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BLIND TASTE TEST 1

Taste Test Assignment


Nutella vs Choco Bliss
Course: Marketing Management
Submitted to: Dr. Sana Azar
Submitted by:
Aimen Gardezi
Faiq Imran
Rabeea Umair
Rameen Naved
Zahra Anis
Due date:15th November’22
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Contents
Introduction......................................................................................................................................3
Nutella..........................................................................................................................................3
Background:.............................................................................................................................3
Target market...........................................................................................................................3
Consumer profile......................................................................................................................3
Product life cycle......................................................................................................................3
Choco bliss...................................................................................................................................3
Background..............................................................................................................................3
Target market...........................................................................................................................3
Consumer profile......................................................................................................................4
4P’s..................................................................................................................................................4
Methodology....................................................................................................................................6
SWOT Analysis...............................................................................................................................6
Findings:........................................................................................................................................12
Results............................................................................................................................................13
Recommendation...........................................................................................................................14
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Introduction

Nutella
Background:
Nutella is a hazelnut spread produced by an Italian company Ferrero. Nutella was originally sold
as a solid block and later started selling a creamy version in 1964.

Target market
People of ages 15-30 years.

Consumer profile
Demographic: all genders, children of ages 15-30 years and their parents, SEC A.

Psychographic: children and Adults who like chocolate, adults who want to save time and grab a
quick breakfast.

Behavioral: low product involvement since Nutella users consume it daily as breakfast so they
will always purchase Nutella with their normal groceries this also indicates customer loyalty.

Geographic: Global

Product life cycle


Maturity phase is where our product is now well renowned and established, however the sales
might start to decline, if necessary, steps are not taken. In case of Nutella, it is in maturity stage
since it is well established however Nutella is maintaining its market share by heavy promotions
and collaborations.

Choco bliss
Background
A chocolate spread manufactured by Young’s (PVT) Ltd, launched in 2020. It comes in 3
flavors; Milky, Double chocolate and Hazelnut.

Target market
Children and adults age 6 and above.
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Consumer profile
Demographic: SEC B, school going children,

Psychographic: school going children since most of the tvc’s are focused on children, however
the description states “will take the consumers in a new chocolaty world” signifies that chocolate
lovers are also targeted. Moreover, people who like to bake are also targeted since there’s a viral
hashtag #madewithbliss and many recipes involving Choco bliss are circulating. , People who
are very concerned about halal products and those who tight have budget constraint are also
targeted.

Behavioral: medium product involvement since anyone purchasing Choco bliss will put in an
effort to choose Choco bliss instead of Nutella. consumer who occasionally uses Choco bliss
since most of the users are bakers and use it for frosting or filling of cakes which are baked on
special occasions and not daily.

Geographic: Pakistan and abroad (as mentioned on their website but no evidence found).

Product life cycle

Introduction phase is where the brand has newly entered into the market and is trying to create
awareness of the product. Choco bliss is currently in the introduction stage since they have newly
entered the market and are struggling to create awareness in the market by heavy promotional
activities and direct marketing (school activities and stalls).

4P’s
Nutella

Product: Nutella is a chocolate and hazelnut spread which is quite famous and is available
globally. It is mainly used in breakfasts, snacks and sometimes in desserts. It claims to have no
artificial colors and preservatives.

Price: With the belief that a product's value or worth increases with price, they follow Prestige
pricing strategy. Its price range is on higher side as compare to competitors. Their price range do
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not fluctuate much which shows that they are able to sustain firm footings in the market by
maintaining brand reputation as well as quality. The price of 350 grams Nutella jar is 1260
Rupees.

Place: Most grocery stores, malls, and some convenience stores carry Nutella. It is placed on the
eyelevel shelfs in the grocery stores along with other spreads. In case of shortages due to import
ban it is also available on online stores.

Promotion: they spend hefty amount to create brand awareness and maintain loyal customer
base. Their promotional strategy is designed to convey the message about quality, taste and
design. In the case of Pakistan, there is no as such promotional strategy for Nutella.

Choco bliss

Product: Choco bliss is a locally produced chocolate and hazelnut flavored spread. It is a new
product in the market and is competing with Nutella. Its packaging comes in a jar form which is
somewhat similar to that of Nutella.

Price: Choco bliss applies Penetration pricing strategy as they are new in the market so they are
trying to form a customer base by charging lower price as compare to competitors. They want
everyone to try it so they are charging affordable price. The price of 360 grams Choco bliss jar is
520 Rupees.

Place: it is widely available in all grocery and retail stores. It is usually placed on eyelevel on
shelfs of the grocery store. It is also available on online websites like naheed.pk.

