Professional Documents
Culture Documents
Table of Contents
Executive Summary
Situation Analysis
Industry
Marketing Mix
Client Analysis: Creative History
Client Analysis: Media Spending
Competitive Analysis: Creative History
Competitive Analysis: Media Spending
Geography
Timing/Purchase Cycle
Consumer
SWOT Analysis
Problem Statement
Target Audience
A Day In The Life
Creative Brief
Media Mix
Reach & Frequency
Budget
Geography
Timing & Purchasing
Sales Promotion
Flow Chart
Goals
Year At A Glance
Media Costs & Impressions
Works Cited
2
3
4
5
6
7-8
9
10 - 11
12
13
14
15
16
17 - 18
19
20 - 22
23
24
25
26
27
28
29
30
31
32
Executive Summary
This report was created to research major advertising factors and to create a marketing plan to increase
Lindts market share. Lindt is a premier, everyday chocolate with rich flavors and affordable prices.
Additionally, Lindt is the fastest growing major operator in the chocolate production industry.
We have identified our target audience as Asian females between the ages of 18 and 54 with middle to high
household income. Many of our target audience are mothers with children, and a large percentage of those
mothers have children below the age of 1, but not all. More specifically, these women are well-educated and
have a current home value of over $500,000 where they have lived for more than one year. They are also
current and regular users of premier chocolates.
Lindts main competitiors are Sees Candies, Godiva, Russell Stover, and Ghirardelli. These four companies are
already established and well respected in the premier chocolate industry.
For this campaign, we are utilizing both traditional and non-traditional media. For traditional media, we are
utilizing television spots on both cable and network channels, as well as four-color, full-page advertisements
in three magazines. For our non-traditional media, we are using promoted posts on Instagram, promoted
tweets, a partnership with Food Network on the Discover page of Snapchat, Facebook product pages, and
Spotify (streaming radio) advertisements. In addition to these, we are also utilizing in-store displays and
sales promotions in order to increase our market share, increase brand awarness, and generate an increase
in sales.
These executional ideas will help promote Lindt among our target market and will connect them on a deeper
level with the brand. The following plan outlines how Lindt will successfully penetrate the premier chocolate
industry in the United States of America.
1,151
Businesses
$2.3
$15.5
Billion Profits
Billion Revenue
0.6 %
Annual Growth
2009 - 2014
Competitiors include:
2.6 %
Est. Growth
2014 - 2019
Sees Candies
Godiva
Russell Stover
Ghiradelli (market share unknown)
4.8%
5.6%
19%
26.6%
Lindt
Russell Stover
Godiva
Sees Candies
Graph 1B. Chocolate Production Market Shares.
(Ahmad, 2015, p. 21-22)
S i t ua t i o n A n al ysis - M arket i ng M i x
COMPANY
PRICE
PRODUCT
PROMOTION
PLACE
Lindt
Chocolate Bars
LINDOR Truffles
Boxed Chocolates
Seasonal Chocolates
Bars: $3.99 - $5
Truffles: $13 - $145
Grocery Stores
Department Stores
Specialty Stores
Online
Website
In-Store Displays
Traditional Media
Chocolate Bars
Truffles
Fudge
Lollypops
Brittles & Toffees
Nuts & Chews
Seasonal Chocolates
Sees Candies
Website
Public Relations (created the worlds largest lollypop in 2012
for the Guiness Book
of World Records)
Chocolate Bars
Truffles
Gold Ballotins
Gourmet Biscuits
COffee & Cocoa
Chocolate Snacks
Choc. Strawberries
Seasonal Chocolates
Bars: $3.99
Truffles: $10 - $165
Godiva
Website
Separate themselves
apart from other
brands by their
product quality alone
(word-of-mouth &
experiences)
Chocolate Bars
Hard Candies
Brittle
Boxed Chocolate
Seasonal Chocolate
Grocery Stores
Retail Locations (35)
Online
Website
Russell Stover
Chocolate Bars
Cocoa
Baking Products
Retail Locations
Malls
Online
Website
Traditional Media
Social Media
Ghirardelli
The first campaign featured tennis champion Roger Federer and ran until September 12, 2009, in congruence
with the US Open tennis tournament. Federer became Lindts global ambassador to promote The Perfect
Match sweepstakes. Lindts CEO Thomas Linemyar says the tennis tie-in seeks men and women with highincome levels, but also targets both existing and prospective Lindt customers (Mahmud, 2010). In this campaign, participants could win prizes such as Lindt gift baskets, Lindt git cards, tickets to see Federer play in
the US Open, and a Federer autographed Nike duffle bag. The grand prize is a trip to Switzerland to meet
Federer with three nights accomodations.
