Case Analysis – Ferrero Rocher

Capturing Marketing Insights

In Partial Fulfillment

of the Requirements for the Course

Marketing Management

MGT1110 – Section 4

By:

Agres, Rose-Gherina

Ambat, Lindon Brian

Ampo, Ian Dominic

Hernandez, Selin

Lotho, Sydney

Submitted to:

Professor Karoline Palparan

I. INTRODUCTION:
Ferrero Rocher is an Italian chocolate confectionery that consists of a whole,
toasted hazelnut encapsulated in a crisp, spherical wafer and then dipped in chocolate
and chopped hazelnuts. They originated in Alba, a town in Piedmont's northwest
province. Pietro Ferrero, an innovative pastry chef, founded the company that
produces these delectable chocolates. He created the chocolate and hazelnut spread
known as Nutella before passing the company on to his son Michele. The Ferrero
family still owns the company, and Pietro's grandson, Giovanni Ferrero, is the current
Chief Executive Officer.

Ferrero Rocher has a high sugar content of 39.9 mg per 100 gm serving, which might
be dangerous if consumed frequently. The inclusion of 4g saturated fat in Ferrero
Rocher is also causing concern. High cholesterol, obesity, and heart disease are all
caused by saturated fat. It may also have processed sugar rather than natural sugars.
According to health experts, added sugars should not account for more than 10% of
your daily calories. Consequently, whether consumed by children or adults, excessive
consumption of this chocolate may offer health hazards. Even if you are in good health,
it is best to consume it in moderation (Francis, 2023). In accordance with this, Ferrero
is focused on decreasing childhood obesity by avoiding child-targeted commercials,
strengthening their branding and marketing methods, and further evaluating the
influence of their goods on public health, particularly among children.

II. BACKGROUND:
Ferrero is a global confectionery company based in Italy, known for its popular
brands such as Nutella, Kinder, Tic Tac, and Ferrero Rocher. While Ferrero's products
have gained widespread popularity and commercial success, they have also been
subject to scrutiny for their potential impact on public health, particularly in the context of
the rising rates of child obesity worldwide.
 Child obesity is a major public health challenge, with significant consequences
for the physical, emotional, and social well-being of affected children and their families.
According to the World Health Organization (WHO), the prevalence of childhood obesity
has tripled in the past three decades, and currently affects over 340 million children and
adolescents worldwide. The causes of childhood obesity are multifactorial, and include
genetic, environmental, and behavioral factors, as well as the marketing and availability
of unhealthy food and beverage products (World Health Organization, 2021).

Ferrero's products have been criticized for their high sugar, fat, and calorie
content, which can contribute to excess energy intake and weight gain, particularly in
children (Burnham, 2012). Ferrero has also been accused of using marketing tactics
that appeal to children, such as colorful packaging, cartoon characters, and online
games, which may encourage overconsumption and unhealthy eating habits.

In response to these concerns, Ferrero has implemented various initiatives to

promote nutrition education and healthier product formulations. For example, Ferrero
has pledged to reduce the sugar content in its products by 2020, and has launched
educational programs on portion control and balanced diets for children and families
(Access to Nutrition Initiative, 2021). However, the effectiveness and impact of these
initiatives remain a subject of debate and scrutiny, highlighting the complex and
contentious nature of the issue of child obesity in the context of the confectionery
industry.

III. PROBLEM STATEMENT:

As Ferrero is known for its best hazelnut chocolate, a lot of problems occur while
it is on its pick of sales. Childhood obesity arises as it shows the main problem of this
chocolate brand.
IV. OBJECTIVES:

 To examine Ferrero's marketing and branding strategies, including how

the company can further differentiate itself from its competitors and
appeal to children.
 To identify the key factors that have contributed to Ferrero's success in the
global confectionery market, especially among children.
 To evaluate Ferrero's products' role in leading to kid obesity and discover
the specific features that make Ferrero's products appealing to kids.
 To assess the impact of Ferrero's products and marketing practices on
child obesity rates and public health.

V. SWOT ANALYSIS:

Strengths Weaknesses

 Brand popularity  Constant competition due to many

 Available across many different existing chocolate/sweets
countries companies
 Uniqueness and quality of  Some products are unhealthy
flavor  Somewhat expensive
 Innovative and proactive

Opportunities Threats

 New ways of advertising  Constant consumptions of products can

 Creation and introduction of cause danger to consumer health
new and improved products  Product alternatives to Ferrero
 Wider range of target
customers
 Better ways to promote
consumption of products
Strengths
Ferrero is an Italian brand popular to chocolate lovers. They are known for their
golden-wrapped hazelnut chocolates. It is said that Ferrero Rochers sells around 3.6
billion products a year across 42 different countries alone since Ferrero is said to be
available across 140 countries around the world consisting of production plants,
manufacturing plants, and agricultural companies. The quality and flavor of their
products are unique since it is made of different layers of chocolate and contains high-
quality ingredients such as hazelnut and creamy hazelnut-flavored filling that is
available in 3 different types of flavors which are dark chocolate, white chocolate, and
original milk chocolate flavors. Also, with the availability of many other different brands
made by the creator of Ferrero such as Tic Tac, Nutella, Baby Root, and many more,
the company is innovative and proactive when it comes to introducing new products.

