History and Company Overview
This paper discusses about the campaign strategy of Nutella. The product sampling campaign have been explained. Nutella B-ready is the product, which is newly launched and Nutella is providing free samples to the customer to try out there product. It will help the company to get feedback about their product as well as it will help them in raising the brand awareness. In this paper, we have also mentioned about the traditional and non-traditional communication channel that the company can use to boost the campaign. Social media platform is one of the channels that can help Nutella in reaching to its customer. In this paper, we have also analysed the product with the help of Keller’s brand equity model and brand onion. Integrated marketing strategy has been used in this campaign. This strategy integrates all the aspects of marketing communication like advertising, public relations, sales promotion, social media and direct marketing with the help of methods, tactics, media, activities and channels. Nutella B-ready is a substitute product for breakfast and can provide instant energy to the consumer. Nutella B-ready has a huge scope of growing and expanding in the market as because Nutella has a huge brand image in the market.
In the year 1946, Pietro Ferroro while experimenting created a sweet paste, which consists of hazelnuts, cocoa and sugar. He then shaped it into a loaf form that can be sliced into pieces and served with bread. Pietro Ferroro called it as ‘Giandujot’, which resembles a character from the local carnival (Giudici, Caboni and Ramos 2013). The Ferroro Company was formed on 1946. In 1951, the company came out with a creamy textured product that was named as SuperCrema, which can be spread on the bread easily. Later in 1964, Michele Ferroro the son of Pietro Ferroro brought a new product by improving the recipe and named it as Nutella.
Nutella is a product of Ferrero SpA. Ferrero SpA is a confectionary products Company headquarters at Alba, Piedmont that is located in Italy. Ferrero is the third largest chocolate and confectionary products Company in the world (Swartz and Young 2016). It earned annual revenue of €10.3 billion in the year 2016. It employs 33219 employees (Nutella.com, 2018).
- Giovanni Ferrero (Founder, Chief Executive Officer and Deputy chairman)
- Antonio Vanoli
- Carlo Pasteris
- Antonio Fassinotti
- Filippo Ferrua Magliani
- Ferrero Rocher
- Nutella
- Raffaello
- Tik tak Kinder
- Surprise Kinder
Nutella is bringing a new product in to the market so this sampling campaign is organised (Schlereth et al. 2013). The campaign is organised in United Kingdom to give free samples to the consumer, which will help in product promotion and will introduce the product to the customer. Nutella B-ready is a wafer chocolate, which is filled with Nutella. Nutella is doing this campaign to launch this product in the market and to aware, the public about this new Nutella filled crunch chocolate. It will help to create curiosity among the people and mainly the kids will be attracted toward this product.
Campaign Details
One of the main aspects of good management is product diversification. Nutella is a product, which is loved by all, and it has a huge brand loyalty. It is a daily need in many domestic houses so Nutella thought of bringing instant product, which can be consumed anywhere anytime. Nutella entered into the biscuit chocolate bar sector with this product. Nutella B-ready has affected the market of many of its competitive products like Twix, Yorkie, Blue Riband, Snickers etc. It has targeted the market beautifully and grabbed the attention of many. It has also increased the sales of other products of Nutella as well. This campaign helped Nutella to bring back its old customers who earlier moved to other substitute products. It improved the brand value of Nutella and helped them to create new customer market. This also got appreciation from the sports arena as this product helps in on field energy source.
The main target audience of this campaign is the kids, teenagers, and middle age people (Newton et al. 2013). The texture of the chocolate bar is generally attracts the kid so Nutella thought of bringing a healthy product for the kids. Nutella also targeted the teenagers or students. The teenagers are always in a hurry of going to the school or colleges and they often skip their breakfast. Therefore, Nutella thought of bringing something, which can be, consumed anytime anywhere and will provide necessary amount of energy and protein.
Communication objectives
The main objective is to introduce the product in the market by giving free sample to the consumer. It will help in developing a new customer market and will increase the sales of the product. It will also improve the brand image of the Company as product diversification always adds to the credibility of the company (Hutzschenreuter and Horstkotte 2013). Another objective of this campaign is to bring the old customer by bringing something unique.
Positioning
The product is new to the market but the brand has a huge brand loyalty in the market. It will help Nutella in creating a good customer base for the product. There are many chocolate bars available in the market but the unique and high protein waffle Nutella filled bar makes it different from any other available chocolate bar.
The brand position can be analysed by the help of Keller’s pyramid, Brand onion.
Keller’s pyramid
Keller’s brand equity model has four steps identity, meaning, response and relationships (Buil, Martinez and De Chernatony 2013).
Market Category Analysis
Brand onion helps in analysing and mapping a brands identity with the help of a diagram (Feltes 2015).
