Evaluation Of Australias Decision Marketing Essay

Evaluation Of Australias finish Marketing EssayFerrero is an Italian shaper of chocolate reapings founded by confectioner Pierto Ferrero in the year 1946 based in Pino Torinese. In the survey of the 2009 reputation Institute, Ferrero was considered as the most reputable party in the cosmos. This comp both has been considered as one of the earthly concerns secretive company. Company concent lays on the manufacturing innovation.It believes in accessible commercialiseing concept to deliver esteem in a way to maintain or improve both the nodes and societys soundly being. They heighten on clients as centre of st castgy to maintain grand term kind and mutual trust and consider this to be the key fruit to their success. The company headquatered in Italian town of Alba has a overall sales agreement of A$10 billion and it employees over 20,000 citizenry virtually the world and holds over 7.3 % of worlds choclate sh ar(Case Information).Q1. Evaluate Ferrero Australias decision to open an online boutique. Will this have any concern on the companys opposite handicraft segments?A-With shoppers venturing online at an increasing rate in Australia, Ferrero recognised an opportunity to bring forth an online boutique with ecommerce functionality.Evaluation of Australias DecisionIn Australia during festive seasons deal Christmas there is constantly a graduate(prenominal) demand of chocolates. The public interest and demand let the company to s oddity the initiative online boutique in November 2010 in Australia aiming the Christmas ahead. These endue gags are elegantly packed in beautiful keep sake box and individualized to make the special occasion more special.Ferrero choose Australia to pioneer its Asia peaceable market beca in pay off of its familiarity of western culture. fit to census 2006 Australia is a country of various(a) culture with predominance of Christianity, Roman Catholic (25.8%), Angli plenty (18.7%) and rest (19.4%).The small-ar m of religious groups includes Buddhism ,Islam, Judaism, Hinduism, Sikhism and Indigenous etcetera(Australian Bureau of Statistics, 2007). So in a versatile place same this there exit be commonwealth celebrating nearly festivals passim the year. Festival means exchanging gifts and this make the demand for chocolate hampers without the year.The literacy rate in Australia is to the highest degree 99% (WorldBank, 2012). GER (Gross enrolment ratio, Total is the entireness enrolment in primary education, regardless of age, expressed as a percentage of the population of official primary education age) is found to be 105% in Australia that indicates that its a loftyly educated country (WorldBank, 2012). According to the net profitworldstats some 80.1% of the Australian population use internet which comprise of around 17,033,826 users as of Aug 2009.There is 22.8% of population subscribing broadband connection as of September 2007.According to world bank GNI per capita is US$ 2 1,650(04) that indicates that its a very wealthy country.Ferrero Online boutique offers insurance premium chocolate for special occasion. It positions as a status symbol with senior high class product which is seen as a classy and elegant. At the a bid(p) time pricing is also also high. This is intenting the high income range of people which is niche market. In a place uniform Australia it raise scratch a range of customers to acquire the product that mainly concerns about the social status, pride and quality of service. The throttle edition in variety always becomes a demand among the customers.Australia is an urban country with 89% in 2010 with 1.2% of the rate of urbanization (CIA, 2012).According to World Bank report the density of population is Australia is 2.86 people per SQ km in 2009 (CIA, 2012).This indicates that the Australia is a huge country with less population. So people would prefer to do online shopping rather travelling languish for the store shopping.I n a much urbanised country like Australia people testament tend to fuck off easier way to induct things through with(p) with less time. In this kind of world opening an online boutique use internet as a media is providing a convenient way to transport their dear ones on special occasions without even spending too much time for it. This way company is meeting its mission as well as customer faithfulness.Impact on Other traffic SegmentsFerrero has 3 dissimilar dispersal channels to make product for sale to customers. These channels include online distribution channel, supermarket retailer and physical retailer channel. For online distribution channel ferrero focus on high income grade of population and site only on special occasion as a gift hamper.CUsersSakiRaviDesktopsaki 2012 june mba tradeMarketing-Mix.jpgThe 4P (price, product, promotion and place) for the 3 variant distribution channel are different. The price of the products in online boutique is very high and prov iding only limited number of variety to make it stand as a high status symbol. The product is a specially designed gift hamper for a special occasion or to be used as corporate gifts which is targeting the high business officials. It is available online and people washstandt buy these gift hampers in the stores. For the physical retailers and supermarket distribution channels the products like ferrero chocolate, nutella, tic tac, kinder strike focus on daily needs of a person which notify be consumable at all the times of the day. The prices for these products are comparatively low to the price of online boutique hampers. These are available in supermarkets and stores and not available online in the boutique. So this clearly says the 4p of the traditional ferrero products and online boutique is different so it will not have any negative impact on the other business segments. At the same time the strategy behind launching the online boutique was a market penetration strategy. ut ilise very innovative kind of packaging and make it as a gift hamper they are targeting the same target market through different distribution channel. By presenting it as gift the value of the product transmits. It adds more value. Using internet as a media they throw out come across a wide range of audiences.Even though it will not impact negatively the positive impact is always there. Online boutique can boost up the Brand ken, Brand value, Brand positioning which in turn leads to grass equity.Loyal customers, parvenu customers or the people who are gifted will get attracted to this newfound product and the company which in turn increases companys reputation. As online boutique offers the gift hampers which are very big-ticket(prenominal) to the reach of normal class they would like to try the products available in stores for relatively cheaper price which in turn takes snitch awareness, creates more brand value and positions itself in the market which leads to brand equ ity. In fact it looks like its