Ferrrero Case Study

1007 Words 5 Pages
When a food manufacturer wants to go global, it has to deal with cross-cultural differences since tastes and tradition are not homogeneous worldwide. Chocolate has been considered as an exotic product to Chinese consumers up until 1970’s. Therefore, Ferrero Group providing confectionery and chocolate brands has to deal with some issues regarding Chinese consumers tastes and food habits. However as consumers continue to adopt westernized consumption habits, the chocolate market in China is becoming a mass market. The brand has to design its marketing, branding and communication strategy in a way that would be relevant to Chinese consumers juggling between standardization and adaptation (Keegan & Green, 2013, p 326).
Here are some challenges
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Offering chocolate as a gift is deeply rooted in the Chinese culture, as it is a symbol of wealth. Therefore, chocolate confectioners can emphasize their production on this types of items and profit from the roots of this tradition. Five companies (“The Big Five”) dominate the market – Cadbury, Hershey, Mars, Nestlé, Ferrero – and propose a fierce competition. The last three companies quoted even control 64% of the chocolate confectionery market. (Daxue Consulting)
Ferrero, constituting a major actor in the market, still has a long way to go in order to achieve the leadership position in the market. Indeed, despite the success of Ferrero Rocher in China, Mars who was the first major confectionery to enter the Chinese chocolate market in the early 1980’s, stays one step ahead of all its competitors. (Lawrence L. Allen, Chocolate Fortunes,
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Its dominance is attributed to its premium image and strong marketing campaigns. Even though Ferrero Rochers are standardized worldwide, they perfectly suit the tastes of Chinese consumers. Indeed, as explained in Olivier’s blog post (2013), the golden packaging is as if it had been designed for the Chinese market since the color gold stands for Chinese emperors and also portrays a wealthy lifestyle. Moreover the round shape of the rocher is a symbol of harmony in China. Finally, Chinese are big consumers of nuts and prefer light product when it comes to

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