SUMMARY

Ferrero is an Italian manufacturer of chocolate products founded by confectioner

Pierto Ferrero in the year 1946 based in Pino Torinese. In New Zealand, Australia,
Canada, Hong Kong, Singapore, Malaysia and other countries or regions, Ferrero
was considered as one of the most popular gift options for the holidays. The
Ferrero Chocolate Company keeps exploring its brand awareness. At present, the
Ferrero Australia decided to open an online boutique. Online marketing is one of
the most vital business steps of the growth of a business or brand, regardless
with which kind of marketing form. Internet marketing can definitely help
expand Ferreros domestic market in Australia. In fact, the Ferrero Australias
online boutique decision is somewhat closely related with Ferrero Companys
interaction with the new technology. For example, Ferrero has used some social
networking to increase its brand awareness. Social media is rapidly changing by
means of communication between businesses and their customers. The well-
known social media companies, Facebook, Twitter and Word Press are three
major social media networks in the world. Social media becomes the most
popular communication form on the Internet with its attractive and compact
design. Ferrero companies also use social networks to spread their charity
program in order to attract more public attention.
Question1, Part 1:Evaluate Ferrero Australias decision to open
an online boutique.
In Australia, chocolates are always on high demand during festive seasons mainly on
Christmas. Australia has launched the first online boutique in November 2010 due to the
interest and demand from the public. These chocolates are wrapped classy in beautiful
keep sake box in order to make the special occasion more special.

Because of the familiarity of western culture, Ferrero choose Australia to lead its Asia
pacific market. Australia is a country of various culture with majority of Christianity, Roman
Catholic (25.8%), Anglican (18.7%) and rest (19.4%).The configuration of religious groups
includes the Buddhism ,Islam, Judaism, Hinduism, Sikhism and Indigenous etc (Australian
Bureau of Statistics, 2007). There are people who celebrate various festivals throughout the
year in different place like this. When comes to festival, exchanging gifts is their tradition
and this leads demand on chocolate hampers throughout the year.

According to the (WorldBank, 2012), the reading ability rate in Australia is about 99%. GER
(Gross enrolment ratio, Total is the total admission 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 highly educated country (WorldBank, 2012).
Based on the Internet World Stats around 80.1% of Australian population use internet
which cover around 17,033,826 users of August 2009. Meanwhile 22.8% of the population
subscribing broadband connection as of September 2007

Ferrero Online boutique offers first-class chocolate for special event.
Besides, it positions as a status symbol with high class product which is
seen as a classy and elegant. At the same time pricing is also too high. This
is targeting the high income range of people which is niche market.
Therefore, in a place like Australia it can find a range of customers to buy
the product that mainly concerns about the social status, pride and
quality of service. The limited edition in variety always creates a demand
among the customers.

Australia is an urban country and according to World Bank report the
density of population in Australia is 2.86 people per SQ km in 2009 (CIA,
2012).This clearly shows that the Australia is a huge country with less
population. Therefore people there would choose to do online shopping
rather than travelling long for the store shopping.

People in the country like Australia much prefer to find the easier way to
get things done in short period. Hence, opening online boutique using
internet as a media in such country will provide a convenient method to
satisfy their dear ones on special event. Furthermore, this does not
required much time. As a matter of fact company is meeting its mission as
well as customer reliability.

Question1, Part 2: Will this have any impact on the companys
other business segments?
Mainly there are three distribution channels Ferrero use to make
their product to reach their customers. These is include with
online distribution channel, physical retailer channel and
supermarket retailer. Towards the online distribution channel
Ferrero emphasize on the high income grade of population and
aim specially the event as gift hamper.

The worth of the products in online boutique is very high and
providing only limited number of variety to make it stand as a
high status symbol. Thus, the product is a specially designed gift
hamper for a special occasion or it can be used for corporate
gifts which is aiming the high business officials. With this
intention, it is available through online and these hamper can be
purchased in the stores too.

Ferrero chocolate, nutella, tic tac, kinder surprise focus on daily needs
of a person which can be consumable at all the times of the day are
distribute through physical retailers and supermarket distribution
channels. If compare to the online boutique hampers, the prices for
these product are reasonably low. Therefore, 4p of the traditional
Ferrero products and online boutique is unalike and would not have
any negative impact on the other business segments.

Yet, there will be positive impact where online boutique can increase
the brand awareness, brand value and brand positioning which in turn
leads to brand equity. Since online boutique offers the gift hampers
which are very exclusive to the reach of ordinary customers, they
would like to try the products available in stores for relatively cheaper
price which in turn creates brand awareness, creates more brand value
and positions itself in the market which leads to brand equity.

Question2: How can Ferrero use new technology to
market its products better?
Ferrero can create brand awareness and build long-term relationships
among their existing customers and new customers with the
availability of sophisticated new technologies.

Social Medias are web or mobile based tools for sharing and discussing
information. Ferrero can tap into the powerful networking sites to
drive customers. Face book, twitter, MySpace, LinkedIn, YouTube are
the example of social networking which are classified as powerful
online marketing. Under these circumstances Ferrero able to create
classy pages through these social networks to attract users as well as
increase its brand awareness.

Besides, Ferrero could build up blogs with minimum two groups to
create online marketing where one group for Stores and Supermarket
products and one for online boutique. These blogging occasionally use
to drive search results to let customers find the company and to gain
greater attention.

Turning to mobile marketing which will be the easiest and fastest tool
to reach customers. Ferrero should aim their most loyal customers and
update them about the offers or coupons to redeem in places that
match their status, promotions, addition of new products through
mobile. Ferrero also could concentrate with applications to be
downloaded in app store to be used by iPhones, Ipad or it can target
android as well. Customers can buy their products just with easy click
using the application in their phones.

Furthermore Ferrero could use the Quick Response code which is
similar to barcode. Customers need to download QR reader, and then
they need to take a picture of the code or scan through it to get the
information that is set in in the cod. Ferrero can add these codes in
ads, websites, in emails or on any other print media medium where
camera can scan through the picture. This new technology will create
concern among customers to know about it and will create more brand
awareness.