Promotion: In order to create awareness, they had stalls in the grocery stalls to make people
taste it and also to convince them to buy this new chocolate spread.
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Methodology

We have conducted primary research by making people taste the two products by requesting
them to close their eyes and they did and then we made them fill the questionnaire according to
their preference and experience of having the two chocolate spreads. By circulating the
questionnaire with university students, friends and family we got to know about the target
audience and their preferences which made easier for us to analyze and conclude about the two
competing chocolate spreads (Nutella and Choco bliss). Although there is a huge difference in
the prices of the two products but they somehow look similar. We covered the jar of two
chocolate spreads with tape so that people cannot recognize. After making them taste Product A
we made them eat salted lays so that when we make them try Product B, they are able to feel the
difference.

SWOT Analysis
NUTELLA

SWOT analysis of Nutella examines the brand by its Strength, Weaknesses, Opportunities, and
Threats. The strengths and weaknesses are internal factors whereas opportunities and threats are
external factors. Using the SWOT Analysis management paradigm, a company like Nutella can
compare its operations and performance to those of its rivals.

Strengths:

The key elements of Nutella's business that provide it a competitive edge in the market are
examined in terms of its strengths.

Quality Ingredients: Nutella is distinguished from other chocolate spreads by its original
hazelnut and cocoa flavor, which is enhanced by its unique richness. It is made up of seven
premium ingredients that were carefully chosen and sourced from sustainable and genuine
sources. It is more than simply a chocolate spread because it also contains hazelnuts, which are
rich in protein, fiber, and antioxidants in addition to cocoa and milk.
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Presence around the globe: More than 34,000 people work for The Ferrero Group at locations
spread across 53 nations. The business has about 20 production facilities throughout the globe
and has distribution channels in more than 160 nations. They sell 250,00 tons of Nutella every
year. Despite its somewhat slack promotional strategy, Nutella continues to have a solid position
in the minds and hearts of its customers. Over the past few years, the Nutella cult has only
become bigger and bigger, eventually reaching a manic level of popularity. Nutella appears set to
invade the United States and surpass peanut butter as the top spread.

Positioning: As an alternative to peanut butter, jam, or cheese spread, Nutella has carved out a
niche for itself as a morning spread. Additionally, the spread is promoted as a topping for
cookies, cakes, and pastries that call for a creamy, nutty flavor. It can be consumed in a variety
of ways and on a wide range of different foods, including bread, fruits, bagels, doughnuts, and
crackers. It can be used on anything and anything, increasing the likelihood that a consumer will
be happy with the end result. With premium ingredients, Nutella is a premium product that
provides both nutrition and flavor.

Right target segment: The perfect family-friendly breakfast spread is one that includes Nutella.
Their advertising, which frequently feature a family eating breakfast, have been successful in
enhancing their reputation as a family-friendly breakfast option. This is a plus because most
people in today's busy world are searching for a quick but wholesome way to spruce up
breakfast, and Nutella delivers just that. It appeals to a wide variety of people, not just specific
segments. The popularity of Nutella extends across a wide range of demographics, from young
toddlers to mature upper middle-class adults. Due to the wide appeal of Nutella, there are other
lucrative prospects available, so they are not limited to relying just on sales from a niche market.

First mover advantage: Though Nutella didn’t create the spread category, and perhaps not even
the hazelnut spread category, it is probably the only product of its kind that consumers have the
ability to recall. It capitalized on its first mover advantage and conquered new opponents.

Strong following on social media: The social media boom has been extremely beneficial to the
Nutella brand. A variety of breakfast dishes, including those that incorporate Nutella, have
grown popular on the internet and have a sizable fan base. Nutellas website provides 40 different
quick, easy, and tasty recipes.
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Weaknesses:

Some of the key weaknesses of Nutella are:

Limited reach: Nutella is marketed as a sandwich spread which is an image that works in the
Western World where breakfast is primarily bread, rolls or buns. However in countries like
India, Pakistan, or China where they are trying to penetrate, bread is not a significant breakfast
item and thus they may need to rebrand themselves. Moreover, it is mainly used as a breakfast
item hence its usage is limited. The fact that they are only connected with breakfast is one
association that Nutella established that was helpful initially but is now impeding or limiting
them. Being in charge of breakfast for any brand or business is no easy undertaking, but now that
they are attempting to expand, many view them as only being competent in the breakfast
industry.

Expensive: Nutella is higher-priced compared to its peanut-butter spread competitors. The


easiest way to categorise spreads is probably to include both peanut butter and Nutella. They
compete with one another because they are utilised in nearly identical circumstances. Given that
they may be swapped out for one another, peanut butter may become a more appealing option
than Nutella if the economy is looking bleak and families are forced to spend their money more
carefully.

