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Master Design Strategico
10th Edition

Nayda Flórez Venizelos

Ferrero DPU Internship Report
Nutella Emotions: The Cult Branding
Strategy

Politecnico di Milano, Poli.design
Milano 18,December 2009
The company
“Visions need to be communicate
through actions, behaviors and sounds”
               [ Klein Naomi,2000. No Logo, Random House]
Competitive positioning
                       Confectionary market


 1st
       Ferrero is the 13th largest packaged food
           company in the world, based on
       predominant confectionary, bakery, dairy
                 and spreads products.




                Strong positioning in
        fast-growing premium confectionery

13th
“Brands are now describe as cultural
accessories and personal philosophies”

   [ Klein Naomi,2000. No Logo, Random House]
Competitive positioning


                                        Relative Market Share
                                                                                    Focusing and developing a climate for growth
                                      HIGH                          LOW
                                                                                        inside the company and the consumers
                                      Stars                  Question Marks
Market Growth Rate

                     HIGH




                                                   confectionary
                                                                           Dairy
                                                                                    Investing in developing markets and expanding
                                                                                         worldwide
                            Spreads

                                              Bakery         Ice
                                                            cream
                                                                                    Focusing on enhancing the products to a higher
                                                                                        level of quality
                     LOW




                                                                                     TIME BASED COMPETITION.
                                Cash Cows                           Dogs                           Foreseeing*
                                                 Source: Boston Consulting Group.
                                                                                                market opportunities

                                                                                                                     *(Francesco Zurlo,2009)
Innovation

                                 Technology

                                 Products
radical
innovation



                                              It is important to consider or even balance
                                              the two aspects in order to respond to
                                              both of the market signals.


incremental
innovation

              similar   heterogeneous
Value creation cycle

              SALES
              Value in
              exchange


                                              PRODUCT     RETAILER
 BRAND                                        Potential   Value
 VALUE                                        value       facilitator
                              DPU                                       Value generation      Personal
                              Substantial                                   process            Value
                              Value creator                                                   creation

Value
proposition



                 MARKETING
                 Cognitive value
                                                                                  Focus on
                 creator                                                          value-for-exchange
General evaluation

    radical    incremental
 innovation     innovation


 customer      customer
satisfaction   service

   product     process
innovation     innovation

  product      brand
experience     experience

  premium      low-grade

  emerging     established
   markets     markets

     trend     traditional
responsive
The product
Product analysis
Product analysis




The history


The values


Confezzioni
Product analysis




 Mr. Michele Ferrero .
 War world II                    Nutella®(1963)
                                   Nut(hazelnut)
Gusto
                                   ella (dolce sufisso latino)
Divertimento
Piacere
Simbolo della bontà da
spalmare
Consolatorio per le ansie del
quotidiano
Value system

                      CONSUMPTION
                     Hedonism sphere           CONSUMER
                        Regression             day of living
SYMBOLIC EFFECTIVE                              conviviality
   psychological                                 pleasure
     functions                                transgression

                         HISTORIC CHARACTER
                             food heritage




   BRAND
  tradition
  nutrition
   energy
   vitality
Emotional                                      Consumer experience




World of sharing
                                            Rational
                                                           Cult brand             Iconic brand
                                                               Active             Passive
                                                       Entertainment              Education
                                                           Openness               Disclosure
                                                           Prosumers              Users

                                                       Chain reaction             Individual
                                                                                  reaction




                   World living privately
Consumer experience
Value creation cycle
        SALES




                                   PRODUCT
BRAND
VALUE
                                                       RETAILER
                       DPU




                              Value generation
                                  process
           MARKETING




         Focus on                                Focus on
         value-for-exchange                      customer practices
The methodology

                                                                                 Culture & Society
                                                    prestacional                     and trends
                                                                   Semiotic
  Macro environment
    of the product
      Top-down
                                              Technology
                                                                    perceptual
                                                                                           product
                                                                                           analysis




              BRAND                                      brand
            EXPERIENCE


                                      context of use
                                                                          consumer
                                                                           analysis
                              motivations &         Consumer
                                  goals             experience
Cotidianity of the product
                             Style of consumption
        Down-top
30gr
The brief
brief



                     Nutella Emotions groups the             Development of nutella as a global corporate brand
                     initiatives, leveraging on the          through:
                     deeper values and image of myth
                     and exclusivity are meant to
                     stimulate and develop the brand
                     image                                        Product valorization

Nutella Emotions is a project that aims to meet in                Alimentary positioning
        the
particular,                   emotional    needs       of
consumers.
                                                                  Emotional sphere(special occasions)
Allow    the        storage    and   transmission      of
institutional codes of Nutella.
                                                                  Strength loyalty and closeness
Reason        for      the      purchase   "gift"      and
"collection“.
brief




                    new channels                      Increasing the frequency of purchase and
                                                     consumption of the brand.


