ABOUT US

• Ferrero India private limited is a non-govt company, incorporated on 02 June, 2004. It's a private unlisted company and is classified
as 'company limited by shares’.

• Ferrero India private limited is majorly in business services business from last 15 years and currently, company operations are active.
Current board members & directors are STEFANO PELLE, LUIGI ROMANO, ROBERTO GRASSO and VIKAS GOYAL .

• The Ferrero product range in India comprises of Ferrero Rocher praline chocolates; kinder joy “rich in milk” and loved by kids and
the whole family; tic tac, the mouth freshener brand with a basket of flavors and Nutella, a delicious hazelnut chocolate spread.

• The company has its corporate office in Pune and 4 regional offices at Chennai, Delhi, Kolkata and Mumbai.

• Ferrero India has a presence in all metros and mini-metros with a nationwide robust distribution network.

• Ferrero India is the third largest after Italy and Germany in the number of workforce it relies on within the Ferrero group.
OUR PRODUCTS
 PRESENT SITUATION

• Ferrero India posted a 17% decline in profit and slipped into losses during FY 2017-18.

• A year ago, it had posted sales of Rs 1848 crore with net profit of Rs 21 crore.

• Sales were impacted due to new taxation policy and reduction in exports.

• The FY 2017-18 was an interesting year as we navigated through the challenges that came with the changes in the
taxation policy that had a ripple effect across industries leading to temporary stagnation as the overall business
ecosystem adapted to the new policy.

• Ferrero has spent over Rs 1500 crore in ramping up production and distribution capabilities and the second largest
confectioner in the country and the market leader with 66% share in the $1.2-billion chocolate category.

• The major competitors of Ferrero India are Cadbury, Nestle, Hershey, Amul etc.
 MISSION STATEMENT

• High quality, crafted precision, product freshness, careful selection of the finest raw materials,
respect and consideration for our customers: these are Ferrero’s “key words” and values which
have helped make us confectionery well-known and loved by millions of consumers all over the
world.

• Our distinguishing characteristic is that it is “glocal” (think globally, act locally), a company
which is both global and local, which focuses on international development, without losing
sight of its relationship with local communities.

• Establishment and create a brand value for our new products in the Indian market and also to
maintain a good profit maximization.
 OBJECTIVES

• Business Objective
 To capture the local market in India with using our new strategies and to achieve a competitive advantage over the
rivalries.
 Our goal is to create unique products, developing innovative research and production processes and using our own
technologies.
 Turnaround the company into profitable one.

• Marketing Objectives
 Future Group retail food chain bazaar is the largest consumer of our products. Improves the business with them and also
identify potential buyers who have the ability to acquire larger and smaller quantities of products.
 Develop and improves the online promotional strategies and also to find other cheapest mode of promotion to reach the
end consumer.
 Product development in a narrow way.
PEST Analysis
 PEST ANALYSIS

• Political
 Increasing price of Cocoa.
 Increasing price of hazelnut.
 Regulatory issues like FSSAI norms.
 Relaxed FDI norms.
 Encouragement to Private Sector.
 Make in India initiative.

Economical
 Low tax rates declaration in budget.
 Welfare facility for the industry by the government which reflects positive impact on the market.
 Now company is in toss because of several market situations like recession.
 PEST ANALYSIS

Social
 Chocolate maniac are very high in India.
 Their perception towards the chocolate are very different, they are also using it for celebration as a
gift, spending the time with their loved ones , time pass all are advantage to the company.
 Being a chocolate brand it is avoided by health conscious people.
 Wrong information about the product create the pathetic situation.

Technological

 Opportunities are very high.

 Our strategy of online production was not at all acceptable.
 Some advertisement campaign has drawn some political fire.
Porter’s Five Forces
Analysis

Supplier Power
Suppliers bargaining power are high
because our product requires a important
materials like milk, flour, butter, essences.
We export some of the raw materials like
hazelnut, cocoa, milk chocolate.
Competitive Rivalry:
Supplier power: High
Threats of Substitutes
Close substitution are very high
Eg: Cadbury, Nestle, Amul, Mars are the
existing company in the market. Cadbury
and nestle are the major competitors.
Their price range are very cheap than our
products because they introduce and running
the products at domestic level. We are
implement our product as premium category
, we have its own demerits pertained.
Buyers Power
Entry : High
Threats of New
Till now as a premium brand the customer
response are literally lower because of the
price range and other matters. But we are
expecting that with our new product we
can increasing buyers response over the
product competitor customers are very
high because of their price range.
Buyers power : Low
HIGH
Threats of new Entry
The industry is a open one the barriers of
Substitution : High
entry are very low. There are many
companies which are existing and the new
Threats of large companies are enter with their own
potential strategy .
We have better technological operations
system other than the competitors.
SWOT Analysis
Strength
• Excellent brand name & high brand loyalty of Ferrero chocolates.

• Good product packaging makes the brand standout.

• Highly regarded as a global chocolate brand.

• The company produces more than 20 million chocolates a day

• Innovation and R&D.

Weakness
• Extremely immense competition means limited market share growth for Ferrero products.

• Being a chocolate brand, it is avoided by health conscious people.

• Lack of using internet for advertising and promotion.

• Less popular chocolate brand amongst the major players like Nestle, Cadbury etc.
Opportunities
• Tap growing cities and retail chains can be a huge boon for Ferrero.

• Have more variety and smaller gift packages

• Ferrero products can tie-up with leading hotel chains, restaurants etc.

• Establishment of online shops.

Threats
• Other competing chocolate brands can reduce Ferrero Rocher's market share.

• Calorie conscious people who avoid chocolates completely.

• Fake imitations of Ferrero Rocher can hurt the brand image.

