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Consumer Behavior- Heineken

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1. Brief analysis of the current communications mix for Lindt

1.1 History of Lindt

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Lindt is an internationally operating, premium quality chocolate brand, founded in 1845. By 1915 the company was exporting its chocolates to 20 countries around the world and by 1994 had become an internationally successful business. Today, with its head offices in Switzerland, it has production companies and offices in many countries throughout the world (Lindt 2009).

1.2 Communication mix

Product- Lindt is an international company, known as a market leader for producing premium quality chocolate.

In terms of Lindt’s U.K. market execution, they operate in six major product categories:

* Lindor (smooth melting chocolate)-

Lindor milk, Lindor assorted, Lindor 60% cocoa, Lindor dark orange, Lindor bag (variety), Lindor valentine (seasonal product with variety), Lindor gift box.

* Excellence (the ultimate finesse in solid chocolate- perfect combination of finest ingredients into thin shape)

Excellence 70%

Excellence 85%

Excellence extra creamy

Excellence orange intense

Excellence chilli

Excellence mint intense

Excellence coffee intense

Excellence crunchy caramel

* Swiss tradition (boxes with a variety of chocolate delicacies)

Dark collection

Caramel collection

* Gold bunny/Easter (seasonally sold chocolate -dressed in gold and crowned by the golden bell)

Easter egg

Plush gold bunny

Lindor minis egg

* Gold reindeer/Christmas (seasonally sold chocolate- setting a festive mood)

Santa / Children’s advent calendar / Gold bell

* Filled bars (chocolate filled bars with a range of variety)

Swiss classic

Creation

Lindor

Petit desserts

* Gift boxes (boxes with assorted chocolates specially designed for gifting purposes)

Gift boxes (variety)

Precious collection (delicious assorted filled chocolates with stunning gold dust, pearl and diamond effect)

(Lindt 2009)

Price- Lindt uses a mixed pricing strategy, with an array of products priced differently.

They offer premium priced chocolates/chocolate boxes especially for gift purposes, which range from � 5 – �10, and regular chocolate excellence bars ranging from �1 – �4 (Lindt 2009).

Place- Most of the Lindt chocolate products are available in major supermarkets and large shopping stores, for example Morrisons and Asda. However, they have a selective approach in placing their premium products, which are found in luxurious or specialized stores such as Harrods, Whittards and Selfridges (Lindt 2009).

Promotion

* Sales promotion – free samples

Lindt has invested considerable time and resources into the free sampling of their products in recent years. One approach they have used to provide free sampling is their partnership with Hello magazine, where they mounted a free chocolate sample on the front cover of the magazine. This partnership was first used in the year 2000 and then again in 2004 to promote their crunchy caramel chocolate bar (Forder 2008).

* PR Events

Another approach they have used to offer free samples to people is by putting on themed events. An example of this is the promotion they ran in 2006 aimed at increasing the awareness of the Lindt Easter bunny amongst children. This promotion, which ran in six Major UK cities, was themed as a Swiss chocolate shop and along with free samples of Lind bunnies, also provided face painting, storytelling and a free prize draw (O’Reilly 2006).

* Brand Alliances

A tactic Lindt has used heavily in recent years in its Marketing communications is forming alliances with brands which are either similarly perceived, or through whom Lindt can access its target market. Examples of this are its partnership with Wella hair care, lingerie group La Senza and the cosmetics firm Molton Brown (Pemble 2002). One typical way in which they utilised these partnerships was through giveaways (similar to the Hello Magazine example) and also by running competitions in collaboration with these brands, either sponsored by Lindt or with a Lindt product prize.

* Spokesperson

Another such alliance is the one recently formed with tennis player Roger Federer, who has been signed on to act as a global ambassador for the brand (Lindt 2009).

* Website

The Lindt website ;www.Lindt.com; is another medium through which Lindt conveys its marketing communications message. On this website extensive information about both the company and its products can be found. This information ranges from detailed descriptions of the products themselves, where they are stocked, how they are made and the adverts used to promote them, to inform about the company’s history, philosophy and CSR work (Lindt 2009).

* Television (see appendix 1)

Lindt’s TVCs aim to communicate the following aspects:

– The heritage of the brand : master chocolatier since 1845.

