EXECUTIVE SUMMARY

Ferrero UK Ltd is a United Kingdom based company with confectionery products mostly chocolate. They have invested heavily in advertising to enforce brand awareness. The confectionery industry has key players who are a substantial threat to Ferrero’s well-being and due to the volatility of this industry, Ferrero UK should awake for their moves and learn from their success and mistakes. This will have as result for Ferrero UK of retaining or improving its market share, position and develop customer loyalty. The Marketing Plan (MP) has taken the external and internal environmental factors into consideration, to address the final strategy and its implementation during this festive season – Christmas and New Year. Due to the short time available, HS will concentrate on its existing market segments, but for the festive season will target the children and adults. It will emphasize on changing the feature of its product package and the amount of quantities involved.

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TABLE OF CONTENTS

COVER PAGE EXECUTIVE SUMMARY TABLE OF CONTENTS 1.0 2.0
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INTRODUCTION INDUSTRY MARKETING AUDIT SWOT ANALYSIS MARKETING STRATEGY MARKETING TACTIC IMPLEMENTATION AND CONTROL CONCLUSION APPENDIXES REFERENCES

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mints and chewing gum). 2. A Marketing Audit will be implemented including reviews past and anticipated aspects that affect the marketing environment.1. with a high level of brand recognition. being worth close to 3. Chocolate confectionery accounts for around 3 . implementation and control before giving a concluding discussion. 2003). product positioning and activities of Ferrero UK directly or indirectly. by increasing the volume sold by capitalising on the Christmas and New Year season (identified as Festive season) impulse buying. to establish an optimum fit between meeting the stated objectives and its environment in the short-term festive season. The gum sector. The UK confectionery market has grown at an average of +1% per annum over the past 5 years.53bn. especially in its key segments of children and 18+years.0 INTRODUCTION This assignment’s main aim is to protect and retain Ferrero’s 4th position in the confectionery market. blocks.0 INDUSTRY CONFECTIONARY MARKET Confectionery is one of the most dynamic and innovative sectors in the UK food industry and it comprises of two main sectors: chocolate confectionery (including countlines. to penetrate the market. Indeed. which includes chewing and bubble gums is the fastest growing sector with an average annual growth of +8% between 1998 and 2003. Per capita confectionery consumption in the UK is among the highest in the world. It will further discuss approach to be employed. The UK chocolate market is largely consolidated.1%. according to Research & Markets. This research has focused on the chocolate confectionery market which accounts for approximately two-thirds of the total confectionery market. exceeded only by Ireland and Denmark. boxed chocolates and bite-size products) and sugar confectionery (including fruit sweets.4 billion pounds (Euromonitor.6 billion pounds out of the total confectionery market worth of nearly 5. however within the overall confectionery market different sectors have grown at different rates. Over the same time period sugar confectionery has grown at around +2% per annum and the largest sector which is chocolate confectionery has only grown at 0. the UK confectionery market achieved year-on-year growth between 2001 and 2005 to reach a value of 4.

with sales of sweets (sugar confectionery) at around 27.7 % (www. P. 2005).com). with many of their leading brands being among the year's losers: Mars. Both companies suffered – but particularly Masterfoods – from the decline in sales of countlines. increasing its value share to just fewer than 30%.64). For example. Nestlé also continued to suffer from poor sales of its Double Cream tablet. Marathon. most notably Kraft Foods. 2001. p. with a slight increase in value share in 2005. the celebration of the centenary of the Cadbury Dairy Milk brand offered a strong opportunity for new products and formats for the label. Masterfoods and Nestlé. KitKat. Aero. Instead. However. during 2005. Most of that increase was derived from its Dairy Milk superbrand launch. Masterfoods (the confectionery division of Mars UK Ltd) and Nestle Rowntree. The confectionery companies of the UK industry are faced with several factors identified using Porter’s (1980) five forces framework (Refer Appendix I) COMPETITOR ANALYSIS Competitor analysis is the ability to understand competitors and predict their actions which is vitally important to all marketing orientated organization (Adcock. Ferrero UK holds the 5th place in value retail company share (Refer Appendix II). Cadbury Trebor Bassett strengthened its leading position as the leading company in chocolate confectionery in 2005. which strengthened its position as the leading brand by over one percentage point. the tendency has been to extend existing brands with new flavours and/or into new product areas. The market continues to be dominated by three major players: Cadbury Trebor Bassett (part of Cadbury Schweppes PLC). other companies saw an increase in value share. Twix (Masterfoods). taking advantage of established names by turning them into umbrella brands.3% of sales value in the UK market.72. whose focus on gifting and seasonal products paid off. primarily thanks to growth in its Terry's range (Euromonitor. The best-selling brands are long established and the sector has now all but given up on introducing new brands. lost value share in 2003. Beneath the leading three. Research & Markets said that the UK is unlikely to lose its place as one of the world's major per-capita consumers of confectionery and the outlook for the market remains encouraging (www. just-food. but managed to maintain their second and third positions respectively.confectionerynews. 4 .com). Lion (Nestlé). The other two leading manufacturers.

