It is essential for companies to understand and constantly monitor the market, whether they deal in consumer goods, semi-finished products, or machinery. This truth was excellently illustrated by the life and work of Michele Ferrero, the brilliant entrepreneur behind Ferrero S.p.A. I read the book “Michele Ferrero” by Salvatore Giannella, published by Adriano Salani Editore, which offers us precious lessons drawn from Michele Ferrero’s thoughts and strategies, many of which are very relevant today.
RESEARCH AS THE LIFEBLOOD OF THE COMPANY
Michele Ferrero considered research as the “lifeblood” of the company. Investing in research means discovering the latent desires of consumers. This attention to unmet needs can transform into a significant competitive advantage. Ferrero used the image of “Signora Valeria,” a prototype of the ideal consumer. Valeria represents all customers and their decision-making power. If one day Valeria decides to stop buying your products, “we’re all fired.”
For companies, this means understanding customer preferences and behaviors through in-depth market research, surveys, and data analysis. This way, trends can be anticipated, and products and services can be adapted accordingly.
UNDERSTANDING THE MARKET: A DEEP INSIGHT
It’s not enough to superficially know the market; you really need to understand it. Enzo Biagi used this metaphor: the lamp that the wind makes sway in a church suggests a concern to the sexton and a law of the universe to Galileo. This example underscores the importance of a deep and insightful understanding of the market.
Michele Ferrero also emphasized the importance of studying competitors not just to imitate them but to understand what not to do. He revolutionized the market with innovations like Nutella, a creamy chocolate when everyone else produced solid chocolate, and individually wrapped chocolates when everyone else sold them in boxes. He defied geographical conventions by expanding the Italian market into Germany, against all prejudices.
Michele Ferrero used to enter supermarkets, wherever he was, and carefully observe consumer behaviour. This direct approach allowed him to grasp valuable details and insights that could escape more detached analysis.
CARING FOR EMPLOYEES: AN INVALUABLE RESOURCE
Another extremely current insight is that Ferrero firmly believed in the importance of respecting and valuing employees. He had established a set of rules for his managers to ensure a positive and productive work environment. These included making employees comfortable, dedicating time and respect to them, and publicly praising successes while handling criticism privately.
According to Ferrero, a good leader should make employees feel great, offering them a margin of tolerance and encouraging their growth. He distrusted flatterers, preferring those willing to constructively contradict him. This approach helped create a healthy work environment where each employee could express their full potential.
CONCLUSION
Ferrero defined success as “a series of details lined up.” This attention to detail is crucial for any company. Success is achieved only with great care for every aspect. This care must be multiplied today given the hypercompetitive environment in which we operate.
Italian SMEs can greatly benefit from Michele Ferrero’s principles. In a globalized market, knowing your target market and differentiating from competitors is essential for long-term success. Whether selling a consumer good or an industrial machine, Michele Ferrero’s ideas offer valuable guidance for navigating market challenges and achieving sustainable growth.
For further insights on expansion strategies and the digital tools available to SMEs, I invite you to read my books “Exporting in 7 Steps” and “8 Digital Tools for SMEs.”