...Conclusion 12 4 Porter Five Forces Analysis 15 5 Industry Life Cycle and Industry Dynamics 18 6 Lindt & Spruengli Company Overview 22 7 Business System 24 7.1 Resource Base of Lindt & Spruengli 24 7.2 Activity System (Value Chain) of Lindt & Spruengli 26 7.3 Product Offering 28 7.4 Lindt’s positioning in comparison to Competitors 33 8 Organizational Structure 34 8.1 Organisational Process 35 8.2 Organisational Culture 36 9 SWOT Analysis 37 10 Recommendations 38 10.1 Exposing the Corporate Social Responsibility 38 10.2 Product Development to meet upcoming consumption trends 38 10.3 Market penetration in Spain 40 10.4 Penetration of Emerging Markets 41 10.4.1 Asia Pacific 41 10.5 Entering new Segments 43 10.6 Pushing profitable Product Lines 45 11 Bibliography 47 11.1 Books 47 11.2 Documents from Databases 48 11.3 Journals 50 11.4 Websites 51 II List of Figures Figure 1: Confectionery industry segmentation 5 Figure 2: Market value of the confectionery market in the period 2004-2009 and the expected growth until 2013 6 Figure 3: Stage of industry life cycle mature markets (Western Europe, North America) and immature markets (Middle East and Africa, Eastern Europe, India, China, Russia) 10 Figure 4: Growth rate of the global confectionery sales by region in the period 11 2007/2008 and forecast for the period 2008-2013. 11 Figure 5: Global confectionery market share by value 12 Figure 6: Strategic groups of the confectionery industry 13 Figure 7: Sales...
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... and stakeholder management Before 2006 (pre-crisis) : Lindt outperformed an otherwise stagnant chocolate confectionery market growing by 17% in the first half of 2006. Against the first half, hence hindering the period profitability. While the company makes just 40% of its annual sales over this period, 50% of the fixed costs of production and marketing are nevertheless charged against the first half, hence hindering the period profitability. (Sweetest performance ever for Lindt &Sprungli) Brand Strategy In its more mature markets, such as Italy, France and Switzerland, Lindt is focusing on de-seasonalising chocolate consumption, away from special occasions such as Easter and Valentine's Day. The company is also focusing attention on the consumer rather than promoting its products through specialist fairs such as it used to. The latest launch, in its Excellence range, included direct mailing samples to a large number of Swiss households. The emphasis of the strategy is to develop high quality chocolate as a daily indulgence, rather than an occasional treat. In the US, the company's strategy to increase consumer awareness of premium chocolate through its branded boutiques is paying off in terms of new consumers. = WILL SHUT DOWN A FEW YEARS LATER. (Sweetest performance ever for Lindt &Sprungli) Key capabilities in 2006, still valid today: The company, already well placed in the planned-purchase market, will increasingly focus on premium impulse-purchase products...
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...Lindt & SprüngLi AnnUAL REPORT 2011 For the past 165 years, premium chocolate manufacturer Lindt & Sprüngli has been committed to render top quality. With six production sites in Europe and two in the USA, 18 subsidiaries as well as numerous independent distribution partners, LINDT products are in the meantime available nearly all around the globe. To ensure an impressive presentation of the LINDT product variety and to grant our loyal chocolate lovers an extraordinary shopping experience, increased investments have been made in the past years for the expansion of the LINDT retail department. For this reason, we will take you in this annual report on a journey, starting in New York, with stopovers in Zurich, Tokyo, Sydney and San Francisco where we will show you some impressions of selected worldwide LINDT Boutiques, Shops and Chocolate Cafés. We look forward to welcoming you during your next trip in one of our stores. K e y F i n a n c i a l data A n n uA L r e p o rt 2011 InCOME STATEMEnT 2011 2010 Change in % Sales EBITDA in % of sales EBIT in % of sales net income in % of sales Operating cash flow in % of sales CHF million CHF million % CHF million % CHF million % CHF million % 2,488.6 421.9 17.0 328.7 13.2 246.5 9.9 345.4 13.9 2,579.3 423.3 16.4 325.3 12.6 241.9 9.4 363.7 14.1 – 3.5 – 0.3 1.0 1.9 – 5.0 BALAnCE SHEET 2011 2010 Change in % Total assets Current assets in % of total assets non-current assets in % of total...
