Table of content page
1. Introduction…………………………………………………...…………………………………………….. 2
2. Comparison of Ferrero’s Business model in the Europe and Asia.....................
• Overview...................................................................................... 2
• Products....................................................................................... 3
• Selling stategy.............................................................................. 4
3. Benefits of Ferrero entering the Asian Food Market.…………………………….……….4
4. Challenges encountered in entering market………....……………………………………… 5
5. Key lessons that other organizations can learn from Ferrero’s …show more content…
In Europe Ferrero is sold at an above average price. This is easily portrayed as through a simple price compresence you can witness the contrast in price of Ferrero Rocher and another highly reputable brand. For example taking Lindt another premium considered product, €10.50 will buy you a 337g box of Lindt chocolate however 300g of Ferrero Rocher will cost you €8.00 (Debenhams). This simple example portrays how Ferrero has taken the upper price range in the European markets while still undercutting some a close competitor and proving popular as they hold a 7% stake in the United Kingdom which puts them 4th in a highly competitive sector. However one must consider the impact of the purchase of one of these product on the income of an average Irish citizen to put this into perspective. It was reported that the average Irish income is €35,600 as of 2015. (Irish …show more content…
This is a sizable amount of a workers income and thus reinforces the ‘premium’ image that Ferrero Roche denoted and thus how exclusive a product they are in the county. This is vastly in contrast to the Irish market as there is a 13.86% difference in the percentage of total weekly salary for an Irish Consumer and an Indian Consumer. Despite the efforts of Ferrero to highlight its Ferrero Rochers as a premium product it cannot compare to the Indian market where it proves significantly more exclusive despite the reduction in marketing and advertising
1. Introduction…………………………………………………...…………………………………………….. 2
2. Comparison of Ferrero’s Business model in the Europe and Asia.....................
• Overview...................................................................................... 2
• Products....................................................................................... 3
• Selling stategy.............................................................................. 4
3. Benefits of Ferrero entering the Asian Food Market.…………………………….……….4
4. Challenges encountered in entering market………....……………………………………… 5
5. Key lessons that other organizations can learn from Ferrero’s …show more content…
In Europe Ferrero is sold at an above average price. This is easily portrayed as through a simple price compresence you can witness the contrast in price of Ferrero Rocher and another highly reputable brand. For example taking Lindt another premium considered product, €10.50 will buy you a 337g box of Lindt chocolate however 300g of Ferrero Rocher will cost you €8.00 (Debenhams). This simple example portrays how Ferrero has taken the upper price range in the European markets while still undercutting some a close competitor and proving popular as they hold a 7% stake in the United Kingdom which puts them 4th in a highly competitive sector. However one must consider the impact of the purchase of one of these product on the income of an average Irish citizen to put this into perspective. It was reported that the average Irish income is €35,600 as of 2015. (Irish …show more content…
This is a sizable amount of a workers income and thus reinforces the ‘premium’ image that Ferrero Roche denoted and thus how exclusive a product they are in the county. This is vastly in contrast to the Irish market as there is a 13.86% difference in the percentage of total weekly salary for an Irish Consumer and an Indian Consumer. Despite the efforts of Ferrero to highlight its Ferrero Rochers as a premium product it cannot compare to the Indian market where it proves significantly more exclusive despite the reduction in marketing and advertising