Chocolate Lindt Marketing Plan

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STRATEGIC REPORT

Team Project

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Table des matières

Introduction        

EXTERNAL ANALYSIS        

PESTEL        

PORTER’S FIVE FORCES        

Porter’s value chain        

INTERNAL ANALYSIS        

SWOT        

VRIN        

SOURCES :        

Introduction

This report will discuss the successfulness of Lindt & Sprüngli despite the sensitization campaigns about nutrition implemented by the French government. The company is really easy to understand. It derives his revenue from only one activity: selling chocolate. Lindt is positioned on the premium market where the demand is relatively inelastic and the product’s margins are high.

The French market of the manufacturing of chocolate and confectionery is dominated by big companies such as the Italian Leader Ferrero, the American Mondelez International and the Swiss company Nestle. Lindt & Strüngli, more commonly known as Lindt, is a Swiss chocolatier and confectionery company founded in 1845 which has his headquarter in Zürich. The group has several manufacturing site in the world and we are going to focus on the French market. French people loves chocolate more than the others countries in Europe. Every year, they spent 1 Billion € buying chocolate. The chocolate and confectionery market keep growing during the economic crisis and faced up to this one.

This French market is really interesting to study because this is a non-stop innovative sector and there is many competitors on the market. [pic 6]

According to the “confectionerynews.com”, 31% of the French chocolate market is premium compared to just 19% in Europe.

Cocoa prices are rising constantly and that’s why companies such as Lindt adopted new strategies to face up to this phenomenon.

The current strategy of Lindt is based on the quality, innovation, passion and expertise of the chocolate. Indeed, if the prices of the raw material (cocoa) increases, the first-level competitors are also going to increase their prices and will suffer. That is why consumers will turn to premium products such as Lindt who does not increase their prices because they have high margins.

The main objective of this report is to underline the strengths and the weaknesses of the company, to analyse the strategy established to find solution to their issues and to propose axis for improvement. In the preamble to our analysis, we can highlight that the cocoa market, boosted by a lot of competitors knows a slight decline. If Lindt succeeds in keeping positive results, we recommend them to be more awareness about food and environmental issues. Hence, Lindt should think of new compositions and more generally in new partnerships. They should consider to decrease the customer prices in order to be even more competitive.