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TRANSCRIPT
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Table of Contents Situation Analysis
Marketing Problem………………………………………………………..…………… 3
Industry Analysis…………………………………………………………….………… 4
Lindt Chocolate Brand Analysis…………………………………………...…………... 5
Competitors Analysis………………………………………………………………….. 7
Marketing Strategy
SWOT Analysis………………………………………………………….……………. 11
Marketing Objectives……………………………………………………….………… 12
Marketing Mix Strategy……………………………………………………………… 12
Target Selection……………………………………………………………………….. 13
Media Objective
Media Objective………………………………………………………………………. 16
Overall Target Coverage (Reach and Frequency Goals)………………………………17
Seasonal & Regional Frequency and Reach……………………………………..……. 18
Overall Media Budget……………………………………………………………..….. 20
Regionality/Seasonality Reach, Frequency and Weighting……………………..……. 20
Media Strategy Tactics
Media Rationale (Advertising Objective)……………………………………..……… 22
Media (Classes/Vehicle Selection) ………………..…………………………...………. 24
Media Mix (Budget Allocation) ………………………………………….……...…..…. 27
Executive Summary………………… ………………………………….……..………. 28
Creative Strategy: How and What to Say…………………………..……….…………. 29
Creative Constraints……………………………………………………..……….……. 30
Works Cited
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Lindt Chocolate Situational Analysis and Marketing Strategy
Situational Analysis
Marketing Problem:
Lindt Chocolate’s ambitious plan to gain a higher percentage of the industry's
market share and boost their annual sales is facing extraordinary challenges in a market
crowded with better-known brands such as Hershey, Godiva, Ghirardelli, Mars, Nestle,
and Toblerone. In order to be successful, Lindt must perfect their marketing niche and
positioning strategy, as well as raise their brand awareness if they want to compete with
major companies. With over 200 different brands in the chocolate industry, Lindt
Chocolate faces competition with brands that take away a higher percentage of the
market share. Lindt Chocolate must pinpoint the consumer’s exact wants and needs from
the brand in order to use the appropriate
marketing techniques to increase overall
brand success. Lindt Chocolate follows
Robert Lauterborn’s “Four C’s” model
(shown to the right) based on a consumer's
wants/needs, cost, communication, and
convenience to help focus on a single niche
market rather than the traditional mass marketing techniques.
In addition to the various brands in the chocolate industry, recent trends suggest
that the American public is becoming more health conscious. Competitors of Lindt
Chocolate now include Fiber One and other granola/protein bars. Most snack bars have a
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perception of being healthier than actual chocolate due to information advertised such as
“100 calories” or “sugar-free”. Consumers in today’s society make healthier choices
when consuming something sweet, which puts Lindt Chocolate's Marketing at risk.
Industry Analysis:
The chocolate industry is very competitive and continually grows despite the
recent financial/economic downturn. Lindt Chocolate grew 17.6% in North America the
year 2016. This growth is due to the launch of its HELLO line. In 2011 Lindt reported
$4.7 million dollars in net profits and its market share grew to 29%. Americans eat a
large majority of the world’s chocolate, “eat[ing] nearly 18 percent of world's chocolate
confectionery by value in 2015 or around $18.27 billion worth,” so most chocolate
companies invest, and will continue investing because European markets are over
saturated.
The exact origin of chocolate is still unknown but the Maya, whose golden age
was from 250-900 AD, were known to use the cacao bean as currency and high-ranking
men and people involved in religious rituals would consume it in liquid form. The first
western world contact with chocolate extends as far back as 1500 BC. In 1570, Hernando
Cortés learned how the Aztecs made chocolate which lead to Spain importing cocoa
where it was combined with vanilla and sugar. The first record of chocolate being
imported in North America was in 1641. Benjamin Franklin was known to have secured
chocolate rations for his troops in 1755. In the mid-1800’s solid chocolate was first
advertised, but it was not until Rodolphe Lindt developed a method that made less gritty
chocolate. The making of chocolate bars to be used in drinks became standardized around
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1850. Daniel Peter developed the concept of milk chocolate in 1876, and in the 1920’s,
solid chocolate surpassed liquid chocolate consumption. In the 1930’s, milk chocolate
became the most popular type.
