Marketing Mix
Place
Product
Actual product: improved packaging (elegant look, WWF logo)
Promotion
Price
Augmented product: social media recipe suggestions ❌
Core product: unchanged
Move to high-end sweets section
Introduce into ingredient section ❌
Gradual increase to relatively premium
Introduce into high-end stores (Myer, etc)
Feature environmental org approval prominently
Target younger core audience through social media ❌
Elegent ads
Reduce (to frame as an ingredient) ❌
In-store samples of Nutella-featuring recipes
Target Segments
Environmentally-concerned
Typical persona
Shops environmentally conscious brands
16-30 years old
Avoids eco-damaging products altogether
Vegetarian or vegan
Method of targeting
WWF approval logo on packaging
Feature WWF logo prominently in ads
Older/Health-conscious
Typical persona
25-40 years old
Parent
Observes nutritional info of food
Cooks often
Method of targeting
Feature Nutella as an ingredient in otherwise healthy recipesi
Improve perceived quality through improved packaging (glass, more elegent labels, etc)
High-class commercials
Younger/Nutella lovers
Method of targeting
No specific targeting; assume that new brand image will have minimal impact on current core audience's consumption
Advertise as something to look forward to/highlight of day ❌
Purposefully ignore its poor nutritional value and focus on its great taste ❌
Typical persona
12-24 years old
Less concerned with nutritional value
Frequent social media user
Social media recipe competition ❌
Familiar with/enjoy Nutella
Current Issues
Environmental impact
Health impact
Problem: high in sugar
Solution: frame as an ingredient in healthy recipes
Problem: perception that unsustainable palm oil is being used
Solution: display WWF's approval stamp
Distribution
Intensity
Selective (supermarkets and select high-end stores)
Intensive ❌
Channel Structure
Low older demographic consumption
Problem: Nutella consumption negatively correlated with age
Solution: frame as elegant confectionary/cooking ingredient
Conventional
Brand Image
Brand awareness
Depth
Breadth
Current: limited to sweet spread, primarily for children
After re-design: includes luxury confectionary, cooking ingredient
Sufficient (well-known staple)
Brand associations
Current: breakfast, childish, unhealthy
After re-design: elegant recipes, rich in taste, storied history
Commercial Value
Costs of re-design
Packaging redesign (high short-term cost of reconfiguring production process
Advertising commitment (production of ads, purchasing spots)
Inclusion of WWF label (minimal cost)
Future benefits
Penetration into more wealthy older segments (long-term revenue)
Potential reduction in young consumers (should be outweighed by gains)