Health risks: The use of palm oil in Nutella and the potential cancer risks that go along with it
brought Ferrero a lot of criticism. Customers now have many questions about whether the spread
is safe to eat due to the spread's unfavorable exposure. Palm oil is said to increase chances of
developing cancerous tumors. Moreover, many individuals are skeptical to think that Nutella
genuinely provides all of the health advantages it advertises. This is partly due to the fact that
Nutella is simply so delicious. Between providing amazing value and making unproven product
claims, Nutella straddles a fine line. Consumers' concerns about Nutella's healthiness are
probably well-founded, and Nutella shouldn't try to dispel them or even go so far as to outright
lie about it. Without eventually wanting to offer a reduced fat line extension, something that all
the larger peanut butter makers currently do, Nutella will not be able to overcome this
vulnerability.
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Poor Advertising: Despite the fact that the public adores Nutella to the hilt as compared to the
number of ardent fans, its brand breadth is still relatively small. Actually, despite its awful
advertising, Nutella is still widely consumed. Advertisements must promote the notion that
Nutella is a brand that consumers should be excited to associate with. It needs to be widely
advertised with TV commercials, in store samples, promotions, and coupons.

Opportunities:

Some of the opportunities that Nutella can tap into are:

Awareness of global taste: Globalization of eating has made regional tastes less important.
Many of the Asian countries, for example, are trying to imitate the western world and the
consumption of bread as a breakfast item has increased. This will create a proportional surge in
the demand for breakfast spreads.

Lack of time: People are searching for quick, healthful snacks to eat on the go as they have less
time to cook as more women are entering the job. Additionally, this will increase the need for
sandwich spreads. People have less time to cook in the morning, and want to make something
that is quick. Nutella hazelnut spread solves this problem. All one has to do is spread it on
bagels, bread, muffins, crackers, anything. It is fast and add instant flavor to any breakfast.

Expansion: Nutella has the opportunity to generate more revenue through of opening of more
cafes. Their current café in Chicago is doing very well.

New Flavors: Nutella should create different flavored spreads. This could potentially bring new
customers and therefore generate more revenue.

Threats:

Some of the risks associated with Nutella are:

Cheaper alternatives: The fact that Nutella is the most expensive option on the market is one
of its main flaws. If Nutella were plotted on a perceptual map, it would be clear that, in contrast
to Nutella, which has a high taste and high price, a competitor brand would be best served by
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offering a product with above-average flavor at a lower price than Nutella. If someone were to
introduce this product to the market, especially during rough times economically, it is highly
possible that they would be able to undercut Nutella and take a significant portion of their
revenues, both immediately and over the long run.

Hazelnut allergies: Food allergies have been on the rise globally. One of the most common food
allergens in the world is tree nuts, and among those tree nuts that lead to allergic reactions are
hazelnuts which are in Nutella. Hence, these allergies can pose threat on Nutella business. With
the rate of people being affected by allergies only increasing, one has to wonder when this
pandemic will get to the point where it will significantly affect Nutella’s profit margins, given
that the spread’s main ingredient is hazelnuts.

Choco Bliss

Strengths:

Price: Choco bliss price is reasonable as compared to Nutella and other spread brands. So, for
price sensitive consumers it is an ideal choice.

Positioning: Choco bliss is positioned as an alternative to high end brands.

differentiation by product: Choco bliss has differentiated product by introducing more flavors.
It is available in two distinct flavors; Hazelnut Chocolate Spread & Milk Chocolate Spread
unlike Nutella which only as one version.

Weaknesses:

Low quality ingredients: Choco bliss uses substandard ingredients which is why people don’t
like it as much as they like Nutella. The hazelnut flavor as respondents in our survey said also is
fake with artificial flavorings and essence.

Thick consistency: Respondents also said that the consistency of Choco bliss was very thick and
grainy as compared to Nutella. Due to coarse texture, it cannot be easily spreader on toast or
bread which caused difficulty for consumers. It does not have velvety, smooth type texture.
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Sweetness: Choco bliss is way too sweet when compared with other spread brands due to use of
artificial essence and high amount of sugar.

Opportunities:

Some of the opportunities that Choco Bliss can tap into are:

Expansion: Choco Bliss has the opportunity to generate more revenue through offering their
product worldwide, currently they are operating in selective regions, ramping up production and
expanding worldwide would significantly boost their business and brand value.

New Flavors: Choco Bliss should create different flavored spreads. This could potentially bring
new customers and therefore generate more revenue.

Social Media can be used for great exposure: While many brands in other industries are
already taking full advantage of Social Media, Choco Bliss have yet to tap into the full potential
of using Social Media regularly and intentionally. If they established a more consistent presence
online, their sales and the image of the entire industry would benefit from it.

Catering to different customer segments: They can offer large industry size jars as offered by
Nutella. And they should look at making a small onetime use package so that a different segment
of customers can flow in.

Awareness of global taste: Globalization of eating has made regional tastes less important.
Many of the Asian countries, for example, are trying to imitate the western world and the
consumption of bread as a breakfast item has increased. This will create a proportional surge in
the demand for breakfast spreads.

