Ferrero Group

Ferrero Group
Soumik Coomar
Student ID - 2117835
Introduction
Who are we
• Ferrero, is an Italian multinational manufacturer
of branded chocolate and confectionery products
with its headquarters in Luxembourg.
• We are currently the second biggest chocolate
company in the world.
What we do
• We are known globally for our signature brands
like Ferrero Rocher, Nutella Kinder and Tic-tac
alongside other brands.
History of the Company
• Alba, Italy 1946 - Piera and Pietro
Ferrero transformed their pastry
shop into a factory.
• Pietro Ferrero invented a cream of
hazelnuts and cocoa, derived from
gianduja and called it Pasta
Gianduja.
• Pietro was succeeded by his son
Michele Ferrero as chief executive.
The company is currently run by
Giovanni Ferrero, grandson of Pietro
and son of Michele Ferrero.
• 1964 – Nutella was officially
launched and eventually took the
position of the world’s leading
chocolate-nut spread.
Internal Evaluation
Steps taken to
Current Situation Key Challenges
tackle challenges
Code of Business
Core Values
Conduct
Current Situation
Key Challenges
1. Focus on Vegan consumers
2. PHE 20% sugar reduction target
3. Sugar taxes by governments
4. Nut allergies
5. Immense competition and High
pricing
Solutions to current challenges
Core values of the
Ferrero group
• LOYALTY AND TRUST
• RESPECT AND RESPONSIBILITY
• INTEGRITY AND MODERATION
• PASSION FOR QUALITY, RESEARCH AND
INNOVATION
• ENTREPRENEURSHIP
• WORK, CREATE, DONATE – THE FERRERO
FOUNDATION
Code of Business
Conduct
• Excellence in quality and safety of
products
• Commitment to the protection of
human rights
• Environmental protection and
sustainability
• Guarantee of the conditions of the
workplace
• Commercial integrity
Internal environment capability analysis
Corporate social responsibility (CSR)
Core competencies
Sustainable competitive advantage
Solutions to current challenges
Corporate Social Responsibility (CSR)
• The Group’s outlook to sustainability is based on “Sharing values to create value”
• The CSR strategy is currently divided into two main subject areas: People and the Planet.
Core Competencies
• Ferrero Rocher gives great taste and is a high-quality product
• Expertise in products related to Hazelnuts
• High brand loyalty from consumers
• One of the leading names in the high-end chocolate market
• Huge cost advantage due to increased production capacity
Sustainable Competitive
Advantages
Creation of high- Reducing cost of

quality products production
Strategic Acquisitions High Capex structure

for increasing
production capacity
Consumer perceived Value
• Maintaining the quality for decades has given them an immense brand loyalty
• The rich golden packaging of Ferrero Rocher inside a transparent box imparts a feeling of luxury
• Despite of having numerous cloners around the market, none of the companies could bring the
unique flavor of Nutella and Ferrero Rocher.
Strengths
1. High brand loyalty due to the quality provided in its products like Ferrero Rocher and Nutella.
2. Unique golden packaging has become a trademark of the company which gives a luxurious feeling to the
consumers
3. High capital expenditure and efficient management results in fast growth.
4. The unique taste of Quality in the products couldn’t be replaced by the cloners in the market.
5. Strategic acquisitions made by the group helps them reduce cost and create growth
Weaknesses
1. High pricing helps the company maintain their status as a luxury brand but also affects the
overall turnover as the products don’t reach the masses.
2. Intense competition in a niche market leads to a slower growth rate
3. Sugar taxes and guidelines issued by authorities
4. A spike in the health/calorie conscious population might act as a barrier to sales growth.
References
• Ferrero (2015). The Ferrero Group. [online] Ferrero.com. Available at:
https://www.ferrero.com/the-ferrero-group/a-family-story.
• Ferrero Sustainability Report 2021. (n.d.). [online] Available at:
https://www.ferrerosustainability.com/int/sites/ferrerosustainability_int/files/2022-07/ferrero_book_1307_i
nteractive-compressed.pdf
.
• Razorfish for Ferrero (2017). Ferrero - Key Figures. [online] Ferrero.com. Available at:
https://www.ferrero.com/the-ferrero-group/business/key-figures.
• W
‌ ikipedia Contributors (2019). Ferrero SpA. [online] Wikipedia. Available at:
https://en.wikipedia.org/wiki/Ferrero_SpA.
• P
‌ ublic Health England (2017). Sugar reduction: Achieving the 20%. [online] GOV.UK. Available at:
https://www.gov.uk/government/publications/sugar-reduction-achieving-the-20.
• B
‌ BC (2017). Radio 4 in Four - Seven reasons why people are going vegan. [online] BBC. Available at:
https://www.bbc.co.uk/programmes/articles/5PBX369GxWfBHFHFRrkCvCl/seven-reasons-why-people-are-g
oing-vegan
.
• BSACI. (n.d.). Peanut and Tree Nut Allergy. [online] Available at: https://www.bsaci.org/guidelines/bsaci-
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