Export Practice Management (Ferrero Rocher)

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3.

0 Production Site
As mentioned in the case study, Ferreros production facility in Brantford plays an
important role in Ferreros development due to the fact that it contributes to major markets
around the western market. The production plant is measuring at one million square foot, where
it is then equipped with up to date machineries. With the aid of advanced technology, Ferrero
will be able to emphasize on quality control and cost management in order to outrun its
competitors. Furthermore, the production facility in Brantford is known to be efficient and
effective when it comes to production in terms of quantity and quality. Additionally, Ferrero has
taken the initiative to collaborate with Ontario farmers and governments to explore the hazelnut
farming sector in order to cater to the global markets demand. By doing so, Ferrero will be able
to open up job opportunities to the public moreover establishing a new market in Ontario,
Canada.
Additionally, the demand for hazelnut is currently undergoing a rapid growth around the
globe. Therefore, it is mandatory for Ferrero to establish a new production facility in order to
cater to market demand. Referring back to the case, in order to establish a new production
facility, there is a set of manufacturing location criteria that needs to be taken into consideration.
Criteria such as quality of life, market access, operating environment, cost, incentives, and
human resources contributes to the development of Ferrero. Besides that, cost structure plays a
crucial role in Ferreros development. This is because in order to outrun its competitors, Ferrero
will have to emphasize on cost competiveness. Canada was chosen due to the price of sugar is
relatively lower than the US and among lowest in the world, because sugar produced in Canada
does not depend on government subsidies instead it based on floating system of world raw sugar
market, therefore it helpes Canadian food manufacturers to compete internationally (CanadianSI,
2016). Finally, a large site must be taking into consideration for expansion of Ferrero plant as
well as the construction must be made quickly since both speed and size were critical factors for
Ferrero.

Q6
Standardization
Pros

Adaptation & Globalization


strategy
Cons

-Economies of scale
-Faster set up time
-Single coherent global image
-Excellent monitoring of
communication

-Higher Cost
-Times consuming and poor
speed of execution
-Difficult to know what
consumers really want

Brand Protection (Ferrero)


-Brand registration (with common law/civil law in USA
-Fake item (Ferrero products)
-Why is people still interest with authentic? The originality taste / recipe
-Ferrero Roche or etc

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