In 2013, Lindt marked its fifth year of advertising during the Easter season in partnership with Autism Speaks.
Lindt executed a family-centric Easter program supporting those who are affected by autism. The goal of the
program was to spark a connection with the Lindt tradition-focused consumer, while raising awareness for the
cause and Lindt Easter collection, including the companys iconic Lindt Gold Bunny (Cone Communications,
2013). The campaign donated a portion of Easter season sales totaling more than $20,000, an auction of 97
celebrity autographed Lindt Gold Bunny figures, and social promotions. The campaign secured over 1,300
placements and more than 170 million media impressions. Media coverage was featured in Access Hollywood,
Entertainment Tonight, Good Housekeeping, Life & Style Weekly, LXTV, the Today Show, Wake Up with Al, and
WMUR-TV. Lindt also maintained the Lindt Gold Bunnys ranking as the #1 selling chocolate bunny in the U.S.
for the fifth year in a row.
Celebrity chef Curtis Stone helped Lindt kick off the Taste the Difference program. The program educates
consumers about the importance of innovation, quality ingredients, and expert craftsmanship to produce
delicious dishes and products. The chocolatier is also unveiling a series of educational vignettes starring
Stone to show consumers the impact that these elements have on everyday indulgence (Healy, 2013). During
this campaign, Lindt is sharing two million coupons for its products - including the companys newest
innovation, the Lindor Sea Salt Truffle - via the companys Facebook page.
LINDT MEDIA
Network TV
Cable TV
Syndication
Spot TV
Magazines
GRAND TOTAL:
Graph 2C. Brand Usage and Awareness for Select Confectionary Brands.
(Bloom, 2015)
Russell Stover
Russell Stover was founded in Colorado in 1923, operating under
three principles: service, quality, and value. From the beginning,
they aimed to sell the highest quality chocolate for the lowest
price. In order to do this, they began selling their chocolate
through select specialty Russell Stover locations along with thousands of department stores. By the 1970s, the company became
extremely popular, especially during Valentines Day. This was due
to the fact that they sold chocolate in heart-shaped boxes. They
have continued this seasonal success by using other clever seasonal marketing tactics as well. Over time, Russell Stover has been
working to reach a wider market by distributing their chocolates
in low-price stores such as Walgreens. Since the 1900s, however,
they have been struggling to compete. As a result, they were recently purchased by Lindt (Russell Stover Candies, Inc. History).
Ghirardelli
Ghirardelli was founded in San Francisco in 1892 by Domenico Ghirardelli. When the company first started off, their product selection
included coffee, liquors, and chocolate, but by the 1800s, chocolate
became their main priority. In the 1960s, the company was bought,
and Ghirardelli Square was created. By the late 1980s, however, Ghirardelli was struggling and therefore underwent a redesign. The goal
of the redesign was to reposition Ghirardelli as a luxury, chic brand
and to heavily increase sales. After several years of being passed
around to various owners, however, Lindt & Sprungli purchased Ghirardelli in 1998 and expanded the company by putting products
on supermarket shelves all over America. The idea was to create
a more accessible brand. Although Ghirardellis products can still
be found on supermarket shelves today, they continue to maintain
their luxury image by rolling out products in velvet bags and producing specialty chocolate squares. They also pride themselves on the
fact that they produce premium chocolate that contains a higher
percentage of coca than most other chocolate companies. This is
their differentiating factor (Ghirardelli Chocolate Company History).
