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rrAdvertising Group

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Nutella is the original Hazelnut spread. Ferrero Group,
Nutella’s parent company, was established in 1946. The
mission of this advertising campaign is to promote Nutella
as a quick and tasty meal solution for families. Our big
idea, “Delightfully simple. Irresistibly easy.”emphasizes
that idea, which is important because we want to reach
our primary target audience of mothers between the ages
of 25-49 and our secondary audience; children from agesof 25-49 and our secondary audience; children from ages
6 to 16. Our agency, rAdvertising Group, utilized print,
television, and online ads, in addition to a number of brand
activation methods in order to appeal Nutella to the those
target demographics.
Executive Summary
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Table of Contents

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Our Agency Identity
rAdvertising Group is a full-service advertising agency that is
dedicated to creating advertising campaigns that go above and
beyond the needs of our clients. We were founded in 2016 and
quickly established ourselves as a less conventional and more
amicable alternative to traditional advertising agencies whileamicable alternative to traditional advertising agencies while
being even more effective. We do this by identifying the variables
that are currently affecting the product or service of our clients,
and working diligently to come up with the right solutions.This
starts by not only familiarizing ourselves with our clients, but also
with their vision for the future. By doing this, we enable ourselves
to create a plan with a thorough and unique execution that brings
their vision to a reality. To achieve this, we use a seven-steptheir vision to a reality. To achieve this, we use a seven-step
process that allows us to do the best work possible for any client
in any situation.
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rrAdvertising Group
We Listen
We Understand
We Plan
We Create
We Adjust
We Evaluate
We SucceedWe Succeed
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Pietro Ferrero, a pastry maker and founder of the Ferrero company, creates an original recipe in the
Italian region of Piedmont. WWII rationing leads to a scarcity of cocoa, so Ferrero uses hazelnuts in
order to extend the chocolate supply.
In France, Senator Yves Daudigny proposes a tax increase on palm oil. At 20%, palm oil is one of
Nutella’s main ingredients, and so the tax is dubbed the “Nutella Tax”. A $3 millon lawsuit is
settled against the Ferrero Company because Nutella is advertised as healthier than it really is.
Nutella is first imported from Italy to the U.S.
February 5th is declared “World Nutella Day”
Ferrero’s "Pasta Gianduja” is made in solid blocks and wrapped in tinfoil, so it can be sliced and
spread on bread for mothers to make sandwiches for their children. Most kids throw away the
bread and only eat the Pasta Gianduja, so Ferrero alters the product into a paste and packages it
into a jar. This becomes known as "Supercrema Gianduja”.
1940
1946
1964
1983
2007
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Nutella became a topic of political debate in France, where a tax proposed on palm oil (a main ingredient in Nutella) was deemed the “Nutella tax” by French media.
Nutella was sued in a class action lawsuit in 2012 for false advertising. The lawsuit was based on Nutella’s claims of their product "part of a nutritious breakfast",
which implied health benefits of the product. The court ruled that Nutella had to refund up to $4 per jar for up to five jars returned by customers, in addition to
changing to Nutella's labeling and marketing, including television commercials and their website.
Nutella is the most popular hazelnut spread on the market; however, there are others that compete both domestically and internationally. Jif, of J.M. Smucker
has introduced a chocolate hazelnut spread. Jif has targeted the cost-conscious consumer by marketing their spread as a less-premium product than Nutella. Jif
has expanded their hazelnut-based product line to include different flavors such as cookies n’ cream, chocolate cheesecake, and salted caramel. Hershey’s has
also introduced a “chocolate with hazelnut” spread, which competes with Nutella at a lower price. Nocilla is a competing product that outsells Nutella in Spain
and Portugal, but is not sold in the U.S, and Nocciolata is an Italian hazelnut spread that is USDA certified organic.and Portugal, but is not sold in the U.S, and Nocciolata is an Italian hazelnut spread that is USDA certified organic.
At $3.99 for a standard 13oz jar, Nutella is among the most expensive hazelnut spreads, outpricing its name brand rivals. Also, Nutella can be substituted
with other spreads such as peanut butter. An 18oz jar of store brand Wegmans peanut butter costs only $1.50. Nutella is a normal good; thus, when real
household income rises, more parents are willing to splurge on Nutella for their children. Conversely, Nutella sales will be deterred by economic downturns
when families may swap it out for inferior but cheaper alternative products.
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Competitor Analysis
- J.M Smucker Co owns 34% of
the market share for spreads
- Gluten free and high in protein
- Iconic partnership with Smuckers
jelly
- Jif and Hershey’s offer various flavors
- Jif and Hershey’s are competitively priced
- Justin’s boasts top ingredients, and is a
less sugary alternative
- Generic store brand hazelnut spreads
are the most competitively priced on the
market
- Favorable creamy consistency
- Little to no brand awareness
- Taste and quality are inferior compared
to majority of spreads
- Category awareness and loyalty is
dominated by Nutella
- Justin’s is the most expensive on the market
- Plethora of direct competitors
in the peanut butter group
- High in fat
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- Brand popularity
- Capitalizes on recipe sharing websites/apps
- Strong social media presence
- Portability with Nutella & Go
- Delicious taste!
- Growth rates and profitability
- Increasing disposable income in the U.S
- International attraction to Western breakfast styles
- Adaptable to different meal categories
- Peanut butter as a competitor
- Similar hazelnut spread products
- Ferrero was sued for healthwashing
in a class action lawsuit in 2011
- Lack of nutritional value
- 2 tablespoons contains 21 grams of sugar
- Limited advertising/penetration
in emerging economies
- High sugar/fat content can lead to
a loss of trust
S.W.O.T. Analysis
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Budget
Internet
22.6%
Newspaper 34.2%
Television
23.2%
Magazine
19.8%
We aim to increase sales of Nutella by 7% through the implementation of this
campaign. We will achieve this by consistently emphasizing the convenience
and versatility of Nutella through all elements of the campaign.
Objectives

