rrAdvertising Group

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Nutella is the original Hazelnut spread. Ferrero Group,

Nutella’s parent company, was established in 1946. The

mission of this advertising campaign is to promote Nutella

as a quick and tasty meal solution for families. Our big

idea, “Delightfully simple. Irresistibly easy.”emphasizes

that idea, which is important because we want to reach

our primary target audience of mothers between the ages

of 25-49 and our secondary audience; children from ages of 25-49 and our secondary audience; children from ages

6 to 16. Our agency, rAdvertising Group, utilized print,

television, and online ads, in addition to a number of brand

activation methods in order to appeal Nutella to the those

target demographics.

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Table of Contents

Our Agency Identity

rAdvertising Group is a full-service advertising agency that is dedicated to creating advertising campaigns that go above and beyond the needs of our clients. We were founded in 2016 and quickly established ourselves as a less conventional and moreamicable alternative to traditional advertising agencies while amicable alternative to traditional advertising agencies while being even more effective. We do this by identifying the variables that are currently affecting the product or service of our clients, and working diligently to come up with the right solutions.This starts by not only familiarizing ourselves with our clients, but also with their vision for the future. By doing this, we enable ourselves to create a plan with a thorough and unique execution that brings their vision to a reality. To achieve this, we use a seven-steptheir vision to a reality. To achieve this, we use a seven-stepprocess that allows us to do the best work possible for any clientin any situation.

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rrAdvertising Group

We Listen

We Understand

We Plan

We Create

We Adjust

We Evaluate

We Succeed We Succeed

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Pietro Ferrero, a pastry maker and founder of the Ferrero company, creates an original recipe in the Italian region of Piedmont. WWII rationing leads to a scarcity of cocoa, so Ferrero uses hazelnuts in order to extend the chocolate supply.

In France, Senator Yves Daudigny proposes a tax increase on palm oil. At 20%, palm oil is one of Nutella’s main ingredients, and so the tax is dubbed the “Nutella Tax”. A $3 millon lawsuit is settled against the Ferrero Company because Nutella is advertised as healthier than it really is.

Nutella is first imported from Italy to the U.S.

February 5th is declared “World Nutella Day”

Ferrero’s "Pasta Gianduja” is made in solid blocks and wrapped in tinfoil, so it can be sliced and spread on bread for mothers to make sandwiches for their children. Most kids throw away the bread and only eat the Pasta Gianduja, so Ferrero alters the product into a paste and packages it into a jar. This becomes known as "Supercrema Gianduja”.

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1946

1964

1983

2007

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Nutella became a topic of political debate in France, where a tax proposed on palm oil (a main ingredient in Nutella) was deemed the “Nutella tax” by French media.

Nutella was sued in a class action lawsuit in 2012 for false advertising. The lawsuit was based on Nutella’s claims of their product "part of a nutritious breakfast",

which implied health benefits of the product. The court ruled that Nutella had to refund up to $4 per jar for up to five jars returned by customers, in addition to

changing to Nutella's labeling and marketing, including television commercials and their website.

Nutella is the most popular hazelnut spread on the market; however, there are others that compete both domestically and internationally. Jif, of J.M. Smucker

has introduced a chocolate hazelnut spread. Jif has targeted the cost-conscious consumer by marketing their spread as a less-premium product than Nutella. Jif

has expanded their hazelnut-based product line to include different flavors such as cookies n’ cream, chocolate cheesecake, and salted caramel. Hershey’s has

also introduced a “chocolate with hazelnut” spread, which competes with Nutella at a lower price. Nocilla is a competing product that outsells Nutella in Spain

and Portugal, but is not sold in the U.S, and Nocciolata is an Italian hazelnut spread that is USDA certified organic.and Portugal, but is not sold in the U.S, and Nocciolata is an Italian hazelnut spread that is USDA certified organic.

At $3.99 for a standard 13oz jar, Nutella is among the most expensive hazelnut spreads, outpricing its name brand rivals. Also, Nutella can be substituted

with other spreads such as peanut butter. An 18oz jar of store brand Wegmans peanut butter costs only $1.50. Nutella is a normal good; thus, when real

household income rises, more parents are willing to splurge on Nutella for their children. Conversely, Nutella sales will be deterred by economic downturns

when families may swap it out for inferior but cheaper alternative products.