– Characteristics of each product.

– Lindt chocolates are produced and their quality controlled by high skilled chocolate makers.

1.3 Lindt SWOT analysis (see appendix 2)

From our SWOT analysis we have come to the conclusion that amongst both the general public and in particular our target audience of premium chocolate consumers, there is a substantial growth in the level of awareness of corporation’s social responsibility. This, we feel, is a trend that Lindt as a company is not exploiting efficiently. Lindt should therefore, in our opinion, link its brand more heavily to ethical values and activities and do it immediately seen as its competitors are beginning to lead the race in this segment.

We therefore decided that to best exploit the market conditions we should focus our marketing campaign through the product ‘Lindt Excellence’. The reason for this is its high cocoa content, which we see as a characteristic we can link into Lindt’s Corporate Social Responsibility (CSR) work. This will be explained fully in our communications objectives.

2. Lindt Excellence Marketing Communication Campaign

2.1 Context Analysis

2.1.1 Lindt Excellence background

Lindt Excellence chocolate is renowned for its high percentage cocoa content, with some products being as high as 85%. The products all come in bar form in both 35g and 100g sizes (Lindt 2009).

2.1.2 Customer analysis

Target audience (market):

* 25+ Mature adults

* Average-higher income

* Well educated

* Concern about social well- being

* Appreciate premium dark chocolate

We chose to target this specific audience due to their characteristics, listed below:

* May see the purchase as part of a supermarket shop rather than as an impulse/snacking purchase. Prefer the delicate envelope-style wrapped bars thin shape which could easily be shared with their family or friends.

* Usually purchasing chocolate as a treat, or something special driven by the ‘reward’ mentality prevalent in society, therefore, they would like to choose a premium chocolate brand as this reward.

* More sophisticated palate and therefore may enjoy dark chocolate with its high cocoa content.

* May have a strong sense of social responsibility and are willing to pay more for a more ethically sound product.

(Business source premier 2004)

2.1.3 Business analysis

2.1.3.1 Competitors analysis (See appendix 3)

Due to the fact that we are targeting specifically the UK market, we have chosen to analyse three competitors whom we see as having similar characteristics and targets within the UK market:

Green; Blacks:

* Found in UK since 1991

* Organic chocolate

* High social responsibility

* Wrappers minimum 70% FSC certified material, 100% recyclable and use only water based inks

* Member of Forest Stewardship Council and Fair-trade Foundation

(Green and Blacks 2008)

Hotel Chocolat:

* Found in the UK since 1993

* Special due to its various chocolate flavours

* Maintains its stance as a non fair-trade product due to its desire to maintain its high quality

* 33 retail shops around the UK

(Hotel Chocolat [no date])

Divine:

* Found in UK since 1998

* Positioned as a “Heavenly Chocolate with a heart”

* Holds many special promotions campaign to promote its brand including the “Chocolate Makes the World go Round” event, Sponsorship, Advertising, Social media through YouTube.

* Member of Fair-trade Foundation

(Divine 2007)

2.1.3.2 Communication Mix

4P’s of Lindt Excellence:

* Product

Lindt Excellence 100g

Dark

Noir

Dark&

Milk

* Price

100g average price range: �1.48 – �1.63 e.g. Sainsbury’s: �1.56 (Information gathered from personal visit).

* Place

Most of Lindt Excellence chocolate products can be bought in different retailers including supermarkets, department stores (e.g Selfridges, Harrods), and beverage retailer Whittards and Petrol stations (see Appendix 4)

(Lindt 2009)

* Promotion

In 2004, Lindt unveiled the first TV ad for ‘Excellence’, its premium dark chocolate range. The �1 million TV campaign promoted Excellence 70%, Excellence 85% and the Excellence Intense Orange. This was followed by the appearance of more and more flavours of Lindt Excellence chocolate. (Mintel 2009)

2.2 Communication objective

The marketing communication campaign objective for Lindt Excellence is to communicate the product’s high cocoa content. From this fact stems our two main campaign objectives:

– To communicate our corporate social responsibility campaign, ‘Lindt for life’. We are focusing on this in order to build a positive attitude towards the Lindt brand. This objective emphasises how, seen as though Lindt buys large amount of cocoa from Ghana, Lindt would like to give back to the country by helping to improve the lives of the Ghanaian cocoa bean producers. This will be done by donating a certain percentage of profits made from sales of the high cocoa Lindt excellence bar to the ‘Lindt for Life’ trust.

