Nutella IceCarolin Marschke

Nutella ProductSemester project

11/24/14

Sara GramataMarketing 201

Executive Summary 1

1 "Nutella." Marketing 304 Plan (2001): n. pag. Web. 18 Nov. 2014. <http://www.brandluxuryindex.com/vigneron/download/nutella.pdf>

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As an established brand, Nutella is famous around the world as a jar of a “delicious blend

of fresh hazelnut, skim milk, and cocoa” to eat at breakfast. However, in the recent years, we

have seen an increase in the number of companies entering into the breakfast chocolate spread

arena as direct competitors to Nutella; such companies include Hershey’s, Jif, Justin’s, store-

brand, and a number of other big names that have taken a share of Nutella’s profit. In order for

Nutella to stay competitive, new products are needed to show that Nutella is not just a delicious

breakfast spread, but can be eaten in numerous ways and at different times in the day rather than

just in the morning hours.

Our proposition is to create a new product line for Nutella, expanding on just the spread

and teaming it with a delicious treat- ice cream. By making a nutritious and delicious ice cream

bar, Nutella will not only be able to win back profits, but also enter into a new market where

there is much potential to compete and grow.

The main goals and objectives in implementing the product and marketing plan are as

follows:

Ø Goal #1: Reach a 15 percent market share within ice cream bars in the frozen goods market

Ø Goal #2: Reach 100,000 grocery stores on the east coast with upper-shelf stocking options by

the end of 2015.

Ø Goal #3: Improve consumer views of our company and brand equity by

creating a sense of belongingness to the Nutella company and specifically the Nutella Ice product

through increased emphasis on savoring the small, happy moments as well as being healthy.

We will be expanding on the previously used marketing campaign launched globally by

Nutella in the past year called “Spread the Happy” to not only grow the initial brand but also to

grab the consumer recognition. We plan on launching our campaign with the slogan of Nutella

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Ice as “Spread the Happy and the Healthy.” Our goals reflect the desire to inform our main target

audience, married women in their late twenties to 40 in the middle to upper class, that they have

a right to indulge and savor the small moments while not feeling guilty about their decision to

treat themselves.

Our marketing efforts will focus on presenting the product as a way to indulge and be

luxurious, while still being healthy and cost effective. We identified our main competitor in the

ice cream bar industry to be Magnum Bars, which builds their brand around the ideals of luxury.

While we do want Nutella to be seen as luxurious, we will be appealing as a healthier product

which will get a larger following and be a point of differentiation for our product. We plan on

advertising our product through numerous channels: social media, television, billboards,

competitions, and celebrity endorsements.

The following pages will describe in detail how we plan on entering the ice cream bar

industry as well as how we will implement our product in order to get a popular following as

well as what our goals are and how we will be profitable.

Mission Statement Goals

Nutella Ice provides high quality snacks to customers to promote a happy and healthy

lifestyle. Our customers should feel healthy indulging while still enjoying the luxuries of a sweet.

We, as a company, value our customers and vow to provide unique, nutritious and excellent

quality ingredients to become a top competitor in the frozen treat market.

Marketing Environments

Before beginning to market Nutella Ice, we took a look at the environmental and

marketing impacts the industry will have on us. Below, please find a SWOT analysis of both

Nutella as a brand, and then another analysis of the Nutella Ice themselves.

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SWOT Analysis of Nutella2

Strengths1. Trusted and Known Brand3

2. Reputation as nutritious spread3. Presence in 5 continents4. Comparatively Low Price

Weaknesses1. Losing market share to more

competitors (Hershey, Jiff)4

2. Only seen for one purpose: breakfast

Opportunities1. US society focused on healthy

and delicious treats2. Expansion of new uses, products,

and product lines

Threats1. Chocolate Shortage= rising Price2. Media presents chocolate spreads as

unhealthy3. Legal issues regarding

environmentalists’ concern with palm oil use5

Nutella is owned by the brand Ferrero. Created in the 1940s by Mr. Pietro Ferrero, a

pastry maker, Nutella started in Italy and slowly began to grow throughout all of Europe and

now is seen in most of the world today6. As of 2014, Nutella is the largest grossing spread in

France and has been in the United States for over 25 years. It is a trusted brand seen as a

delicious and nutritious breakfast food, which is Nutella’s main strength. As shown above,

Nutella has a strong SWOT and has been competing well with competitors. However, with the

introduction of Nutella Ice, the opportunity to increase market share is ideal.

