Strategic analysis of Ferrero

Chocolate confectionery accounts for 58% of the market value of French confectionery. It reaches a value of 2, 26 billion. Ferrero has a large market share of the chocolate confectionery market; approximately 22 % by value; but it does not dominate that market as much as it dominates the market spread. It represents about 440 million of the turnover of the company. On this market, Ferrero highly differentiates itself from competitors with innovating and conceiving new and original products such as the chilled snack. The market of the snack is at its maturity stage, but Ferrero has almost created a new market, the one of chilled snack, and provides new products on this market. On the market of snack, it is hard to compete and gain ground because there are numerous substitutes and a large number of competitors who focus on this market whereas it is just a little part of the activity of Ferrero.

[...] In super and hypermarkets, Ferrero products are scattered in all the sections of the stores, then Ferrero products can be seen several times by the same person when shopping. - Presentation: packaging is very important for Ferrero, so this company pays particular attention to its products’ packages and elaborates them well. Its products are recognizable thanks to the dominant colors, white and red. - Price: Ferrero products can appear expensive compared to the prices charged by the competitors and the prices of the substitutes. [...]

[...] External analysis: Opportunities Threat Sponsoring Ferrero with Kinder is Anti-obesity campaigns the sponsor of the ‘Fédération française de Basket’ Associated -thank to ads- with Some serious competitors in France, sport, actions, good health and Cadbury Schweppes plc, Nestlé S.A., well-being. Altria Group Inc. Perceived as sane products Competitors offer lower price associated with sport Promotions during public holidays Associated with conviviality and family This market of chocolate confectioneries is full of brands, this market has reached its maturity stage, to be competitive on this market, Ferrero has to provide customers not only tasty and high-quality products, but also innovative and new products. [...]