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Our primary research was conducted through a survey sent out to a variety
of mothers ages 25-49. Since 100% of those surveyed were within our
target market, we are confident that our results are a good reflection of
that demographic.Out of the 23 surveyed, we received 19 responses. We
are confident that our results are a strong reflection of the target market.
We were able to conclude that 100% of our target market has heard of-
Nutella, indicating high brand-awareness. Within that group, 68.4% (13
out of 19 participants) had actually purchased Nutella at some point inout of 19 participants) had actually purchased Nutella at some point in
their lifetime. When these same 13 people were asked why they purchased
it, 53.8% said that it was because of flavor and 30.7%, said that it was
because of convenience. The remaining 15.5% had a mix of reasons for
buying Nutella, mostly indicating they had made their choice due to WOM.
The most interesting results were the responses regarding breakfast habits.
When asked if they consistently made breakfast in the morning for them-
selves or their kids, 5 respondents (26%) said that they did not. Upon
asking why, nearly all said that they do not have sufficient time in the
morning to make breakfast. The remaining 14 participants were asked
what kind of problems they have in the morning when they do make
breakfast. Out of this group, 3 had difficulty coming up with breakfast
ideas, 6 also struggled with time and the remaining 5 did not indicatea
problem that affected their morning. Upon analyzing this research, it's
clear that lack of time in the morning is a major problem for our target
market when making breakfast. Coming up with satisfying meals to
make was another problem for some women in our market.
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- Determine Nutella’s popularity within the market
- Discover what compels people to purchase Nutella
- Better understand people’s breakfast habits
Research
Through our research, we learned that Nutella
has a very strong market position, controlling
70% of the market share, showing that Nutella
is truly the go-to hazelnut spread for consumers.
We also learned from a blind taste test from the
Huffington Post, that Nutella is objectively the
best tasting hazelnut spread on the market out
of seven competing brands.of seven competing brands.

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Brand Value Proposition
Nutella offers a quick and easy spread that satisfies the typical consumer chocolate craving. Nutella is a healthier substitute to
chocolate, but does not sacrifice taste. The spread can be used to create simple breakfasts, lunches, and desserts for consumers
of all kinds. Nutella is the perfect snack and addition to meals for all chocolate lovers who want to safely indulge their cravings
to the fullest with our hazelnut spread.
Nutella signifies a fun, stress-free environment for enjoyable meals. Customers that purchase Nutella are family oriented people who
cherish the fun times shared with others. Nutella also represents an increase in demand for foreign products. This is a growing trend
exhibited by high-end grocery stores such as Whole Foods. Nutella benefits from its Italian routes as it caters to a culture in which im-
ported food is viewed as premium. People who buy Nutella often feel trendy due to its Italian origins and growing popularity.
Choosing Nutella over other spreads brings happiness to consumers as it is one of a kind. Nutella provides the simple chocolate
taste that so many consumers desire at any time of the day. The signature hazelnut based recipe brings comfort as the customer
can enjoy a guilt-free chocolate taste as applied to whatever they are eating. Each jar of Nutella spread is crafted with care to
allow indulgence, minus the health sacrifice that usually brings.