              Ho.re.ca*        Duty free
    self-
consumption                                   gift
                                                     Promotional activities of the brand> special
                                                     occasions
                                   Easter &
                                  Christmas


                 traditional channels                Development into new channels and / or
                                                     exclusive > Duty Free and Ho.re.ca
brief


                  traditional
 new channels
                  channels
       brand
                  product
    awareness

          trust   disbelieve


 identification   unknown

    emotional     practical


entertainment     education

  experiential    cognitive

       radical    incremental
   innovation     innovation

  experiential    cognitive
brief
                                                                                 Culture & Society
                                                    prestacional                     and trends
                                                                   Semiotic
  Macro environment
    of the product
      Top-down
                                              Technology
                                                                    perceptual
                                                                                           product
                                                                                           analysis




              BRAND                                      brand
            EXPERIENCE


                                      context of use
                                                                          consumer
                                                                           analysis
                              motivations &         Consumer
                                  goals             experience
Cotidianity of the product
                             Style of consumption
        Down-top
Value creation model
        SALES




                                  PRODUCT
BRAND
VALUE
                                                      RETAILER
                       DPU




                             Value generation
                                 process
           MARKETING




                                                Focus on
                                                customer practices
communities




3’353.775 fans




                 Cult
                 brand
Cult brand   Iconic brand
        Active   Passive
Entertainment    Education
    Openness     Disclosure
    Prosumers    Users
Chain reaction   Individual
                 reaction
Cult branding
                              LOYALTY                                                    model
                               DRIVES
                            PROFITABILITY




               RETENTION
                 Existing                   FREQUENCY
                consumers                    of purchase



                             WORD OF
                              MOUTH
                                new
                             consumers



less loyalty                                           more loyalty



ICONIC BRAND                                           CULT BRAND


                                                                      Source: Cult Branding Company
innovation




       *   *   *   *   *   *   *        *       *       *
High                                                                Self-actualization


                                                                     Esteem needs


                                                              Belongingness & love needs

                                                                       Safety needs

                                                              Biological & Physiological needs

Low                                                                       Maslow’s Hierarchy of Needs
                               Nutellino 30gr       Nutella
Cult branding
                                        model
CONSUMER        OCCASION-
ATTITUDES       CENTRIC NEEDS
Consumer         Need states
segment


USAGE           CONSIDERATION
EXPERIENCE      SET
                Product and
Revelas         Experience
opportunities   settings
Profiles
Need states


                       Smooth retrievers
                                                                      personal

                                 The lover
                The                lover
             naturalist
  Immoral
                                    The chef    naturally
indulgence                                      good for
               The                     The      me/us
                                                                                 adventure
             stacker                 spreader               passion


                The               The
             sandwicher          dipper
                        Social bitters
                                                                       social
The cult branding experience


The Cult Branding experience
through the packaging




    Self-indulgence   Life-styles   Mood booster   Globalism            Passion
Your packaging is as much a
   part of the experience
  as what is on the inside
                     Landor.
Listen to the   Make feel    Exploit your   Get
messages        your brand   packaging      emotional
Customer
    experience




*
Targets profiles
Moodboard 1
The golden rule of fun         The golden rule of freedom
 Cult brands sell lifestyles    Cult brands promote freedom
packaging
Life style




             Printed    Interior    Metallic
             interior   contrasts   caps
packaging
Passion




          n




              Dynamic   Treasure forms
              Opening     References
Moodboard 2
The golden rule of human needs           The golden rule of contribution
  Cult brands create evangelists   Cult brands always create customer communities
Mood booster   packaging
survival kit
Globalism                   packaging
Collectible world nutella
THANK YOU!

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Nutella Emotions The Cult Branding Strategy Presentation