– To communicate the rich, high quality taste of Lindt Excellence, due to its high cocoa content. This message will reinforce the fact that Lindt Excellence is a premium high quality chocolate.

2.3 Marketing communication strategy

Marketing communication strategy formulation is defined as selecting and planning a particular track of communication for the marketing channel or network (Fill 2009). A broad understanding of the target audience and intended core message is essential when choosing a strategy for communication. As our marketing communication mix (media, tools and messages) for Lindt aims to stimulate higher involvement, remind, reassure and to make the audience think and feel the greater sense of good practice and fine taste, it is crucial to make an impact at the level of end-consumers and increase their level of participation in pulling the brand through the channel network (Fill 2009). Although Lindt already has a high level of brand awareness, we decided to use a Pull – Positioning strategy in order to encourage the target audience to reconsider their perception of the brand so as to create a differential positioning (Fill 2009).

Our aim is to generate greater awareness about the campaign and therefore generate a higher level of consumer involvement with the product – hopefully helping Lindt to become first choice in the premium chocolate market (Varey 2002).

‘Lindt for Life’

‘Lindt for life’ is a trust set up by Lindt, designed to complement the already up-and-running ‘Ghana Traceable’ project (Lindt 2009). Its aim is to actively improve the lives of the workers and their families in the Cocoa farming regions of Ghana, from which we source our cocoa (Lindt 2009). This will be done specifically by providing insecticide treated mosquito nets for the children and wives of the cocoa farm workers.

We see this as an essential part of Lindt’s CSR due to the fact that Malaria is a particular health concern in rural Ghana and Insecticide treated nets are a hugely effective, but yet not widely available, means of preventing a disease which is particularly dangerous to young children and pregnant women (Chuks et al. 2007)

As a means of funding the trust, we at Lindt have made a promise to donate 10% of the profits from every bar of ‘Lindt Excellence’ sold during the year 2010 and a further 50% of profits from sales of our ‘limited edition Lindt Excellence’ offer, running in the first quarter.

2.4 Coordinated promotional mix

2.4.1 Public Relations

PR campaigns have been used in the past to ‘win over the hearts and minds of consumers and its status in the marketing mix has grown accordingly’ (Tench and Yeomans 2006 p.415). It is for this reason that we have decided to embark upon a Cause Related Marketing campaign, defined as a form of marketing ‘where a company associates a marketing promotion with a charitable cause’ (Tench and Yeomans 2006 p. 361 cited in Hart 1995 p. 219). Through this campaign we then hope to improve the image of Lindt as a more socially responsible brand and therefore increase sales by appealing to potential customers desire to buy products, the suppliers of which are doing good and ethical work in the community, as suggested by Fill (2005).

Two benefits of choosing PR as a marketing communications tool is its relative low cost compared to other marketing tools at our disposal, and the added credibility it can carry, particularly when the message is relayed through a well respected medium (Fill 2005). Our choice of these mediums includes two of the options recommended by Fill (2005):

Press Conference

The first of which will be a press conference, during which we will announce the opening of the ‘Lindt for life’ trust (referred to earlier in the paper). Here we will outline the reasons, plan and aims of the campaign (as outlined in the ‘Lindt for life’ section) and of course invite journalists to ask any questions they may have. It is hoped that this story will then be relayed to the public (and therefore potential consumers) through mass media outlets such as newspapers, magazines, radio and television.

