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New Product Overview Nutella Squeezable®

MWF 10:00 AM Jacob Mayans Joey Sargent Jordan Carder Aaron McDade October 7, 2017

Ferrero Company Overview Basic Information As a marketing team for Ferrero, we have come up with a new product that will help boost sales and will maximize profit. This slight modification to the well-known Nutella will expand and improve the company to the next level. The main reason for this paper is to provide an overview of Ferrero, introduce a new product idea, analyze primary market research, and discuss the new product’s market environment. Ferrero is an Italian manufacturer of branded chocolate and is the third biggest chocolate producer and confectionery company in the world. Ferrero was founded in 1946 in Albas, Piedmont, Italy, by Pietro Ferrero. Pietro Ferrero was a confectioner and small-time pastry maker who laid the groundwork for Nutella and famously added hazelnut to save money on chocolate. The Ferrero group worldwide includes 38 trading companies, 18 factories, approximately 21,500 employees and produces around 365,000 tons of Nutella each year. Current Products Ferrero is a fast growing company that owns many companies that we know today. Some of these companies include Tic Tac, Nutella, Kinder Surprise, and Kinder Bueno. Though not as well-known in the United States, Kinder is one specific type of candy that is very popular in Italy and all over Europe. Looking at the whole world, Nutella has been the largest product owned by Ferrero to reach the four corners of the earth. The original Nutella was introduced in 1965 and became a very popular household item. Although a few things have been made with Nutella such as Nutella with dipping sticks, the original Nutella has been the biggest and most successful product under Ferrero. Current Market Locations The Ferrero company has been very successful across the world. Though Ferrero started in Italy, most of its companies and products are sold all throughout the world. Kinder products, for example, have mainly found success in European countries. Nutella on the other hand has been very popular and is sold all over the world. Current Product Benefits and Value The products at Ferrero are considered very valuable to our customers. The strong name is recognizable and is known by people across the world. Its customers continue to buy the products because they know and trust that the name brand will stand up to its reputation. Ferrero’s sales have greatly increased as a result of Nutella. One of the greatest benefits of Nutella is that it offers a delicious product at a low price. Whether you are snacking on it at home or bringing it to work, Nutella will always satisfy you and give you the taste that you crave. The Ferrero ownership of Nutella adds value and a good name in every jar that is purchased. Nutella offers several benefits including a quality product, low price, easy access, and most importantly, provides nutrients and happiness to all those who consume it. The original recipe is simple, yet tasty and has no intention of changing as long as the customers continue to buy. These benefits will help set up and improve the new product for success.

New Product - Nutella Squeezable Differentiating Features The brand new Nutella Squeezable will have a container that you can squeeze to make it more convenient for the customer. This is made possible because of the non-stick coating on the inside of the bottle. The new product saves you the mess of having to wash your hands and a knife after dipping it into a Nutella jar. It also saves any of the softer options you could be putting Nutella on, such as crepes, from tearing because of a knife used for the application. Convenience is the goal of this new product by saving our customers time and making their lives just a little bit easier. Product Position The way the Nutella is packaged is what makes this product unique and convenient for the consumer. This new position will sell because of the ease of use as well as it saves you money by getting every bit of Nutella out of the bottle. The consumers will enjoy having hands that don’t get sticky and saving money every time they buy Nutella. Nothing will change about the product or the taste, so everyone benefits. Segmentation The plan to get this new product in front of the consumers is to sell at grocery stores nationwide. The first priority is to sell inside Walmart because of its size and the amount of customers they attract. The second priority is to be sold in local grocery stores such as Smiths and WinCo. The primary target market is adults (ages 25-45) because they are the ones who buy the groceries for their families to eat. Time is important for the spouse who stays at home so they’ll value the time and money saved by using the Nutella Squeezable bottle. The second market we’ll be focusing on is college students (ages 18-24) who need to save money because of how expensive college is. The liquid-glide coating inside the bottle ensures that every last drop of the creamy spread leaves the container so it can make it to your belly.

Market Research In order to determine if Nutella Squeezable will succeed in the market, we performed primary research. Throughout the market research process, we were able to better understand our consumers’ minds and see if our product would be a great addition to the Nutella product line. The following is some information regarding our market research. Questionnaire A questionnaire was created to survey the target market regarding our new product. We asked seven different multiple choice questions, which were generated to determine different aspects of consumers’ behaviors and attributes. Primary Research Data In order to provide a great, high quality product, the marketing team conducted primary research. The survey was created using Google Forms and was posted to Social Media for a few days. Being able to survey over social media gave us a broad age range and received a total of 50

responses. While our main target markets are high school to college-aged individuals and parents, people of all ages completed the survey. We found out that most people have tried Nutella but don’t eat it as often as we would have thought. Still a good amount of people still have never tried it or don’t eat it often. Information Analysis 1. Age? 1-14(1) 15-24(29) 25-35(10) 36-50(3) 51+(7) 2. Gender? Male(33) Female(17) 3. Have You Ever Eaten Nutella? Yes(38) No(11) 4. How Often Do You Eat Nutella? Never(12) Not Often(16) Once a Month(9) Once A Week(7) 2-3 Times a Week(5) Everyday(1) 5. Which Type of Packaging Would You Rather Prefer? EZ Squeeze Bottle(50) Jar(0) 6. What Is Your Favorite Chocolate Bar? Hershey’s(2) Twix(21) Snicker(20) Symphony(2) 7. What Is The Best Food To Put Nutella On? Strawberries(21) Crepes(10) Banana(3) Pancakes or French Toast(10) Haven’t Tried Nutella(6)

Completed Questionnaires Included with our overview paper are three questionnaires from different individuals surveyed. We randomly selected three different responses to include as completed surveys. These completed surveys can be found on pages 7-8.