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Competitor Analysis

- J.M Smucker Co owns 34% of

the market share for spreads

- Gluten free and high in protein

- Iconic partnership with Smuckers

jelly

- Jif and Hershey’s offer various flavors

- Jif and Hershey’s are competitively priced

- Justin’s boasts top ingredients, and is a

less sugary alternative

- Generic store brand hazelnut spreads

are the most competitively priced on the

market

- Favorable creamy consistency

- Little to no brand awareness

- Taste and quality are inferior compared

to majority of spreads

- Category awareness and loyalty is

dominated by Nutella

- Justin’s is the most expensive on the market

- Plethora of direct competitors

in the peanut butter group

- High in fat

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- Brand popularity

- Capitalizes on recipe sharing websites/apps

- Strong social media presence

- Portability with Nutella & Go

- Delicious taste!

- Growth rates and profitability

- Increasing disposable income in the U.S

- International attraction to Western breakfast styles

- Adaptable to different meal categories

- Peanut butter as a competitor

- Similar hazelnut spread products

- Ferrero was sued for healthwashing

in a class action lawsuit in 2011

- Lack of nutritional value

- 2 tablespoons contains 21 grams of sugar - Limited advertising/penetration in emerging economies

- High sugar/fat content can lead to a loss of trust

S.W.O.T. Analysis

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BudgetInternet

22.6%

Newspaper 34.2%

Television

23.2%

Magazine

19.8%

We aim to increase sales of Nutella by 7% through the implementation of this

campaign. We will achieve this by consistently emphasizing the convenience

and versatility of Nutella through all elements of the campaign.

Objectives

Our primary research was conducted through a survey sent out to a variety of mothers ages 25-49. Since 100% of those surveyed were within our target market, we are confident that our results are a good reflection of that demographic.Out of the 23 surveyed, we received 19 responses. We are confident that our results are a strong reflection of the target market. We were able to conclude that 100% of our target market has heard of-Nutella, indicating high brand-awareness. Within that group, 68.4% (13 out of 19 participants) had actually purchased Nutella at some point in out of 19 participants) had actually purchased Nutella at some point in their lifetime. When these same 13 people were asked why they purchased it, 53.8% said that it was because of flavor and 30.7%, said that it wasbecause of convenience. The remaining 15.5% had a mix of reasons for buying Nutella, mostly indicating they had made their choice due to WOM.

The most interesting results were the responses regarding breakfast habits. When asked if they consistently made breakfast in the morning for them-selves or their kids, 5 respondents (26%) said that they did not. Uponasking why, nearly all said that they do not have sufficient time in the morning to make breakfast. The remaining 14 participants were asked what kind of problems they have in the morning when they do make breakfast. Out of this group, 3 had difficulty coming up with breakfast ideas, 6 also struggled with time and the remaining 5 did not indicateaproblem that affected their morning. Upon analyzing this research, it's clear that lack of time in the morning is a major problem for our target market when making breakfast. Coming up with satisfying meals to make was another problem for some women in our market.

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- Determine Nutella’s popularity within the market- Discover what compels people to purchase Nutella - Better understand people’s breakfast habits

Research

Through our research, we learned that Nutella

has a very strong market position, controlling

70% of the market share, showing that Nutella

is truly the go-to hazelnut spread for consumers.

We also learned from a blind taste test from the

Huffington Post, that Nutella is objectively the

best tasting hazelnut spread on the market out

of seven competing brands. of seven competing brands.

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Brand Value Proposition

Nutella offers a quick and easy spread that satisfies the typical consumer chocolate craving. Nutella is a healthier substitute to

chocolate, but does not sacrifice taste. The spread can be used to create simple breakfasts, lunches, and desserts for consumers

of all kinds. Nutella is the perfect snack and addition to meals for all chocolate lovers who want to safely indulge their cravings

to the fullest with our hazelnut spread.

Nutella signifies a fun, stress-free environment for enjoyable meals. Customers that purchase Nutella are family oriented people who

cherish the fun times shared with others. Nutella also represents an increase in demand for foreign products. This is a growing trend

exhibited by high-end grocery stores such as Whole Foods. Nutella benefits from its Italian routes as it caters to a culture in which im-

ported food is viewed as premium. People who buy Nutella often feel trendy due to its Italian origins and growing popularity.

Choosing Nutella over other spreads brings happiness to consumers as it is one of a kind. Nutella provides the simple chocolate

taste that so many consumers desire at any time of the day. The signature hazelnut based recipe brings comfort as the customer

can enjoy a guilt-free chocolate taste as applied to whatever they are eating. Each jar of Nutella spread is crafted with care to

allow indulgence, minus the health sacrifice that usually brings.

Target Market Profile PRIMARY: MOTHERS AGES 25-49

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This campaign will focus on the irresistibly delicious and convenient nature of Nutella’s

hazelnut spread. By reinforcing both the superior taste and simplicity of the product, our

target market will know that they can always count on Nutella to make meals easier and

more satisfying. This will also help shift the product focus away from falsely promoting

nutrition and, instead, rightfully promoting flavor and convenience.