LINDT
SEES CANDIES
GODIVA
RUSSELL STOVER
80.2
------------------------
------------------------
-------------------------
84.8
------------------------
------------------------
-------------------------
100
70.2
-----------------------------------------------
-----------------------------------------------
76.5
-------------------------
20
------------------------
------------------------ ------------------------77
15.8
3.5
7.2
21.5
------------------------
------------------------
-------------------------
42
27.6
2.9
-----------------------------------------------
-----------------------------------------------
-------------------------------------------------
1.2
------------------------
------------------------
-------------------------
100
-----------------------1289.34
------------------------ ------------------------100
100
178
36.5
GHIRARDELLI
TOTALS (000)
Share of Voice
Network TV
Cable TV
Syndication
Spot TV
Magazines
Outdoor Ad
19.8
3566.0
15.3
4331.1
------------------------- ------------------------------------------------29.8
381.1
232.8
6466.7
231.1
Media Mix
Network TV
Cable TV
Syndication
Spot TV
Magazines
Outdoor Ad
46.8
------------------------SPENDING TOTALS (OOO)
13297.7
39.3
------------------------4.1
13.5
1.0
1678.7
Graph 2D. Competitor Analysis Chart.
(SRDS)
10
INDEX
140
96
102
74
North East
South
Midwest
West
MEDIA MARKET
INDEX
120
111
Top 5
Next 5
COUNTY SIZE
A
B
C
D
INDEX
115
85
101
86
11
12
INDEX
AGE RANGE
62
135
Male
Female
By examining the above indexes, we can see that females are more
likely than males to purchase chocolate. Their index of 135 indicates
that they are 35 percent more likely to purchase Lindt than other
demographic groups.
WOMEN:
Ages 18 to 34 - 140
Ages 18 to 24 - 139
Ages 25 to 54 - 137
HOUSEHOLD INCOME:
$75,000 - $149,999 - 133
$150,000 + - 131
INDEX
18 - 24
25 - 34
35 - 44
45 - 54
55 -64
65+
106
91
88
118
106
92
HOME VALUE:
$500,000 + - 150
MARITAL STATUS
Now Married - 109
CHILD AGE:
<12 months - 151
RACE:
ASian - 132
OCCUPATION:
Professional and Related Occupations - 153
The data listed above is not exclusive. Additional data can be found by referring to the MRI+ called Fall 2013 Product: Candy/Sweets/Snacks - Bought in Last 6 Months Lindt
13
S trengths
W eaknesses
O pportunities
T hreats
14
Problem Statement
The premier chocolate industry is rapidly growing, but along with positive growth also comes several
challenges. Premier chocolate companies, such as Lindt, are being challenged to keep up with the
constant growth of cocoa products, competitors, and production. Volatile cocoa prices have been
pushing back against industry growth and forcing companies to respond with innovation. Additionally,
rising health concerns have presented a challenge for chocolate brands as well. With the rise
of obesity in America, parents are hesitant to indulge in desserts and even more hesitant to provide
sweets for their children. Keeping these current challenges in mind, Lindt is having to position
their brand as a healthy alternative that can be consumed in moderation. Along with rising
cocoa prices and serious health concerns, however, Lindt is also facing heavy pressure from their
competition. Lindt currently has multiple competitors who are not only well-known but also
established. To separate themselves from other premier chocolate brands that are facing the same
industry challenges, Lindt needs to increase their sales, improve their brand image, and
reposition their product as an everyday chocolate with rich flavors and affordable prices.
15
Target Audience
Who are they?
We have identified our target audience as Asian females between the ages of
18 and 54 with middle to high household incomes. Most of them are married
with children, but not all. More specifically, these women are well educated
and have a current home value of over $500,000 where they have lived for
more than one year. They are also current users of premier chocolate.
Because social classes in America are easily defined, we can see that
the typical purchaser of premier chocolate is a middle to upper class
citizen who is well-established and has a secure household. For this
reason, they are a desirable market for this product.
16
17
A D ay I n Th e Li fe
Purchase Behavior
PROBLEM
RECOGNITION
INFORMATION
SEARCH
EVALUATION OF
ALTERNATIVES
PURCHASE
DECISION
POST-PURCHASE
BEHAVIOR
User is satisfied with their purchase decision due to premier ingredients and high quality taste
Shares Lindt experience with friends and family (WOM)
Media Behavior
AVG. WEEKDAY
** A heavier media
focus is placed during
the weekends (Thursday
- Sunday) due to higher
media consumption &
additional free time **
18
Catches up on
her favorite
shows on HULU
Commutes home &
listens to Spotify
to pass the time
Dinner
with the family
Checks social
media one more
time before bed
Figure 7B. Media Behavior.