Weaknesses
Even if Ferrero is already a large successful sweet company, competition still
exists since there are other existing big companies such as Nestle and Hershey that
sells some good alternatives to Ferrero's products. In addition, since Ferrero Rocher
only sells sweets, their products can be unhealthy if consumed excessively. Also, some
of their products can be quite expensive since it is said that the ingredients contained
are also expensive, ranging from around $13 a box on sale to $25 depending on where
and how much you buy.

Opportunities
A large company still has room for new opportunities and improvements.
Through the use of technology, Ferrero can use social media platforms to find new
ways to advertise and reach new customers across the world which they can ship their
products into in case their shop isn't accessible or available in that specific location.
With the constant changes in the market economy and trends, Ferrero can create and
introduce new products that can suit the preferences of different consumers which can
help them strive for a larger range of target customers. And in addition to the criticism of
Ferrero products being unhealthy, they can compensate by promoting and educating
audiences as to how to effectively consume their products without having to worry about
their health, such as when to and not to consume such products.

Threats
There is no way to directly control how a customer consumes their bought
products, as such, Ferrero's products always have the possibility to be a danger to a
person's health if taken frequently, and as a result, it can damage a company's
reputation. Child obesity has been an issue before due to the fact that some Ferrero
products contain high sugar, fat, and calorie content, which can contribute to excess
energy intake and weight gain. In addition to that, there are other big companies out
there that sell great sweet alternatives which are actually better for a person's health.

V. ALTERNATIVE COURSES OF ACTION:

1. Product innovation to better support the health of their customers

Advantages Disadvantages

 New experience for customers  Changes to customer preferences

 Increased competitiveness  Risk of failure
 Better quality  Can displace an already profitable
 Can be improvised to be product
healthier  Can set unexpectations from
customers
2. Consult and conduct surveys to experts and loyal customers for product improvement
suggestions

Advantages Disadvantages

 Quick feedback collection  Different opinions can be difficult to

 Better customer relationships create a product that can satisfy
and experience everyone
 Numerous ideas for ways  Answers can be totally biased
how to improve a product  Truthness and survey fatigue

3. Introduce new products/brands

Advantages Disadvantages

 New opportunities  Risk of failure

 New sets of target consumers  Risk of loss in investment
 Variety of products  Extra cost for the company’s assets
 Can be used to keep up with
ever-changing customer
preferences
4. Educate younger audiences and offer smaller portions of products

Advantages Disadvantages

 Better customer engagement  Extra cost for advertisement

 Improved customer support  Can sometimes lead to confusion
 Can result in a more trustworthy  Can result in negative product
brand awareness
 Lesser risk of overconsumption

VI. RECOMMENDATION:
Provide a thorough justifications for selecting the most preferred solution. The
recommendation will derived from one of the identified ACA or alternative
courses of actions. Defend and explain the optimal solution in the case. Each
team may use data and statistics to back up the claim/recommendation.
Citations in the recommendation must be included.
VII. REFERENCES:

Access to Nutrition Initiative. (2021, June 15). Ferrero. Access to Nutrition Initiative.
https://accesstonutrition.org/index/global-index-2018/scorecards/ferrero/
Bragan, I. S. (2021, January 10). The Untold Truth Of Ferrero Rocher Chocolate.
Mashed. https://www.mashed.com/309955/the-untold-truth-of-ferrero-rocher-
chocolate/
Burnham, T. (2012, April 26). Nutella Maker May Settle Deceptive Ad Lawsuit For $3
Million. National Public Radio.
https://www.npr.org/sections/thesalt/2012/04/26/151454929/nutella-maker-may-
settle-deceptive-ad-lawsuit-for-3-million
Ferrero Rocher. (n.d.). Ferrero Rocher The Golden Experience. Www.ferrero.co.uk.
https://www.ferrero.co.uk/FerreroRocher#:~:text=A%20unique%20taste
%20experience%20of
Ferrero Rocher. (n.d.). The History of Ferrero Rocher. Ferrero Rocher.
https://www.ferrerorocher.com/int/en/about-ferrero-rocher/the-history-of-ferrero-
rocher#:~:text=Initially%20sold%20in%20Europe%2C%20Ferrero

Francis, R. (2023, January 9). Is Ferrero Rocher Chocolate Contain Cholesterol? All
You Need To Know! Chester County Cheese.
https://chestercountycheese.org/cholesterol/is-ferrero-rocher-chocolate-contain-
cholesterol/
Gaille, B. (2016, October 14). 8 Pros and Cons of Product Development.
BrandonGaille.com. https://brandongaille.com/8-pros-and-cons-of-product-
development/
Lavolio Botique Confectionary. (2023, January 13). The most famous Italian Candy:
how is a Ferrero Rocher made? Lavolio. https://lavolio.com/blogs/news/the-most-
famous-italian-candy-how-is-a-ferrero-rocher-made#:~:text=Ferrero%20Rocher
%20is%20a%20brand
Soulsby, T. (2019). Advantages & Disadvantages of Innovation. Getrevising.co.uk.
https://getrevising.co.uk/grids/advantages-and-disadvantages-of-innovation
Why is Ferrero rocher so expensive? (Top 10 Reasons) -. (2022, March 17).
Mostexpensivearchive.com. https://mostexpensivearchive.com/why-are-ferrero-
rocher-so-expensive/
World Health Organization. (2021, June 9). Obesity and overweight. World Health
Organization; World Health Organization: WHO.
https://www.who.int/news-room/fact-sheets/detail/obesity-and-overweight
VIX. APPENDICES
All documents gathered ( letter, survey questionnaire, etc.) should be included
in
this part.