low efficiency in the use of capital and labour inputs. and a lack of innovation. but is set to rise again as the government strives to improve deficient public services. Further cuts in interest rates are expected but these may be modest. specifically on average. especially in continental Europe. Consumer borrowing has reached a level roughly equal to annual economic output. Economic environment The economy has been growing faster than the average for the eurozone as a whole for the last nine years. The pace picked up in 2006 after a slowdown the previous year but an abrupt slowdown is forecast for 2008 (Euromonitor. The deficit was cut in 2006 but remains high by international standards. The UK's public capital is low compared with major economies. meaning that the cost of debt servicing could still pose a problem. The UK is by far the largest petroleum producer and exporter in the EU (which does not include Norway). 2005). an increase of 7% from last year’s £662. It also is the largest producer and an important exporter of natural gas in the EU.0 MARKETING AUDIT EXTERNAL MARKETING ENVIRONMENT Political and Legal Government consumption has been contained in recent years by strict controls on public spending.3. The government hopes to have 5% of all transport running on biofuels by 2010. Labour productivity per hour worked remains lower than in other advanced countries. The rate of overall fixed capital formation in the UK is depressed by the very low level of public investment. Unemployment has edged upward. workers in the UK must work nine hours to produce the same output that Germans achieve in eight and workers in France in seven. Poulter in The Daily Mail (2007) is optimistic based on Delloite’s survey on shoppers that expects festive season spending to be per-capita £706 this year. reflecting a low capital-labour ratio. Consumer spending is supported by an increase in employment. Moreover. but is weakening as a result of problems in the housing market. However. growth of productivity has also slowed. The country’s infrastructure is also regarded as decrepit and hinders gains in productivity (Euromonitior. 2005). Understanding the purchasing power through this will direct and 5 .

software and formulation technology. to society. Sugar-free confectionery is one of the fastest-growing market categories. Artificial sweeteners and natural flavouring systems are fields in which technology advances at a rapid pace. to others. the trend is also growing somewhat toward sugar-free hard candies. The manufactures (main leaders of the market) of confectionery products can be highly technical. the Christmas festivities are part of a long born UK tradition with religious inclination and have gained momentum. The colours commonly used to promote and associated with the festive season are red. silver. glittering and white. Most firms are well informed of international developments in processing equipment through industry journals or attendance at trade shows. as well as sugar. to organisation. especially within larger multinationals. 87). Proprietary process improvements. Technological As with most segments of the food and beverage processing sector. there is a spirit of “giving” such as love. The vast majority of new technology is available off the shelf. usually from machinery manufacturers in Germany and the U.S. requiring considerable understanding of food technology. Although still most popular in chewing gum products and mints. People absorb almost unconsciously. innovative product.” (2006. to nature and to the universe. technology is an issue that is extremely important to confectionery manufacturers. Based on this premise. gold.support the decision on target market by acknowledging the underlying concerns (Dickson 2000) Socio-cultural According to Kotler and Keller the “Society shapes the beliefs. Technical know-how is required to integrate these elements in an effective production system that is efficient and results in a high-quality. hope. a worldview that defines their relationship to themselves. and charity as well as many gifts one of which is chocolate presents.and fat-reduced chocolate products. 6 . Also. which companies promote and capitalise on. values and norms that largely define these tastes and preferences…. including hardware (processing machinery and computers). new product formulations and ingredient improvements occur regularly. Sugar-free gum now has a majority share of the chewing gum market.