SWOT Analysis of Nutella Ice

2 "Nutella | SWOT Analysis | BrandGuide | MBA Skool-Study.Learn.Share."Nutella | SWOT Analysis | BrandGuide | MBA Skool-Study.Learn.Share. N.p., n.d. Web. 24 Nov. 2014.3 Lindsey, Deb. "Chocolate Hazelnut Spread Taste Test: Beyond Nutella, Options Abound." Washington Post. The Washington Post, n.d. Web. 24 Nov. 2014.4 Cutler, Grace E. "Nutella Taste Test: How Do Other Hazelnut Chocolate Spreads Compare?" Fox News. FOX News Network, 28 Feb. 2014. Web. 24 Nov. 2014.5 Wastler, Alan. "Nice Thing about Shortages...they Get Cured." CNBC. N.p., n.d. Web. 24 Nov. 2014.6 "Ferrero SpA." Wikipedia. Wikimedia Foundation, 23 Nov. 2014. Web. 24 Nov. 2014.

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Strengths

1. Nutella is already a well established, trusted brand

2. Healthy alternative to regular ice cream bars without losing the savory taste

3. Brand largely available throughout world (trusted through Europe)

Weaknesses

1. Ice cream seen as unhealthy and “dying” field

2. Ice Cream is a well established industry that contains many cash cows

Opportunities

1. US society focused on healthy and delicious treats2. Increase in income of households nationally

Threats

1. Entry of similar, healthy products (frozen yogurt)

2. High cost to produce nutritious/healthier products with food shortages7

As shown above, we concluded that the entry into the field would be worthwhile for

Nutella to compete with its competitors, as well as, the industry provided enough opportunities

and strengths with our product to be able to confidently enter the field and gain market share.

Below, the five environments are described as well as the impact they would have on our

product.

Economic

As shown by this chart8, the United States hit a recession in 2008 and has been suffering

the consequences of this for the past few years; however, the economic climate is taking a turn

for the better, with the GDP on the rise in the last couple of years9. While the economy has not

fully recovered, the unemployment rate is down to 6%10, a low since 2008. This shows that more

people are being employed, and that more have a disposable income coming in that they can

spend on products. This leads to an ideal target to begin in the United States. Europe, however,

7 Cole, Marine. "Why Your Chocolate Cookie Will Soon Be a Delicacy." CNBC. N.p., n.d. Web. 24 Nov. 2014.8 "US Real GDP by Year." US Real GDP by Year. N.p., n.d. Web. 24 Nov. 2014.9 "US Real GDP Growth Rate by Year." US Real GDP Growth Rate by Year. N.p., n.d. Web. 22 Nov. 2014.10"Databases, Tables & Calculators by Subject." Bureau of Labor Statistics Data. N.p., n.d. Web. 23 Nov. 2014.

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is still suffering the ripple effect of the economic recession that hit here in the United States in

2008. Due to the European Union having to bailout multiple countries from bankruptcy, as a

whole, the European economy has not recovered; with

unemployment rates are still approximately 10% or

more in some areas11. Due to this, Nutella Ice will

initially enter the United States market, as Americans

will be more willing to spend extra money on an

indulgence product compared with Europeans. With

this in mind, it may be more difficult to enter into a

market like the United States where Nutella is not as

widely known. However, this leads to an opportunity

to allow Nutella to become a more trusted brand and get

more exposure to more consumers.

Political When considering the political implications, not much needs to be considered except

FDA regulations and the Italian political system. Due to Nutella being under the company

Ferrero SPA, whose international headquarters is located in Piedmont, Italy, we have to take into

consideration the political environment in this area. While Italian economics are improving

slightly, political corruption is still rampant in the country, as officials interfere into the economy

and companies12. While this will not affect us on a grand scale, it still should be noted and

watched. In the United States, apart from making sure our Nutella Ice bars meet the FDA

requirements, there are not many political limitations that need to be taken into consideration.

11 "Italy." Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption. N.p., n.d. Web. 24 Nov. 2014.12 "Italy." Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption. N.p., n.d. Web. 24 Nov. 2014.