Consideration of the Original message
The original idea of this campaign was to provide free sample so that the customers get attracted and use their product (Bell , Gallino and Moreno 2014). The aim of this campaign is to attract as much attention as they can which will help them in product promotion as well. This strategy will help them in increasing the brand loyalty and will help in creating immediate sales of their product. Immediate sales mean if the customer is happy with their product then they will immediately purchase their product (Yao et al. 2017). This strategy will also help in creating immediate demand.
Communication tools used
In this, free sampling strategy, television commercial and banners were mostly used. TV commercial and the banners helped Nutella to create awareness among the people about their product launch. Apart from TV commercial and banners, radio channels were also used which attracted many middle age customers (Siricharoen 2013). Free samples are also provided to the students in front of the schools and colleges. Providing free samples to the students attracted them to visit their store, which not only helped in increasing the sale of B-ready chocolate bars but it also increased the sale of other Nutella products. Nutella store also distributed free samples in the public places like parks and churches. They also distributed their product in front of the Lord’s cricket ground, which attracted different age group of people. Social media marketing have been also used that helped in global recognition of their product (Tuten and Solomon 2017). Social media marketing is one of the cheapest forms of communication tool and it helps in delivering the message at a long range.
Integrated marketing communication strategy can be used in this campaign to interact with their target audience. Integrated marketing strategy is a concept, which integrates all the aspects of marketing communication like advertising, public relations, sales promotion, social media and direct marketing with the help of methods, tactics, media, activities and channels (Belch et al. 2014). The marketing strategy can be used to help in creating the market around the customers who are health conscience. Another reason to use this integrated marketing strategy is to create a strong bonding or connection with the consumer so that the product becomes a part of their life and they consume the product regularly. Social media marketing is a part of this communication strategy that seeks to develop an emotion towards the customer of the product. They can also use the discount deal strategy. This communication strategy means buying a product and getting another unit of the product free of cost. This helps in rapid sales and helps in product’s USP.
Target Audience
Traditional Channels
Traditional channel of communication means the standard way of communication. Face-to-face communication, print media advertisement will help Nutella in promoting their product. It will help this campaign to attract more customers. Traditional channels are more reliable and the company can directly interact with their customer (Maity and Dass 2014).
Non-traditional Channel
Non-traditional channels are relatively costlier than the traditional channel (Link et al. 2017). Non-traditional channels include social media, websites, banners, yellow pages and radio advertisement. Social media is one of the cheapest ways of promoting the product. It will help in raising the brand awareness among the consumer. Banners will be visible at all the time and it will force the consumer to try their product at least once. Company websites increases the brand image and customer often rated the product as of higher quality (Rahiminia and Hassanzadeh 2013). It grabs attention, which will also increase the goodwill of Nutella. Radio advertisement also helps in grabbing the attention of the customer (Martin-Santana et al. 2015).
Nutella can use the social media platform for example they can organise a contest where customer will come, take a selfie and upload it to Instagram and they will get immediate discount in their product. It will help in product promotion as well as it will increase the sales. Company can provide free samples in the stadium, which will help them in sales promotion. They can also apply the ‘buy 1 get 1 free’ strategy for first few months. Nutella can also give some unique surprises with their product to the children that will increase their sales as well.
The above traditional and non-traditional channels of communication should be implemented properly with proper planning. They should target the audience and choose the correct way of communicating with them. For example, if they want to target more of the teenagers then they should use the social media platform. They should provide discounts and offers for first few months (Lee et al. 2013). Nutella is a well-known brand and they should use the brand loyalty to strengthen the market of the B-ready chocolate bars (Severi and Ling 2013).
Conclusion:
The paper concludes that Nutella is trying to launch the new product in the market. Nutella B-ready is a waffle based chocolate, which is filled with Nutella. To launch the product Nutella is using the product sampling campaign to understand the viewpoint of the customer and to create brand awareness among the customer. Nutella B-ready is a chocolate bar, which provides instant energy and it can replace the morning breakfast. Nutella is providing free samples, which will boost the sales as well as it will increase the brand loyalty. It has already increased the sales of the product and many companies have been losing a market shares in the market due to the introduction of Nutella-B-ready in the market. Nutella can use the traditional and non-traditional channels like print media, social media platforms, and radio advertisements to promote their products and raising the brand awareness. Nutella B-ready has the advantage of using the brand loyalty of the Nutella. This free sampling technique will also increase the sale of other products. Free sampling strategy creates immediate sales and increases the demand of the product. Integrated communication strategy has been used in this campaign. Integrated communication strategy is a concept, which integrates all the aspects of marketing communication like advertising, public relations, sales promotion, social media and direct marketing with the help of methods, tactics, media, activities and channels. It will help in creating a bond with the customer. B-ready chocolate bar can grab the market easily with the help of proper planning and by adopting the proper communication channel.
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