(PMN Grid)
Cre a t iv e B ri e f
Why are we advertising??
Lindt currently has multiple competitors who are all well-known, established Using marketing techniques, Lindt will be positioned on a level where
brands. This causes challenges for Lindt and the success of the company. Our consumers can taste the highest quality of chocolate without feeling
objective of this campaign is to set Lindt apart from its competitors by posi- guilty about their decision to indulge.
tioning it as an everyday chocolate with rich flavors and affordable prices.
We have identified our target audience as Asian females between the ages
of 18 and 54. They have middle to high household incomes, they are also
well-educated, and they also have established and stable living conditions.
Most of our targeted consumers are mothers with children below the age of
one, although not all of them are.
While many people in our target audience think that Lindt is a respected
chocolate company, they often times associate chocolate brands as one
category. Lindt currently has no distinctive factor to set them apart from
their competitors.
For this campaign, we will be utilizing both traditional and nontraditional media. For traditional media, we will be using television
spots on both cable and networks channels and four-color, full-page
advertisements in magazines. For non-traditional media, we will be
using promoted posts on Instagram, promoted tweets on Twitter,
and Facebook product pages. We will also be partnering with Food
Network to advertise on the Discover page of Snapchat and
advertising on Spotify (a streaming radio station). In addition to
social media and Spotify, we will also be utilizing in-store displays
and sales promotions in order to increase our market share.
19
Media Mix
Our OBJECTIVE is:
To increase the awareness of Lindt Chocolate by 10% among women ages 18 to 54 nationally.
To increase brand interest in order to achieve a 5% increase in sales nationally.
Traditional Media
Strategy:
Our strategy will be to use a flighting schedule of traditional media, including magazines and television.
Tactics:
MAGAZINES
To utilize magazines, we will place four-color, full-page advertisements in People, Southern Living, and In-Style.
TELEVISION
To utilize television, we will place 30-second advertisements during fringe and prime time television hours on both cable and
network television channels.
Rationale:
For our traditional media, we decided to direct our budget towards advertising in magazines and television. We chose these two
mediums because they are not only the two best ways to reach a wide national audience with the coverage that were looking for,
but they will also help us maintain the high-quality image that we want to create. Our magazine choices will allow us to direct our
advertising efforts to our target audience of women ages 18-54. Our television choices will also allow us to reach the same audience during the appropriate day parts. We decided against newspapers and radio advertisements because we saw magazines and
television as better options. Newspaper advertisements have poor quality, and radio advertisements lack visuals. Not to mention,
Spotify is also overruling radio and redesigning the way that consumers listen to music.
20
Media Mix
Non-Traditional Media
Strategy:
Our strategy will be to use a continuous schedule of non-traditional media by incorporating the use of Facebook, Instagram, Twitter, and Snapchat. We will also be utilizing Spotify and point-of-purchase displays as well.
Tactics:
FACEBOOK
To utilize Facebook, we will buy ads that are targeted at consumers who have searched for items related to our products. We will also create
an official Lindt Chocolate Facebook page for consumers to like. The Lindt Facebook page will be used as a place for us to share photos and
information about our company and product. It will also be used for consumers to share their real-life Lindt experiences as well.
INSTAGRAM
To utilize Instagram, we will create a profile that features photos from loyal customers who have sent us documentation of their different
experiences with Lindt.
TWITTER
To utilize Twitter, we will buy promoted tweets as well as utilize hash tags that are related to Lindt products. We will encourage our Twitter
followers to get those hash tags trending.
SNAPCHAT
To utilize Snapchat, we will partner with the Food Network to post easy but delicious Lindt chocolate recipes on their Discover page.
