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United States of America: Spread the Happy Population: 320 M | Income per capita: $52K | Life Expectancy: 79 years | Years of Schooling: 13

Target customer:

Alex is an affluent soccer mom who cares about community involvement, family, and “deals.“ She lives a faced-paced life (work and family responsibilities) and relies heavily on technology for product information, promotions, and deals.

Positioning benefits:

Nutella is the original hazelnut spread that has been spreading happiness around the world for over 50 years. It is made by Ferrero, a family owned company with a strong community involvement and environmentally responsible practices. Nutella is a versatile, great tasting product with no artificial ingredients that is great for breakfast, snack, or dessert, even on the go.Perfect for moms who want to have peace of mind that their kids are happy and have the energy for their day at school.

Value proposition:

Nutella’s value proposition currently used in the United States is:

“Spread the Happy”

Product: Nutella is the “Original Hazelnut Spread” with no artificial ingredients, peanuts, and gluten. It is a very versatile product that can be used as breakfast, snack, or dessert and tastes great with healthy foods such as fruits. It is made by a very community involved company (e.g., supports kids’ programs such as Kinder Sport) and is dedicated to sustainability (e.g., self-produces 30% of its energy).

Promotion: Nutella has a large social media presence with over 30 million Facebook likes and over 44K Instagram followers. Nutella leverages social media to show the many ways a person can eat Nutella. They pair it with different foods and post vivid, mouth watering pictures. They also promote events such as World Nutella Day. Nutella is also pairing with Krusteaz pancake mix to push further into the breakfast market. Krusteaz (a well- known and widely used brand) now has samples of Nutella in select boxes of the mix. Finally, “Spread the Happy” TV commercial shows various happy people eating Nutella different ways, in different places, and at different times of the day. This shows its versatility.

Price: The average price for Nutella is $3.48 for 13 ounces, or $0.27 per ounce in the United States.

Place: Nutella is sold in Kroger, Walmart, Jungle Jims, and most other large retailers or places that carry peanut butter. For example, in Kroger (see Figure 2), it is sandwiched between the honey and peanut butter in the breakfast, peanut butter, and jelly aisle. The many brands and variants of peanut butter take up three times the shelf space that Nutella occupies.

Bottom Line: Aside from being paired with Krusteaz, Nutella’s marketing is quite good but may consider reinventing its versatility by pairing with Food Network because it’s exposure with top name chefs could have a ripple effort for demand (recipes and celebrity promotion) in the market. Also, Nutella should bring a strong presence in grocery coupons apps, by being highlighted in Groupon, Kroger, Checkout 51, Snap, and Ibotta. All of these recommendations could be used in Ireland as well.

Figure 1. Perceptual Map

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Figure 2. In-Store Placement

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Ireland: Start the Day with Nutella Population: 4.6 M (1.5%*) | Income per capita: $33K (63%*) | Life Expectancy: 81 years (113%) | Years of Schooling: 12 (92%*)

*Percent as compared to the United States

Target customer:

Lauren is a mother of two kids (ages 5 to 18). She is a fun, youthful, family oriented mom who seeks happiness and convenience.

Positioning benefits:

Nutella is a high quality product hazelnut spread made of hazelnuts (13%, cocoa, and milk. It has a unique, chocolatey and is a great alternative to breakfast spread to jam and peanut butter. Nutella is a well-established brand that consumers trust and is great on anything, anytime, and anywhere.

Value proposition:

Nutella’s value proposition currently used in Ireland is:

“Start the Day with Nutella”

Product: Nutella is premium, high quality product at an affordable cost. it is made of the finest ingredients. It appeals to tradition – a product with a history of nutrition and vitality - and aims to provide pleasure as a breakfast component. It is an enjoyable, fun product that brings pleasure and can used on anything, anytime, and anywhere. Nutella is a part of Ferrero group, a family owned company that has built a relationship of trust and respect for its customers.

Promotion: Nutella is promoted on Irish TV during adverts for example the Nutella jar ad where it conveys numerous people, young & old, spreading, sprinkling, eating and dunking it into and onto their choice of foods. Nutella's Facebook page promotes the brand regularly, for recent events like Valentine's day and pancake Tuesday it posted pictures and videos. They are promoting the Nutella & Go! product by giving away 5 free Polaroid cameras. Nutella is also using Centra, which has shops all around Ireland. The promotion on the Centra website has links to its Facebook and Twitter pages so they gain followers and entrants into the competition to win a camera.

