Product and market analysis in chocolate industry

Published Date: 23 Mar 2015

Lindt & Sprungli AG is established in 1845 which is a Swiss based company existed during more than 160 years; it has become famous for innovative and creative companies for making premium chocolate. It's as a leader in the market for manufacturers of premium quality chocolate and offering large chocolate-related products in more than 100 countries around the world. Today, lindt chocolate is produced in six European countries, two in the USA, and other companies in four continents for sales and distribution. Its brands include such as Lindt, Ghirardelli, Caffarel, Hofbauer and Kuefferle.

As chocolate can relieve depression and make people feel happy, more and more people become to be chocolate fans. The reason for consumers choose Lindt chocolate is that lindt chocolate is one of the famous Swiss chocolates, consumers have varietals choices on flavors. Moreover, each lindt chocolate contained generous quantities of cocoa and butter, consumers taste it through the enjoyment of 5 processes-sights, touch, sound, smell and taste.

Strengths

High and traditional Swiss brand with high recognition

High market share

Broad manufacture places with high reputation

Premium quality

Highly content of Cocoa

Various choice on flavor

Recyclable packaging

Weaknesses

Fatty products

Narrow of promotion strategies

Lack of sale channel

Weakness of packaging attraction

Strange flavor such as salt or chili may unpopular

Opportunities

Traditional and popularity Swiss brand

Convenient for reserve and share

Richness of cocoa supply

Swiss tennis champion Roger Federer as a global ambassador

Large number of loyal consumers

Threats

Lindt chocolates may replaced by Australia brands

Price competitive as major competitors may take adjustment of producer process in order to reduce the price.

Product

The Lindt chocolate is a kind of convenience products which is fast-moving consumer goods, as it's inexpensive and purchased frequently by households and individuals with little engagement in the process of decision-making for consumers' needs and wants.

The block lindt chocolates (100-125) involve 'Excellence', 'Lindor' and types of fruits flavor. Each type of chocolate has varied flavors, and each flavor has its own colorful wrapper. These kinds of chocolates are created to block. For the reason, a thin tablet is melt faster on the tongue to provide intense flavor experience for consumers. Also, the block chocolate is convenient for people who revel in lindt chocolates by private, little by little, piece by piece. It's also easy to share with anyone else

Obviously, Lindt chocolates are occupy broad area on market shelf with different kinds of colorful wrapper. The logo of 'LINDT' is in gold which is visible to catch. The ingredient of chocolate is emphasized on surface. In addition, a whole packaging can be recycled which have link with social responsibility in protecting social environment.

The difficult market environment for premium products cause a crisis that lindt chocolates sales decline by 1.9 per cent during 2009 in Australia. Managers immediately adopted some strategies try to control the falling tendency. In this situation, the price of Lindt chocolate were be adjusted, and company were take efforts to strengthen the market position and acquiring the further market shares. As a result, the sales have gradually increased since than.

LINDT is manufacture brand which is one of the oldest Swiss traditional brands; high quality of chocolates makes a growth of consumer awareness. An attractive and unique consumer offering make the brand become strongest. Because of that, a strong brand provides brand awareness when consumers buy the chocolates at the first time, also promoting repurchase in the future. Due to the fact that, the reputation of Lindt is steadily increased exist in marketplace recently.

At specific time, Lindt block chocolate take special price with any 2 blocks (100-125) for $5. It is shows inverse demands curve that, the quantity demanded of its chocolates increased as the price fall down.

Price

Price plays an essential role in marketing which is efficient marketing mix variable that can be changed quickly relate to change of demand or competitor performance. The lindt block chocolate current price is $3.69, which has almost the same price with competitors. It shows that, Lindt price has a bit of competition with its competitors. The prices of almost the same packagings of block chocolates are relatively no high, with fluctuate between $3.5- $4.0. In specific period, discount promotion is affect by marketing campaign to promote sale.

It seems that, Lindt chocolates offering with non-price competition. Sellers would focus on typical features, quality, promotion and packaging of products, rather than emphasize on price for the purpose of distinguish its products from competitors'. Consequently, the advantage of non-price competition is that customer would build loyal of its products and repurchasing. Moreover, it is hard for competitors to attractive customers who prefer Lindt based on non-price factors. For this reason, a company has to improve its products futures to be unique and higher quality of its products, promotion and packaging, even customer service. Customers will consider these products feature as important in further purchase. It is difficult for its competitors to follow.

The price objective of Lindt chocolates is to earn profits and bring to long-term perspective. At that time, manager need to make consideration of customers needs and wants in order to decide an appropriate price. Price directly affect sales volume, also sales can immediately affect costs. Therefore, price is immediately related to organization's profits. In specific time, business make the price lower in order to ensure sales volumes

Place (distribution)

The distribution component refers to marketing mix, which emphasize on the decisions and actions contain in making products available to customers when and where they want to purchase. Lindt chocolate company in order to operate the products through more than 70 retail stores around world, and developed a wide distribution through comprehensive retail and wholesale channels. Lindt chocolates have two kinds of distribution channels that depend on sold in large or small retailers. For larger retailers such as Woolworth and Coles, the frequent choice of distribution is that may deliver products directly from producer to retailers, and then offer to customers. On the other hand, small retail like seven-eleven and some corner stores may use a long-standing channel that deliver products through the producer to a wholesales and then deliver to retailer, and provide to customers at last.

Lindt chocolates offer through intensive distribution strategy. Consumers purchase it based on convenience with little decision making process, they normally purchasing at supermarkets and convenience stores. Also Lindt provides online sales service but only in Swiss online shop, which delivers all over the world. A new world network will become comprehensive, and online service will available soon.

To build broad online shops and offering can directly provide to customers. Other advantage is that, creating sales outlet, which can reduce sales price in order to gain the potential customers.

Promotion

The purpose of promotion is to promote products demand. The three possible elements of promotion strategies are used by Lindt Company are advertising and sales promotion. Advertising is one of the most effective ways to stimulate the demand of its chocolate. Since October 29, 2009, a Swiss tennis champion Roger Federer built a partnership with Lindt Company; he became a global ambassador for Lindt chocolate. He act in TV commercial and he also confirms that he had been a great fan of Lindt chocolates since he was a kid. Through its mass media, his reputation and personal experience may convince or attractive consumers purchase lindt chocolates. As a result, Lindt Company improves the global popularity of its products, and establishes the brand recognition in global markets.

For sales promotion, Lindt Company have discount in specific days with any two blocks (100-125g) for 5 dollars. In this way, the discount activities remind customers about its brand. Moreover, some convenience stores would give away Lindt teddy bears for customer who purchase of 35 worth of chocolates and Lindt bags give to someone who purchase over $25 in specific period. Even the online quiz competition, customers should answer a question in 25 words "which types of Lindt chocolate is your favorite and why?' Then, the answers are judged, and the most creative answers will be gain rewards.

Conclusion

In conclusion, this report conducts the marketing mix and SWOT of lindt block chocolates (100g_125g). Lindt Company existed for a long time, which is traditional brand with high quality. Therefore, customers have loyal on this brand. It plays dominate situation in marketing.