SUMMARYFerrero 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 Ferrero’s domestic market in Australia. In fact, the Ferrero Australia’s online boutique decision is somewhat closely related with Ferrero Company’s 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 Australia’s 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 it’s 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 company’s 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.

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