medicated confectionery • Positioned among the top leading companies(4th largest company) in UK confectionary market • Unique and Innovative Products with high quality • Modern technology Weaknesses • Not strong New Product Development • Human Resources Opportunities • New product launches 7 . Examples include low-calorie bulking agents. New ingredients are key drivers in the innovation of sugar-free and fat-reduced confectionery formulations. like Ferrero Rocher. are also difficult to manufacture in reduced-sugar or reduced-fat form without sacrificing quality and taste. have been approved and are currently in use. Nutella and Kinder Surprise have a significant amount of trust and loyalty from consumers • A well balanced and wide portfolio. which have both sugar and fat as main ingredients. including leading brands across the chocolate. polyol sweeteners and high-intensity sweeteners. many ingredients. Strengths • Strong brands. Chocolate products. particularly those for use in the manufacture of sugar-free candies. While regulatory approvals for new ingredients can take time to obtain.Candies are more difficult to manufacture in sugar-free form because sugar itself is the primary bulking ingredient. 4.0 SWOT ANALYSIS The SWOT analysis is inclined mostly towards the festive season and has identified strengths and weaknesses of Ferrero UK including threats and opportunities that affect its operations.

• Affordable indulgence Threats • Intensity of strategies used to position product.• Product offerings • Robust organizational changes driving performance • Growth in the UK confectionery market. such as Valentine Day and Christmas. by 2003 as in 1998 it was worth 437 million pounds sterling. 1994).0 MARKETING STRATEGY This section will determine the profile of current targeted market segments and the characteristics of the festive season. The UK market for seasonal chocolate confectionary is predicted to be worth 598 million pounds sterling. Seasonal products accounted for 11. • • Substitutes especially hot beverages in the cold season. Similar competition’s growth strategy to Nestle to gain more market share – meaning get them out of the picture by capturing their own. Seasonal chocolate products include items made for special days and festivals. It is essential to find a fit between the two to select a market segment to target in order to achieve the objective during the short festive season (Doyle. Intense competition from other leading brands like Cadbury and Nestle Growing Health Concerns • 5. This directs basis for positioning Ferrero UK products and formulating a marketing mix. at 1999 prices.79% of the total sales in the UK chocolate confectionary market during 1998. There are two main things that Ferrero UK wants to achieve through our marketing strategy: increase its sales and increase the number of loyal customers. Manufactures need to constantly find new novelty products. 8 . because competition are picking up really fast and using similar tactics • • Seasonal and weather controlled market-giving room for demand for substitutes.

This partly explains the importance of pack formats such as multipacks and minis. This is being driven by the development of more brands targeting everyday sharing occasions. and largely explains why manufacturers have introduced different pack variants and sizes. Almost half (49%) said they often ate chocolate as a snack when relaxing or entertaining at home. According to the exclusive consumer research (Euromonitor . 9 . 2005) 42% of adults stated they purchased confectionery to eat straightaway when on the move. Trade research shows that almost 40% of chocolate sales takes place in the first quarter of the year. but what form it takes. Around 8% of UK chocolate confectionery is purchased in the two weeks prior to the Easter weekend . fast food. which were introduced in 2005. looser family set-ups and a wider availability of snack products have all contributed to the snacking trend. which have all led to a general speeding up of lifestyles and a lower propensity to eat leisurely meals. This consumer research shows that snacking is important within the home. and 57% of those working full time eat chocolate bars while at work. the trend towards snacking and eating on the hoof has had an important influence on not only how much confectionery is eaten. novelties and selection packs between September and December . and 41% stated they bought confectionery to keep at home to eat later. A trend towards convenience and less structured mealtimes has been apparent in the UK for a number of years. This in turn has stimulated innovation in a slightly more premium tier for more special occasions.defined as sales of boxed chocolates (bulk and ordinary).2% up on 1997.and most of that is in the last few days. This includes snack food. Busier lifestyles. such as Cadbury Dairy Milk share boxes. longer working hours and shorter lunch breaks. Moreover. vital to the confectionery sales mix of the grocery multiples.reached £640m in 1998. Countlines continue to account for the largest share of the sector but boxed assortments are showing the fastest growth. such as savoury snacks. which is also helping to add value to the market. take-away food and home meal replacement products. Chocolate confectionery accounts for nearly three-quarters of sales by value. Factors contributing to these changes included the increasing numbers of working women. These factors have led to a demand for food that is ready to eat. and which does not require cooking or preparation at home. confectionery and biscuits. which itself can be divided into Easter and Spring occasions such as Valentine's and Mother's Days. The Christmas confectionery market . this was 2. for families and parties.Seasonality and specific events are still important to the confectionery market.

