Briefing - Nutella Sweden
Experiential Learning Program,
University of Gothenburg
Contents

PART 1: Introduction to Ferrero & Nutella

PART 2: Brand personality, perception and positioning

PART 3: Status Nutella Sweden

PART 4: Main challenges

PART 5: Objectives and tasks
Ferrero – The success story of an Italian family
The entire Ferrero Group ended the 2008-2009 financial year with a consolidated turnover of 6,345 million
euros, an increase of 2.1% (+131 million euros) compared with the previous financial year 2007-2008.
The Group worldwide – headed by its Chief Executive Officers, Pietro and Giovanni Ferrero – includes
38 trading companies, 18 factories and around 21,500 employees. The Ferrero Group, one of the
largest confectionary producers in the world with a clear leading position in Europe and well-known
products like Ferrero Rocher, Kinder Surprise-egg and Nutella.
The driving force behind the development of the Group is Michele Ferrero. With his energy and passion for
creating new products using innovative ideas, he has revolutionized the eating habits of millions of
consumers.
It all began 65 years ago in the little town of Alba in Piedmont (Italy). The roots of this success can be traced
back to the 1940s. It was at that time that Piera and Pietro, Michele’s parents, succeeded in turning a
pastry shop into a factory. These first, decisive steps forward were made thanks to the products
“invented” by Pietro Ferrero and his young son Michele. Another factor in their success was the efficient
sales network set up by Giovanni, Pietro’s brother. He died before his time, in 1949.
The history of Ferrero is now in its third generation. Pietro and Giovanni Ferrero, Michele and Maria Franca’s
sons, head the Group as its Managing Directors. The company continues to grow under their guidance.
So today, as in the past, it is a company based on a solid family structure. In short, behind the brand, the
balance sheets and the growth of a multinational company, lie the past, the present and the future of an
ingenious and tenacious Piedmontese family.
Ferrero Scandinavia AB, strategically located in the Öresund region in Malmö, is the Nordic company of the
Ferrero Group.
nutella – an original idea....
Nutella Introduction:
The first version of what would become the revolutionary invention of the century and what is now one of the
most famous food specialties in the world – Nutella – was founded in a backroom of the pastry shop
founded in Alba in 1944 by Pietro Ferrero. In 1964 supercrema gianduja was renamed "Nutella" (its
origin being the word "nut"), and began to be marketed outside Italy! Since then, Nutella continues to
inspire and satisfy the palate of the entire world: from the United States to Europe, Australia to Canada,
its unique taste and its distinctive jar appeal to consumers of all generations. Thanks to its inimitable
recipe and its genuine and carefully selected ingredients, Nutella, spread on bread, has become an
essential element to the breakfast ritual and serves as a great way to begin the day.
Nutella is Number 1 Ferrero brand in volume and value. The spread is an international success and has a
central place on many breakfast tables all over the world. Nearly three generations of Europeans have
grown up eating Nutella spread.
Today, Nutella is the number one spread in Europe. Nutella has reached an icon status on many markets
worldwide and the product has the second biggest fan page at Facebook. 400 million jars are sold per
year in almost 200 countries.
Nutella – Sales development in Sweden
 Nutella has been on the Swedish market for more than 15 years
 Strong development has been seen during last 3 years
 The trend on the market indicates futher potential for future growth
7 000
Sweden
6 600
Volume in Q.li (100kilo)
4 929
5 000
3 382
2 918
2 539
08/09
07/08
06/07
05/06
04/05
03/04
2001
EST 10/11
1 418
2000
-
09/10 …
1 407
1999
1 644
1 061
1998
2 784
784
1997
2003
655
1996
2 832
846
1 000
1995
2 000
2002
2 404
3 000
3 173
4 000
5 382
6 000
Source: Sell in Data
Nutella is the market leader...
 Limited competition within chocolate spreads
 Nutella is the driver of the category
 Main competition is coming from Private label sku’s with a lower price point
•
•
•
•
•
•
•
•
•
•
•
Ranking: 1
Producer: Ferrero
Product: Nutella 350gr
Value Trend: +13,6%
Value Share: 53,5%
Ranking: 4
Producer: Printzells fabrik AB
Product: Printzells nötmassa,220gr
Value Trend: -6,0%
Value Share: 4,6%
•
•
•
•
•
Ranking: 2
Producer: Ferrero
Product: Nutella 700gr
Value Trend: +17,3%
Value Share: 12,6%
• Ranking: 5
• Producer: Hard discount
• Product: Primadonna nut
nougatnöt750 gr
• Value Trend: -6,4%
• Value Share: 4,0%
•
•
•
•
•
Ranking: 3
Producer: Hard discount
Product: Mister choc choco due, 750gr
Value Trend: +21,0%
Value Share: 9,4%
• Ranking: 6
• Producer: Other manufact.
• Product: Max & Moritz
nötnougatkräm 350g
• Value Trend: -8,3%
• Value Share: 1,8%
Source: Nielsen week 5210 – Value MAT DVH excl. HD
... but Nutella is more than only a Chocolate spread
 High consumtion of Sweet Spreads in Sweden
 Jam has the biggest SoM but is also the only segment decreasing
 Chocolate spreads approximately 3% SoM, but is also the one with best trend
 Unaided brand Awareness for Nutella within Sweet spreads is low
100
Sweet Spreads in Sweden
80
Unaided Brand awareness
Within Sweet Spreads
60
40
35
34
20
0
Sweden
2009
Euromonitor, 2008
2010
GFK, 2010
The Swedish consumers know Nutella
 Nutella is a well known brand
 91% Brand awareness
 Still room to improve purchase penetration
Brand awareness
Purchase penetration
100
2006
2007
2008
2009
2010
60
2006
2007
2008
2009
50
2010
92
91
91
91
40
89
30
26
24
24
21
20
10
80
Source: GfK brand tracking
0
27
Consumption pattern starts to change in Sweden
 Increased consumption of Nutella on bread in Sweden - Positive results from last years
activities!
 55% of our consumers eat Nutella on bread (vs. 43% LY)
 Major increase, but still not in line with other countries (89% in DK)
140
Don't know
120
100
19
27
19
17
80
42
Use it in/for bakery
19
37
46
36
33
45
43
43
2007
2008
2009
60
With a spoon
40
20
50
55
On bread
0
2006
Source: GfK brand tracking
2010
Perception of Nutella in the Swedish market
The present perception of the product is not the ideal:
Nutella is perceived as being a sweet and almost not as food
Nutella is mainly consumed at special occasions
Nutella is linked to emotions as joy and happiness. Besides, its “sinful” image needs
to be controlled (occasional consumption)
“Like a mouthful
of heaven” “
But I shouldn’t….
Or maybe just
one more…
Oh, all this guilty
feelings….”
Current brand situation - Summary
Still growth opportunities on the Swedish market:
 Chocolate Spreads category has a good growth on the Swedish market
 Nutella is market leader within Chocolate spreads category, but this category is
perceived as “pleasure” and mainly consumed for special occasions like holidays &
weekends = limited consumption
 Consumption of Sweet Spreads in Sweden is high
 The Swedish consumers don’t mention Nutella when considering Sweet Spreads
 Nutella needs to take shares from other Sweets Spreads and not only Chocolate
Spreads
 Increased level of consumption of Nutella on bread as a result of last years focused activities
 Consumer promotions linked to bread and breakfast
 Increased visiblity in bread section (secondary placements of displays)
 Nutella moved frome bakery shelf to same shelf as other Sweet Spreads
Current brand situation - Summary
 We have a satisfactory level of brand awareness (91% aided)
 Our key challenge is the consumption and purchase penetration (cp: 24%/pp: 27%) which are
rater low, as nutella is perceived to be more of a sweet than food
 Only 55% of our consumers eat nutella on bread
 To further increase penetration of Nutella the link between Nutella and bread needs to become
stronger. We need to increase the positioning of Nutella as a Sweet Spread and not only a
Chocolate spread
Nutella – brand personality and positioning
Target group:
Nutella is:
•
A deliciously unique spread made from the
combination of roasted hazelnuts, skim
milk and a hint of cocoa. Nutella has no
artificial colours or preservatives.
•
Can be a part of a balanced breakfast
Unique Selling Points:
•
The creaminess
•
The high quality ingredients
•
The hazelnut content (13%)
•
Parent with children 5-13 years
Brand personality:
•
•
If Nutella was a person he/she would be positive,
emotional, active, natural, fun, social
Nutella is joy of life in a jar!
Core Values:
Quality, family, pleasure and naturalness
Nutella postitioning, The brand pyramid
Brand
Essence
Joy of live
in a jar
Brand Character
Values:
•Quality
•Family
•Pleasure
•Naturalness
Brand Benefit
Only with Nutella you can spread
Joy of life on bread
Personality:
• Positive
• emotional
• active
• natural,
• fun
• social
Brand Supports (Attributes)
-Original and unique taste
- High content of hazelnuts
-High quality ingredients (cacao,
hazelnuts, milk)
Consumer Insight
Bread combined with sweet spreads is a good solution for ”ficka” or breakfast but sometimes only
marmelade is a bit boring. Only with Nutella you can spread ”joy of life” on bread.
Competitive Frame
All sweet spreads
Target
Parents with children between 5 and 13 years
What is the core insight driving the brand’s positioning and strategic direction
Insights driving this brief:


The Swedish consumers consider Nutella as a Sweet and not as food.
Bread in combination with sweet spreads is a habit and good solution for ”ficka” or breakfast but sometimes only marmalade
is a bit boring.
Why should the target consumer believe that the brand can deliver on this benefit?



Original and unique taste
High content of hazelnuts
High quality ingredients (cacao, hazelnuts, milk)
Net net, what impressions about the brand do we want consumers to have after seeing this advertising?



Nutella should be consumed on bread
Nutella can be a part of a variant alimentary situations as breakfast and ”ficka”
Local Swedish campaign
The two main challenges
 1. Swedish breakfast is salty – not sweet
 2. Marmelade on bread is a habit but Nutella is widely eaten with a spoon (approx. 40%)
TRADITION
SWEET
SALTY
What are the objectives with the thesis
2A. What are the marketing objectives that this advertising must help achieve?
–
Volume growth rate of 75% for the next 3 years within Sweden (SAF1 10/11 – PMT3)
–
Increase KPI’s (%) within 3 years:
–
Purchase penetration
27
35
–
Consumpion penetration
24
35
–
Increased consumption of Nutella on bread
55
65
Year 10/11 –
13/14
Source: GFK, 2010
–
Unaided awareness Sweet Spreads
35
40
2B. What is the purpose of this thesis?
”Improve” the acceptance of Nutella as a food product and not a Sweet by establishing a
alimentary consumption situations (breakfast, ”ficka”)
Tasks and Mandatories
Tasks:
Situation analysis : market, competitors, customers, growth potential for Nutella in Sweden
SWOT analysis.
3-year brand strategy
Suitable marketing mix and activities
Provide creative executions and a detailed media budget for Year 1 and strategic
recommendations only for Years 2 and 3
Mandatories:
The creative solutions need be in line with the Swedish cultural and behaviors of Swedish
consumers. The feeling of the activities/communication need to have a local touch to be accepted
and considered as trustworthy
Budget recommendations:
the budget is 500,000 Euro for Year 1 and 400,000 Euro for Years 2 & 3
submit an additional recommendation for what you consider to be the "ideal" budget.