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One other situation to consider when Nutella Ice expands into Europe, is the new tax that is

being implemented on Nutella13. This makes the situation probable that new entrants will take

advantage of this new tax and enter into the field. However, France is Nutella’s leading

consumer market14, and we have faith in keeping our market share with increased promotion,

loyalty programs, and various other marketing programs to keep Nutella on top.

Social/Cultural In the most recent studies found, the United States has been rated the nation with the

largest amount of obesity in the world15. Due to this, more people in the millennials and younger

generations have become more health conscious and active in what they are eating. While this

may seem like a threat, since we are entering the ice cream industry which is categorized as

unhealthy, our bars are under 100 calories and made to be mostly lactose free, gluten free, and,

most importantly, tasty and delicious and nutritious. For our company, this provides an excellent

entrance into the ice cream bar industry, with a competitive edge. To also be noted, ice cream

has always been seen as an indulgence that most people consume despite the calories, but

consumers want a delicious treat that is low calorie. With Nutella Ice, this is finally possible-

Nutella Ice is a delicious, savoring treat with no guilt afterwards.

Technological Over the past decade, there has not been much advancement in the ice cream industry

aside from new flavors and trying to keep the ice cream seem as fresh as possible16. The most

13 Polis, Carey. "Nutella Tax Passed By French Senate." The Huffington Post. TheHuffingtonPost.com, 14 Nov. 2012. Web. 24 Nov. 2014.14 Szpira, Carolin. "Nutella Integrated Marketing Communication." Nutella Integrated Marketing Communication. Botan, n.d. Web. 24 Nov. 2014.15 "Country Comparison :: Obesity - Adult Prevalence Rate." Central Intelligence Agency. Central Intelligence Agency, n.d. Web. 22 Nov. 2014.16 "Ice Cream Innovation | Food Business News." Ice Cream Innovation | Food Business News. N.p., n.d. Web. 24 Nov. 2014.

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notable innovation is the use of low-freezing temperatures, which is easy to implement.

Comparatively to the other environments, the technology environment will not affect our

product, as long as we keep up with the market.

Competitive While Hershey’s would be considered the main competitor of Nutella in the chocolate

spread industry, in the ice cream bar industry Nutella Ice has three main competitors to take into

consideration; Blue Bunny, Breyers, and Magnum Bars.17 However, while Blue Bunny and

Breyers are staples, they focus more on selling ice cream by carton instead of by bars. The main

competitor for Nutella ice will be Magnum Bars. More than 20 years old, Magnum is the leading

seller in the ice cream bar industry worldwide, selling one billion units annually18. Magnum

markets their brand to be seen as an indulgence and luxurious. However, in one bar alone there

are over 250 calories, and the brand does not offer lactose-free or gluten free products. Due to

this Nutella Ice has a niche to enter into the field with a healthy, yet equally delicious treat for all

to enjoy, regardless of dietary restrictions.

Goals

Since Nutella Ice will be a first for Nutella in the frozen desserts department, we decided

on three goals which would represent a smooth entry with the new product.

1. Reach a market share of 15% in the ice cream bar industry by December 31, 2015

2. Reach top shelf spacing in 100,000 grocery stores by the end of 2016 in east coast states

(New York, New Jersey, Philadelphia)

17 Rellandini, Stefano. "Nutella Should Be Worried about Hershey’s New Hazelnut Spread." Quartz. N.p., n.d. Web. 16 Nov. 2014.18 "Magnum Logo." Magnum Ice Cream Bars. N.p., n.d. Web. 24 Nov. 2014.

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3. Improve consumer view of our company and brand equity by creating a sense of

belongingness to the Nutella company and specifically the Nutella Ice product through

increased emphasis on savoring the small, happy moments as well as being healthy

First, we would like to reach a market share of 15% by 12/31/15. We did not think it

would be reasonable to expect a majority of the market share in such a competitive industry.

Therefore, 15% allows for a smooth transition and reflects a successful product. Given the

popularity of the brand name, we expect consumers to immediately pick up on this new product

as if it were a new Orbit gum flavor. With the launch being located on the east coast, this goal

should easily be attained by the end of year 2015.

Our second goal is for 100,000 grocery stores to carry our product. Specifically, we

would plan on obtaining the top shelving placements in the ice cream isles once our product has

been advertised and the launch phase has ended. In the beginning our product will have its own

stand-alone freezer labeled with the iconic Nutella logo and a slogan. Once this has succeeded

and customers are aware of our new product, we will place the product on the top shelving. After

a two-year launch, the product should be distributed to a minimum of 100,000 grocery stores in

numerous locations and cities.