Lack of time: People are searching for quick, healthful snacks to eat on the go as they have less
time to cook as more women are entering the job. Additionally, this will increase the need for
sandwich spreads. People have less time to cook in the morning, and want to make something
that is quick. Nutella hazelnut spread solves this problem. All one has to do is spread it on
bagels, bread, muffins, crackers, anything. It is fast and add instant flavor to any breakfast.
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Threats:

Some of the risks associated with Nutella are:

Competition: Direct competition from well-established brands such as Nutella, Hershey’s and
others can pose a threat to Choco Bliss, they need to make sure they don’t lose their
competitiveness in the market.

Hazelnut allergies: Food allergies have been on the rise globally. One of the most common food
allergens in the world is tree nuts, and among those tree nuts that lead to allergic reactions are
hazelnuts which are in Choco Bliss. Hence, these allergies can pose threat on Choco Bliss
business, given that the spread’s main ingredient is hazelnuts.

Ingredients Prices: Fluctuations in chocolate and cocoa prices can adversely impact future
profitability.

Findings:

Our survey helped us identify differences between the chocolate spreads Nutella and Choco
Bliss. Our findings through the survey we carried out gave us similar responses regarding
Nutella while a few participants favored Choco Bliss taste over Nutella’s. We will be discussing
the differences between both the products based on their hazelnut flavor, consistency, sweetness,
after-taste and overall flavor and we also look at which product is more preferred by the
customers.

Hazelnut Flavor:

When asked about the Hazelnut Flavor, we found out that 40 out of 60 people gave a 7 and
above rating for Product A (Nutella) while Product B received a rating of 6 or below by 42 out of
60 people. Hence, we find out that Nutella have a more intense hazelnut flavor compared to
Choco Bliss.
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Consistency:

When it comes to the consistency of Nutella, 41 out of 60 people thought Nutella to have a
creamy texture which was very well liked in a spread making it easy to apply, while 15 people
believed it to have a runny texture to it. Whereas when it comes to Choco Bliss 36 out of 60
people found its consistency to be thick while 7 found it to be grainy.

Sweetness:

People were given a scale of 1-5, where rating of 1 depicted low sweet and 5 being too sweet.
We found out that 19 out of 60 rated it 3 and thought that Nutella had the right amount of
sweetness, while 21 rated 4 and 14 people claimed it to be too sweet. Whereas when it comes to
Choco Bliss 22 out of 60 people thought it was too sweet while the rest believed it be to right for
their taste.

After-taste:

When asked about the After-taste of the products, 40% people rated Nutella’s After-taste as
‘Excellent’ while only 8.3% believed Choco Bliss’s After-taste was ‘Excellent’.

Overall Flavor:

Respondents were asked to give an overall flavor rating to both products. Nutella received a 40%
‘Excellent’ and 31.7% ‘Good’ rating while Choco Bliss received a 50% ‘Okayish’ rating and
25% ‘Good’ rating. So, in comparison we see that Nutella was largely liked by more people
while Choco Bliss has more ‘Bad’ rating compared to Nutella.

Results

Out of the 60 participants, 12 were of age 22 and 10 were 23 years old, whereas 3 members were
28 years old with  57%  of total participants being female. 48.3% people liked Nutella over
Chocobliss and 68.3% people successfully guessed that product A was Nutella it was liked
because of its creamy consistency. 40% people considered Nutellas taste to be excellent. Only 15
% people liked Chocobliss over Nutella and 21.7% percent people found no difference in them
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and 70% guessed it right. People generally found the consistency to be the reason of not liking it,
it was thick according to the general participants and also the sweetness was the issue as the
target  market did not consist of people who preferred sweetness over the hazelnut flavour of
Nutella and also 86% of people were originally Nutella users and that can be a factor why they
guessed Nutella correctly in the taste test. Overall Nutella emerged as a winner due to accurate 
sweetness according to 19 people and creamy texture according to 41 people also 19 people
scored its hazelnut flavour a 9/10 , which played a significant role in making it a consumer
favourite. There are very few chances that people may switch to Chocobliss, what Chocobliss
can do is to make a few changes in their formula.

Recommendation
1) The first recommendation for Chocobliss is that they should use premium hazelnut flavour,
the flavour of hazelnut was fake flavouring giving it an overpowering taste which was not liked
by consumers.
2) Secondly they need to reduce the sugar content in their spread,  even though the target market
likes sugar, but when compared with Nutella, they found Chocobliss to be very sweet.
3) Another main concern was the consistency, people found the spread to be very thick and not
creamy and smooth like Nutella, a thick spread ceases to spread easily, causing discomfort and
takes away the texture from the spread 
4) Also Chocobliss needs to be advertised in the market heavily to increase exposure.
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Appendix:
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