 COMPETITORS

• The top 10 competitors in Ferrero's competitive set are Hershey, Kraft

Heinz, Mars, Nestle, Mondelez International, Barilla, Lindt, Danone,
Kellogg's and Godiva.
• In India the major rivalries are Cadbury and Nestle.
• CAGR of Chocolate industry by around 6.3%.
• Cadbury holds the major market share of around 60% and Ferrero India
holds around 10%.
• It is a monopolistic competitive market therefore the pros and cons of such
market structure may affect the activities of the company.
STP
Segmentation
• Majorly we segmented the market on the basis of psychographic, demographic and behavioral segmentation.
• People looking to have high quality premium chocolate.

Targeting
• The offering of the company has been targeted to the college goers, couples and children and who loves to eat
chocolates.
• All age groups lower, middle and upper class people.
• Chocolate maniac.

Positioning
• Healthy chocolates and rich in high nutrients.
• High quality raw materials used for making.
• Create a different attachment with the customer by using our product for perfect gifts.
• Attractive packing and name, different taste from peer’s products, reasonable price.
MARKETING MIX
 PRODUCT

• We are introducing our new product into the Indian market

“Kinder Pingui”
Four Flavors of filing like Caramello,Choccolato,Cocco and Schoko
 PLACE

• Distribute the product into each and every outlets within the country and try to
find innovative distribution strategy for familiarizing the product
• Especially in supermarkets, malls, retail outlets, vending machines in restaurants
and small provision stores etc.
• Manufacturing unit to wholesaler and to the retailer and finally to the consumer.
For chocolate products traditional distribution is more cost effective.
• The places of distribution has made the products available to a lot of customers
and the in turn has generated a profit for the company both in terms of customer
base and the revenue.
• Ferrero chocolates is a worldwide name and has made its name in almost more
than 200 countries.
• Initially we are focusing on Kerala and Tamilnadu.
 PRICE

As of our objective to capture local markets and also to increase the market share the pricing
strategy we adopting are

Competitive Pricing
Kinder Pingui is a cake product and now company is decided to introduce a 30gm of single small
pack at a price of Rs. 40 and a bundle of 4* 30 gm cake at a price of 150.
Main substitutes are Britannia cake, Pillsbury cake, Lotte Choco pie and Sunfeast Yumfills cake. All
the products are priced below Rs . 50 (single product).
 FORECASTED COST AND PROFIT

• Fixed Cost- Rs.200000 per month

• Variable Cost- Rs.350000 per month
• Estimated Production- 30000 units per month
• Variable cost per unit – Rs.11.67 per unit.
• Selling price per unit – Rs.40
• Break even point- 100000/40-11.67= 3530 units

• We are expecting that 15000 units in the first month will sold in the market.
• Total Revenue- 15000*40 = Rs.600000
• Gross profit = Rs. 424950
• Net profit = Rs. 224950
 PROMOTION

• The media mix for the campaign comprises TV, outdoor, internet and radio.

• Using of emotional appeals in advertising.

• Concentrated more on TV advertisement.

• Use online website media like Facebook, Instagram, business websites and
influence group YouTube video etc.

• Posters, banners and displays in the retail outlets.

 CONSUMER BEHAVIOR RESEARCH

• Consumer Behavior Research is defined as the decision making process and physical
activity involved in acquiring, evaluating, using and disposing of goods and services.
• CBR is the corner stone of the marketing concept which stress on consumer wants and
needs, target market selection and profits through the satisfaction of the customer.
• As a Chocolate company we must definitely share the importance and benefits of chocolate
to the customers.
Chocolate is a major source of dietary copper, chocolates are rich in minerals such as
magnesium, iron. From our previous analysis of consumers around 85% peoples in the
society are chocolate lovers.
Our product ingredients like milk, hazel nut, cocco, wheat flour and butter all have their
own nutrient content include in it and thus all combination into one product makes a
healthier product.
 NEEDS OF CUSTOMERS

• Tastiest chocolate experience.

• Rich in quality and quantity.
• Demand will become very high if the quality is very good and irrespective of
the price the customers will definitely bought it.
• Not only an eatable product which have something other than to share and
explore .
• Good packaging, labelling and logo.
• Better varieties in the existing product.
• Better pick than other product.
 CONSUMER DECISION PROCESS

The consumer decision making behavior is a complex procedure and involves everything
starting from problem recognition to post-purchase activities. The steps in decision making
process are:

• Identifying the best chocolate product from different varieties or need recognition.

• Gather information about taste and other features through various sources like friends, relatives,
advertisements, social media, reviews, vlogs etc.

• Evaluate the product with other substitutes about their price, quality, taste, and benefits.

• Last process is the buying decision process.

• Post purchase activities.

 COMPANY’S ROLE IN CBR

• Understanding Customer needs.

• Learn consumer buying pattern.
• Interpreting consumer behavior by two ways directing and intensity, what they
need from the product and is it enough for them.
• It is always a good idea to remind them that with their purchase they are
supporting entire communities in cocoa producing countries.
• Understanding the motivations for consumer behavior can help businesses
to influence consumers in certain ways.
 FUTURE INVESTMENTS

• Company decided to invested already more than Rs 1,500 crore but now have plans to
cross easily Rs 2,000 crore in some time to come.
• The company is now aiming to further penetrate into tier II and III cities by doubling its
distribution network over the next 2-3 years.

Once, Ferrero has right kind of portfolio and have right through the market, then
definitely India would be among its "three biggest priority market for us," Stefano Pelle
added.
• Ferrero is growing steadily and well in the domestic market and also becoming an
important hub for exports to other countries in Asia and the Middle-East.
Thank You