Press releases

Our second medium will be through press releases targeting mass print media outlets such as newspapers and magazines. These press releases will be used to highlight the work being done by the ‘Lindt for Life’ trust by emphasising specific targets that have been met with regards money raised, work done and targets which we hope to meet in the near future. These press releases will begin after the initial press conference and run quarterly, throughout the calendar year. We are very aware of the danger that comes with the low control we have over what exactly our media mediums decide to write (Fill 2005) and the possibility that these media outlets may choose to misconstrue or twist our message as ‘yet another company trying to reap rewards by overemphasising their community work’. We however feel that due to the substantial and calculable benefits the Cocoa farming community of Ghana will reap from the ‘Lindt for Life’ campaign, it seems unlikely this would happen and with appropriate media management we feel confident that the messages relayed by the media will work positively for us. It is due to this slight risk of our message being misconstrued by the media that we are very wary of being seen to bombard the media with too regular a supply of information regarding the trusts work and therefore why we chose to keep our press releases to one every 3 months.

The advantages of using mass media mediums such as newspapers and magazines in this way is that through the newspapers we are able to communicate with a vast amount of widely dispersed people (Cutlip et al. 1994), while through magazines we are able to communicate with more specialised groups of people due to the vast array of specialised interest magazines (Cutlip et al. 1994). We shall therefore choose magazines which we perceive as more likely to reach our target audience of consumers.

2.4.2 Advertising

Objective of the Message

The objective of the message is to associate the Lindt- Excellence brand to the range of premium and dark chocolates in the market. At the same time, the message should emphasise the main differential of the product: its high content of cocoa and the benefits that this characteristic brings.

Reinforcing the message of the general campaign, the high content of coca is the reason for both the high quality taste which appeals to our target audience and for the CSR work which we are undertaking in Ghana. Therefore, our message is that by buying this product the consumer will enjoy the premium taste of the chocolate while actively contributing to the quality of life in Ghana.

Concept of the Message

The high content of cocoa in the Excellence range of chocolates is directly linked with more opportunities and levels of happiness for the farmers of coca beans in Ghana and their families. The high amount of cocoa is also linked with the intense taste and quality of the product. These aspects are emphasised in the following phrases:

– high amount of happiness

– high amount of opportunity

– high amount of quality

– high amount of taste

– high amount of cocoa

The phrase ‘high amount of…’ and the picture of a cocoa bean will be used consistently to link all the aspects together and create an impact towards the target audience.

Media

* Television

Because of the impact that television can generate (Fill 2009) it is an optimal medium to convey the emotional appeal of the message.

The message will be conveyed through scenes that illustrate each emotion and benefit that the product brings (happiness, opportunities, quality and taste), finishing with the source of these benefits: the high content of cocoa. At the end of the advert the product itself will be shown along with a close-up of the “Lindt for Life” logo on the packaging and the website address of the campaign.

Picture 1: TVC

* Magazine

As one of the most important and beneficial medium amongst the whole set of traditional media, print media continues to provide a competitive edge to companies who utilise it. This media, through its different forms, provides a segmented, niche, distinctively targeted scope of advertising (Katz 2007). As a form of printed media, magazines are very efficient in delivering the required message as images and the written word can be used to explain the message of the campaign (Fill 2009).

In the magazines the written word will be specifically used to explain the company objective of improving the life of the farmers and their families, i.e.: “Lind for Life” and how the company aims to set a precedent in the chocolate industry and other industries in order to create a better future for all. Furthermore technical information about the “Lind for Life” will be stated in order to clarify the campaign and create credibility, for example how the money is invested in Ghana.

In this way, through ‘Excellence’, the company will be seen as an ethical and fair company aligning itself in the ethical movement, which is especially important for the Excellence target audience.

Two different approaches will be taken depending on the stage of the campaign; a full version or a reduced version of the advert. In the former every “benefit” will be shown in the right side pages of the magazine in the following order: happiness, opportunities, quality, taste and cocoa. The last page will show the Lindt-Excellence logo, the Lind for Life logo and the stated information about the campaign. In the latter format the ad will featured only one page with the “benefits” and the Lindt-Excellence and “Lindt for Life” logos.

Picture 2: Magazine ads -full version

Picture 2: Magazine ads -full version

Picture 2: Magazine ads -full version

Picture 2: Magazine ads -full version.

Picture 3: Magazine ads-reduced version.

* Outdoor

Reaching consumers who are “out-of-home” (Fill 2009 p.720), this medium can complement the other media selections for the Excellence campaign. Between the advantages and reasons why this medium was chosen are: the large size which makes it noticeable and the high frequency and reach, compared with other media (Katz 2007).