Lastly, and most importantly, we would like to improve consumer’s view of our

company and brand equity by creating a sense of belongingness to the Nutella brand and

specifically the Nutella Ice product through increased emphasis on savoring the small, happy

moments while staying healthy. In order to achieve positive consumer feedback, we need to

begin internally with our own staff.19 It is very important to our company that our employees feel

a sense of belongingness to their work environment and to the company they represent. With

19 Ray, Linda. "Top 10 Strategic Business Objectives." Chron. N.p., n.d. Web. 20 Nov. 2014.

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increased employee morale and improved welfare, the employees will perform much more

effectively, resulting in higher success for the company. The team members for the Nutella Ice

product will be the main focus for this initiative.

Objectives

In order to reach a 15% market share by the end of 2015, our marketing team will

establish rigorous advertisement protocol that will ensure that the consumers are aware of

Nutella’s newest product. This will be conducted through blimp advertisement (run on busy

days, such as Black Friday and 4th of July), TV commercials, magazine ads, etc. Additionally,

word-of-mouth will play a large role in the success of our goal. The younger women (ages 25-

30) have a high likelihood of sharing and recommending a product they enjoy with people they

know and work with. Especially in the past few years, consumers have endless means of

communication and are constantly sharing their ideas and opinions with people within and even

outside of their networks and social groups. By making sure these people are aware of our

product and are eager to sample it, we will be able to reach a 15% market share at the very least.

We are also relying on our 70% market share in the chocolate spread category to allow for a

successful introduction in the ice cream department.

As for reaching 100,000 grocery stores, we will make contracts that combine our ice

cream to the other Nutella products that are already being sold to the stores. Also, the Nutella Ice

will be sold for a discounted price for grocery chains who make a contract with us for an

extended period of time, such as a five year contract that ensures our product is placed on top

shelves in their frozen dessert aisle.

In order to improve our employee’s welfare, we will be implementing annual health-

check-ups for all employees, including the newest employees that focus on the Nutella Ice

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product. This is to ensure that we have the best employees possible and that we can take care of

them if there are health issues affecting their work. Employees perform their best when they live

a healthy lifestyle, so it is our job to make sure we are aiding in this initiative. Additionally, we

will organize family get-togethers at least twice a year for all employees and their loved ones to

attend. With fun and relaxation used as reward for achievement, our employees will be more

productive and the employee turnover rate will decrease. With these kind of changes we hope to

see a change in consumers’ attitudes so that they can feel that they have a say and impact on

what we provide to them. By coming out with a savory yet healthy ice cream bar the consumer

will feel like we are speaking directly to them. Our advertising teams will creatively depict

advertisements towards unique and individual moments that are enjoyed over our ice cream bar,

which will make consumers feel closer to our brand rather than to a generic and stereotypical

advertisement.

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Target Market Figure 120:

Target Market Income/Class21

Benefits

Married women between the ages of 28-40 $35,000-$75,000Middle to Upper Class

Quality/TasteLow CalorieEconomic PricingConvenience

Secondary: Married Women between the ages of 28-40 with children (between ages of 4 and 12)

$35,000-$55,000Middle Class

Quality/TasteEconomic PricingSmaller Size

Expansion of the Target market:

Single women between the ages of 28 and 40

$35,000-$75,000Middle to Upper Class

Quality/TasteLow CalorieEconomic PricingConvenience

Our Target Market will be divided into three main sections (As shown above in Figure 1):

1. Successful or wealthy married women between the ages of 28 and 40. They tend to earn

an annual income between $35,000-$75,000 with 4-year college degree. Nutella Ice is

targeting large east coast cities specifically Boston, Providence, New York City, New

Port, and Washington D.C. Our company prides itself on our low calorie ice cream bar

that also has a luxurious taste. Women are always looking for ways to cut calories but are

looking for snacks that are not considered “rabbit food”. Nutella Ice is a small ice cream

bar that can be taken on the go to fit with our markets busy lifestyle.

2. Single women in the range of 28 to 40 with middle to upper income level. Usually, single

women tend to be seen as more health conscious, which leads to Nutella Ice becoming a

20 "Nutella." Marketing 304 Plan (2001): n. pag. Web. 18 Nov. 2014. <http://www.brandluxuryindex.com/vigneron/download/nutella.pdf>21 Williams, Geoff. "What It Means to Be Middle Class Today - US News." US News RSS. N.p., n.d. Web. 23 Nov. 2014.