  • 1. Master Design Strategico 10th Edition Nayda Flórez Venizelos Ferrero DPU Internship Report Nutella Emotions: The Cult Branding Strategy Politecnico di Milano, Poli.design Milano 18,December 2009
  • 3.
  • 4. “Visions need to be communicate through actions, behaviors and sounds” [ Klein Naomi,2000. No Logo, Random House]
  • 5. Competitive positioning Confectionary market 1st Ferrero is the 13th largest packaged food company in the world, based on predominant confectionary, bakery, dairy and spreads products. Strong positioning in fast-growing premium confectionery 13th
  • 6. “Brands are now describe as cultural accessories and personal philosophies” [ Klein Naomi,2000. No Logo, Random House]
  • 7. Competitive positioning Relative Market Share Focusing and developing a climate for growth HIGH LOW inside the company and the consumers Stars Question Marks Market Growth Rate HIGH confectionary Dairy Investing in developing markets and expanding worldwide Spreads Bakery Ice cream Focusing on enhancing the products to a higher level of quality LOW TIME BASED COMPETITION. Cash Cows Dogs Foreseeing* Source: Boston Consulting Group. market opportunities *(Francesco Zurlo,2009)
  • 8. Innovation Technology Products radical innovation It is important to consider or even balance the two aspects in order to respond to both of the market signals. incremental innovation similar heterogeneous
  • 9. Value creation cycle SALES Value in exchange PRODUCT RETAILER BRAND Potential Value VALUE value facilitator DPU Value generation Personal Substantial process Value Value creator creation Value proposition MARKETING Cognitive value Focus on creator value-for-exchange
  • 10. General evaluation radical incremental innovation innovation customer customer satisfaction service product process innovation innovation product brand experience experience premium low-grade emerging established markets markets trend traditional responsive
  • 13. Product analysis The history The values Confezzioni
  • 14. Product analysis Mr. Michele Ferrero . War world II Nutella®(1963) Nut(hazelnut) Gusto ella (dolce sufisso latino) Divertimento Piacere Simbolo della bontà da spalmare Consolatorio per le ansie del quotidiano
  • 15. Value system CONSUMPTION Hedonism sphere CONSUMER Regression day of living SYMBOLIC EFFECTIVE conviviality psychological pleasure functions transgression HISTORIC CHARACTER food heritage BRAND tradition nutrition energy vitality
  • 16. Emotional Consumer experience World of sharing Rational Cult brand Iconic brand Active Passive Entertainment Education Openness Disclosure Prosumers Users Chain reaction Individual reaction World living privately
  • 18. Value creation cycle SALES PRODUCT BRAND VALUE RETAILER DPU Value generation process MARKETING Focus on Focus on value-for-exchange customer practices
  • 19. The methodology Culture & Society prestacional and trends Semiotic Macro environment of the product Top-down Technology perceptual product analysis BRAND brand EXPERIENCE context of use consumer analysis motivations & Consumer goals experience Cotidianity of the product Style of consumption Down-top
  • 20.
  • 21. 30gr
  • 22.
  • 24. brief Nutella Emotions groups the Development of nutella as a global corporate brand initiatives, leveraging on the through: deeper values and image of myth and exclusivity are meant to stimulate and develop the brand image Product valorization Nutella Emotions is a project that aims to meet in Alimentary positioning the particular, emotional needs of consumers. Emotional sphere(special occasions) Allow the storage and transmission of institutional codes of Nutella. Strength loyalty and closeness Reason for the purchase "gift" and "collection“.
  • 25. brief new channels Increasing the frequency of purchase and consumption of the brand. Ho.re.ca* Duty free self- consumption gift Promotional activities of the brand> special occasions Easter & Christmas traditional channels Development into new channels and / or exclusive > Duty Free and Ho.re.ca
  • 26. brief traditional new channels channels brand product awareness trust disbelieve identification unknown emotional practical entertainment education experiential cognitive radical incremental innovation innovation experiential cognitive
  • 27. brief Culture & Society prestacional and trends Semiotic Macro environment of the product Top-down Technology perceptual product analysis BRAND brand EXPERIENCE context of use consumer analysis motivations & Consumer goals experience Cotidianity of the product Style of consumption Down-top
  • 28. Value creation model SALES PRODUCT BRAND VALUE RETAILER DPU Value generation process MARKETING Focus on customer practices
  • 30. Cult brand Iconic brand Active Passive Entertainment Education Openness Disclosure Prosumers Users Chain reaction Individual reaction
  • 31. Cult branding LOYALTY model DRIVES PROFITABILITY RETENTION Existing FREQUENCY consumers of purchase WORD OF MOUTH new consumers less loyalty more loyalty ICONIC BRAND CULT BRAND Source: Cult Branding Company
  • 32. innovation * * * * * * * * * * High Self-actualization Esteem needs Belongingness & love needs Safety needs Biological & Physiological needs Low Maslow’s Hierarchy of Needs Nutellino 30gr Nutella
  • 33. Cult branding model CONSUMER OCCASION- ATTITUDES CENTRIC NEEDS Consumer Need states segment USAGE CONSIDERATION EXPERIENCE SET Product and Revelas Experience opportunities settings
  • 35. Need states Smooth retrievers personal The lover The lover naturalist Immoral The chef naturally indulgence good for The The me/us adventure stacker spreader passion The The sandwicher dipper Social bitters social
  • 36. The cult branding experience The Cult Branding experience through the packaging Self-indulgence Life-styles Mood booster Globalism Passion
  • 37. Your packaging is as much a part of the experience as what is on the inside Landor.
  • 38. Listen to the Make feel Exploit your Get messages your brand packaging emotional
  • 39. Customer experience *
  • 42. The golden rule of fun The golden rule of freedom Cult brands sell lifestyles Cult brands promote freedom
  • 43. packaging Life style Printed Interior Metallic interior contrasts caps
  • 44. packaging Passion n Dynamic Treasure forms Opening References
  • 46. The golden rule of human needs The golden rule of contribution Cult brands create evangelists Cult brands always create customer communities
  • 47. Mood booster packaging survival kit
  • 48. Globalism packaging Collectible world nutella