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... |45 | |6 |100 |300 |400 |75 |66,7 |50 | |7 |100 |380 |480 |80 |68,6 |54,3 | Complete the table and draw the MC, ATC and AVC curves on a graph See the graph n°1 given to you. The demand function for this market is Qd=1000-10p Draw the demand curve for this demand function onto the graph. On the x-axis go from 0 to 1000 in gaps of 100. On the y-axis go from 0 to 100 in gaps of 10. in order to draw the demand curve for this demand function, I had to calculate: Qd = 1000 – 10 * 10 = 900 Qd = 1000 – 10 * 20 = 800 Qd = 1000 – 10 * 30 = 700 ….....etc Qd = 1000 – 10 * 100 = 0 Then, I reported those results onto the graph paper n°2. Imagine there are 100 companies in this market and they all have the same cost structure as the one in the table above. Draw the supply curve onto the graph. What is the market...
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...| | Wedel | | | | Wawel | | Target Group * Young and cosmopolitan consumers * For those who understand lifestyle as a personal statement * Young trend-conscious consumers Marketing Objectives * World’s biggest manufacturer of premium chocolate products * Modern * Enticing * Sinfully delicious * Luxury & prestige * Easygoing lifestyle * Sensual experience * Unusual taste combinations * (e.g. Salted Caramel, Strawberry Cheesecake...) Quantitative * Market volume ca. 100 USD billion (only 2012 available) * Market growth saturated chocolate markets in Europe and North America * Group sales 2 883 CHF million (~ 3 459 EUR million) * Group profit 404 CHF million (~ 485 EUR million) * Share price (ISIN: CH0010570759) 46 288,- CHF Przewagi Konkurencyjne * Quality strategy * Unique selling proposition (USP) * Premium Quality * Brand image * Extensive advertising policy Pozycjonowanie - produkt Wysoka cena I jakość, bardzo premium, duża różnorodność smaków (od gorzkich do bardzo delikatnych czy nietypowych) Cena Na rynku konkurencja oligopolistyczna kilku dużych graczy: market Share Lindt w okolicach 20% Promocja: * Social Media (Youtube, Facebook, Twitter) * Reklamy w Kinach * Reklamy w prasie ( też w artykułach PR jako pomysły na prezenty) * TV (w niszowych kanałach National Geographic, TVN Style) * Outdoor * Kampanie...
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...techniques, the product can increase market share. Our experiment measures the effects marketing and taste on brand preference and perception of our subjects in regards to various brands of pure milk chocolate. Chocolate has become a staple in the childhood of young Americans. For as long as children can choose what they eat, chocolates and sweets have been the favorable options. Therefore, brand preferences have been chosen years ago and brand loyalty has been established at an early age. We have put this brand loyalty to the test by offering a blind chocolate-tasting experiment. By conducting this blind taste-test, our subjects will choose their favorite chocolates based purely on taste, eliminating the marketer-driven factors such as advertising and brand value. The subjects will have no knowledge of which chocolate they’re taste, resulting in an even playing field for the different brands. Without the factors of advertising, brand value and other marketer-driven variables, chocolate preference can truly be chosen based on taste alone. This experiment will help us determine the effects of these factors by comparing the preferences of taste with prior brand preferences. Our hypothesis of this blind taste-test was developed through our evaluation of marketer-driven factors. We believe the chocolate-tasting experiment will result in a discrepancy between the subjects’ favorite brand of chocolate and their choice of best tasting chocolate. This...
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...offers. While Silk is smooth and 'melty' CDM is hard and chunky. However, at the same time, CDM and its base equity remains." - Brand consultant Harish Bijoor * A major challenge that such a sub-brand of an existing successful brand has to tackle is how not to alienate lovers of the base product, who have a palate memory that is as old as their childhood. "CDM extended chocolate consumption to firstly, the adult segment, and secondly, to all the different occasions for which meetha (sweets) used to be consumed in the Indian context, in a sense "repositioning" chocolate in the mind of the consumer." -Tanuka Ghoshal, assistant professor - marketing, ISB Hyderabad * With such a successful core brand, it is indeed a challenge to sufficiently differentiate an extension in the same category, price it at a premium point, and make it a success. Defining Premiumness: Premium refers to those products whose average price is Rs 100 and above. Quite a few chocolates fall in this segment, including brands such as Lindt, Ferrero, Godiva, Mars, Bournville, Toblerone, Temptation etc. A 100 gm bar of Lindt, for instance, costs anywhere between Rs 195 and Rs 255. It will soon introduce smaller packs of 38 gm. This will be priced between Rs 90 and Rs 120. Toblerone's...