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fit for this market type. Generally, these women also see themselves living a more

luxurious lifestyle, as they have nobody to care for except themselves; this not only leads

to a disposable income that is focused on spending just for themselves, but it also gives

the opportunity for Nutella Ice to price our products lower to accommodate for their

lower disposable income.

3. Once the brand is established, we are able to reach into a secondary market, mothers of

children between the ages of 4 and 12. These women in this market are similar in income

and education level. The children are active in school and sports and will need an on the

go snack to satisfy their sweet tooth. We have designed a similar product but “mini” to

work as a healthy substitute after school snack for the children of married women. This

will in turn create a loyalty basis that will lead to the expansion of our market in the

future.

Four P’s

Our new product, Nutella Ice, will compete very closely with Magnum ice cream bars

since they are both considered high class/quality products with the same “indulgent” feel. Nutella

will differentiate itself enough to make it the preferable choice over Magnum and other brands

such as Ben and Jerry’s. This will definitely fall under the healthier track that millennials take in

their diet. In order to avoid the obesity trends, the ice cream bar will be 100 calories with fat free

vanilla ice cream and gluten free waffle cone exterior since the Nutella shell will contain the

most amount of calories.22 About 1.53 billion of ice cream were produced in 2011 and the

industry generated total revenues of $10 billion in 2010. 67.7% of that $10 billion was from take

home ice cream such as Nutella Ice, making this a great opportunity for a new brand venture.

22 Ice Cream Sales & Trends." International Dairy Foods Association. IDFA, n.d. Web. 15 Nov. 2014.

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Demographically, the Nutella Ice will first be launched on the East Coast in popular

grocery stores and convenience stores. Since this is an American market, the segmentation will

be the following: children between 4-13 (mothers that are shopping with their children), college

students (health conscience yet on a budget), wealthier households and elders (a small

indulgence, less cautious about health). The women’s market, where our main target market falls

into, is increasingly popular and this segmentation would target wealthier women, single moms

(divorce rates in the US are up to 50%), and mothers that are out grocery shopping. Nutella Ice

will also participate in multicultural marketing for cities that have high Hispanic populations

such as Miami and L.A. once the product expands into other geographical markets.

For our Nutella Ice product, we are targeting women from ages 25 to 40 in the middle

and upper classes. Within this broad group, we are separating them based on marital status, for

example single, married, and married with children. By focusing just upon women in this age

group, we are positioning our product to be a more luxurious and low calorie snack delicacy.

These women will be your typical upper middle class women who stay home and take care of the

children. By marketing this product towards them, Nutella Ice will become a part of the

children’s healthy diet and will develop and grow along with the children themselves. We are

targeting these families in big cities on the east coast (specifically New York, Boston, DC) as

they have healthier metropolitan lifestyles and word will spread faster through word of mouth in

these locations.

For pricing on the main Nutella Ice line, the original line, Nutella has chosen to make it a

more expensive product, but also keeping it affordable and well in the price range of our target

audience. Nutella Ice’s main competitor, Magnum Ice Cream Bars, has prices around $1.25 to

$1.37 23 a bar depending on the store it appears in. From this observation the decision was made

23 Magnum Classic Ice Cream 3 X 110Ml." Tesco. N.p., n.d. Web. 24 Nov. 2014.

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to have this bar priced a little higher at about $1.40 to $1.50 a bar, again depending on the store.

The price increase is due to the superior quality and health-factor that the Nutella brand has

always represented. This will to stress the fact to women that the product is more luxurious and

worth the higher price, while still being an affordable option. As marketing with the standard

Nutella spread emphasizes that the spread is healthier than a chocolate spread, but still with the

chocolate taste makes it more of a delicacy worth the higher price, the goal is to keep with this

high quality standard known by the Nutella line.

As for the second product line, the mini product targeting to children, the price will drop

to $.99 a bar. By dropping the price, it not only appeals to mothers looking for a cheaper treat

for their children, but they also will be more inclined to buy a treat for them as well as one for

themselves that they both can indulge in while still being a healthier option than normal ice

cream that most children want.