Since this medium doesn’t allow extensive information (Fill 2009) the campaign is divided in two parts; opportunities-happiness-cocoa and taste-quality-cocoa. In the last billboard the Lindt-Excellence and “Lindt for Life” logos will be shown.

Picture 4: Billboard- full version.

Picture 5: Billboard – reduced version.

Picture 6: MUPI- full version.

Picture 7: MUPI-reduced version.

2.4.3 Sales Promotion

Chris Brown gave the definition of sales promotion as “The practice of offering temporary additional value to a brand in order to reach specific marketing objective” (Brown 1993 p.14). Here, in the case of Lindt Excellence one such marketing objective is to communicate our corporate social responsibility campaign ‘Lindt for life’. Burnett (1993) also said that two of the sales promotion objectives are to create a positive experience which one will associate with the product therefore enhancing the products value and brand equity. Moreover, sales promotion may be used to reach communication objectives such as awareness and attitude change. Therefore, as a marketing communications tool, the sales promotion campaign ‘Big amount of happiness’ will be used.

Objectives:

– Main objective:

To increase the awareness of the CSR campaign ‘Lindt for life’ through the sales promotion campaign ‘Big amount of happiness’.

– Supported Objective:

To increase sales during the ‘Big amount of happiness’ campaign.

Mechanism of the ‘Big amount of happiness’ campaign :

Lindt will donate 50% of Lindt Excellence chocolate sales (during 1 January 2010 to 30 March 2010) to build ‘Lindt for life school’in Ghana. The campaign will use to draw consumer’s attention and encourage consumer to buy Lindt Excellence in order to make a good deed.

Persuasion :

Consumer’s feeling of participating in improving the lives of people in Ghana.

Brown mentioned one of the sales promotion techniques, ‘charity’ explaining how it can have emotional benefits and can increase awareness and create a positive image of the company (Brown 1993). Moreover, Elliott and Percy (2007) pointed out that ‘a very powerful way to influence consumer’s perceptions of Fast Moving Consumer Goods (FMCGs) is to associate a brand with a ‘good cause’ (Elliott and Percy 2007 pp.166-167). Therefore, in order to convince consumers to buy Lindt Excellence, Lindt is offering them the chance to help the fight against Malaria in Ghana. Even for consumers who are impulse purchasers and driven by the premium quality of the product, the special edition of Lindt Excellence can persuade them to make a purchase.

‘Big amount of happiness’ campaign communication:

Through the following channel:

– Television commercial: Add the campaign’s information at the end of the brand TVC.

– Website: Provide clear campaign information through ‘www.bigamountof happiness.com’

– Package: Add the campaign’s information on pack with campaign’s logo.

Picture 8: Limited edition logo.

– Point of Purchase (POP): Decorating the shelf with logo and providing campaign’s information.

Picture 9: Limited edition POP sign.

Picture 10: Limited Edition shelf.

2.5 Scheduling and implementation

The approach to be followed is Block pulsing as it allows us to:

* Spread our resources over a period of time (Fill 2009).

* Improve the effectiveness of the messages

The messages will be spread continuously to reinforce the brand awareness, higher frequency at the initial burst and lower in the rest of the campaign because bombarding the media may lead to consumer’s ignoring the message or developing less favourable opinions (Katz 2007).

* Promote the information about the campaign’s launch at the initial burst since the brand needs to create awareness (Katz 2007). The consumers can be persuaded to buy after the awareness has been established.

* Block competitors since the brand’s message will be present continuously (Fill 2009).

The initial burst (the first quarter):

All medium will commence simultaneously with a high frequency, coinciding with the press release and the limited edition activities to raise awareness and create an impact.

The remaining quarters:

In order to save the budget but maintain brand awareness throughout the period, a lower frequency will be used.

– TVC: lower frequency in some months and no TV advertising in some others.

– Magazine ad: one page format at a low frequency will be used.

– Outdoor:

o Billboard: will be used throughout the year but in different versions in order to maintain interest.

o Mupi: the full version in the first quarter while the reduce version in the remaining quarters with the lower frequency.

– Press releases (magazine and newspaper): Once in every quarter to communicate specific information.

