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Marketing of Ferrero Company - Case Study Example

To successfully penetrate the market Ferrero maintains a limited unique number of products manufactured and marketed at the highest quality possible. The company also seeks to understand the market properly by carrying out extensive test marketing of its products to avoid embarrassing marketing failures (Australian Trade Commission, 2012). Question One Ferrero Australian opened an online boutique that sells premium chocolate gifts packed in unique keep sake gift boxes. The online boutique was actualized due to consistent demands for Ferrero chocolate gift packs by customers for their chocolate loving friends and family. The gifts are customized, elegantly packed and contain a card for personalized messages (Ferrero Boutique, 2012). Ferrero decision to open an online boutique was a well thought marketing strategy in line with the changing consumer habits in Australia. The internet has become an integral and essential feature of the day-to-day social and business lives of billions of people around the globe and the internet economy is growing strong each day (Bughin et al., 2011). Ferrero Australia decision enabled many of its customers to have their desired products with convenience and efficiency as the internet enables customers to save time spent on shopping for gifts. Online stores makes it possible for consumers to make quicker decisions and shop as consumers can find time to perform ten searches online but only two searches offline for each purchase, with internet searches saving more time than physical directories (Chen, Jeon & Kim 2010). This boosts productivity for consumers, suppliers and manufacturers and translates into more profits. Through its online boutique store Ferrero customers in Australia are able to choose their preferred gifts with ease and the website offers price transparency, which is essential in developing customer trust and loyalty. This is because the online boutique service offers customers a reliable and stable source of gifts all year round with more consistency, which is a crucial marketing strategy to maintain customers. Using the internet to sell its products also offers the company the opportunity to advertise its high quality products all over the world. Their website helps to raise product awareness to a much more diverse customer base that spurs its sales volume. Bearing in mind that 90% of online users utilize search engines and internet searches represents 10% of the time spent by individuals on the web (McKinsey & Company for IAB Europe, 2010), it is possible for the Ferrero Company to expressly market its products to customers who are interested in chocolates in the web. This means that the company investment on advertising will pay off and lead to sales growth purely by using internet tools as it is possible to match the needs of customers, individuals, and organizations on the web requiring specific products. With the use of internet based transactions growing, one can confidently say the Ferrero Australia online boutique store will continue to pull in more revenue for the company as people social lives and businesses continue to be more centered on internet use at home and during work. In addition to supplying its products all over Australia, the ...Show more
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Running head: Marketing Marketing Case Study of Ferrero Company Insert Name Insert Insert 18 July 2012 Introduction Ferrero is an Italian confectionary company founded by Pietro Ferrero in 1946. Pietro Ferrero incorporated 50% of hazelnut and 50% of cocoa confection as a means of beating the heavy taxes imposed on cacao beans (Australian Trade Commission, 2012)…
Marketing case study of Ferrero Company
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