The prices of chocolate vary, depending on the quality. Lower quality chocolate
may be as low as $0.20 cents an ounce, or a higher quality such as truffles may charge
$2600 per truffle.
Research shows that women are more inclined to purchase chocolate than men,
ranging from ages 25-55. Store purchases are more common because online purchases
cost more in comparison to store sales because you have to favor in shipping and
handling as well as keeping the chocolate at a proper temperature. Lindt Chocolate is
focusing this campaign on increasing the sales of their solid chocolate bars. Within the
premium chocolate industry, chocolate bars are sold more than truffles or tablets, which
are important for Lindor Chocolate to focus on. Premium chocolate also outsells and
performs general chocolates.
Lindt Chocolate Brand Analysis:
Confectioner David Sprüngli-Schwarz and his son, Rudolf Sprüngli-Ammann,
owned a confectionery shop in the Marktgasse of Zurich's Old Town. They decided to
employ a fashionable new recipe for manufacturing chocolate in solid form. Rodolphe
Lindt, one of the most famous chocolate-makers at the time, developed a technique by
which he could manufacture chocolate superior to all other brands. Lindt used the
"conche” he invented, producing chocolate with a wonderfully delicate flavor and
melting quality. This family brand contributed significantly to the worldwide reputation
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of Swiss chocolate. According to Lindt’s website, Sprüngli's private company, Chocolat
Sprüngli AG, was offered the option of acquiring the small but famous chocolate factory
of Rodolphe Lindt in Berne. This daring step transferred not only the factory, but also the
manufacturing secrets and the Rodolphe Lindt brand name. Based on the information
available the young Sprüngli Company changed its name to “Aktiengesellschaft
Vereinigte Berne und Zürcher Chocoladefabriken Lindt & Sprüngli”. During the first two
decades of the last century, the Swiss chocolate industry experienced an enormous
expansion with Lindt & Sprüngli playing a powerful role, which persisted through the
First World War. Based on the company’s written history, in 1915 alone the company
exported some three-quarters of its output to twenty different nations around the world.
Unfortunately, Lindt & Sprüngli had to face unimaginable challenges. The Second World
War brought rigid import restrictions and even rationing on items such as sugar and
cocoa. Even though sales ceased to grow during 1919 to 1946, Lindt & Sprüngli
withstood the troubling times because they maintained their great quality. According to
Lindt Chocolate’s website, Master Chocolatiers created the iconic Lindor recipe. The
delicious Lindt chocolate shell enrobes an ultimately smooth filling. Once the shell
breaks, the irresistible and decadent filling starts to melt. Lindt's Master Chocolatiers
introduced Lindt Excellence, a gourmet chocolate that is prepared by selecting the
world's finest cocoa beans and creating the finest textures, lingering tastes and elegant
flavors chocolate can offer. Lindt’s premium chocolate in the United States retails
between $2.25-$3.00 for every 3.5 ounces. Most of the US Lindor truffles are
manufactured in Stratham, New Hampshire. Lindt’s most popular seasons includes
Valentine’s Day, Easter, Halloween, and Christmas. These holiday seasons account for
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14.8% of the company’s total annual sales. Lindt Chocolate grew over 24% between
2009 and 2014, reaching 21 billion dollars in sales and is predicted to continue to grow
through 2017 earning a total of 22.4 billion in U.S. annual sales. Lindt has solid foothold
in the market share as a leading competitor with other major chocolate companies, in-fact
in 2011 Lindt’s market share was 29%, which is relatively high with an industry that
comprises of more than 200 different chocolate brands. Lindt & Sprüngli is now an
international conglomerate sold in more than
80 countries, distributing on four continents,
with their eight largest production sites in
Europe and the US.
