Ferrero is a family business established after the second world war, it is among the biggest groups of confectionery and its products, and among the best sellers in the chocolate industry, some of the products offered include, Ferrero Rocher, Mon Cherie, Kinder Surprise, Pocket Coffee, TicTac, and finally Nutella, chocolate spreads that contain just a little measure of cocoa, are sold in candy stores and pasties all over the world.
Ferrero TicTac is a unique product of Ferrero Spa effectively established in the market. This marketing plan will analyse what the product characteristics and possibilities and subsequently will propose a product aimed for rejuvenating the brand and improving the consumer market. The product will also give an exceptional opportunity for market growth. It will accomplish rapid, significant market penetration through a strong business model, long-range planning, and an effective management team that has the capacity to execute this exciting opportunity.
Ferrero Interational S.A., is a parent company of the Ferrero Group, one of the largest confectioneries in the world. Founded in 1946 by Pietro Ferrero in Alba, Italy. His son Michele and he himself transformed a local pastry shop into an extraordinary factory, and now they have been able to create some of the world’s most brand. Presently, Michele serves as the Chair on the Board of Directors and he made his son, Giovanni, as the CEO. The group is in operation in more than 160 countries, and has 69 affiliated companies, three social enterprises in Cameroon, South Africa, and India and 20 production plants.
The growth of Ferrero has been an achievement through internal innovation and growth not just through the takeovers of appealing products and companies. This paper contains the marketing plan for one of its successful product known as TicTac.
The company’s vision is driven towards being the leader in any of the categories in which it competes. The company attributes their success to closer attention, ensuring the following factors:
- Extensive product testing
- Quality and freshness management
- Unique concepts and products (their product’s invented new categories)
- Proprietary manufacturing
- Power brands
- Leadership marketing investment or in depth retail distribution.
The organization’s mission is to provide high quality, product freshness, crafted precision, careful selection of the best raw materials, as well as respect and high consideration for their customers. These keywords are Ferrero’s major values that had helped them make a great confectionery well-known and also loved by countless customers all over the world.
Their mission is also to extend their care about hygiene, social issues, environment, and the local communities where the company is established, and also its human resources. They are specific to a distinguishing characteristic that they refer to “Glocal” which implies “think globally, act locally” concentrating on international development, ensuring they do not lose sight with the relationship they establish in their immediate communities.
The family-controlled Ferrero is one of the world’s greatest confectioners with a collection of global brands including Ferrero Rocher special chocolates, Tic Tac mints and Nutella spread. Basically, its most essential brand is Kinder, which envelops countless candy store items, including Kinder Surprise chocolate toy eggs and an assortment of bars, chilled desserts and cakes. The group markets a considerable range of extra items including drinks, and it additionally has an extensive presence in Germany, which is its second-greatest business sector.
The resources of Ferraro are a group of people who have together as one body to challenge the skills though different career and training opportunities. They are those who have a laid a platform that allows new people who are interested in working with this firm to learn from other group of people in the organization and get united with the deep-rooted values and culture of the organization, such as those that are part of the Ferrero’s tradition and history.
The organization offers different opportunities of professional challenges and opportunities to enhance personal growth; to build great talents amongst people – a part of the culture of development and values of the company.
Corporate Structure and Culture
The organization’s governance had been characterized by the continuity of a family-owned business and it is growing into great expansion into a new markets through constant product innovation and creation of new production plants. The ground comprises of about 70 companies.
The organization adopts an international cultural model of corporate governance, where the Shareholder’s meeting and the Board of Directors play the major role. The Chairman of the board does not have play an executive role. The Board also comprises of members not having a place with Ferrero family, among whom the Vice – President is part of. The Board avails itself of the work made by the management committees. In addition, the Board has set up a system of audit committees.
The products offered by Ferrero include Ferrero Rocher, Raffaello, Mon Cheri, Knider Surprise, Kinder Chocolate, Kinder Bueno, Kinder Pingui and Tic Tac.
For the purpose of this marketing plan, the Tic Tac market has been selected to be analyzed.
