This communications plan targets the "Wake Up to nutella" promotion marketing campaign of 2007 in the UK. The look of the campaign by the Ferrero Group UK had taken around eight weeks and the advertising campaign had a total duration of around one year. (See Appendix 1 for further information about the company profile and its range of products).
The most significant opportunity of Ferrero was its differentiated nutella product that had low competition in the UK market. Main opponents were only Rowse Chocolates and Hazelnut Spread and Traidcraft Fairtrade Chocolate Hazelnut Spread.
Furthermore the prices of nutella created a chance for the business, as nutella was cheaper than the competitive products. Traidcraft Fairtrade Chocolate Hazelnut Spread for instance had been sold for 2. 26 for 400g and nutella for only 1. 59 for 400g.
A risk for nutella displayed the changing diet plan and lifestyle of consumers (cultural factors). Nowadays, the craze is going towards a healthier lifestyle and more healthy eating. Because of the fact that nutella has chocolate, the product was regarded as indulgence and detrimental by many consumers.
The main target market, which really is a specific group Ferrero UK seeks the merchandise nutella at, are both female and male schoolchildren at this group between 5 and 14 years and teenagers and school students, also both feminine and male. This concentrate on group is also described as a group of men and women who are having for breakfast time toast with something on it, such as jam or peanut butter. Another reason focusing on teenagers is that they have a tendency to prefer eating lovely for breakfast time. This target group is better to convince to change from jam or peanut butter to nutella than individuals who are not eating toast for breakfast time.
The market, which is a group of people the nutella advertising note is designed at, are parents, but mainly moms of the target market. The prospective audience is described as metropolitan and middle to upper middle class households. The mothers of the young children and teenagers will be the ones the communication concept is aimed at and they're the most important person in the buying decision. In order to illustrate the value of the moms which form the prospective audience, the Decision Making Device theory of B2C can be utilized:
target group; schoolchildren at this between 5 and 14 years, teens and university students, males and females.
target audience; mothers who have to be persuaded about nutella, who require healthy information about nutella and who are offering nutella to their children. Influencer can also be opinion leaders such as institution teachers, doctors, stars, the multimedia etc.
target audience; the mothers who are deciding what to share with their children for breakfast and for that reason they represent the main goal of nutella.
atarget audience such as moms who have the financial probability to buy the product and therefore they are the most crucial group that should be convinced.
Additionally, Ferrero UK decided to target mothers who are already providing their children toast for breakfast as these are recognized to be easier to convince to change to nutella alternatively than mothers that aren't already supplying their children toast for breakfast time.
Due to the actual fact that sales of nutella in UK are low, in comparison to other European countries, the prospective market can be described as new to the product nutella rather than existing customers. Furthermore, the target is neither dedicated to the brand nor devoted to a rival. The prospective market consists of current users of other get spread around products for breakfast time such as jam, cheese, peanut butter etc. There is really no comparable competition to nutellaґs hazelnut spread in the UK but there are alternative products on the market, as mentioned previously.
Despite the worldwide success of nutella, the merchandise suffered from an awful image in the united kingdom, as it can be seen from the diagram above. Most people in the UK, in comparison with the rest of Europe, identified nutella as a risk and indulgence, especially between the mothers. However, in other Europe nutella was perceived as a breakfast time ritual and a popular pass on that was also happily given to children. The bad consumer understanding about nutella was the key reason behind the "Wake up to nutella" advertising campaign.
The most significant stakeholders of the nutella marketing campaign were:
Staff and management; they needed to be persuaded about nutella in order to make a positive word-of-mouth impact to friends and family. Furthermore, these were involved in the work of the campaign and therefore they were also in charge of the success of the marketing campaign. The various tools of communication with internal stakeholders were in person conferences, the intranet and notifications.
Intermediaries; such as supermarkets that were buying nutella from Ferrero and advertising these to the end-user. They needed to be convinced to add nutella to their assortment. Just how of communication with intermediaries was immediate (face to face), as high involvement decisions between two businesses were involved.
Media; The marketing represented an judgment leading function, articles and accounts about the campaign and the product itself were printed and this has already established an high influence on consumerґs belief about Ferrero/the campaign/nutella. Key means of communication were a press meeting prior campaign introduction and regular interviews from the CEO of Ferrero UK about the advertising campaign. Regular interviews promised up-to-date information move to the customers and increased brand consciousness, because of the fact that nutella was brought up on regular basis in several newspapers and publications.
Customers; most significant stakeholders because they are the ones who are buying the product. Means of communication were the many communication tools that will be described later in this assignment.
Research that was performed prior the advertising campaign confirmed that consumers' notion about nutella being a treat was based on wrong ingredient information. Many UK customers comprehended nutella being truly a chocolate spread rather than a hazelnut spread.
According to that, the first and most important communication goal of the plan was to reposition the brand as a hazelnut pass on. This implied to better inform the client about the materials.
