Marketing and Nutella
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Abstract
In the case of Nutella, the chocolate hazelnut spread, we are going to explore the marketing mix of this product. We are going to explore how the price of the product, the product itself, the places of distributions, and the promotions, affect the performance of this product. We will discuss how these factors are applied, how all these factors affect the product and its performance in the market. We are also going to study how these elements are relevant to marketing of this product.
Marketing and Nutella
Introduction
I have chosen Nutella, because as a child in Europe, I grew up eating Nutella for snacks, during the day, and for breakfast. To this day, as an adult, I still eat it, and I have introduced it to my son, who likes it. Mr. Ferrero created Nutella in Italy during the 1940’s, during World War II Ferrero wanted to create a chocolate spread, but chocolate was in short supply, due to rationing due to the military conflict. Since chocolate was in short supply, Mr. Ferrero decided to use hazelnuts mixed along with the chocolate, to help make up for the shortage of chocolate. Making the chocolate a small part of the spread ingredient mix, and the hazelnuts one of the main ingredient, this made up for the shortage of chocolate. Nutella can be found in many countries, and was introduced in North America in 1983. (History, n.d.)
First, Nutella has a distinct taste of hazelnut, with a mostly chocolate taste that is not pronounced. It works very well as a spreadable product on bread; it can also be used along with cakes, and pastries, and it may be incorporated in baking ingredients. In many hotels, where I live, it is presented with bread for breakfast. Often, when you purchase this product in a store, the product comes in a reusable container, in this case, a 200 g container, is usually a glass or some kind of decorated glass that may be used for another purpose after consumption. This reusable glass makes it appealing to purchase, since you are getting a gift along with the product. This product, for one has the advantage and the convenience of a quick snack. In example, for my son, it takes minimal time to prepare two slices of Nutella bread, which is an enormous advantage. This simplicity makes using this product quick, easy, and convenient. For someone that is hungry, but does not have a lot of time, or does not want to invest a lot of energy or effort in preparing something to eat, this is a plus. (Carrefour, 2013)
For seconds, the price of Nutella seams fair and appropriate, for what it is. In the case of the 200 g container, the price is 1.79 (Euros) which is 2.48 USD. This makes it a price per kilo of 8.95 (Euros), which is 12.40 USD. Purchasing this container can be expensive, as the price per kilo is high, but you get the reusable glass. The fact that you get the glass, at this price, explains why this container is expensive, since the price has to pay for the container. You can also purchase the 400 g container that cost 2.23 (Euros) which is 3.09 USD. The price per kilo in this instance is 5.57(Euros), which is 7.72 USD. One can notice the price difference, compared to the 200 g container. Lastly, one can purchase the 825 g container, which cost 3.99 (Euros) which is 5.53 USD. This container’s cost per kilo is 4.84 (Euros), which is 6.70 USD per kilo. This price for this container makes it not only affordable, but also inexpensive for what it is. When comparing price per kilo, one realizes that the larger container is the cheapest purchase. However, the smaller container has the reusable glass with it. So, one has to make a choice, quantity and cheap, or expansive and a glass. (Carrefour, 2013)
Thirdly, you can find Nutella anywhere in the world. You can find it in grocery stores around the world, in Europe, and North America, with very ease of access. This makes Nutella part of the grocery shopping experience. As one goes grocery shopping, if you have to purchase Nutella, you can find it easily in any given grocery store. This gives this product an ease of access to customers, with the grocery store chains acting as retail distributors. Since it so easy to find, this makes it a very popular item, both in consumption and customer knowledge. Not only you might