TicTac is the latest brand of the Ferrero group that was first introduced in 1969, but had got more varieties in recent years. It is a brand of small, hard mints, and was also manufactured in Italy, by the Italian confectioner Ferrero. It is available in a variety of flavors and had been distributed to over 100 countries.
TicTac, is made from ingredients which include maltodextrin, tartaric acid, sugar, natural and artificial flavors, rich starch, glazing agents (carnauba wax), artificial colors, filling agent (magnesium stearate).
This new category of the product is divided into two which include, Cherry cola flavor Tic Mixers – a transition from cherry flavor to classic cola flavor, and Peach lemonade flavor TicTac Mixers – a change from a peach flavor to a better sweet flavor of lemonade.
The Overall Market Situations
TicTac has been in existence since the mid-80’s and had established a perfect market presence on five continents of the world. As this brand matures, more flavors have been introduced and around 1998, it was already the fourth sugar confectionery item in the world. The flavor constantly evolves to the delight and surprise of its huge number of loyal fan.
Ferrero Tic Tac Marketing Project Report
TicTac has historically had great benefit and had gained effective grounds from strong awareness. Its market segmentation is shown below:
- Geographical Presence:
It is present in all the five continents.
- Specific to all genders; male and female
- No age bounds
- Socioeconomic Class: Both upper and middle classes
- Psychographic: Everybody
- Occasion: Regular
- Benefit: Sugar and taste.
Targeting and Positioning
The product is targeted to both male and female belonging to any class, be it lower, middle and upper classes of the society.
Tic Tac brand is a brand that has effectively thrived in the market. On a macro-environment analysis, it is obvious that this brand seeks to position itself as candy “refresh”, through its communication between the hard candy, in direct competition with Salia and Fisherman’s Friends. Conversely, an analysis has appeared, however, that the situation perceived by the market, is a distinct candy to which people can’t do without, this is additionally enhanced by the essence of the candy itself.
Characteristics of Target Customers
The target customers’ power, and also their sensitivity to price, relies on the size of the target market, the conversion costs and on the knowledge of the product from these consumers. In spite of the fact that in the lozenge business sector, the sensitivity to cost is sufficiently high, in the particular instance of TicTac, the section to which Ferrero concentrates on is the “middle” and “upper class”. Hence, the organization has constantly taken an extremely aggressive value conflicting with the consumer needs, with a vital level of marginality. It can be presumed that the price sensitivity to this specific segment is not all that high.
Within a more particular candy area, the brand delivers a scope of products, both fruity and “exemplary”. In both cases, the most direct competitor is based on “Dietorelle”. Despite the fact that the results of this brand have a lower calorie content and sold in a lower unit amount, in weight terms, is better than that of a Ferrero product. TicTac is then again an item ideally “suckable”, therefore, contrasting from the other competition said, which is softer in the mouth and therefore chewable.
Marketing Mix Analysis and Recommendations
The marketing activities are usually categorized as the marketing-mix tools based on four broad recommendations, which are known as the four Ps of marketing strategy: Product, Pricing, Promotional, and Place of Distribution.
Before any marketing mix could be made, marketers have to make decisions based on marketing-mix in order to influence their trade channels and also the final consumer. After they have successfully understood these groups, they customize or make an offering arrangement, inform consumers, then set a price, that offers genuine value, and decide which places where the offering will be accessible or distributed.
TicTac product occur in different variations: Mint, Orange, Intensive Mint, Fruit and fun (a powerful mix of fruit flavors). The product is sold in two sizes: The pack of 18 grams (33 candies) for all variations, and the pack of 49 grams (about 100 candies) for all variations, for example, Mint and Orange.
- Name: TicTac
- Category: Confectionery
- Sort: Candy
- Brand: Ferrero
- Establishment: 1969
- Deals: 36 billion (€)
- Motto: Fresh moment of pleasure
- Ingredients: sugar, starch, maltodextrin, flavoring, thickener, fructose,
The major aim of TicTac’s communication is for information just as a means to explain the advantages of the product without building extra esteem components. This is because the product is based on some intrinsic components that characterize its operation, and afterward defines an exact target which could be very large. This brand has a strong reflection, it is in itself a universe of values of reference to all items in the portfolio. To make a product picture, TicTac utilizes distinctive communication activities including advertising media campaigns, competitions and related activities to engage buyers and fortify their current relationship.
