Strategic analysis of Ferrero

Résumé du document

Chocolate confectionery accounts for 58% of the market value of French confectionery. It reaches a value of 2, 26 billion. Ferrero has a large market share of the chocolate confectionery market; approximately 22 % by value; but it does not dominate that market as much as it dominates the market spread. It represents about 440 million of the turnover of the company. On this market, Ferrero highly differentiates itself from competitors with innovating and conceiving new and original products such as the chilled snack. The market of the snack is at its maturity stage, but Ferrero has almost created a new market, the one of chilled snack, and provides new products on this market. On the market of snack, it is hard to compete and gain ground because there are numerous substitutes and a large number of competitors who focus on this market whereas it is just a little part of the activity of Ferrero.

Extraits

[...] It represents about 440 million of the turnover of the company. In this segment, Ferrero wants to differentiate its products from the competitors' products. Therefore, this company perpetually conceives new products, to astonish and satisfy customers, no matter the difference in price there is between Ferrero products and its competitors' products. For instance, a pack of 11 Kinder Maxi (231 grams) costs on average 2,31 whereas a pack of 6 Mars (252 grams) costs on average 1,98. Internal analysis: External analysis: This market of chocolate confectioneries is full of brands, this market has reached its maturity stage, to be competitive on this market, Ferrero has to provide customers not only tasty and high-quality products, but also innovative and new products. [...]

[...] Strategy at the level of the Bus Strategy of the Spread Business Unit Ferrero dominates the spread market with 40% of the market shares. Spreads can be identified as a niche since it's a unique segment of the chocolate products, it is a large market - 600 million in 2007. This is a SWOT analysis of the spread products of Ferrero, to better understand Ferrero strategy in this market Internal analysis External analysis Survey of TNS Secodip, October 2004 Nutella is a Ferrero leading product, since its start in France in 1963. [...]

[...] This is a chart classifying the different products of Ferrero. Chilled and snacks accounts for almost of the turnover of Ferrero, but on this market full of efficient competitors Ferrero is ranked number 4. In this market, Ferrero was among the first companies to offer chilled snacks with Kinder Pingui, which appeared in France in 1996. SWOT analysis Internal Analysis External analysis In this market, Ferrero highly differentiates itself from its competitors with innovating and conceiving new and original products chilled snacks. [...]

[...] Strategic analysis of Ferrero Corporate strategy General philosophy of the company A general philosophy comes from this company, its creed is: ‘Imagining and offering unique moments of pleasure'. Two words are particularly noticeable, ‘unique' and ‘pleasure'. The first highlights the fact that Ferrero wants to detach itself from its competitors. The second word corresponds to the main objective of Ferrero: making customers experiance pleasure. In order to reach that goal, Ferrero with the corporate level strategy, pays particular attention to five points: - The taste of its products: providing its customers tasty products regardless of calorie with star ingredients, chocolate, milk, sugar, cream etc. [...]

[...] A recent brand extension worth being noticed with Nutella & Go, it traduces the willingness of Ferrero to widen its targets and the offer it proposes, always in harmony with the global differentiation strategy. Chocolate confectionery (bars included) The chocolate confectionery accounts for 58% of the French confectionery market's value. It reaches a value of billion. Ferrero has a large market share of the chocolate confectionery market by value but does not dominate that market as much as it dominates the spread market. [...]