2.6 Resource: Budget planning

Lindt ; Spr�ngli identify the U.K. as its second largest chocolate market and thus Lindt ; Spr�ngli U.K. Ltd. invests heavily in UK advertising and marketing. Although 2008-2009 proved to be period of huge economic turmoil and slowdown, Lindt was able to maintain a strong position in the premium segment, particularly the Excellence range and seasonal offerings such as the Gold bunny (Lindt 2008). We feel therefore, that in order to achieve our campaign objective for 2010, a fairly generous budget can be justified.

As Kotler et al. (2008) explains in his theory for budgeting, in order to create product differentiation and brand awareness, heavy advertising is essential. Since our communication objective for the Lindt excellence 2010 campaign is to create a premium and positive image for our brand, huge amount of visibility and reinforcement is necessary. Thus the Lindt excellence 2010 campaign demands an intensive media budget, especially given the fact that the campaign is creating the brand equity not only for Lindt Excellence, but for the entire Lindt brand (Kotler et al. 2008)

Chart 1: Budget allocation chart

2.7 Evaluation and feedback

The evaluation of the campaign should be based on:

– The level of campaign awareness (‘Lindt for life’ campaign)

– The level of understanding of the communication message

– Attitude towards Lindt Excellence

– The sales of the Lindt Excellence limited edition

The measurement method:

Pre and post research; qualitative and quantitative methods should be used to determine whether or not the objectives has been achieved. Since this is an integrated campaign, it is imperative to evaluate every tool. One way is through sales during limited edition period, column inches (PR) and recall and recognition tests (TV advertising) (Fill 2009).

According to Fill (2009) feedback is crucial as it allows the company to learn from the previous campaign by giving information for the context analysis, such as whether or not the resources allocated were sufficient and if the strategy implemented was effective.

3. Conclusion

Lindt is a relatively well known brand In the UK, however we identified certain issues in terms of its positioning that we felt that it could benefit from enhancing. Therefore, we propose an integrated communications campaign which utilizes the three tools, advertising, public relations and sales promotions, all chosen for their characteristic suitability to the campaign. We foresee that through this Lindt Excellence marketing campaign and by highlighting the CSR work which the company has undertaken, we will portray Lindt as a more ethically sound brand. We believe this to be important due customers growing level of awareness of Corporation’s social responsibility, and therefore their desire to buy products from more ethically sound companies. A thorough method of evaluation would have to be implemented in order to decipher the success of this campaign and therefore whether it should be implemented beyond 2010.

4. Appendix

Appendix 1

Story board of Lindt TVC

Name : Lindt Lindor

Message : Lindor is a fine chocolate made up of a chocolate shield filled with smooth chocolate from Lindt, master chocolatier since 1845.

VO : Have you experienced the ultimate chocolate pleasure from the Lindt master chocolatiers?

Old man : Lindor, our smoothest chocolate ever. A delicate chocolate shell with the most irresistibly

smooth chocolate heart. Feel how Lindor slowly melts gently caressing all your senses.

VO : Lindor from Lindt, master chocolatier since 1845. (VO = voice over)

(Lindt 2009)

Name : Lindt Excellence

Message : Excellence is a highly aromatic chocolate bar containing 70% cocoa, from Lindt, master chocolatier since 1845.

VO : It takes more than just a high percentage of cocoa

to create Lindt excellence The world finest cocoa beads, ground

blended and roasted to a secret recipe by Lindt master chocolatiers.

Hours of conjuring and an extra thin shape combine to at least more than four hundred

subtle aromas. Only then can it be called excellence. Excellence from Lidnt.

(Lindt 2009)

Name : Lindt Swiss tradition.

Message : Swiss tradition chocolate is a masterpiece of chocolate making by Lindt master chocolatiers since 1845.

The Lindt master chocolatiers demonstrate

imagination, passion, creativity

and an infinite love of details.

The result? Swiss traditional chocolate from Lindt exquisite master pieces from the

hands of the masters. Lindt, master chocolateier since 1845

(Lindt 2009)

Name : Golden Bunny

Message : Lindt launches Golden Bunny chocolate for Easter.