6 0.52 133.3 6.4 2005 15.963.1 67. the highest growth in per capita consumption during 1998-2003 was seen in areas such as snack bars (133%).1 below).24 6.3 99.56 13. of gift giving. An organisation evaluates its strengths relative to the competition and considers how many segments it can serve effectively. 10 . and 29% agreed that most of the confectionery they buy is chosen by the children in their family. According to Kotler et al (2005) “market targeting involves evaluating each market segment’s attractiveness and selecting one or more segments to enter.3 101. 44% of adults aged 18+ buy most of the chocolate and sweets for the children in their family.3 % change 2000-2005 3.6 6.133. Table 5.41 6. Food that caters to consumers’ lack of time for meal preparation and increasing desire to eat on the move helped to drive growth. that is dependant on the attitude and mood. Hence.1 6.7 64.2 0.” The festive season decision-making process is based on impulse and it would suffice to use situational segmentation based on the general characteristics of the festive season.1 Consumption of Packaged and Processed Foods by Sector: 2000/2005 Kg per capita Confectionery Bakery products Ice cream (Millilitres per capita) Dairy products Sweet and savoury snacks Snack bars 2000 15. 1999).7 Source: Euromonitor International from trade sources.53 2.Target market Using the situational characteristic of purchase attitude. noodles (38%). According to the consumer research (MIG. such as the festive season. chilled processed food (24%) and ready meals (20%) (see Table 5. then find a way to influence preference to Ferrero brand. Ferrero UK should reward loyalty by targeting the children (4-14 years) and 18+year’s segments by reinforcing the spirit of Christmas.62 -4. The festive season is characterised by people caught in the euphoria. also because Ferrero UK is experienced in short-term similar strategies Children are a major consideration in the confectionery market.

a treat and available for a restricted amount of time. thereby increasing their desirability. 2000). high-quality products. This has seen consumers cutting down on quantity of chocolate while trading up on the experience. with the recent breakdown of formal meals. In other words our motto is once again “making quality confections a part of everyday life… for treats as well as gifts”. increasing consumer affluence and heightened awareness of healthy eating. Product The major players of the confectionery market continue to invest heavily both in branding and marketing communications activities each year. In addition to this. 47). while smaller manufacturers and less significant brands rely on product distribution. 2000). So Ferrero UK will emphasize on health. Consequently.Positioning Ferrero UK position itself as a company that delights its consumers with a seemingly inexhaustible line of unique. This helps communicate the desired image that companies want the customer to have of the product to differentiate from the competition’s products (Simpson. The festive season. Two major influences are shaping the UK market. small quantity. consumers are increasingly tending to eat a number of smaller snacks during the day rather than three full meals – taking a ‘snacking’ approach to food consumption thereby playing into the hands of confectionary and similar snack-type manufacturers. adults with a satisfaction of all their deep-rooted emotional relationships with chocolate and children a gift. based on taste and also the inclusion of nonedible gift components to increase longevity of the gift. Adults and above as well as children at festive seasons are getting together with their family and friends for a meal and sharing gifts. together with the availability of and ease of access to confectionery products. in an 11 . fun. thus some product characteristics will be changed like size and the package design and probably introduce new flavours of our existing brands. availability and appropriate pricing for retail sales. In addition. It is clear that brand and line extensions are of great significance to the key players in the chocolate confectionery market as “all manufacturers seem to be following the same strategy” (The Grocer 2003. brings about change in the consumer attitude and behaviour (Dickson. taste and package features according to the consumers preferences. our intention for the festive season of Christmas 2008 is to provide to our consumers. The key growth drivers of the market are the increasing snacking and grazing culture.

