Ferrero Rocher

The product which we have chosen, Ferrero Rocher is a luxury product. The reason is the price of Ferrero Rocher is higher than most of other brands of chocolate in the market. The ingredients that contribute to the high price are hazelnuts, milk chocolate and cocoa powder. These ingredients are expensive. Besides that, each Ferrero Rocher chocolate is wrapped with golden foil and is presented in a plastic compartment within a plastic box. The packaging makes the chocolate looks grand and luxury. Therefore, the price become higher compared to other chocolate.

The complementary product for Ferrero Rocher is wine. The chocolate is best served with wine and gives excellent taste. This is also a reason why Ferrero Rocher is a luxury product as it is serve with the wine which is higher class. The substitute products for Ferrero Rocher are Cadbury Hazelnut Chocolate, Alfredo Hazelnut Chocolate and Tudor Gold Chocolate. These substitute products contains hazelnut and their taste is only a small different compared with Ferrero Rocher. This means that the substitute products are not perfect substitutes for Ferrero Rocher.

The market structure for Ferrero Rocher is monopolistic competition.

1) Product differentiation: Ferrero Rocher chocolate gives a multi-layer-taste when eaten and it is different from other chocolate. The chocolate contains more hazelnuts than other brand. Besides that, the packaging of Ferrero Rocher is better compared to other chocolate products.

2) Many sellers and buyers: Ferrero Rocher can be bought easily since there are many people selling this product. In Malaysia, Ferrero Rocher is popular in the country as there are many buyers.

3) Easy market entry and exit: The cost of production for Ferrero Rocher is not very high and the company can enter and exit easily. There are many substitute products for Ferrero Rocher. Products like Cadbury Hazelnut Chocolate, Alfredo Hazelnut Chocolate and Tudor Gold Chocolate can be used as replacement...