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Target Market Profile PRIMARY: MOTHERS AGES 25-49
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This campaign will focus on the irresistibly delicious and convenient nature of Nutella’s
hazelnut spread. By reinforcing both the superior taste and simplicity of the product, our
target market will know that they can always count on Nutella to make meals easier and
more satisfying. This will also help shift the product focus away from falsely promoting
nutrition and, instead, rightfully promoting flavor and convenience.
With the increasingly high saturation of spreads on the market, adult women are having a difficult time choosing which to buy
for their children. Additionally, Nutella lacks the nutritional value of some spread alternatives, so it is important to find a way
to shift the focus away from nutrition. Finally, our research shows that adult women who prepare breakfast for their families lack
sufficient time in the morning.
Nutella has the highest brand awareness in its category. It is widely considered as the best hazelnut spread on the market. Nutella
should be able to fend off lower-priced competitors and retain its reputation as the leading spread by leveraging its quality.
Campaign Strategy
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Part of what makes Nutella such an attractive and popular brand are its distinct design elements. Throughout our campaign we
will be consistently integrating Nutella’s unique sans serif bold font and brand colors (brilliant red, black, and white) that are
widely recognized. Our executions will highlight our big idea by displaying the way in which Nutella is a “delightfully simple”
and “irresistibly easy” breakfast solution for families.
When consumers buy Nutella’s hazelnut spread, they should know they are simplifying their meals while also making them more
delicious and satisfying. Our advertisements will reinforce our brand promise by sharing creative ways to use Nutella to make
exceptional meals in no time at all. By using this strategy, we effectively position Nutella as a remedy to the stress that women
in our target audience face when making meal choices for their children - especially in the morning. Specifically, it does this by
showing all the easy, yet delicious, meals that can be made with Nutella. Our advertisements are meant to persuade mothers
that they rely on Nutella as their breakfast necessity. Strategic execution of the campaign is vital to its success, so ensuring thatthat they rely on Nutella as their breakfast necessity. Strategic execution of the campaign is vital to its success, so ensuring that
these advertisements are placed in mediums and settings that resonate with our target audience is of the utmost importance.
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Our copy will effectively implement the big idea “Delightfully simple. Irresistibly easy.” by encapsulating various problems that
our target audience has and, then, positioning Nutella as the solution. This will be done with a paragraph of body copy at the
bottom of each print advertisement. In the body copy, there will also be a call to action. The overall layout and styling of the copy
elements will reinforce our brand promise, but the body copy in particular will be the final persuader that Nutella will, without
question, make your meals taste better in less time. The headline and subhead will also do this, but in a more direct way.
Creative Strategy

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Print Advertisements
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Television Execution

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Free Standing InsertOnline Advertisement
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Creative Testing
We collected qualitative feedback about our print advertisements from members of our target audience. They
were fond of the color scheme used in the ads, and their simplicity (of both visuals and copy) was seen as “very
kid friendly”, according to one respondent. The general audience perceptions of the ads were encouraging to
us, as respondents cited the “family-friendliness” of Nutella as one of their main takeaways. Almost all of the
respondents said our ads were visually appealing, and that they increased their likelihood of purchasing Nutella.
Feelings of inspiration for future breakfasts were another common trend among our participants. A recurring
recommendation from our respondents was that we include an estimated time it takes to prepare each recipe.recommendation from our respondents was that we include an estimated time it takes to prepare each recipe.
Overall, the ads were very well received, and required little change to best accommodate our market.

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Media Objectives
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Media Strategies

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Media Mix: Print Advertisements

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Media Mix: Television Executions

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Media Mix: Online Advertisements
Facebook is the most used social media
site in the world with an average visitor
count of 1.79 billion a year. Within that
number, there is a sigificant amount of
people in our target market. The
majority of Facebook users are on the
younger side, but 25-49 year old
mothers still use Facebook more thanmothers still use Facebook more than
any other social media platform.
Amazon is the largest online retailer in
the world with control over 75% of the
market share for online retail. Although
it has appeal to virtually every demo-
graphic, mothers make up a healthy
proportion of users. Since Amazon also
sells food products, advertising Nutella
on the site is extremely effective, for
mothers have the opportunity to buy a
jar with just a click of a button.
There are 165 million users currently on
eBay. The appeal of eBay for advertis-
ing purposes is that every demographic
goes onto eBay with the intent to spend
money to receive goods. Placing brand
awareness on this site will encourage
purchase of our product in the minds of
many consumers.many consumers.

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Media Scheduling and Budget
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Brand Activation

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Brand Activation

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Brand Activation

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Evaluation
The goal for this particular advertising campaign is to have 75% comprehension and 45% conviction
of our ads. In addition, we hope to ultimately have a 7% increase insales by the end of the year.The
following chart and graphs are a projection of how we anticipate each strategic media decision will
eventually lead us to our goals.
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Creative Brief
rrAdvertising Group

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Meet The Team!
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Meet The Team!
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