Singles chocolate bars or roll packs of sugar confectionery are the most common pack format followed by standard boxes as Ferrero UK is focus on.increasingly 'cash-rich time-poor' global society. store and eat. benefiting from some new products. as people were more cautious about spending their money on these relatively high-priced items. Easter eggs. Selection pack sales however. To confectionery manufacturers. often on the move. Such brands account for approximately a third of chocolate selfline sales. novelties and selection packs) and snack size formats enjoyed the highest rate of growth in 1998 (MIG. easy to buy. Family sharing products (eg bagged chocolates and sweets 80-250g) accounted for almost a third of confectionery sales through grocery multiples in 1998. Sales of bagged chocolate selflines have continued to increase. Seasonal (tinned or jar confectionery for seasonal occasions. There are significant variations in the confectionery sales mix between individual trading sectors and outlet types. particularly within the chocolate confectionery sector even more at Christmas season which is link with chocolate desire. retailers and confectionery buyers. due to the larger number of products being available. Confectionery sales are on branding due to their reliance on impulse purchasing. advent calendars) were up for Christmas 1998 compared to the previous year. with an increasing number being eaten 'on the move'. a growing demand exists for snacks which are easily accessible. display and purchasing patterns. This is to some extent reflected in the younger age profile of many of these brands: for example Cadbury's Chocolate Buttons is specifically targeted at children. varied pack sizes and the targeting of specific customer segments such as children. Self eat items such as chocolate countlines and sugar confectionery roll packs feature far more prominently in other outlets where impulse. 12 . They are largely accounted for boxed chocolate assortments. Selflines are small items which are all the same which tend to be eaten as informal or casual snacks.1999). pack format has more meaningful implications for determining sales. eating on the hoof and snacking are more important determinants of confectionery purchases. which made modest gains in 1998. Price According to MIG (1999) research report Sales of Christmas novelties (eg tree decorations. By providing different pack formats the trade is keen to ensure they have a broad range of confectionery products to meet every type of consumers' needs. were down in 1998 compared to Christmas 1997.

They continue to benefit from extensive marketing and advertising support (£149m above-the-line alone in 1998). The importance of brands was confirmed by the 77% of adults surveyed (MIG. encouraging multi-facing display of such brands. Brands are particularly dominant within the confectionery market. we will be in the position to approach the largest part of the market and also to take advantage of our good reputation for the generation of more sales. This will be accomplished through the use of direct mailing (brochures) and newspaper/magazine advertising. for example. In addition. Christmas toys 13 . which will announce our products and in the process will enforce brand awareness. and are well-established household names. sought to encourage retailers to do the same. and have not surprisingly. Promotion Promotion Strategy The lead strategy in order to promote our products and services will be primarily to inform our consumers of our special offers and packages and make the right information available to our target customer. accounting for over 94% of sales. 1999) who agreed that they tend to stick to their favourite brands of chocolates and sweets. by. Ferrero UK intends to utilize a promotional campaign to make its brand products extended lines aware to the market. Ferrero UK is planning to concentrate its marketing campaigns for its confectionery portfolio in the run up to Christmas. The major manufacturers have increasingly focused on their key brands.Ferrero UK will continue to offer it high qualities and innovative products in convenient prices for the consumers. Advertising and Communication Promotional mix is a very useful tool to communicate with existing or potential audiences. A TV and press ad campaign for Kinder Surprise and Ferrero Rocher will kick off in 1st of November and run through to the end of January. This will be achieved through the use of several media sources. The ultimate promotion strategy however will be in guaranteeing customer satisfaction since happy customers will generate repeat profits. backed by internet activity. mainly. with TV advertising for its major brands. our company will ensure the ultimate satisfaction of its consumers in order to create loyal consumers who will repeat their purchases and increase sales. Consequently.

to make one product and market that product in the same way to everyone who may want it(Simpson. the main objective is immediate purchase. However. Seasonal limited edition Snowman. for the consumer to purchase it from the supermarket and sales outlets and push for them to make repeat orders from HS to stock up. This gives HS some semblance of control and power over the immediate purchase and consumption of its product. 2000). 2000). will also use the relationships it has built over time through sponsorship programmes to endorse or support their initiative through alliances to promote the brands. where it promotes its products directly to the Target market to ensure the right message and how they want it perceived is realised. by using mass marketing with differentiated positioning. Markets are constantly changing. so marketing mix has to be flexible to accommodate change without compromising effect of original impact of marketing mix and communication (Simpson. angels. 14 . Choosing the mass market end of the continuum. Ferrero UK. Ferrero UK will use the pull marketing. along with Christmas Balls containing a new range of big construction toys. Star and Santa multi-egg packs alongside merchandisers in selected supermarkets to ensure its products are well stocked and visible. The strategy adopted is Product Development (See Figure below) using existing product as well as brand and line extension of strong brands in the UK. to influence demand creation. but in this case continuing the associations linked to existing segments of children and 24years and above.(like Santa Klaus. trees etc) will join the Kinder range.