Rationale:
For our non-traditional media, we decided to direct most of our budget towards various forms of social media since it is something that Lindt
isnt currently taking full advantage of. We also directed a percentage of our non-traditional budget to help raise brand awareness through
Spotify and point-of-purchase displays. Spotify is a particularly important media channel in consumers lives today as it is beginning to surpass traditional music outlets (ex: radio). In a quick pace world where consumers have technology at their very fingertips, brands need to be
accessible and interactive at all times, and we believe that social media, Spotify, and point-of-purchase displays are the best way to do this.
21
Media Mix
Point-of-Purchase Displays
To utilize point-of-purchase displays, we will be placing displays in different grocery stores including Publix, Trader Joes, Whole Foods, and
Central Market. Our in-store displays will be placed in aisles where consumers come in contact with relevant Lindt products.
WHY N
OT?
COME ON
COUPON
SHELVES
LOVE YOURSELF
22
To obtain a national reach of 75 and a national frequency of 3 in the key months of February, April, November, and December, as well as a national
reach of 50 and a national frequency of 2 in the other months.
To obtain a spot reach of 70 and a spot frequency of 2 in the key months of February, April, November, and December, as well as a spot reach of 50
and a spot frequency of 2 in the other months.
Rationale:
We wanted to set a high reach and frequency in order to reach our largest target audience. This would be accomplished by having a high national reach and
frequency during the Holiday seasons since those are the most crucial advertising months. Our rationale for spot targeting was the same, but we wanted
to put a smaller focus on our spot advertising than with our national advertising. We decided it would be best to have a flighting traditional schedule and
a continuous non-traditional schedule with overall pulsing. We determined this would be the best timing and schedule that would reach our consumers
without overwhelming them while still reaching our reach and frequency goals.
MONTH
January
February
March
April
May
June
July
August
September
October
November
December
NATIONAL REACH
NATIONAL FREQUENCY
SPOT REACH
SPOT FREQUENCY
50
2
50
2
75
3
70
2
50
2
50
2
75
3
70
2
50
2
50
2
50
2
50
2
50
2
50
2
50
2
50
2
50
2
50
2
50
2
50
2
75
3
70
2
75
3
70
2
Table 8A. Ages.
23
Budget
Objective:
Strategy:
We analyzed the budget as well as our projected media mix in
order to properly allocate our funds. We knew that we needed to use a large portion of our budget in a cost-effective
manner, so we utilized more of our traditional media in order
to reach a large portion of our audience at one time. The rest
of the budget was allocated to non-traditional media such
as digital advertising, Spotify, in-store displays, and sales
promotions.
Rationale:
Due to Lindts limited budget, we decided to continue with
Lindts current brand position as an everyday chocolate with
rich flavors. We did this in order to creatively use the budget
outside of the typical traditional media vehicles, with the
exception of television and magazines. We thought that by
connecting with the community through social media and
sponsored events, we could also decrease our costs.
Additionally, we thought this would help create a constant
stream of interaction between our brand and our consumers.
24
Geography
Our OBJECTIVE is:
To increase awareness and interest of Lindt nationally, as well as locally, in order to ultimately increase sales.
Strategy:
Lindt will run large-scale national campaigns through traditional media (including magazines and television), 10 spot campaigns, and national
social media accounts.
Rationale:
On a national level, large-scale campaigns will help increase brand awareness through visual reminders. Social media will also help these
broader areas gain interest. More interactive and hands-on campaigns will take place within the 10 spot markets in order to bring consumers
into the brand personality and message, making it more identifiable with its rich flavors. When choosing our spot markets, we used our own
insight and compared it with Lindts data, cross-referencing it with Simply Map for Sugar and Other Sweets.
GEOGRAPHIC CITY
San Francisco, CA
Austin, TX
New York, NY
Charlottesville, VA
Seattle-Tacoma, WA
Minneapolis - St. Paul, MN
Denver, CO
Salt Lake City, UT
Boston, NH
Burlington et. al, VT
POPULATION
38,800,000
26,096,000
19,075,000
8,326,000
7,062,000
5,457,000
5,356,000
2,943,000
1,327,000
626,562
Table 9A. Top 10 Geographic Cities.