TicTac has taken an exceptionally aggressive price positioning that conflicts with the consumers’ need, while keeping up a critical margin. In fact, its aggressive pricing policy is a barrier to the new organizations, and is hard to overcome by potential participants. Even the price leverage contributes to the competitiveness and uniqueness that Ferrero products have.
With respect to the off-trade channels (grocery stores, hypermarkets) the normal retail cost is equivalent to 65 pence for the classic pack of 18 grams. The value goes up to 1.50 for the 49 gram pack. A specific sales channel for the product is E-Bay, where enthusiasts and collectors are willing to purchase the product at costs around £5 specifically for the limited edition packages.
This technique aims to either increase or decrease the standard cost of the items. The price will be a standard applied to every other variation of taste.
Place of Distribution
TicTac are available in all major distribution channels, from the grocery store, to the supermarket, to small shops, known as impulse channels. TicTac is packaged in plastic boxes, as regards to the format planned. The place represents a fairly significant variable. It is sold in all the major channels with higher degree levels of distribution.
The market structure of Ferrero is based on countries whose political situations are stable. The major markets for Ferrero are in the U.S., Japan and Europe. China and other Asian markets are increasingly being considered by the company. The company had been able to register a good relationship with the governments of these countries and has won lots of awards in many countries.
Ferrero Tic Tac SWOT Analysis
The SWOT analysis is an outline of the review under the headings, relating to internal strength and weaknesses as they also relate with external opportunities and threats.
- Leadership position in hard candy
- Innovative product, featuring great benefits from being first into this market.
- Target extensive and generally “middle-upper class” social groups (and therefore, not so sensitive to price)
- Image built up itself in the market, in light of the fact that it is historical and conventional (it has an a strong brand and equity awareness as well as strong heritage)
- High client loyalty
- Weak communication over the media, based on information model.
- Little relationship with the final consumers.
- Shortly consumer participation in initiatives.
- Weak segmentation of target.
- Market perception, (such as candy “addicted”) different from the desired position from the organization (“refreshing mint”)
- Ability to pull in new buyers taking advantage of impulse purchasing.
- The possibility of expanding opportunity for utilizing, making them, through segmenting the market and marketing.
- High product maintainability
- Easily imitable
Budget and Financial Analysis
A report from the estimated demand for TicTac is shown as an external audit below. Prices for the budget and financial analysis varies with respect to the individual countries.
|Potential Users||65,3 million|
|Potential opportunity for using||1095|
|Potential consumption dose||1 x 0.49|
|Potential demand-Confectionery||35 million kilograms|
|Actual consumption occasions||N/A|
|Effective amount||1 x 0.49 grams|
|Effective demand||11 million kilograms|
|TicTac demand||2.94 million kilograms|
Table 1: Estimated demand analysis
Strategic Marketing Implementation and Control
Implementation control is intended to evaluate whether the general strategy should be changed in light of unraveling events and results relative to incremental steps and activities that actualize the overall strategy.
The implementation of this marketing plan would be over the following media strategies:
- Advertising on billboards and leafleting.
- Television publicizing.
- Press advertising and radio promoting.
The motivation behind this marketing plan is to serve as an aide for the organization. The following are the areas that will be monitored to gauge execution and performance:
- Revenue: monthly and yearly
- Expenses: monthly and yearly
- Development of new product
After many years of experience in the market, the family business is still an exceptional player in the TicTac and chocolate confectionery market. The major success factors that drive the organization is its uniqueness in innovation and this allows Ferrero to stand in 4th place in the international market.
The innovation at Ferrero is a competitive benefit that keeps the organization outstanding from its competitions. Every product made and even this featured product discussed in this plan is an image of a very high quality brand. The Ferrer group will continually build on its success, and thus, develop internationalization strategy that would allow the organization be continually present all over the continents. The strategies and approaches taken by this organization is a profitable and effective one and it would lead them to explore all around even to Africa and Asia, ensuring their mission is still taken into consideration to benefit and improve the living conditions of the local citizens.
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