Market Environment This section will discuss the market environment for our new product. The different aspects of the environment that will be discussed are the current economic situation, competitors, and competing products. In addition, several legal and social issues will also be discussed in regard to Nutella Squeezable Current Economic Situation Ever since Nutella was introduced to the market about half a century ago, it has been a hit. The hazelnut spread started off in Northern Italy but is now in more than 150 countries worldwide and is consumed in mass quantities. Right now, about 365 million kilos of Nutella are consumed each year and this is only going up. For comparison, that is about the weight of the Empire State Building. Nutella is everywhere and known by everyone. It is the third most popular page on Facebook, next to only Barack Obama and Coca Cola. Every 2.5 seconds, a jar of Nutella is sold, which is incredible, considering that a baby is born only every eight seconds. Nutella’s steady growth, mixed with most everyone’s need to buy multiple jars per year, is a recipe for big business. Nutella monopolized the market, and adding the convenience factor of a squeezable top will only help. The main complaint with this addicting and delicious spread is that it is messy. The squeeze feature will eliminate any mess and any need of cleaning knives. Competitors and Competing Products As stated, Nutella has very few, if any, true competitors. It created the industry of hazelnut spread and owns the market. They easily have the largest share of the market and, for legal and other reasons, not many suspect any competitors to try to disrupt Nutella. However, a handful of competitors have tried, including Hershey’s and Great Value, but to no avail. In most blind taste

tests, surveys, and other sources of feedback, respondents pick Nutella by a landslide because of texture, chocolate to hazelnut flavor ration, and sweetness levels. Legal Issues Squeezable jams, condiments, and other spreads have all embraced the squeezable jars, bottles, and tubes. It is now time for Nutella to hop on board so that consumers’ hands won’t be sticky from trying to get the last little bit out of the awkwardly shaped jar. The legal obstacle that stands in the way from a squeezable Nutella jar becoming reality are the patents US3118572A, US3474936A, and US3306500A. Social Issues Many people expect companies to be 100 percent eco-friendly and to not use plastic if they do not have to. In this case, more plastic will be used. This could hurt some feelings. In order to offset these sad feelings, a campaign will be launched that, not only will Nutella Squeezable be saving gallons of water everyday by not having to use it to clean off knives, but also a portion of the yearly sales will be donated to environmentally friendly movements.

Nutella Survey People circle each answer that applies to you. 1.Age? 1-14 15-24 25-35 36-50 51+ 2. Gender? Male Female 3. Have You Ever Eaten Nutella? Yes No 4. How Often Do You Eat Nutella? Never Not Often Once a Month Once A Week 2-3 Times a Week Everyday 5. Which Type of Packaging Would You Rather Prefer? Nutella Squeezable Bottle Jar 6. What Is Your Favorite Chocolate Bar? Hershey’s Twix Snickers Symphony 7. What Is The Best Food To Put Nutella On? Strawberries Crepes Banana Pancakes or French Toast Haven’t Tried Nutella

Nutella Survey People circle each answer that applies to you. 1.Age? 1-14 15-24 25-35 36-50 51+ 2. Gender? Male Female 3. Have You Ever Ate Nutella? Yes No 4. How Often Do You Eat Nutella? Never Not Often Once a Month Once A Week 2-3 Times a Week Everyday 5. Which Type of Packaging Would You Rather Prefer? Nutella Squeezable Bottle Jar 6. What Is Your Favorite Chocolate Bar? Hershey’s Twix Snickers Symphony 7. What Is The Best Food To Put Nutella On? Strawberries Crepes Banana Pancakes or French Toast Haven’t Tried Nutella

Nutella Survey People circle each answer that applies to you. 1.Age? 1-14 15-24 25-35 36-50 51+ 2. Gender? Male Female 3. Have You Ever Ate Nutella? Yes No 4. How Often Do You Eat Nutella? Never Not Often Once a Month Once A Week 2-3 Times a Week Everyday 5. Which Type of Packaging Would You Rather Prefer? Nutella Squeezable Bottle Jar 6. What Is Your Favorite Chocolate Bar? Hershey’s Twix Snickers Symphony 7. What Is The Best Food To Put Nutella On? Strawberries Crepes Banana Pancakes or French Toast Haven’t Tried Nutella

Nutella Survey People circle each answer that applies to you. 1.Age? 1-14 15-24 25-35 36-50 51+ 2. Gender? Male Female 3. Have You Ever Ate Nutella? Yes No 4. How Often Do You Eat Nutella? Never Not Often Once a Month Once A Week 2-3 Times a Week Everyday 5. Which Type of Packaging Would You Rather Prefer? Nutella Squeezable Bottle Jar 6. What Is Your Favorite Chocolate Bar? Hershey’s Twix Snickers Symphony 7. What Is The Best Food To Put Nutella On? Strawberries Crepes Banana Pancakes or French Toast Haven’t Tried Nutella

Nutella Survey People circle each answer that applies to you. 1.Age? 1-14 15-24 25-35 36-50 51+ 2. Gender? Male Female 3. Have You Ever Ate Nutella? Yes No 4. How Often Do You Eat Nutella? Never Not Often Once a Month Once A Week 2-3 Times a Week Everyday 5. Which Type of Packaging Would You Rather Prefer? Nutella Squeezable Bottle Jar 6. What Is Your Favorite Chocolate Bar? Hershey’s Twix Snickers Symphony 7. What Is The Best Food To Put Nutella On? Strawberries Crepes Banana Pancakes or French Toast Haven’t Tried Nutella...