It will however concentrate on communicating with new and old consumers to encourage purchase and consumption during the festive season. 6. This is alongside its 24year and above segment.0 MARKETING TACTICS Ferrero's has gained in sales the children’s segment has consolidated and expanded. The promotion will seek to influence sales positively by incorporating weaving together elements of promoting the spirit of Christmas. 15 . I. and chocolate stores. convenient stores. (1957) Place Ferrero UK will use the three-dimension distribution approach (Refer Appendix III). where it sells directly to the supermarket. of giving.Figure: Ansoff Matrix Source: Ansoff. Mass marketing tactics will emphasise children and adults 18+ targets.

A budget and financial forecast for Ferrero. Shelves will carry the image of the key character of the Christmas Story and this will be repeated on packages. 2006). and for adults-oriented products (Ferrero Roher) the Joy of giving.loving and joy. through the combination of the following: The promotion will include the following actions: • A Christmas story with a key character like dwarf of Santa Claus or with Rudolf the reindeer on TV or web. A thrust of promotion will focus upon near children. Merchandisers will be reporting to store and to Ferero UK. should have a ‘control process’ to outline responsibilities. Ferrero UK has already captured part of this market segment but there are further gains to be made as it is the largest segment targeted.0 IMPLEMENTATION AND CONTROL Ferrero UK marketing plan. notwithstanding a methodological process to gauge performance and get feedback on effectiveness or deviation from desired strategy to achieve the stated objectives (Kotler and Keller. Key messages for the promotion will be pleasure and fun as well as the pleasure of giving.a treat that is both luxurious and beneficial in the eyes of the customer. The Christmas messages will focus upon Joy and Happiness for children-oriented products (Kinder Surprise and Kinder Bueno). leaflets) • Merchandising Merchandisers will seek to ensure good shelf positioning at eye level adults and for 714 age groups. should be in line with the overall business objective. with special gifts and toys as well special made for Christmas packages. 7. in efforts to keep stocks well up in store. A certain percentage of profits during the festive season will go to the charity of their choice. • Outdoor advertising (Posters. objectives and how to achieve. which in this case was unavailable and 16 . The most important marketing goal for Ferrero UK is to gain brand awareness and a sufficient market share through the generation of sales. • Internet Promotion • Participation in events like charities or creating a fest with the theme of Christmas.

there are factors that demand.000. The budget to support this plan is in (Refer Appendix IV). intuition and good judgement to make decisions on what to include in the marketing plan. Ferrero Rocher and Nutella is estimated to be £ 3. Therefore it would suffice to argue that plans are there so as to get feedback or fall back on as a unifying guide on joint organisational actions. Despite having all the research reports.should be enough to support the process. so that deviation or change can be easily detected and managed. Having looked at varied factors and basing decision on them. Although there has been an attempt to match HS’s plans with its environment. Kinder Bueno. 8. 2008 and ends when Christmas sales and activities start picking up to 31st January. against what the organisation intends to achieve. 17 . it is easier to retrace the origin of decision and know where fault lies and how to rectify or change it.000. 2007. industry and competitor’s analysis. identifying what the competition is doing and the threats and opportunities. Ferroro’s approach to its market environment.0 CONCLUSION Doyle (1994) and McDonald (1992) both stress the importance of fitting with the environment and company’s resource capability. using a benchmark helps set a goal to achieve and helps to work towards. The projected estimated budget for the period begins from 1st of November. has tried to adapt its resource and characteristics in line with challenges faced in its external environment. Overall cost for Kinder Surprise.