ferreros new strategy of value innovation to come out of ambition of chocolate brands red oceans which includes fierce competition with Cadbury, nestles or mars. So its aiming to create significant leap in value for customers as well as company who will make its competitors feel obsolete to create a contested market place with positive impacts on the other products in stores and supermarket to boost up.CONCLUSIONAs Australia is a very posh, urban, full of literates, modify and aware of western culture the idea of opening online boutique was uncovering for the company that targets the niche market. Through the discussion above it is implied that the online boutique will not have any negative impact on the other business segments as the distribution channels for online boutique and stores products are different and both focus on different needs of consumers. Store products focus on daily needs of a person where as online boutique on special needs like gift items. Positively it creates brand awareness for all products.Q2-How can ferrero use new technology to market its products better?A-Even though ferrero is establish well in Australia its always a little terror to a confectionary products to stay stable in market because of change in taste preference, emergence of new competitor or threat from existing competitor. With arising new technologies the company can make use of it efficaciously to create brand awareness and build long term kindred with the existing customers which is very important for a luxury brand like ferrero who target niche market.Attract new customersThere is numerous hunt club engines like Google, Yahoo, Microsoft that help the customer to find the stores or business via internet or mobile search. As People hardly go beyond the first page of tilts its important for company to focus on take care Engine Optimizer(SEO) to optimise the metadata knowledge and enable ferrero website to popup in the first list ing when customers search for confectionary products (SupportGoogle, 2012).Web Blogs and Community- Ferrero create blogs and at least two communities to create online marketing, one community for Stores and Supermarket products and one for online boutique to avoid confusion. These blogging sometimes use to drive search results to let customers find the company and to gain great attention.Social Medias are web or mobile based tools for communion and discussing information. Ferrero can tap into the powerful networking sites to drive customers. Social networking sites like governance book, twitter, MySpace, LinkedIn, YouTube can provide inexpensive but powerful online marketing. Ferrero should create modern pages to attract users. It can think of allowing to buy products in these networks or can provide link that will allow them to buy in a click go. Additional opportunities include online radio shows on platforms such as BlogTalkRadio. This is very good media to be in direct touch with customers and get their feedback about the products and building one to one consanguinity where around 608 gazillion at the End of 2010 people were actively using social media like facebook (TheProvince, 2010).Delight existing customers and create high life time loyalty. The first thing important for a luxury product like ferrero is to find out the customers who are profitable and then try to create a long relationship with them as its cheaper to retain existing customers than acquiring new one (kotler Armstrong, 2012, p. 36). To do this CRM is the take up technology used by many companies.CRM (customer relationship management) is an information industry to manage detailed information about the customers and carefully manage customers touch point to maximise customer loyalty using methodologies, software, and Internet capabilities (kotler Armstrong, 2012, p. 143).It consists of sophisticated software and analytical tools to integrate customers information from all source s and analyze them deeply and apply results to build strong customer relationship. So regency, frequency monitory value (RFM) is used to identify the best customers. The companies should focus on high customer life time value (CLV) and use methods to deal with them likeMobile marketing- These days cell subscribers transform almost all messages they receive and can reach them in minutes. Ferrero should target the most loyal customers and text them about the offers or coupons to redeem in places that match their status, promotions, addition of new products. Apart from this it should focus in applications to be downloaded in app store to be used by iphones, ipad or it can target android as well for black berries .It can create application that will allow the customers to buy their products in a liberal click using the application in their phones.QR codes are two-dimensional prowess (similar to barcode) contains information that customer needs like coupons, direction, contact informa tion, availability of products etc. To read QR codes the customer need to download QR reader, then they need to take a picture of the code or scan through it to get the information that is embedded in the code (News C. , 2012). Ferrero can place these codes in ads, websites, in emails or on any other printable booklets or digital medium where camera can scan through the picture. This new technology will create anxiety among customers to know about it and will create more brand awareness.Email Marketing Service supplier like mail chimp allows subscribers to send up to 500 emails per lead and 3000 emails per month for no cost. Ferrero on identifying the profitable customers should send personalised emails or messages on their important days like birthday, anniversary, and festivals to show them how they value the customer and how important they are for the company. This leaves a positive impact in the customers who cares about the service. Email newsletter program enables customer t o maintain an ongoing awareness of the company and this remind them about the company when they want service. A pro communication can reinforce branding message.Other than these new technologies ferrero can continue with the old mode of advertising and sponsorship to maintain the status of the fasten in people mind. It should target the upcoming Olympic in capital of the United Kingdom 2012.Ferrero can provide advertisements in the corporate blogs and community to attract the business officials and aware them that they have corporate gifts for them. This will attract high end business officials.CONCLUSION-With the emerging technologies, it is implied that ferreo has wide range of technologies to build customer relationship which is the main motto of the company that includes blogging, creating new communities, use of social media, displace personalised emails or messages, advertising in corporate blogs, mobile marketing as well as SEO to create long term relationship with custome rs and create new customers and make more brand awareness.