Lindt advertises to its consumers
through different forms of print
advertisements, TV commercials and through
social media. With technology on the rise, the
use of interactive ads is increasing within the
industry. Lindt has started to produce more
social media advertisements throughout the past few years, which have boosted overall
sales. With an industry growing at 2-3% each year, Lindt’s advertisements in the North
America region are critical. By hitting the wants and needs of the consumer, Lindt can hit
their sales predictions and continue to compete in a competitive market.
Competitors Analysis:
Lindt Chocolate’s competition can best be assessed in both primary and secondary
factions.
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Lindt’s primary competition is other chocolate
companies, specifically Hershey’s, Godiva, and
Ghirardelli. These three chocolate powerhouses are well
known, popular, sell a good product, and have a positive brand
image in the American market.
Lindt’s secondary competition can be grouped into non-chocolate
candies, such as Skittles and chocolate/dessert flavored snack bars,
such as Fiber One.
The brands that go into the secondary competition faction are like the
previously named brands, well known and provide a good product but typically
come in larger portions/ sizes and come in a large variety of looks and flavors
(even excluding chocolate).
When it comes to commercialized chocolate powerhouses in the US, two
companies perch atop of the totem pole. Hershey’s and Mars are the most recognized as
well as most favored brands when it comes to chocolate. According to the 2015 Harris
Poll, the Hershey’s Kiss is the most loved chocolate product, and Hershey’s, in general, is
America’s favorite chocolate/ Confectionary brand, behind Mars’ M&M. The main
problem Lindt faces is the affect a consumer’s brand loyalty has on their purchases. A
person will go and purchase the brand they are used to. Brand loyalty, combined with
Hershey’s media presence, makes it extremely difficult for Lindt Chocolate to gain new
consumers. Televisions ads persuade the consumer, such as in Hershey’s Reese’s
commercials, and the lack of media presence within Lindt Chocolate affects the sales and
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brand awareness. Hershey’s also competes with the price of Lindt Chocolate because
generally Hershey's is less money than Lindt. Consumers unsure of which chocolate to
purchase are less likely to chose a premium chocolate at a higher price than a Hershey's
Chocolate bar. In the contest of reeling in uncertain shoppers, Hershey’s, based on
frequent ads and affordable price, will likely win every time.
However, despite the size and favorability of Hershey's, brands such as Lindt, Godiva,
and Ghirardelli have different advantages on these competitors. This category of
chocolates uses the quality and luxuriousness of their product as a platform for their
chocolates. People consider these brands to be fancy, craft, decadent, supreme quality,
etc. This advantage applies to the consumers who frequently purchase chocolate, opposed
to a consumer making a spontaneous purchase. Frequent chocolate purchasers are more
likely to look for higher end chocolate because they enjoy the higher level of quality, and
do not mind paying extra. However, Lindt must position their brand over their fellow
competitors in the premium chocolate category. According to the 2015 Harris Poll, Lindt
ranks fourth on America’s favorite premium chocolate brand, right behind Ghirardelli
(no.1), Godiva (no.2), and Dove (no.3) suggesting that people will most likely consider
three other brands before Lindt.
Diving deeper into the primary competitors, Hershey and Ghirardelli are known for their
wide selection of flavors they offer year- round, as well as seasonally. Ghirardelli and
Godiva offer gift bags and assorted flavors of chocolate which are marketed for special
occasions and gifts, as well as chocolate covered treats (i.e. strawberries, blueberries,
etc.) offered year round, a marketing objective not commonly known for in competitors
such as Hershey’s and other non-chocolates. These competitors marketing specialty items
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seasonally is an area of concern for Lindt because they have to find the air space to
advertise their seasonal/ special chocolates to the same consumers.