Nutella Ice’s main product, the average size Nutella bar, will be a 100-calorie/100 gram

ice cream bar. There will be three main flavors that complement the hazelnut chocolate spread:

vanilla, chocolate, and strawberry. They will be smooth and creamy with the hard Nutella shell.

It is the mission of Nutella Ice to bring top quality products to our customers that promote both a

happy and healthy lifestyle. Our product is a luxurious coconut milk ice cream treat with a

creamy Nutella center. Coconut milk blends with the added flavoring to give the ice cream its

chocolate, strawberry, or vanilla flavoring but without the lactose. We are able to have such a

low calorie product because of the reduced fat content and less added sugar because of the

coconut milk. We have also added flax seeds to the strawberry bar because it blends with the

fruit and if ground it adds protein and controls weight. Low calorie, weight control, boost of

protein, and luxurious taste are just a few benefits to eating our ice cream bar. We are selling our

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bars to large east coast cities that are known for their focus on health fitness but also high-end

lifestyles; no artificial flavoring will be used. The bars will be sold both individually and in

packs of six. The individual bars will be priced at $1.50 and the combo pack will be roughly

$6.70. This product is positioned for everyday women to feel both elegant and slender while still

indulging in a typically high calorie snack.

For the kids line, The flavors will stay the say but half the size of the average Nutella bar.

This product will be marketed differently to attract children under the ages 4 to 12. It won’t have

the same calorie content because of the size, so we plan to market it with a low calorie label. It

will also be single bar and combo pack, for those upper middle class “soccer moms” to bring to

classrooms and games.

Within the ice cream market, Nutella Ice is positioned as the ideal lifestyle choice. It is a

luxurious choice for health and happiness. A treat to share with your children, or to sneak in after

dinner and not feel shameful of your indulgence. Nutella Ice is on the more expensive end of the

spectrum, but still affordable as a low calorie product. For these reasons we’re targeting the

upper middle class who can easily afford it on a regular basis. Our main competitor, Magnum Ice

Cream, positions itself along the same lines; however, Nutella appeals to a higher level of

satisfaction, which includes a healthy and delicious treat that is worth the indulgence. The plan

is to have two main product lines- the normal size treats and a smaller, mini version of the treat

targeted specifically to children of the women buying the actual ice cream bar. Nutella Ice will

become the top tier product in the dessert bar line-this is the luxurious bar all women wish to

have, and now can without the guilt that goes along with the Magnum Bars high calorie products.

By dividing up these women into the three specific categories, we can reach ideal numbers with

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different advertisements but all with the same goal; now there is a delicious, high quality bar

with everyone’s favorite hazelnut spread, but without the added guilt.

Nutella Ice will be intensely distributed throughout supermarkets on the east coast. The

stores will consist of Trader Joes, Whole Foods, Harris Teeter, Food Lion, and Kroger.24

Additionally, since there are minimal competitors that supply to Trader Joe’s ice cream

department, the Nutella Ice Cream Bars will have a competitive advantage. The ice cream bar

will launch in New York, where it can be tested and heavily marketed to get the product out

there. This will be the launching grounds for the product’s release to make sure the product is

successful before expanding to other geographical markets. The product will be released in

neighboring states on the east coast, such as Rhode Island, Massachusetts, and New Hampshire.

These three states are listed in the top ten highest ice cream consuming states, which will help

the product flourish in the ice cream market. Eventually the product will spread to larger states

such as California and Texas due to high populations and warmer weather, which also

contributes to higher ice cream sales annually. The ice cream bars will evidently be placed in the

freezer aisles, in the upper middle racks so the eye is drawn up to it as a higher end product.

However, for the mini bars (which are targeted for children) will be placed a little lower (not the

bottom shelf), but low enough to where a child can grab it and bring it to their parent’s shopping

cart. This product will be advertised to catch the shopper’s eye and will be readily accessible so

that the consumer that is targeted will easily be able to find the product and will be drawn to it.

As for distribution of the product, it will be distributed through a well-established and

reliable truck company that will transport the product from the manufacturing company to the

grocery stores directly. Minimal stops will be made and the product will strive on its freshness

24 "Best Grocery Stores On the U.S. East Coast - TheTopTens.com." Best Grocery Stores On the U.S. East Coast - TheTopTens.com. N.p., n.d. Web. 20 Nov. 2014.

