Paige Stingley December 7, 2013 J304 PIMP Assessment. Product: Nutella & Go
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1 Paige Stingley December 7, 2013 J304 PIMP Assessment Product: Nutella & Go 1. Write words on the product. Nutella is a rich hazelnut and chocolate spread that was originally created by pastry maker Mr. Pietro Ferrero in Italy in the 1940 s. During WWII, chocolate was scarce, so Ferrero used hazelnuts, which were plentiful in his region, and mixed them with a small amount of chocolate. It originally started out as a solid block called pasta gianduja. A couple years later, Ferrero altered his product to make it creamier so it could be spread onto bread. He called it supercrema gianduja which was later renamed Nutella in Nutella first came to the United States in 1983, where it s popularity grew. Nutella is made from sugar, palm oil, hazelnuts cocoa, skimmed milk powder, and other various small ingredients. A two-tablespoon serving of Nutella contains 200 calories. It contains no artificial colors or preservatives. It does not contain peanuts, and Ferrero factories have promised that there is no risk of cross contamination with peanuts in its factories. Nutella is also gluten free and kosher. It is produced in several Ferrero facilities. Production for the United States market takes place in a factory in Ontario, Canada. The Nutella & Go product was released in It includes small cookie sticks and a serving of Nutella. This product is a convenient snack to grab on the go, and is easy to store because it does not need to be refrigerated. Recently, Jif released a new hazelnut spread very similar to Nutella. There are also some other, smaller brands, that make products similar to Nutella, including Justin s Chocolate Hazelnut Butter Blend and Choc & Nut s Hazelnut-Cocoa Organic Spread. The various brands have similar nutrition facts, however many are more expensive than Nutella and their availability is limited depending on region. This product can be purchased at most grocery stores, warehouse clubs, and other popular merchandisers, such as Target and Wal-Mart. It is generally located near the peanut butter and other spreads sections. Nutella and Go costs about (insert price here) in most stores. 2. Write words on the parent company and industry. Ferrero International is the parent company for Nutella. It is a private company that also owns Rocher, Raffaello, and Tic Tac, along with some other smaller named brands. Michele Ferrero and his wife Maria started the company after WWII. Today, Giovanni Ferrero, son of Michele and Maria, is the Managing Directors of Ferrero Group. Giovanni
2 is the third generation to have a part in this international success. Their motto is Work. Create. Give. ( There principles include loyalty and trust, respect and responsibility, integrity and sobriety, passion for research and innovation and to work, create, and donate. In 2009, Reputation Institute s survey ranked Ferrero Group as the most reputable company in the world. Ferrero competes against other companies in the food manufacturing industry. Some of its competitors include Nestlé Chupa Chups, and Mondelez International Inc, but according to research, Ferrero is among the top in its market. According to the Bloomberg Industry Leaderboard, the food manufacturing industry has gained its fortune by producing cheap and convenient food products in mass quantities. As of late, companies have been focusing on producing healthier products, including fruit spreads, nuts, etc. This may be a problem for Nutella, who was recently sued for falsely advertising that their product was healthy, when in fact, a single serving of the spread, which is equivalent to two tablespoons, contains 200 calories. Nutella is not exactly healthy, and even their website says when used in moderation with complementary foods, Nutella can form a part of a balanced breakfast. Nutella was recently sued by a San Diego mother for falsely advertising that their products were healthy and a good choice to eat at breakfast. The company lost $3.5 million. Now they use Facts-Up-Front, a labeling system, to display all key nutrition facts on the front of their products packaging so there is no debate on the nutritional value of the snack. Nutella makes up for the fact that they are not extremely nutritional by advertising the convenience of their snack packs, Nutella & Go, and by promotion Nutella as a part of a balanced diet. 3. Write a sentence or two about the media you d use to promote your product and why. Many people recognize Nutella by its name and logo, so a radio ad would not be affective. I would use a television and/or a magazine ad because it allows me to use a lot of visual detail in describing the product and its benefits. I would also use print coupons because Nutella can be expensive, especially when there are other options, such as peanut butter, for consumers to buy. 4. Write at least 100 words on who you think would make a good prospect or target audience for your product. 1. Current customer base The current customers are most likely to be moms, who are also buying snacks or things to pack for lunch for their kids. They are looking for products that are quick and convenient, and that have little preparation and little mess involved. The Nutella & Go provides their children with an after-school snack or a dessert in their sack lunch.