9.0 APPENDIXES APPENDIX I The five forces framework in the United Kingdom confectionery market Threat of potential entrants – None! Maturity stage Strong brand recognition by domestic production Highly controlled distribution network Suppliers Labels Advertising media Transport Fuel Machinery Labour Know-how Competitive Rivalry – None CadburyTrebor Basset Ltd MasterFoods UK Ltd Nestle Uk Ltd Kraft Foods UK Ltd Ferrero UK Ltd Thorton Plc Elizabeth Shaw Ltd Buyers Supermarkets. 4) 18 .Key channel Convenient stores Own stores – Boots Substitutes -Sugar-free. low carbs and functional addedvalue products Source: Author Analysis adapted from Porter (1980.

Convenience Store. Kennedy's Confectionery.29 1.00 9.41 7.64 2.57 0. trade press (Checkout.60 0.67 0. Euromonitor International estimates APPENDIX III Ferrero’s three dimensional distribution strategy and promotion.00 2003 28.co.uk).90 23.13 0.14 0.68 0.46 0.24 0.54 1.18 – 4. mad. company research.47 21.78 7.20 5. The Grocer.66 1.74 0.72 1.06 2.41 1.42 24.83 100.20 24.06 0.00 Source: Trade associations (BCCCA).22 – 4.69 1.59 0.25 0.76 100.12 0.94 100.44 2.00 2002 28.23 0.64 0. trade interviews. 19 .42 – 21.18 0.71 4.87 3. store checks.29 0.93 21.74 0.61 0.64 0.52 1.APPENDIX II VALUE RETAIL COMPANY SHARES OF CHOCOLATE CONFECTIONERY 2001-2003 % retail value Cadbury Trebor Bassett Ltd Masterfoods UK Ltd Nestlé UK Ltd Kraft Foods UK Ltd Ferrero UK Ltd Thorntons Plc Elizabeth Shaw Ltd Lindt & Sprüngli Ltd Bendicks (Mayfair) Ltd Kinnerton Confectionery Co Ltd Bon Bon Buddies Ltd Green & Blacks Ltd J Sainsbury Plc Tesco Plc Mars UK Ltd Private label Others TOTAL 2001 27.18 4.

THREE LEVELS Ferrero UK Communication directly to Consumers Supermarkets Chocolate Stores Convenient stores Through Advertising – TV. 20 . outdoor advertising to influence. 2007 Adapted from Doyle (1994. 274). Consumer Source : Author. persuade and have promotions to create demand – capitalising on festive season.

000 Merchandising (20% of advertising budget) Labour (10% of advertising budget) Total Budget Source: Author (2008) 21 . Advertising 2.APPENDIX IV Ferrero’s UK projected estimate three month budget for the festive season Sn Details Festive season £ 1. 3.000 3.000 2.000 300. leaflets) Internet advertising Events 600.100.000. TV advertising Packaging-Labels Stickers Outdoor advertising (Posters.

com Anthony Fletche (2007) UK confectionery market outlook 'positive'. L (2006). The Dryden Press. 4..com Visited at: 8/08/2008 22 . Market Intelligence Poulter S. (Fourth European Edition). Prentice Hall. (2000) The marketing environment & Social responsibility. New York Confectionery 2001-2003 Dickson P. P (2001) (4th Ed. Fort Worth Kotler P. Marketing management and strategy.confectionerynews. 1992.. Marketing management. 113-124 Doyle P. Euromonitor (2003) UK Market for chocolate Confectionery. 35 (5). Ansoff. Harlow Kotler et al. Trade associations (BCCCA) (2003) Value Retail Company Shares of Chocolate www.. Harvard Business Review. Marketing intelligence & planning. H.0 REFERENCES Adcock. R. Strategic marketing planning: A state of the Art review. Principles of marketing. M (2000). 13/11/2007). (2007). Fort Worth Euromonitor (2005) Chocolate Confectionery-United Kingdom.ferrero.com Visited at: 10/08/2008 www.) Marketing Principles and Practice. I. (1994). (2005). Christmas spree to help lift the gloom. just-food. Harlow McDonald M. pg 22 Simpson P. Market Segmentation and target markets. ABI/INFORM Global Mintel International Group (1999) Seasonal chocolate confectionary. Published by Pearson Education. 10. Daily Mail Newspaper. The Dryden Press. and Keller K. (12 edition). Sep-Oct 1957.9. In Marketing best practices. Strategies for Diversification. B (1992). Pearson/Prentice Hall. In Marketing best practices. Pearson/Prentice. Visited at: 10/08/2008 www. UK.

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