This paper deals with the marketing mix from the perspective of product policy, in the context of which a company decides not only on the introduction of new products but also on the elimination of products that are no longer successful. In order to be able to apply this instrument accordingly, the product policy is examined with a case study of the company Ferrero S.p.A.
Today's fast-moving world brings enormous challenges for companies and requires them to constantly adapt to the needs and expectations of customers as well as to the ever-changing trends in order to preserve and improve their market position. One way of making a decisive contribution to the success of the company is an efficient marketing concept. For companies, marketing is a central aspect of corporate management, which is sometimes quite cost-intensive and therefore, in the best case, should increase returns. Especially for companies that have established themselves in highly competitive markets, this can become a problem, whereby a meticulously planned marketing strategy represents a sustainable investment in the success of the company. In order to achieve this most effectively, various techniques and strategies have been developed. One of these tools includes the marketing mix, which can be used to develop success-oriented marketing concepts.
Table of Contents
1. Introduction
2. Theoretical Background
3. Product Policy of Ferrero S.p.A.
4. Best Practices
5. Conclusion
Objectives and Topics
This paper explores the role of product policy within the marketing mix, focusing on how companies strategically manage their product portfolios to maintain competitiveness. Using the confectionery company Ferrero S.p.A. as a case study, the research examines how product innovation, modification, and elimination are utilized to align with regional market needs and brand identity.
- Fundamentals of product policy and the marketing mix.
- Strategic versus operational product programming.
- Brand management strategies and their impact on customer loyalty.
- Packaging policy as a tool for market orientation and consumer appeal.
- Practical application of product lifecycle management at Ferrero S.p.A.
Excerpt from the Book
Theoretical Background
The product policy, which according to MEFFERT is the "heart of marketing", deals with the design of a product, a service and an assortment. It encompasses all activities of a company that are directed towards the market-oriented design of individual products or the entire sales programme. The central focus of product policy is the customer benefit or product benefit, to which the design of the service programme has to be aligned to. The product benefit can be divided into a basic benefit, which is derived from the technical-functional product characteristics, and an additional benefit, which consists of the edification benefit and the prestige benefit. These two special forms of additional benefit are the emotional benefit, which is particularly conveyed by the aesthetic appearance of the product, and the social benefit, which is essentially derived from the product image and helps the brand user to achieve social acceptance.
As part of its product policy, a company decides on the introduction of new products or product variations to the market and the elimination of products that are no longer successful. This can be done for entire product lines (strategic programming) as well as for individual products within a product line (operational programming). In the context of programme planning, it is also spoken of the product programme depth and width, which can alter due to changes made to the product (see Figure 2).
Summary of Chapters
Introduction: This chapter highlights the challenges of modern markets and introduces the marketing mix as a strategic tool for corporate success, specifically focusing on product policy.
Theoretical Background: This section defines the core components of product policy, including product benefits, program planning (depth and width), branding, and packaging strategies.
Product Policy of Ferrero S.p.A.: This chapter provides an overview of the Ferrero Group, describing its organizational structure, market reach, and the importance of its umbrella brand strategy in global confectionery markets.
Best Practices: This section analyzes the practical implementation of product policy using the specific examples of the Ferrero Rocher and Kinder brands, contrasting their respective positioning and packaging strategies.
Conclusion: This final chapter synthesizes the findings, confirming that Ferrero’s consistent brand identity and strategic product management are key drivers of its long-term market success and customer loyalty.
Keywords
Product Policy, Marketing Mix, Ferrero S.p.A., Brand Management, Product Innovation, Product Elimination, Customer Loyalty, Confectionery Industry, Packaging Policy, Program Planning, Market Orientation, Brand Identity, Strategic Management.
Frequently Asked Questions
What is the primary focus of this paper?
This paper examines the instrument of product policy within the broader marketing mix, using Ferrero S.p.A. as a practical case study to illustrate strategic concepts.
What are the central thematic fields covered?
The core themes include the design of product assortments, brand policy, packaging strategies, and the life cycle management of successful confectionery products.
What is the primary research objective?
The objective is to analyze how a company effectively utilizes product policy to adapt to customer needs, ensure market competitiveness, and maintain long-term brand success.
Which scientific method is applied?
The work utilizes a literature-based theoretical foundation combined with an analytical case study of the company Ferrero S.p.A.
What is covered in the main section of the paper?
The main section covers the theoretical definitions of product policy and follows with a detailed analysis of Ferrero's branding, product depth, and adaptation strategies in various international markets.
Which keywords best characterize the work?
Essential keywords include Product Policy, Brand Management, Market Orientation, Product Innovation, and Customer Loyalty.
How does Ferrero adapt its products to regional markets?
Ferrero adjusts its product range based on regional and cultural preferences, as seen in the elimination of products like Mon Cherie in Britain when they failed to meet local demand.
Why did Ferrero introduce "Kinder Joy" in the USA?
Kinder Joy was introduced as a substitute for the Kinder Egg to comply with strict US liability laws prohibiting non-edible objects within confectionery products.
- Quote paper
- Anonym (Author), 2021, An analysis of the product policy on the example of the company Ferrero S.p.A, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/1132460