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(later marketing strategy may be to display an advertisement similar to Florida’s Natural orange

juice which comes straight from the garden in Florida). The product will be supplied in limited

amounts and short periods of time throughout the year to lure the customers to buy the product

immediately and to make them think that the product is superior to others because it sells out.

Nutella as a brand has had success with product placement in films and television

programs, such in the Intouchables, one of the highest grossing French movies, and How I Met

Your Mother. The best way to promote the product would be through the use of endorsements

by celebrities. Since Nutella’s main target is married women within the range of late twenties to

middle thirties, the best celebrities would be women that embody what most women want to see

themselves as: successful, beautiful, and fit. Emma Stone and Angelina Jolie are two celebrities

that fit this schema- they are both wildly successful, beautiful, and looked up to by thousands of

women. Nutella would like to hold a meet and greet and health talk with Angelina Jolie in

Central Park for our high class Manhattan moms. This will bring a sense of health and

sustainability to our brand. Included in Nutella’s promotions will be a commercial to advertise

the high class appeal of the brand and product. There will be two commercials: one to appeal to

the moms, and one to appeal to the children of these moms. The youth commercial will have a

light hearted comedic feel, while the commercial for the moms will have a more luxurious and

sensual feel to it.

Implementation Schedule

The first step of the implementation process is promoting our product. In order to

effectively raise awareness about our product, there are a few possible marketing routes to take.

The first route is to self-promote on social media. This has shown to be a very effective tool for

marketing other brands in the past. Luckily for us, our target audience is females ages 28-40, and

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that is the same demographic that pioneered the start of Facebook; they also have one of the

largest growing demographics using Facebook25. So, the first place we would start on the social

media front would be making a Facebook page prevalent. We can do that by offering special

future offers or free samples for those who “like” or “share” our Facebook page digitally. We

will also make a twitter and Instagram account to accomplish similar goals. These accounts will

be littered with deals and advertisements broadcasting our affordable, healthy, and delicious

product. These accounts will not only be active for the promotion of our product before it’s

released, but after it has hit the open market as well. This way we’re able to connect with new

fans as well as the older ones that liked us “before it was cool”.

Nutella Ice has implemented a Facebook page with links to the company’s Instagram,

Twitter, and Brand website. The goals of these pages is to use the company’s budget to promote

our products and use promotions and contests to further our public relations and reach our target

market. The name of our Facebook, Twitter, and Instagram accounts is Nutella Ice. Each of these

pages includes pictures and blurbs of information about our product to update customers of any

changes or additions to our product mix. Nutella Ice specifically uses Facebook to include

product information such as the health benefits of our ingredients, manufacturing location and

practices, and opens up direct contact to our representatives if they have further questions or

concerns. Our Brand website goes into more depth with the information on Facebook but also

includes health blogs to promote the happy and healthy lifestyle. Nutella Ice’s largest promotion

is the “Happy and Healthy Campaign” and this website is used more as a health conscious blog

to promote more healthy substitutes for snacks and meal plans.

25 Neal, Ryan. "Facebook Gets Older: Demographic Report Shows 3 Million Teens Left Social Network In 3 Years." International Business Times. N.p., n.d. Web. 23 Nov. 2014.

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While some people will be working on advertising the products, others will be involved

in mass manufacturing and distributing them. However, to gauge the amount of Nutella Ice

products we will need to produce, we’ll have to go through a series of customer surveys to

measure how interested the public would be in our product. These surveys will mainly be

conducted in metropolitan areas on the east coast, like New York, Boston, and Baltimore

because that’s the main area we want the product to start in. This survey period should last at

least a few months, and we want it to be during the spring season as the weather is getting

warmer and the interest for a cold treat would be on the rise.

As stated in the promotional section, we will have several advertisements running for

Nutella Ice, including billboards, free samples of the product, television advertisements, and

celebrity endorsements. This step will happen along with the distribution process, as well as

directly before so more people become aware of our product.

The final component we would need for our product is a structured system of leadership

to run the operations of this brand. Since no major frozen treat conglomerate owns us yet, we

will have to oversee our day-to-day operations. We’ll have to either internally or externally hire

people to oversee our social media accounts, our marketing and advertising, our finances,

research and development, etc. Having a clear organizational structure will make decision-

making much easier for our product in the future. Also, this divides and specializes different jobs

of the company for different people with certain strengths and weaknesses, which should

increase our working efficiency.

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