When I checked my sales figures to see what is tantalising the taste buds of my customers, I was interested to see that the number one position was occupied by Ferrero-owned Kinder Chocolate – the 25p price-marked bar, primarily aimed at children.
A vital element of its growth within my store is Ferrero’s use of a field-sales team. Not only does its representatives sell products to us, they also inform us of their latest company developments, provide PoS and merchandise their confectionery items. This cooperation helps increase sales and strengthens the working relationship between us.
Ferrero has identified what is unique about its products and used those key features in new products to increase their portfolio.
For example, since the launch of Nutella they have used it in a range of products aimed at different demographics. By including a popular ingredient in different formats, they enable themselves to succeed in different segments of the market rather than just one, maximising market share and sales.
Many Ferrero products are available in price-marked packs, while still retaining a healthy profit margin. It’s of benefit to the customers as they feel that they are not being exploited and are being charged a fair price.
A big reason for the success of the 25p Kinder Chocolate bar is the price as it allows many children who enter my store to buy two bars for 50p or four bars for £1, which is more appealing than alternatives that are price-marked at 30p.
The company has demonstrated that implementing a strategy that includes working with independents can be fruitful.
I hope Ferrero's rivals are paying attention and learning from its accomplishments, because if they do, not only will it help to increase sales in my store, but also take the industry to the next level.