3 Since Nutella is more expensive than other grab-and-go snacks, moms who come from a middle class or upper middle class economic background are more likely to purchase. It is also more likely that the people who are purchasing the product will be people who have bought it before. Moms will not want to spend a lot of money on Nutella if they don t know if their kid will like it. So Nutella will sell its product to more repeat customers than it will new customers unless it really focuses its advertising on bringing new consumers in, which should be one of their focuses. 2. Check out the competition The biggest competition Nutella has is other brands that are selling togo snacks. Some prime examples of this are Handi-Snacks, which sells breadsticks much like the ones in Nutella & Go, with a cup of cheese at the end for dipping. They also come in Oreos and Ritz crackers. Jif also makes a Jif To Go cup of peanut butter. Jif s product does not include a vehicle for which to eat the peanut butter, unlike those listed above. One of the biggest challenges Nutella will face with this competition is the price they are offering their products at. One Nutella & Go package is priced at $1.49 whereas a six-pack of Handi-Snacks is priced at $2.89, which breaks down to about $0.48 per package. Handi-Snacks is also more nutritional, and contains a similar amount of food in each package. Nutella contains a few more breadsticks, but no more Nutella than Handi-Snacks does cheese. There are also brands which sell packaged fruits and vegetables along with some type of dipping sauce at the end. These are unarguably more healthy than both Nutella and Handi-Snacks, but they often cost around $1.00 for an individual package. Other competitors are also going to be targeting moms and young adults who are looking for a convenient and satisfying snack. 3. Analyze the product/service Nutella & Go comes in a convenient shaped half circle package. This package shaping prevents the container from getting squished at the bottom of a lunch sack or backpack, like it would if it were a complete circle. It is made with a very thick plastic, which also reduces risk of the packaging being damaged or damaging the contents inside. The breadsticks and Nutella are separated into an individual compartment, which makes the product easier to eat and prevents messiness. Since the breadsticks can be dipped directly into the Nutella, there is no chance for little hands to get sticky. This is an advantage over the
4 Handi-Snacks Ritz crackers, which requires the consumer to spread the cheese spread over the crackers. 4. Choose specific demographics Nutella & Go is mainly targeted towards moms who have kids in school who need sack lunches and quick after school snacks. These moms are probably younger, between the ages of 30-40, living in a suburban city. They probably make an average or slightly above average salary, or they have husbands who make that salary. They most likely have a college degree, or at least some level of college education. They may or may not be married, but they will most likely have children. Another target audience could include young adults who are new out of college or finishing up with college who are looking for small snacks to eat to maintain a balanced diet. Both men and women could be attracted to this product because it is convenient and will provide them a snack at work or between classes. As mentioned above, they probably are currently in college or recent graduates, but they have enough money to be able to afford this item, either because they are working or have been saving up, or have their student loans paid off. They are more than likely to be single at this point, but that can vary by region. 5. Consider the psychographics The people who are buying this product probably value their health and enjoy being active. Their hobbies could include yoga, hiking, playing sports, or being outdoors. They also value their time, so this product is a good choice for them because it is quick and can be eaten on the go. They will typically have an optimistic attitude and an upbeat personality and be generally outgoing. 6. Summary All factors taken into consideration, my target audience will primarily focus on middle to upper middle class moms who have kids in school. Moms want a quick, convenient, and affordable snack to be able to provide their kids while they are on the go. A younger audience may also be taken into consideration. College students and recent graduates often do not have time for breakfast in the morning, but Nutella & Go will provide them with something they can eat as they are walking out the door. Nutella promotes that their product is a part of a balanced diet, and both of these target demographics can use this product in their everyday lives as a part of a healthy and well rounded diet.
5 Words Referenced: "Bloomberg Industry Leaderboard." Online Posting. Bloomberg.com. Bloomberg, n.d. Web. 22 Nov Frank, John N. Nut-based Spreads and Sweet Spreads - US - March Rep. N.p.: Mintel, Mintel. Web. 22 Nov Nutella & Go! Advertisement. Target. Target, n.d. Web. 22 Nov "Nutella USA: The Original Hazelnut Spread." Nutella USA: The Original Hazelnut Spread. N.p., n.d. Web. 09 Dec < Vigneron, F. Nutella Summary. N.p.: n.p., 1 Dec PDF.
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