Recommendations

1. Introduce a new product line for capturing the romantic confectionary market
Ferrero should create a new product/brand extension
aimed at capturing the romantic confectionary market,
including the market for Valentines Day confectionary
where Ferrero Rocher is weak according to research shown
in part X. The product would have a simpler taste than the
Ferrero Rocher candy making it more suitable for a
Valentines Day gift, as our qualitative research suggested
that people seem to prefer simpler, purer chocolates as
Valentines gifts. The product would still have the distinct,
layered structure that Ferrero Rocher and its other brand
extensions are known for. The product look would be
designed to cater to this specific market: Color palette
could include rose gold and white as shown in figure to the
right. Red color should be avoided even though it is often
affiliated with Valentines Day and romantic gifts because it
is also strongly affiliated with Chinese New year, a market
Figure 1. Example look for a new brand extension product.
where Ferrero Rocher is already strong. The form of the
product the packaging of a single chocolate would be same as other Ferrero Rocher products to
maintain the Ferrero Rocher feel of quality and luxury.
This move would allow Ferrero to tap into a market that Ferrero Rocher is not strong in. Taste and target
market wise the product would be different enough so that the risk of cannibalization is low but it would
still have the distinct Ferrero Rocher look and quality reducing the risk of brand dilution. Marketing
strategy would be similar to Ferrero Rochers: An emphasis on seasonal events with advertisements and
product promotions. Heart shaped boxes can be used to further reinforce the image of it as a romantic
gift. The new product would have a secondary effect of increasing the variety of flavors, which surveys
conducted showed as an issue.
2. Modify the price and the selection of boxes and packages
Ferrero Rocher should remove the basic large boxes of chocolate from their product offering and
instead only offer the chocolate in more decorated boxes. As mentioned in part X Ferrero Rocher
chocolates are sold in several different box types with different prices, which leads consumers to focus
on the price of the chocolates. Figure X shows and example of the two types of boxes that are sold next
to each other with similar price but different number of chocolates and different type of packaging.
Removing the simple box packages addresses a second issue: The gap between perceived quality and
quality communicated by Ferrero through advertisements since the simple plastic boxes reinforce the
perceived image of Ferrero Rocher as an ordinary chocolate.

Figure 2. Similarily priced packages with different number of chocolates.

Next, Ferrero should improve their offering in smaller packages. The research suggests that consumers
are interested in buying Ferrero Rocher for personal consumption, as a treat for themselves. Currently
Ferrero has a very narrow selection in small packages, only package of 3 chocolates is offered. Increasing
the number of packages offered to two: packages of three and six candies and offering the other Ferrero
Rocher extensions in those sizes is likely to increase sales through people buying treats for themselves.
As a secondary effect, increasing sales among people buying Ferrero Rocher as a treat for themselves,
would also increase sales in non-season periods thus addressing the issue of seasonality of Ferrero
Rocher.
Finally the price for Ferrero Rocher should be increased. The primary reason for this is bridging the gap
between the perceived and communicated quality and

3. Re-align marketing strategy with the original brand identity

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