Represent the view from the Asian markets, the consultant shall propose Ferrero to conduct a platform which is providing discount strategies and include attaching a small flyer to its product once the purchasing occurred in order to overcome the issue that concerned in the EFSA report regarding the main ingredient in Nutella. Nowadays, the potential customers will more likely to be attracted by the products when the company has offered a discounts on purchases. Besides, there are a lot of consumers always stay focus to the shop that always advertises their discounted items in a certain amount of days. This is because there are only a few customers willing to full price of the product while they are shopping.
According to Mejia (2017), there are almost half of the women will be walking into the shop when the products having more than 41% of markdown. The survey also shown that there were merely 100% of individuals expect the merchants and departments stores will offer discounts. Whereas, 39% of individuals rather visit the certain store if the shoppers able to purchase the similar product with the lower price. Whereas, a small flyer will be attached to Nutella with the purpose to acknowledge the customer that the palm oil use in the production of Nutella is 100% eligible and it does not contain harmful substances, as well as the manufacturing process are handled with care and cautions. This situation clearly showed that offering a discount and allocate flyers towards Nutella able to drive existing customer loyalty and attract the more new customer to consume it as well as boost the sales and the reputation of the company when the fact about the palm oil is disclosed.
Furthermore, the consultant also can take an action by advising Ferrero frequently apply the palm fruit from the selected location for the production into palm oil and observe the cultivation conditions. Yu (2018) stated that Indonesia and Malaysia were the two countries which account for almost 80% of global palm oil supply and both of the countries possess a lot of Ferrero’s palm oil mills. According to Cheng, Liu, Wang, and Liu (2017, p. 275), the selection of palm fruit estate from the different country is an important step to eliminate the glycidyl fatty acid esters (GE) that found in the palm oil. This is because the contents of GE in the palm oil will be dissimilar from the different plantation. There are almost 14mg per kilogram of GEs was contained in the palm oil from Malaysia. Whereas, the GEs that found in palm oil from Ghana merely 1.3mg per kilogram (Cheng et al., 2017, p. 275).
Therefore, Ferrero Group must frequently apply the palm oil that supplied by Ghana in the production of Nutella rather than the palm oil from other countries’ supplier. By conducting the palm oil which contains lesser GE contents in the manufacturing process will surely enhance the quality of the Nutella. This is because of the lower the GE contents in the palm oil, the lower the risk of developing cancer towards the society. In fact, this situation able to increase the consumer’s confidence in consuming Nutella as they will feel that the company had concerned about their health from the possibility of harmful substances. Indirectly, the issue that concern in the EFSA report regarding palm oil will be able to mitigate and there will be a growth in sales as well as the reputation of the company in Asia and even in the worldwide.
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