(Simply Map, 2014)
25
Scheduling/& Timi ng
Our OBJECTIVE is:
To increase the awareness of Lindt chocolate among Asian women ages 18 - 54 by using an overall pulsing schedule that combines a flighting traditional media schedule and a continuous non-traditional media schedule.
Strategy:
Due to Lindts seasonality, we will be emphasizing our promotional efforts during the months of February, April, November, and December due
to holidays and higher chocolate consumption (e.g. Valentines Day, Easter, Thanksgiving, and Christmas). Therefore, we will heavily promote
Lindt during these months using a flighting schedule of magazines and television. We will also utilize a continuous schedule for social media
and other forms of digital advertising such as in-store displays, sales promotions, and Spotify. A heavy media focus will be placed during lunch
hours, nighttime hours, and the weekends. These heavy focuses will help reflect our average consumer behavior.
Rationale:
We will promote Lindt heavily during the months of February, April, November, and December due to holidays and high consumption. Chocolate
consumption is high during February due to Valentines Day, April due to Easter, November due to Thanksgiving, and December due to Christmas. Therefore, we will be using heavier media coverage during these months.
By promoting Lindt using a flighting schedule of traditional media (including magazines and television) throughout the year, we can use our
budget more efficiently and target key months more heavily.
By promoting Lindt using a continuous schedule of non-traditional media (social media, sales promotions, in-store displays, and Spotify), we
can consistently remind consumers about our brand and products while continually keeping them involved. While we will be using a continuous schedule of non-traditional media, we will use a flighting schedule within each non-traditional medium. This will help us keep messages
fresh and new throughout the continual advertising.
26
Objective:
Objective:
Strategy:
Strategy:
Rationale:
Rationale:
27
Flowchart
28
Goals
29
Year At A Glance
30
31
Works Cited
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aspx?entid=230.
Admad, A. (2014). Chocolate Stores in the US. Ibis World. 1-29. Retrieved from http://clients1.ibisworld.com.ezproxy.tcu.edu/reports/us/industry/majorcompanies.aspx?entid=5339.
Bloom, B. (2015). Chocolate Confectionery - US - February 2015. Mintel. Retrieved from http://academic.mintel.com.ezproxy.tcu.edu/display/716445.
Cone Communications. (2013). Lindt USA 2013 Easter Program. Retrieved February 28, 2015, from http://www.conecomm.com/lindt-usa-2013-easter-program.
Fall 2013 Product: Candy/Sweets/Snacks. (2013). MRI+ Database. Retrieved from http://ureporter.mriplusonline.com/selectdemo.asp.
Ghirardelli Chocolate Company History. (n.d.) Retrieved March 3, 2015, from http://fundinguniverse.com/company-histories/ghirardelli-chocolate-company-history.
Godiva CHocolatier., Inc. History. (n.d.) Retrieved March 3, 2015, from http://fundinguniverse.com/company-histories/godiva-chocolatier-inc-history.
Lindt USA Teams Up With Curtisstone to Celebrate Great Taste and Kick Off Taste the Difference Campaign. (n.d.) Retrieved February 27, 2015 from http://
www.multivu.com/mnr/63239-lindt-usa-chocolatier-lindor-curtisstone-taste-the-difference-campaign.
Mahmud, S. (2010). Lindt USA Launches Sweepstakes, Integrated Campaign with Federer. Retrieved February 28, 2015, from http://www.dmnews.com/
lindt-usa-launches-sweepstakes-integrated-campaign-with-federer/article/177874.
Palmer, A. (2009). Lindt Taps Roger Federer As Advertising Ace. Retrieved February, 28, 2015 from http://adweek.com/news/advertising-branding/
lindt-taps-roger-federer-advertising-ace-106603.
Russell Stover Candies, Inc. History. (n.d.) Retrieved March 3, 2015, from http://fundinguniverse.com/company-histories/russell-stover-candies-inc-history.
United States [Map]. Sugar and Sweets. (2014). Library Map Collection. Retrieved from http://sm2.simplymap.com/index.html
Vaerla, P., Ares, G., Gimenez, A., & Gambaro, A. (2010). Influence of Brand Information on Consumers Expectations and Liking of Powdered Drinks in Central
Location Tests. Food Quality and Preference, 21, 873-880.
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