In addition, other communication targets, using the DAGMAR model as an example (see appendix 2) have gone to create brand awareness and brand knowledge but also to increase purchase. To raise awareness and knowledge of nutella was important to be able to attract new customers. To increase purchase was crucial in order to gain more new customers and to raise the total revenues of nutella.
Another important communication objective was to change the image of nutella in UK. The main goal was to alter nutellaґs image as poor and a treat towards a good and healthy hazelnut breakfast time get spread around that is also given to children. Moreover, Ferrero UK aimed to attain the conception of nutella being an everyday product for children, a good way to obtain energy and a dependable product with high quality materials.
In comparability to communication objectives, marketing targets are sales-related targets that are above all measurable, specific, targeted and timed (SMART). (Pickton and Broderick, 2006)
Ferrero UK defined its marketing objectives the following:
- To improve the volume level sales within 3 years time (up to 40%)
- To drive nutellaґs home penetration from 7. 54% to 10. 6% by September 2008
- To create nutella to 765, 000 more households a year
- To increase market show by 2%
Corporate targets of Ferrero UK were the next:
- Having its concentrate on customer relationship which is "based on knowledge, experience, sensitivity and intuition and a common and enduring devotion" (ferrero. com)
- Care about cultural issues, food protection and local areas and its human resources (ferrero. com)
- To attain market authority by following the rules of growing progressive products that are fresh and of high quality (ferrero. com)
After defining the primary target segments and key stakeholders, it was essential for Ferrero to choose in favour of Push, Draw or Account strategy. For the "Awaken to nutella" marketing campaign Ferrero decided in favour of a combo between Press and Pull strategy. The purpose of the thrust strategy was to encourage intermediaries to promote and sell nutella in their supermarkets. Which means that the communication flows down from Ferrero to the dealer and from the dealer to end user. The push strategy appeared to be fair because nutella is a low participation and impulse buying product and there is currently low brand commitment towards nutella. The assumption that nutella is a minimal involvement product originates from the fact that it is a FMCG at a low price (1. 49).
Ferrero also used several communication tools such as advertising and campaign to convince the client to search out for nutella and require it from supermarkets (Pull strategy). This plan was aimed to provide information about the product (e. g. nutella is a hazelnut get spread around and not chocolate get spread around) to a wider audience and finally pull nutella from the store.
For Ferrero it was important to utilize both strategies because with the force strategy they tried out to make a demand and desire for the product (with trade offers and coupons) and the draw strategy empowered Ferrero to build the nutella brand and notify folks about the merchandise.
While the thrust strategy targeted the supermarkets and was able to raise short-term goals such as impulse purchase, the take strategy targeted the end user and may give attention to long-term results such as building brand understanding and trust.
The "Wake up to nutella" marketing campaign was aimed to reposition the negative image of nutella in the united kingdom. Ferrero UK decided towards using press tools such as Advertising, Sales Campaign, PR and Direct Marketing in order to set-up synergy.
The campaign started out with a huge TV advert with the aim to reach a large audience at relatively low costs. Furthermore, advertising were the best tool for boosting recognition (see appendix 3).
The main communication communications from the TV advertising were:
- Contains 52 hazelnuts, a glass of skimmed milk and a dash of cocoa (a target: to see people about the ingredients and this nutella is a hazelnut cream and not chocolate cream)
- Good as part of a balanced breakfast (astrongest meaning; to put it to use for breakfast time)
- Not just an occasional treat (aaim: to make use of nutella as a each day product)
- Good source of gradual release energy
- Something Iґd be pleased to give my kids (a purpose: showing whom nutella is aimed at)
Public relationships were used to include credibility to the customer about nutella at suprisingly low costs but also to reinforce the raising consciousness target (see appendix 3).
Public relations consisted of various radio and press adverts. On behalf of nutella nutritionist were writing articles in women periodicals about nutella in order to increase the credibility. Also, two press adverts were posted in women and family magazines across UK to target the prospective audience (family members, especially mother) and the mark market (children). Both press adverts acquired the same communication- "surprisingly Nutella on toast can be good for breakfast".
Sales promotion was used to focus on the already determined target audience and to support the credibility of the product (See appendix 3).
Sales promotion consisted of samplings in Asda, Morrisons, Tesco and Makro stores with desire to to increase trial, stand for nutella as a confident brand and raise impulse sales.
Various price slices and Buy one get one free promotionsprior the trunk to University period were directed to increase short-term sales.
Direct marketing was targeted to deliver a personal message to the mark audience and marketplace but provide connection between Ferrero and its own customers. Ferrero created an own website, based on the marketing campaign -This brand website experienced the goal to inform the target audience about the brand but also to acquire specific data by subscribing to get e-newsletters. The explanation for this brand website was also to create brand consciousness (see appendix 3) but also to form brand frame of mind (Pelsmacker, Geuens, Van den Bergh, 2005).