With the increasingly high saturation of spreads on the market, adult women are having a difficult time choosing which to buy

for their children. Additionally, Nutella lacks the nutritional value of some spread alternatives, so it is important to find a way

to shift the focus away from nutrition. Finally, our research shows that adult women who prepare breakfast for their families lack

sufficient time in the morning.

Nutella has the highest brand awareness in its category. It is widely considered as the best hazelnut spread on the market. Nutella

should be able to fend off lower-priced competitors and retain its reputation as the leading spread by leveraging its quality.

Campaign Strategy

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Part of what makes Nutella such an attractive and popular brand are its distinct design elements. Throughout our campaign we

will be consistently integrating Nutella’s unique sans serif bold font and brand colors (brilliant red, black, and white) that are

widely recognized. Our executions will highlight our big idea by displaying the way in which Nutella is a “delightfully simple”

and “irresistibly easy” breakfast solution for families.

When consumers buy Nutella’s hazelnut spread, they should know they are simplifying their meals while also making them more

delicious and satisfying. Our advertisements will reinforce our brand promise by sharing creative ways to use Nutella to make

exceptional meals in no time at all. By using this strategy, we effectively position Nutella as a remedy to the stress that women

in our target audience face when making meal choices for their children - especially in the morning. Specifically, it does this by

showing all the easy, yet delicious, meals that can be made with Nutella. Our advertisements are meant to persuade mothers

that they rely on Nutella as their breakfast necessity. Strategic execution of the campaign is vital to its success, so ensuring that that they rely on Nutella as their breakfast necessity. Strategic execution of the campaign is vital to its success, so ensuring that

these advertisements are placed in mediums and settings that resonate with our target audience is of the utmost importance.

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Our copy will effectively implement the big idea “Delightfully simple. Irresistibly easy.” by encapsulating various problems that

our target audience has and, then, positioning Nutella as the solution. This will be done with a paragraph of body copy at the

bottom of each print advertisement. In the body copy, there will also be a call to action. The overall layout and styling of the copy

elements will reinforce our brand promise, but the body copy in particular will be the final persuader that Nutella will, without

question, make your meals taste better in less time. The headline and subhead will also do this, but in a more direct way.

Creative Strategy

Print Advertisements

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Television Execution

Free Standing InsertOnline Advertisement

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Creative Testing

We collected qualitative feedback about our print advertisements from members of our target audience. They

were fond of the color scheme used in the ads, and their simplicity (of both visuals and copy) was seen as “very

kid friendly”, according to one respondent. The general audience perceptions of the ads were encouraging to

us, as respondents cited the “family-friendliness” of Nutella as one of their main takeaways. Almost all of the

respondents said our ads were visually appealing, and that they increased their likelihood of purchasing Nutella.

Feelings of inspiration for future breakfasts were another common trend among our participants. A recurring

recommendation from our respondents was that we include an estimated time it takes to prepare each recipe. recommendation from our respondents was that we include an estimated time it takes to prepare each recipe.

Overall, the ads were very well received, and required little change to best accommodate our market.

Media Objectives

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Media Strategies

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Media Mix: Print Advertisements

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Media Mix: Television Executions

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Media Mix: Online Advertisements

Facebook is the most used social media

site in the world with an average visitor

count of 1.79 billion a year. Within that

number, there is a sigificant amount of

people in our target market. The

majority of Facebook users are on the

younger side, but 25-49 year old

mothers still use Facebook more than mothers still use Facebook more than

any other social media platform.

Amazon is the largest online retailer in

the world with control over 75% of the

market share for online retail. Although

it has appeal to virtually every demo-

graphic, mothers make up a healthy

proportion of users. Since Amazon also

sells food products, advertising Nutella

on the site is extremely effective, for

mothers have the opportunity to buy a

jar with just a click of a button.

There are 165 million users currently on

eBay. The appeal of eBay for advertis-

ing purposes is that every demographic

goes onto eBay with the intent to spend

money to receive goods. Placing brand

awareness on this site will encourage

purchase of our product in the minds of

many consumers.many consumers.

Media Scheduling and Budget

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Brand Activation

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Brand Activation

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Brand Activation

EvaluationThe goal for this particular advertising campaign is to have 75% comprehension and 45% convictionof our ads. In addition, we hope to ultimately have a 7% increase insales by the end of the year.Thefollowing chart and graphs are a projection of how we anticipate each strategic media decision will eventually lead us to our goals.

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Creative Brief rrAdvertising Group

Meet The Team!

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Meet The Team!

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