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...Appendices Appendix 1: Cocoa Delights media plan ‘Get in touch with your dark side’ MEDIA PLAN Period: July 2010–June 2011 10 Chocolate Parade Melbourne, VIC, 3181, Australia Phone: 12 3456 7890 Fax: 12 3456 7890 Email: mediaplanning@cocoadelights.com Website: www.cocoadelights.com Contact: Coco Jones Table of Contents Executive Summary ........................................................................................................ 117 Business description ............................................................................................... 117 Vision for the future ................................................................................................. 117 Business goals/mission .......................................................................................... 118 Business philosophies/identity ............................................................................... 118 Main objectives ........................................................................................................ 118 Situation Analysis ........................................................................................................... 121 Marketing analysis ................................................................................................... 121 Customer analysis ................................................................................................... 123 Product benefits...
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...‘Get in touch with your dark side’ MEDIA PLAN Period: July 2010–June 2011 10 Chocolate Parade Melbourne, VIC, 3181, Australia Phone: 123-456-7890 Fax: 123-456-7890 Email: mediaplanning@cocoadelights.com Web Site: http://www.cocoadelights.com Contact: Coco Jones Table of Contents Executive summary 1 Business description 1 Vision for the future 1 Business goals/mission 2 Business philosophies/identity 2 Main objectives 2 Situation Analysis 4 Marketing analysis 4 Customer analysis 6 Product benefits and unique selling proposition 8 Competitive analysis 10 SWOT analysis 14 Legislation and Regulation 15 Advertising analysis 16 Advertising strategy 16 Media Strategy 18 Marketing Analysis 18 Marketing Schedule 20 Media budget 23 Campaign evaluation strategy 24 Executive summary Business description Founded in 2000, Cocoa Delights is one of the youngest gourmet chocolate manufacturers in the industry. However we do not view our youth as a weakness, on the contrary, our youth is associated with our two most valued attributes: creativity and innovation. We dare to create the unconventional. Our team of master chocolatiers have been hand-picked from prestigious confectionary schools boasting centuries of chocolate expertise from France, Switzerland, Belgium and Italy. Whilst we value the traditions of these schools, we place an even higher value on their passion for innovation and enterprise. Cocoa Delights is the first company in Australia...
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...Rogers’ Chocolates 1. Using Porter’s characteristics, describe the interfirm rivalry in the chocolate industry. What are the strengths/weaknesses of Rogers’ Chocolates’ major competitors? Rivalry within the premium chocolate industry was still not as fierce as in the traditional chocolate market. After all, it was a fairly new market that had been growing at a rate of 20% per year. In addition, because of the fact that customers were demanding premium products, they were likely to be loyal to a particular brand meeting their expectations. Rogers Main competitors were: Godiva, Bernard Callebaut and Lindt. All of them offered what could be considered substitutes. Godiva for instance, offered Chocolates of similar quality, with slick and modern packaging, variation in chocolate moldings and chocolate colors. Bernard Callebaut was very strong in quality, superior packaging and product customization and Lindt offered similar quality chocolates at lower prices. Competitors like Godiva, Bernard Callebaut and Lind also had brand recognition and were large enough to achieve economies of scale, reduce costs and most important work on the development of relationships with suppliers of premium raw materials. 2. What are the firm’s core competencies? How might Rogers’ Chocolates convert some of Its existing resources and capabilities into core competencies? Rogers’s core competencies were product quality and customer service. In addition, the workforce was loyal and...
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...Rogers’ Chocolates Word Count: 1232 Table of Content Key Issue 3 Subsidiary Issues 3 External Analysis 3 Internal Analysis 3-4 Business-Level Strategy 4 Corporate-Level Strategy 4 Firm Performance 4-5 Recommendations 5 References 6 Appendices 7 Key Issue: In Victoria, British Columbia, Rogers’ Chocolates was established in 1885 by Charles “Candy” Rogers. Rogers’s chocolate is one of the biggest chocolate producers in Canada and the second largest in British Columbia. In proceeding Rogers’ death, Leah Rogers, his wife, took over the company and later sold it to a customer in the late 1920s. Management’s main focus is to explore alternatives to grow the firm without impairing its heritage. Subsidiary Issues: Competitors are attaining competitive advantage by producing low quality products. Others are marketing with less expensive ingredients, packaged in similar attractive containers, and priced identically with Rogers’ premium chocolate products. Rogers’ chocolates are only attracting niche customers, such as wealthy individuals, elderly, and married couples with no children. Currently, management has no direct measurement of day-to-day production creating inventory difficulties. External Analysis: Un-intergraded international production laws and regulations are an issue. Chocolate companies are looking to the USFDA to redefine chocolate. More firms...