Welcome to Lindt. And the secrets of our master chocolatiers.

Shortly before Easter, our sumptuous Lindt chocolate takes on a very special form, with two long ears,

and a golden coat. When everything is perfect, our golden bunny get its seal of approval!?

A little golden bell.

So we can give you something perfect-A golden Easter. Lindt- chocolate passion since 1845

(Lindt 2009)

Appendix 2

SWOT analysis for Lindt

Strengths:

* Organizational aspect:

o Large enterprise: operates eight production facilities in Europe and the US. The company employs 6,300 worldwide.

o Long history: 160 years of history, extensive expertise and wealth of experience in producing the finest chocolate.

o Country of origin-Switzerland: Consumer perceives that chocolate from Switzerland is a fine chocolate.

o The company takes part in a number of nationally and internationally acknowledged projects in the field of ecology and sustainability. (A member of the ” World Cocoa Foundation”, ” Sustainable Tree Crop Program”, ” Round Table for Sustainable Palm Oil” )

* Business aspect:

o The market share in Western Europe was fairly stable and increased from 2001 to 2008.

o The company was reported that it had the above-average growth of 3.1% in 2008.

* Product aspect:

o The company offer wide range of product.

* Price aspect:

o Consumers associate high price with premium.

* Place aspect:

o The company offers its products in 80 countries.

o Various distribution channels e.g. Morrisons, One stop etc.(however this aspect can be its weakness as well)

Weaknesses:

* Brand positioning ambiguous resulting from distribution channels. It is a premium chocolate that can be found in local supermarket and stores in airport at the same time.

* The company doesn’t join in fair-trade organization since the amount of cocoa that the company requires is higher than the amount that fair-trade can offer.

Opportunities:

* Product characteristic conforms with global trend:

o Popular snack:

Chocolate is one of the world’s most popular sweet snacks, with high consumer penetration rates.

o Growing of indulgent product demand:

Consumers have a growing appetite for indulgent products. Chocolate is perfectly positioned to take advantage of this by focusing on its luxurious side.

o Health conscious:

One of its product ranges is Excellence which has high cocoa content can be served this aspect of market need due to the fact that high percentage of cocoa gives high amount of antioxidants which bring natural health benefits.

* Marketing communication activities from other chocolate brands :

o High visibility and promotion through significant above- and below-the-line activity in UK chocolate market.

* Consuming behaviour:

o Consumers are becoming less risk averse as a result they tend to try new flavors, for instant, Lindt chocolate and chilli flavor.

Threats:

* Market aspect:

o High penetration levels in the market.

o Mature market makes it difficult to generate growth.

o The chocolate market is on top of the list of products that could be affected by the credit crunch.

o Strong competition from healthier snacks such as cereals bars, nuts and seeds.

o The costs of raw ingredient such as milk, coco bean, oil and sugar are raising, as a result chocolate price might increase.

o Extensive own label of retailers make brands face more competition for shelf space and sales.

* Health conscious aspect:

o The health movement has led to concerns over chocolate, which have resulted in a decline in frequency of consumption.

* Social responsibility awareness aspect:

o In the premium sector of Chocolate Market, the Fair-trade products started to make a real impact in the UK – there is also a growing interest in region of production, right down to the estate where the cocoa was grown, however Lindt doesn’t join the fair-trade organisation since the reason that has been mentioned in Weaknesses.

(Mintel 2009)

Appendix 3

Competitors’ analysis compared chart

Premium chocolates market- natural ingredients dark chocolate

Brand

Lindt

Green& Black’s

Hotel Chocolat

Divine

Logo

Founded

Switzerland

(since 1845)

United Kingdom

(since 1991)

United Kingdom

(since 1993)

United Kindom

(since 1998)

Positioning

Premium chocolate

Organic

No fair-trade in order to fit the quality

Heavenly Chocolate with a heart

Brand name

Lindt Excellence

Green; Black’s

Hotel Chocolat

Divine

Trait

Discover with all senses the ultimate finesse in solid chocolate.Every single piece is created by Lindt’s Swiss Chocolatiers’ unmatched expertise to perfectly combine the finest ingredients into thin shape.

