Thursday, October 11, 2012

Ferrero Rocher in China: great product but poor brand awareness

We can see that Chinese copies created a better packaging as compared to Ferrero Rocher: heart shape. It is also cheaper and you have more quantity.

Ferrero Rocher is a perfect product for Chinese customers:

  • A golden packaging as Chinese people like. Yellow is the color of emperor. Gold is a valued material in Asian. This is even more true since the world economy is crashing
  • A biscuit with nuts: Chinese people love nuts
  • A melted filling and not too heavy for chinese consummer. Chinese don't like heavy sweets
  • A round shape synonym of harmony in China

Consciously or not (since Ferrero product is the same all over the world) Ferrero created a perfect product for Chinese customers. 

However this product success could be useless as Ferrero brand is not well known by Chinese people.
The threat comes from the cheaper Chinese "imitations" and distributed all over China!

Ferrero must react quickly if he wants to build a strong brand. Otherwise its great product will be totally stolen by the Chinese imitation.

No matter what the product, service there are always the same two issues in China:

  1. Finding the good product and service that matches Chinese people expectations and at the correct price
  2. build quickly a brand awareness in order to establish something as opposed to cheap imitations...of course brand awareness has a cost and this must be taken into account