Redesign of marketing strategy
Based on the thorough analysis of Nutella’s current marketing strategy along with its potential problems that arise from a series of external reactions, it is of great necessity to transform Nutella’s traditional positioning and targeted consumers and explore some feasible repositioning and redesigning approaches given the influence from the ‘bad press’ as well as the changing consumer trends.
Firstly, before taking any risky and transformational actions, Nutella would be advised to publicly apologise for any concerns and mistrust that might have caused out of the report claiming the unfavourable health impacts of palm oil. This explicit expression of attitude would be a reminder and preparation to launch the new marketing strategy in addition to the speech given by Nutella’s spokesperson 2 years ago about priority on health and safety via selection of raw materials and strict adherence to the parameters set by European Food Safety Authority (‘‘Nutella fights back’’, 2017). It is suggested that Nutella specifically form an after-sale customer service and guarantee to remedy all proven health issues due to consumption of Nutella spread as an active and substantive way to claim palm oil unharmful or negligible if any to health supported by thorough multifaceted scientific tests (Chong, Y. H., & Ng, T. K., 1991 ; KMukherjee,S., & Mitra, A., 2009)
After that, a series of actions can be implemented using the analysis from 4Ps of marketing for Nutella. It is already a big success opening some experience stores worldwide but the number of offline Nutella cafes in Australia is yet to be expanded either via direct operation or collaboration with local cafes and confectioner’s shops. Moreover, an offline to online transition should be slowly facilitated by first optimising the layout of the Australian sector website. The two main changes should be focused on the community and recipes with Nutella and a detailed map of offline stores nearby. The sales of Nutella products in supermarkets should be maintained in the short term and offline stores serve for diversion of customers from offline buyers to online sponsors. Such transformation processes are considered a major step to alter market positioning and to emphasise brand equity as well as the new customer relationship.
As commonly known as a ‘‘companion of breakfast’’, the scenarios of consuming such products are quite restricted, especially when there is an increasing amount of consumers seeking for healthier substitutes. Instead, Nutella should make use of the public opinions and be the first company that step further to shoulder more social and environmental responsibilities in terms of usage of palm oil. To reposition in this severely competitive market, a slogan from ‘‘say good morning with Nutella’’ to something like ‘‘Nutella, spread our love’’ or ‘‘Love continues, Nutella’’ shall be recommended in compliance with the new marketing strategy.
Following the repositioning of the product, Nutella might also consider designing a new version of package for Nutella advocating a scheme that supports the happy childhood of Indonesian and Malaysian kids and fair employment of workers who live on the islands of those regions with numerous palm trees. For example, a donation of 9 cents can be made to build a better place for these islanders with educational support such as scholarships and community bonds to achieve a sense of belonging. Moreover, we can organise another activity in Australia that encourage kids to come with their families to any Nutella DIY shops so that these unique creatures can be given as presents to kids from those islands. This special activity aims to pass on the love by letting them know their contributions to every happy meal we had had. Besides, any people can buy these personalised jars of Nutella remaining after the gift of Nutella love jars at any price above its cost, all the money would be donated to the programs mentioned above.
Commercial Value
With application of this new marketing strategy, Nutella would not only exploit existing criticism to create a momentum that better suits its long-term goals and future trends, it can also transform into a community-based service provider which embodies infinite possibilities and boundless commercial values. The concerns and mistrust would add up to brand equity if managed properly and with a series of supporting techniques. Undoubtedly, the old strategy succeeded by segmenting a specific situation of consuming Nutella (breakfast). Nonetheless, Nutella needs constant endeavours to innovate that ultimately allows for sustainable growth. Hence, Nutella should perceive the trends in food industry and shifts towards individualised and emotional needs and demands. The potential strategies redesigned as a response of the palm oil issues should then be further evaluated and be given a chance to be partially taken into consideration if necessary.
It is also worth noticing the risk of implementing such a revolutionary change in too little time. As a consequence, initialising by calming the customers would be thought of as a good start to recover the 3% drop in sales in the short run. The switch of business model in longer term is more likely to capture the generalised tendency of consumer behaviour, or in this case the behavioural patterns of users (of services and products) instead. Once the business model is improved as experiences accumulate, Nutella would lead Ferrero into a more prosperous age and yield incomparable and irreplaceable advantages and a prospective future that generate enormous commercial values as an incidental side-effect.
Future Scope
As long as the new set of marketing strategies are to be carried out progressively and consistently, Nutella should have all the potential to grow into a much larger scale company with comprehensive functions and a more efficiently organised business model with new logistics, information flow and cash flow. Although it is possible for Nutella to suffer a financial loss in the short term when implementation first takes place, it is definitely worth a try as scaled failure is also a good way to learn and grow. By all means, the emotional bonds strengthened by this new strategy on top of all previous advertising campaigns cannot be measured in terms of money. From an ethical perspective, the willingness and determination to benefit not only customers but society and environment as a whole would earn trust and admiration from the general public once again. If Nutella is to become the first to set standards of morality in future food industry, this would help Nutella maintain a long-lasting knockout superiority amongst all followers. These intangible assets in turn would arouse positive public opinions and add value beyond measure to the container of the brand.
As a result, Nutella would be able to work towards a more potential ‘‘ecological niche’’ and integrate itself as a pivotal part of a bigger picture. It is after all en era that will start to witness competition amongst ecosystems, services, concepts and business models rather than any particular products that any companies can produce if sufficient investment is made. It is not the product itself that matters, it is what messages it transfers and what linkage it has with the world that best characterizes a specific product.
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