Organic chocolate(use only the finest organically grown cocoa),

Premium price, Join the Soil Association

UK’s CoolBrands

In 1999 was awarded “Millennium Product ” award status from the Design Council for its innovative organisational model, In 2008 was awarded” the Good Housekeeping Favorite Fairtrade Product Award”

Product flavor

70%, 85%, Extra Creamy, Orange Intense, Chili, Mint Intense, Coffee Intense, Crunchy Caramel, 70% 35g, Extra Creamy 35g, Mint Intense 35g, Orange Intense 35g

White, Milk, Espresso,

Creamy Milk, Caramel, Almond, Maya Gold, Ginger, Hazelnut; Currant, Raisin; Hazelnut, Cherry, Butterscotch, Mint, Dark 70%, Dark 85%

Chocolate Log, Peepster- Dark Adventure, Hero Tablet- Dark Chocolate, The Purist’s Library, Dark Chocolate for Cooking, Goddess- Dark Chocolate, Vintage Buttons Dark, 72% Dark St Lucia, 75% Dark Wild Cocoa, 72% Dark with Chili& Cocoa Nibs, 72% Dark Sao Tome, 72% Dark Madagascar, Serious Dark Fix, 74% Dark Batons, Peel Me An Orange Dark, Dark On Dark, Dark Engraved

70% Dark Chocolate, White Chocolate, Orange Milk Chocolate, Mint 70% Dark Chocolate, Coffee Milk Chocolate, Hazelnut Milk Chocolate, Dark Chocolate with Fruit and Nut, Divine 70% Dark and Milk Chocolate Bars, 70% Dark Chocolate 14g bars, Dark Chocolate with Raspberries, Milk Butterscotch

Price range

�1.48~�1.63 100g (it depends)

Premium price- 100g bars – any 4 for �9; any 8 for �16

�3.95~�32.50 (it depends)

Chocolate Bar 100g price range from �1.49~�1.69

Place

Beverage retailer stores(Whittards), Supermarkets(Tesco, Sainsburys, Morrisons, Asda, Waitrose), Department stores(Selfridges, Harrods), Petrol stations

Its own stores, website, supermarkets, department stores,etc.

33 retail shops around the UK, a transactional website and a mail order catalogue

Larger retailer and suppliers(Sainsbury, Waitrose, Traidcraft, etc.), website

Promotion

Advertising(TV, magazine..etc), Invite Roger Federer to be the global ambassador, Launch “Ginger” version chocolate for British taste

Direct marketing (Customize services- pick up the product by different factors),

Customer retention and acquisition campaigns, Direct mail promotions, Brand awareness and much more

“Chocolate Makes the World go Round” event, Sponsorship, Advertising, Social media through YouTube

Corporate social responsibility(CSR)

Environmental concerns in decision making process. Respect and responsible for the needs of the communities.

Packaging (bar wrappers are made from a minimum of 70% FSC certified material-100% recyclable and use water based inks.

Forest Stewardship Council (FSC) Certified = Materials will come from forests that are managed in a socially and environmentally responsible way.),

Fair-trade

Fairtrade

(Lindt 2009)

(Green and Black 2008)

(Hotel Chocolat [no date])

(Divine 2007)

(Redorbit 2008)

Appendix 4

Place — Lindt Excellence chocolate

Shop

Flavor

Tesco

Sainsbury’s

Morrisons

Asda

Waitrose

Whittards

Selfridges

Harrods

Petrol stations

70%

?

?

?

?

?

?

?

?

?

85%

?

?

?

?

?

?

?

?

?

Orange Intense

?

?

?

?

?

?

?

Mint Intense

?

?

?

?

?

Coffee Intense

?

?

?

?

?

?

Chilli

?

?

?

?

?

Extra Creamy

?

?

?

?

?

?

?

?

?

Crunchy Creamy

?

?

Mint Intense

?

?

Orange Intense

?

?

Extra Creamy

?

?

(Lidnt 2009)

Appendix 5

Media timetable of Lindt Excellence marketing campaign

Cite this Consumer Behavior- Heineken

Consumer Behavior- Heineken. (2017, Jul 22). Retrieved from https://graduateway.com/consumer-behavior-heineken-323/

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