IDENTITY CRISIS Competitive Analysis Newman Granger, Maggie McKenna, Kagan McSpadden & Nicole Weaver

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1 IDENTITY CRISIS Competitive Analysis Newman Granger, Maggie McKenna, Kagan McSpadden & Nicole Weaver

2 Founded in Alba, Italy, by Pietro Ferrero Nutella, the brand, is born s 1964 Ferrero begins to sell supercreme gianduja Nutella is imported to the United States

3 NUTELLA TODAY Ferrero, still family-controlled, is one of world s biggest confectioners with a presence in over 30 countries According to the company, Nutella is the world s biggest selling spread, outselling all peanut butter brands combined Most advertising done in-house Ferrero guards its privacy with a level secrecy similar to Mars

4 THE CULT OF NUTELLA

5 THE CULT OF NUTELLA

6

7 THE DILEMMA In 2012, Ferrero settled a deceptive ad lawsuit - it turned out that Nutella is not part of a healthy breakfast Also, a majority of Nutella s sales numbers are from Europe. 12% value share in U.S. spreads category 70% of current U.S. sales come from women in years age range, married with children, and household income around $70K

8 THE DILEMMA Nutella is trying to figure out how to improve sales and brand equity in the United States

9 SPREADS Market valued at $3.3 billion in 2010 Stable, steady growth due to being an affordable comfort food Largely reliant on bread consumption Affected by healthy eating trends Distributed through mass merchandisers Predominantly rely on brand loyalty and recognition for sales

10 SPREADS

11 PEANUT BUTTERS

12 PEANUT BUTTERS Owned by the J.M. Smucker Company since 2002 JIF has been the top selling peanut butter in U.S. since 1981 This year Smucker invested $99 million to sell even more of the JIF product line Mom is the word when it comes to brand strategy and communication campaigns Product Line: Creamy, Crunchy, Simply JIF, Honey, Natural

13 PEANUT BUTTERS Invented by Joseph Rosenfield in 1933 Formerly owned by Unilever, Skippy was bought by Hormel Foods Corporation for $700M earlier this year Second largest market share in category Kid friendly, health-conscious, fun-loving FUEL THE FUN! $100M of $375M in annual sales come from outside the U.S. (most popular peanut butter in China) Product Line: Creamy, Super Chunky, Honey Nut, Reduced Fat, Natural

14 PEANUT BUTTERS ConAgra s premiere peanut butter brand Typically been least expensive in category The smooth, creamy peanut butter that the whole family can enjoy. Salmonella scare in 2006 resulted in the brand being pulled off the shelves Brand does little advertising, relying on loyal customer base Comfortable to coast along in third place market share

15 PEANUT BUTTERS Peanut butter brand and sandwich shop in Greenwich Village, New York City that was founded in 1998 Sold in over 15,000 supermarkets, specialty food shops and natural food stores Ten All-Natural Flavors: Smooth, Crunch, Cinnamon Raisin, Bee s Knees and more Founded in 2002, the 12 person company earned $19.6M in 2012 Organic ingredients and sustainability Athletic partnerships Product line: Chocolate Almond Butter, Honey Almond, Classic Peanut, Maple Almond

16 JELLIES

17 JELLIES Americas s top jams, jellies, and preserves Family owned for four generations Make life more fruitful Interactive website Product Line consists of over 40 flavors including Red Plum, Mango, Boysenberry and more

18 JELLIES Second in market share Communications strategy is very family oriented #SHAREWHATSGOOD Focus on the farmers Product Line: Original Grape & Strawberry, Natural, Reduced Sugar

19 DESSERT SPREADS

20 DESSERT SPREADS Added 2 hazelnut spreads to product line in 2012 Chocolate & Mocha Cappuccino We re breaking out of our shell! Priced anywhere between $0.20 and a dollar cheaper than Nutella Certified vegan, gluten-free, and certified kosher...like a peanut butter cup in a jar! Price comparable to Nutella

21 DESSERT SPREADS First introduced to U.S. in 2011 from Belgium Irresistible, spreadable treat Embraces European roots Sold in most retail stores nationwide Made in Germany, but the company began in the Philippines Spread introduced to the U.S. marked within the past year Cheaper, more affordable alternative Very scarce online presence

22 DESSERT SPREADS Produced by Durkee-Mower Distributed in 28 states - with specific fanfare in New England The Fluffernutter No artificial preservatives and gluten-free Partnered with Kellogg to make rice krispies The Yummy Book

23 SPREADS GRID HEALTHY NOT FILLING FILLING UNHEALTHY

24 NOW THAT WE KNOW THE COMPETITION, WHAT ABOUT THE CONSUMERS...

25 SOCIAL MEDIA HAS NEARLY 18 MILLION FACEBOOK LIKES THE NEXT CLOSEST COMPETITOR HAS 500,000

26 SURVEY

27 SURVEY

28 FOCUS GROUP 6 PEOPLE 3 Male, 3 Female A sweet breakfast is better in theory I get sick of it halfway through. Sweet is easy

29 FOCUS GROUP Americans want a HOT breakfast that gives them FUEL and ENERGY

30 FOCUS GROUP No association between Nutella and breakfast Putting Nutella on bread diluted the flavor When I want to indulge, I want to indulge. Remember the first time + takes them back to Europe

31 NUTELLA IS THE CATEGORY

32 TO INCREASE BRAND EQUITY IN THE UNITED STATES, ADVERTISING AND MARKETING EFFORTS NEED TO HARNESS THE CULT POWER OF THE BRAND AND FOCUS ON MILLENIALS.

33

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