Ferrero Positioning In The Chinese Chocolate Market

The aim of this thesis is to conduct a market research to explore the opportunities that Ferrero can still exploit in the chocolate market in China. Rising income levels and growing interest for western products have been driving chocolate confectionery demand in the last decades. With double-digit growth year after year, the market offers huge opportunities for development but also requires foreign companies the implementation of consistent marketing strategies and proper targeting to meet local consumers buying patterns. Being the first company to introduce chocolate in the country soon after its reopening to the outside world, Ferrero succeeded in establishing its chocolate as a luxurious and exotic product. This kind of image building with Chinese consumers served Ferrero well and allowed the company to develop under a premium image and achieve a dominant position in the segment of chocolate for gift-giving purposes. However, the company has not fared as well in the market of chocolate for self-consumption. Based on this observation, the thesis develop a framework that can serve the company as benchmark approach to new product introduction in the market of chocolate for self-consumption in China.The thesis starts with a theoretical review regarding the implementation of a complete and sound market analysis, executed through the application of theoretical models, information and data collected from appropriate and conspicuous academic research and surveys conducted on the field. Subsequently, theories and marketing concepts are used to analyse the Chinese consuming behaviour, which plays a very important role in shaping the market of chocolate. Once analysed the environment and the potential it has to offer in relation to the features and the objectives of the company analysed, the research focuses on the marketing strategy adopted by Ferrero in China. The evolution of its marketing approach is studied into details, in order to highlight what are the key success factors for Ferrero in the gifting segment and what main causes for its weaknesses in its approach to the self-consumption segment. Finally, marketing tools, data collected from the survey and a case study are applied to develop viable marketing strategies that aim to take full advantage of a market that offers considerable resources still unexplored by the company.Findings reveal that the possibilities for Ferrero to expand in the market of chocolate for self-consumption in China are enormous. Quickening the process of product introduction and taking into consideration local consumers’ needs and wants in the formation of the marketing mix of its products, the company can duplicate the success achieved in the gift-giving segment in the segment of chocolate for self-consumption.