $3.75. Due to high demand for Nutella, the convenience of the Nutella squeeze, and the hyped trend for the new product, Nutella squeeze will be sold at around $4.00. This $4.00 price will be the suggested retail price after the trial period has occurred. Once customers are familiar with the product, the price will stabilize at around $4.00. Due to the fact that we would be making half of what the product is sold for, we will sell Nutella squeeze to our distributors for $2.00 per bottle. Figure 1: Retail Price Pricing Strategy During the introductory period of our product, Nutella Squeeze will be sold using the penetration pricing strategy. We want our product to make a bold statement and attract customers from the very start. Our introduction period price will be at $2.50 while still selling to our distributors for $2.00 per bottle. This may seem like a big disadvantage for Nutella as we will not receive a large amount of profit. We are confident that since the Nutella jars are in high demand, the Nutella Squeeze will have the same effect. The main purpose of the penetration pricing strategy is to have the price lower than all other possible competitors. By doing this, it will attract more attention to the product gave people the chance to try it. The introduction period will old be available for the first few months and at that time will be returned to its original price of $4.00. Figure 2: Wholesale Price Price Reductions For the sole purpose of attracting customers, Nutella will be offering two price reduction options. The first option is geared more towards retailers and other distributors who will be selling our product. The offer is a buy two crates of Nutella Squeeze get third for half price. The crates contain 30 bottles of Nutella will be shipped to any location free of charge. This is an exceptional deal for retailers who have extra storage space and are willing to buy in bulk. The second option in geared more towards the individual customer. From now until December 31, a buy two get one free will be applied to any customer who has the Nutella Squeeze App and presents it at check out. This deal is available at any retailer and can be used as much as wanted. Figure 3: Discounts Place Now we will discuss the four different elements that relate to place for our product. The three elements are channel of distribution, method of transportation, store displays, and “launch cities”. Channel of Distribution Due to the already high demand for Nutella and the good relation it already has, Nutella Squeeze will be sold using a conventional distribution channel. Like the diagram already states, places like Walmart, Target, Costco, and Smith’s (places where Nutella jars are already sold), Nutella Squeeze will also be sold. Distribution will start on a smaller scale, only being sold in the Major Cities. With time, this product will eventually be mass produced to different parts of the world. Method of Transportation Nutella will mainly use semi-trucks as a method of transportation. Since Nutella will initially be produced in European countries as well at the US, no need for plane or boat transportation. Semi-trucks are extremely efÏcient as they can drive all around the country and drop off shipments at exact locations. Another method would be train, specifically geared more towards Europe. With the intricate rail systems, train transportation can be a quick and cheap way to move the product from the producer to the retailer. Figure 4: Method of Transportation Store Displays We want our store display to be as intriguing and attractive as possible. Since we are using Target and Walmart and places think these, we will have plenty of room to come up with a clever idea to make the display intriguing. One of the displays will have massive Nutella Squeeze bottle to intrigue customers (preferably towards the front of the store for everyone to see). This gigantic Nutella Squeeze bottle will be surrounded by actual bottles available for purchase. The other display is for situations in which we do not have as much room. A blown-up size Nutella bottle will be placed at the front of one of the isles. Carved out the large bottle will be bottles available for purchase like shown in the picture to the far right. Figure 5: Store Displays Launch Cities Nutella Squeeze is designed for all people at all stages of life. We eventually want our product to be mass produced at every retailer across the globe. Because of the high demand for Nutella products in the United States and Europe, our initial “launch cities” will be in all major cities across North America and Europe. We quickly hope to change that and sell in large and small cities so that everyone can easily get their hands on a bottle of Nutella Squeeze. Figure 6: Launch Cities Promotion The final section will include the variety of promotional ideas that Ferrero will use to reach the maximum net profit from Nutella Squeeze. They include guerilla marketing, digital marketing, advertising, and sales promotions. In addition, multiple well-known individuals will be chosen to cover public relations and public events. Advertising We are going to harp on social media advertising. We will have a great video showing the benefits of Nutella Squeeze that will be entertaining. We will upload it to YouTube and then share links on Facebook from our page and from other popular pages. We will have Facebook ads promoting the new product on the side bar. We will venture into Instagram ads as well. We love this outlet because our target market is a middle class individual or family member from the ages of 20-35 years old. We believe that this will give our future customers a lot of exposure from their social media habits. In addition to advertising online, we have a number of ideas as to how to advertise printed material. First and foremost, we will throw an ad into a number of magazines. Then, we want to put Nutella Squeezable ads in the mall and this is what they will look like: Figure 7: Dioramas for Advertisements These dioramas, digital marketing, and magazine ads will help inform and persuade our target market to buy. This is what the ad will look like: Figure 8: Ad Direct Marketing We will send out a crazy amount of mail in a number of ways directly to the home of the individual or family that we are targeting. The ad will have bold colors and be simple for our target market. The mail piece will have the retailers where our product is available. Here it is: Figure 9: Direct Mail Piece Public Relations Everything we do in the public will be centered on happiness and creating positive attention for Nutella Squeeze. We will have an iconic face to the brand that will be our voice and spokesperson. He will be a famous actor. He will be on the ads, at events that we are sponsoring, in the YouTube video, etc. Events To start our campaign off with a boom, we will be participating in one very large public relation event and then move into consistent yet smaller events. The first big one will be a sponsoring of a Jazz game at home where vendors will walk around giving away Nutella & Go to attendees. With each free cup, a small ad with be attached. Figure 10: Event Sample Figure 11: Event Ad The second event will be the sponsoring the St. George Marathon. We will hand out coupons to attendees and samples to participants as they cross the finish line. We will sponsor individual runners that will wear our logo on their chest as they run. The race will be held October 8, 2018 and our booth will be set up at the finish line from 9:00 am until 1:00 pm. Spokesperson Our spokesperson is going to be Denzel Washington because he is well known and whatever he says goes. He has hundreds of thousands of followers online and is a household name with a smooth and recognizable voice. He likes to live lavishly and that's what Nutella Squeeze is all about: pleasure. We feel like he will play a huge role in our success. Sales Promotion To catch the eye of the consumer, we will use coupons as our sales promotion tactic. These coupons will be available on our website to print, found in magazines, and at the grocery store. These coupons will even be sent with pizza deliveries from Dominos. These are the coupons that will be used: Figure 12: Magazine Coupon Figure 13: Online Coupon Personal Selling Because our target market shops at Costco, we figure the perfect way to get them to buy would be to have a live demo road show every month at participating Costco warehouses. We would make sure to reserve the end cap for maximum exposure. We would start in Orem, Utah and branch all the way to Spanish Fork in the south and all the way to Salt Lake City in the north. There will be an entertaining demonstrator with Nutella Squeeze simply spreading Nutella on bread for sampling with no mess or need for knives. Figure 14: Costco Demos