Furthermore, corresponding to Mintel 2009 food manufacturers are progressively more using the medium internet for targeting children. "Thirty percent of 8-16 year-olds say that they try food or beverages after finding them online" (Mintel, Children Eating Habits UK, 2009). Ferrero also accepted this opportunity and targeted its main marketplace with its online marketing campaign.
To summarize, it can be said that Ferrero used an Integrated Marketing Communications way in order to "provide quality, steadiness and maximum communication impact" (Pelsmacker, Geuens, Truck den Bergh, 2005).
Furthermore they had one consistent subject matter that was presented by various tools. Furthermore, it could be said that different tools range in their success. Advertising for instance is a good tool for creating recognition but it is not a good tool to increase sales. However, Personal advertising can increase sales but it is not suggested for increasing knowing of the product. Ferrero decided in favour of a synergy of different tools in order to meet all of their objectives.
The huge "Wake up to nutella" campaign was the biggest & most expensive advertising campaign Ferrero UK ever before experienced. The total costs of the plan were 8m whereas the tv set advertising and the press advertisement solely accounted for 4m.
These figures appear to be enormous however when comparing how big is the business and the full total twelve-monthly turnover of 170m EUR, marketing expenses of 8m appear to be appropriate.
Additionally, though the advertising campaign was expensive, it was able to make a payback of 1. 85 for every 1 put in.
Besides the financial aspect, the human resources are crucial for each successful plan. Ferrero UK involves 133 employees employed in several departments such as Marketing, Sales, Finance and I. T.
Especially because of this campaign Marketing Supervisor Mr. R. Groumdes-Peace required a close collaboration between one departments to exchange ideas also to profit from different know-how. Furthermore, the business was providing several trainings in order to require all employees into the campaign.
The television plan and press advertising were created by Krow Marketing communications, a famous London Communication Company. The reason behind choosing a superb agency was the lack of marketing expertise because of this gigantic and challenging advertising campaign. Ferrero UK decided to hire Krow Communications for this marketing campaign, as they were already well-established in the market and possessed famous clients such as Unilever, Fiat etc.
For the Public Relations marketing campaign Ferrero hired various nutritionists that were writing articles with respect to nutella with desire to to talk trust and trustworthiness to the buyer. Here again Ferrero relied on the know-how of excellent experts.
The complete work of Ferrero UK contains making proper decisions and finding other agencies that will use the ideas for the campaign such as to create a fascinating and convincing advertising that will fulfil their targets.
Finally, Ferrero UK applied Millward Brown, a research company that undertook the analysis of the marketing campaign.
The complete planning process took around eight months and the advertising campaign had a complete duration of 1 year.
The duration of the "Wake up to nutella" advertising campaign was twelve months but it was carried out in three stages (August 2007, December 2007 and December 2008). Ferrero made the decision towards a DRIP strategy which means to utilize the promotional tools to differentiate its product from others, remind customers of the merchandise but moreover to inform them about the elements of the merchandise and lastly persuade them to buy nutella.
Moreover, costs was multiply in more than one period, to be able to create existence over a longer period of your energy.
The first stage of the repositioning plan began on the 27th of August 2007, a few days before the Back again to School period and it consisted of one tv set advertising and two press adverts. In such a phase the most important tools were advertising and sales campaign (sampling) because of the target to increase high recognition amidst schoolchildren and moms.
The second stage started in January 2008/February 2008 right before the Pancake Day and contains the TV advertising and press advertisings from the 1st phase.
The goal with duplicating the TV advertisement and press advertisements was to remind the customer of nutella as a good occasion to buy for Pancake Day.
New press adverts and a new much better version of the TV advertisement were launched between Sept and November 2008. The reason behind a fresh press advertisement was simply to refresh the whole campaign and it advertisement needed to be improved credited to lots of complains.
The Advertising Standard Expert (ASA) in UK required to change the information from per jar to per portion also to leave the info "good within a balanced breakfast".
Ferrero UK transformed the main element information from it advertising into "A 15g part includes 2 hazelnuts, skimmed dairy and cocoa" and didnґt discuss the balanced breakfast time anymore.
Furthermore, the force strategy was slated prior the pull strategy in order to speak and persuade the supermarkets to add nutella in their collection. Moreover, Ferrero wished to convince the supermarkets to support the campaign with sampling campaigns in their supermarkets.
Because of this reason Ferrero UK first of all concentrated on its press strategy (prior 1st repositioning phase) and then on the pull strategy (1st to 3rd period).
Ferrero UK created an enormous campaign backed by different promotional tools. During but especially after the "Awaken to nutella" advertising campaign Ferrero UK has carried out research to identify if the goals they have place have been achieved and which of the promotional tools helped the most in reaching these objectives.
Millward Dark brown, one of the worldґs leading research companies was employed by Ferrero to attempt the evaluation of the campaign. Based on the conclusions of Millward Dark brown, the TV advert achieved an Awareness Index of 11 whereas the average index in the united kingdom is 6.