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...The global confectionery market was valued at approximately $147bn in 2008, an increase of 3.2% over 2007. Business Insights forecasts that the global confectionery market will grow at a CAGR of 3.1% during 2008–13, to reach a total value of approximately $171bn in 2013. A shift in consumer preference towards premium chocolate and increasing consumption of healthy confectionery in matured markets, primarily the US and Europe, will drive industry value through 2013. Chocolate represents the largest confectionery category in value terms, accounting for almost half of the global market in 2008. The dominance of the chocolate category in the confectionery industry has been driven by the growth in demand for dark chocolate due to its inherent health benefits. Business Insights anticipates that cereal bars will outperform all other categories of confectionery, growing at a CAGR 5.8% during 2008–13, led by the increasing demand for nutritional and fortified foods. An aging population will drive the development of functional confectionery, including satiety enhancing gums. 2005-2007: Through this period, Nestlé‟s predominantly mass-market confectionery portfolio under-performs the market, which is largely driven by premiumisation, a trend which is largely beneficial to premium chocolate manufacturers, such as Lind & Sprüngli and Ferrero. Over 2005-2009, the largest gains in global confectionery share were made by Kraft Foods and Mars, by 10.7 percentage points (already...
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...as a control group. 2. Ariely argues that the results of the chocolate experiment (Ariely, Ch 3) are inconsistent with a traditional economic model of rational choice. (a) Briefly explain how the results are inconsistent with rational choice. What would have been expected if judgments were rational, and how were actual results different? (b) Identify the psychological influence that accounts this deviation from rational choice, according to Ariely’s explanation. a) The higher quality Lindt truffles are more valuable than chocolate Kisses, and both chocolates were discounted in the experiment. In the first set-up of the experiment, customers acted rationally, through cost-benefit analysis, considering both price and quality of each respective chocolate before deciding that that despite Lindt truffles were the better deal as the quality was better, although it was slightly more expensive. Presumably, the customers thought it was worth paying 14 cents more for the better quality Lindt because at 15 cents the Lindt truffle was more popular (73% of the customers) than the 1 cent Kiss (27% of the customers). However, when both chocolates were further discounted by 1 cent, although the price difference was still 14 cents, the Lindt priced at 14 cents was less popular (with 31% of the customers) than the FREE! lower quality Hershey’s Kiss (69% of total customers). The price reduction by the same amount from each chocolate shouldn’t change the behavior of customers from a rational, economic...
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...INTRODUCTION Chocolate consumers feeling guilty for the wrong reasons means that as a chocolate consumer once they eat the chocolate they feel guilty afterwards. Why is that? That is because at the time they eat the chocolate consumers have a craving, or a mood to eat the chocolate and then afterwards feel guilty for eating it. Their guilt starts with I shouldn’t have eaten that I am on a diet, or I shouldn’t have eaten that it will make me fat and these are common guilt feeling consumers have after they eat chocolate. However in fact chocolate is not as bad for you as people say. Scientists have revealed that eating chocolate - in reasonable amounts - makes you feel emotionally better and so improves the smooth running of your body's endorphins. It even protects against heart disease. (Mail Online 2012) As a chocolate consumer myself I have sudden urges or cravings to eat chocolate or if I am feeling stressed or unhappy I turn to chocolate. That is because not only does it taste good but it is a psychological feeling that if I turn to chocolate it will make me feel better and in fact not feel guilty eating it. However as Cadbury is a well marketed company and chocolate consumers are highly familiarised with the company when buying chocolate consumers turn to Cadbury to satisfy their needs, that is why when Cadbury turned to use palm oil instead of coca in there products, consumers did not react as badly to the change as they still would have bought the highly known chocolate brand...
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...CADBURY DAIRY MILK ‘’ “Working together to create brands people love.” A Project submitted in partial fulfillment of the degree Mba course Managerial Economics. Submitted by:- Submitted to:- Faculty of Manegerial Economics. Preface: Enthused with the overwhelming performance of Dairy Milk in such a competitive market, this project is specifically made to have a deep and thorough understanding of various aspects of Microeconomics such as demand and supple analysis of my domain product Cadbury Dairy Milk. Since last 50 yrs Dairy Milk is in the maturity level of it life cycle. And here are some of the facts that display the market condition and working of Dairy Milk. The various graphs and data used are partly hypothetical but true when the whole chocolate industry is taken into consideration. Special attempts have been taken to use figures and facts as close to the actual one. The graphs drawn have been created keeping in mind the overall market scenario at a large. Acknowledgements: The mammoth project of this nature calls for intellectual nourishment, professional help, and encouragement from many quarters. I would like to express my Gratitude to : My school “IBS” who has given me this opportunity to have an insight on such a crucial subject. My Microeconomics faculty “Mr” who trusted me to do justice with this project. And also his class...
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