Price: The average price for Nutella in Ireland is $2.32 for 7 oz jar or $0.33 per ounce.

Place: Nutella is sold in Dunnes Stores. It is located in the Jams & Spreads aisle. It has one section of shelving for itself containing the Nutella range: Nutella & Go (contains breadsticks to dunk into the Nutella), the different size jars of Nutella, from 200g to 1kg.

Bottom Line: Nutella's marketing in Ireland is quite good. However, it may introduce testers outside the shops it is sold (e.g., Tesco), radio ads, or billboards at bus stops. It may also consider introducing a new snack bar with white and dark chocolate with a gooey inside to appeal to the chocolate craving consumers or even a bar for diabetics. All of these ideas could be successful in the United States as well.

Figure 1. Perceptual Map

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Figure 2. In-Store Placement

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Team Profile

Lindsey Newton (21) was born in Hebron, Kentucky. She currently works as a Social Media Maven at Legion Logistics, LLC, and works on her Bachelor of Science in Marketing (expected graduation May 2015) at Northern Kentucky University. She loves reading, crocheting, and weekend boating trips and values family, education, empowerment of women. She worries about finances, ability to support her future family, and violence around the world. Lindsey finds happiness in spending time with family & friends, accomplishing goals, finishing a good book. As a consumer, she is loyal to Starbucks, Victoria’s Secret, Amazon/Kindle and spends most of her disposable income on social events (festivals, nights out), traveling, and the rest on clothes, electronics.

“It’s awesome that 30% of the Ferrero’s energy is self-produced. I had so much fun learning about Nutella with our Irish counterparts!”

Megan Pickett (20) was born in Rising Sun, Indiana. She currently works as a Co-Head Orientation Leader for New Student Orientation and Parent Programs at Northern Kentucky University, and works on her Master’s of Business degree (expected graduation May 2016) at Northern Kentucky University. She loves running, reading, and maintaining friendships and values curiosity, education, and family. She worries about limited time and income, and separation from her family. Megan finds happiness in paying forward, hearing others’ good news, and sunshiny days. As a consumer, she is loyal to JIF, Nike, Starbucks, Nook and spends most of her disposable income on groceries (60%), going out to restaurants, miscellaneous things like clothes and books.

“It is amazing how corporately involved Ferrero immerses themselves. Also, it was great to get the Irish perspective on Nutella. It definitely broadened my thinking!”

Lauren Mitchell (19) was born in Ratoath, Ireland. She is currently unemployed and works on her Bachelor Degree in Marketing (graduation May 2016) at Maynooth University. She loves shopping, fashion, and music and values honesty, loyalty, and kindness. She worries about running out of petrol, finding a job and losing her phone. Lauren finds happiness in spending time with friends and family and handbags. As a consumer, she is loyal to Mac, Converse, and Michael Kors and spends roughly $1,1000 on clothes, nights out and entertainment.

“Great experience to work with fellow students from the U.S.A”

Craig Melvin (20) was born in Hollystown, Dublin, Ireland. He currently works as an Assistant at Corrstown Professional Golf Shop, and works on his Bachelor of Business Degree in Marketing (graduation May 2016) at Maynooth University. He loves golf, hurling, and spending time with friends and values his golf clubs, family and friends. Craig worries about three putting, missing the train, falling in the cinema, and spiders. He finds happiness in good weather, playing golf & hurling, and training. As a consumer, he is loyal to Nike, Puma, Emporio Armani, Dominos, and Hagen Daas and spends roughly $1,1000 on mostly clothes, runners from Nike, Puma, River Island, and Burton.

“Nutella spreads throughout Ireland!! How popular it is surprised me most and the difference in taste of Nutella from Ireland and America.”

Methodology: For collaboration between Ireland and the United States, a Facebook group was created where thoughts, ideas, files were exchanged. For the U.S., our MKT 333 classwork was used as a reference point for our target market and positioning benefits. Our secondary research was collected from the following sources: Nutella and its social media such as Facebook, Twitter, Instagram, Pinterest, and United Nations’ Human Development Reports. Pictures of shelving were taken at Kroger in the United States and Tesco in Ireland.

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