Setting chocolate aside, Lindt’s secondary competition, non-chocolate options, poses
several threats as well advantages. Fruit candy and most snack bars have a perception of
being healthier than actual chocolate. In fact, most snack bars advertise information such
as “100 calories” or “sugar-free”. This attribute reels in people conscious of a number of
calories, sugar, or fat they intake. When consuming something sweet, consumers in
today’s society make healthier choices, which makes this competition successful and
increasing over time, posing a problem for Lindt. Fruit snacks and snack bars also come
in a huge variety of flavors ranging from lemon all the way to caramel apple, which
allows consumers (especially those who like to try new/different things) to choose more
options. In general, most fruit snacks come in bite-sized pieces in large bags priced at an
arguably cheap price, allowing consumers to purchase more product for less money.
Snack bars are fairly large in size and typically paired either with coupons or come in
“value packs” which adds an economic advantage above Lindt.
Both types of competition have advantages over Lindt and are all well-established brands
that need careful consideration. When Lindt begins strategizing their presence in the
media and the chocolate market, they must consider their competitors advantage over
their own brand.
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Marketing Strategy
SWOT Analysis:
Strengths
Global Brand Ambassador
Excellent Brand Name/Brand Presence
High Brand Loyalty
Great Taste and Packaging
Highly Regarded as a Global Chocolate Brand
Weaknesses
Expensive
Not Easily Available
Opportunities
Tap Growing Cities and Retail Chains
Have More Variety and Smaller Gift Packages
Threats
Other Competing Chocolate Brands
Calorie Conscious People
A few strengths of Lindt Chocolate include global brand ambassador, excellent
brand name/brand presence, high brand loyalty, great taste and packaging, and highly
regarded as a global chocolate brand. Overall, Lindt Chocolate is known for their high-
quality chocolate brand that is available worldwide. However, the price and availability
pose as a weakness to the brand. Although Lindt is a very popular chocolate brand, these
weaknesses can affect the brand’s sales. A few opportunities include, tap growing cities
and retail chains (meaning promoting the brand in more cities) as well as having more
variety and smaller gift packages. Lastly, Lindt Chocolate’s threats include other
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competing chocolate brands and calorie conscious people (as discussed previously).
Marketing Objectives:
For the current fiscal year, sales should increase by 4.5%. Generally, their sales increase
by 2% per year, however with a stronger advertising campaign, Lindt chocolate could
increase its sales as well as their market share by 3%. Brand awareness is estimated to be
as low as 12% in the United States since the brand matters to many chocolate consumers
increasing the brand awareness are key to increasing future sales, ideally, after a year-
long campaign, Lindt would reach 25% awareness among Americans. The beginning and
end results of the campaign can be taken by a random national survey taken before and
after the year of running the campaign to evaluate the effectiveness.
Marketing Mix Strategy:
Lindt chocolate is focusing this ad campaign/media plan on the sales of “solid chocolate,”
otherwise known as premium chocolate. Lindt Chocolate overall needs to raise brand
awareness, and the most effective way to reach our targeted audience is through print
advertising, as well as television. Print advertising will include ads that can be formatted
for social media use as well. The use of interactive online ads through social media will
prove useful in attracting the younger customers in our target audience. Our goal is to
release a few advertisements in magazines; specifically women’s magazines and/or
family based magazines, as well as television commercials. The television ads will be
created using engaging content that emphasizes the quality of the chocolates as well as
the affordable price. Through entertaining visuals and properly researched target
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audience analysis, the television ads will rely on frequency more than reach to form an
effective response through increases sales as well as overall brand awareness.
Target Selection:
Analyzing the industry as well as using demographics, Lindt Chocolates has a primary
targeted audience as well as a secondary audience. Lindt chocolate, in general, seeks men
and women willing to purchase quality chocolate at a premium price. Purchasing trends
are expected to grow in the industry as a whole and exceed past special occasions. To
begin, we researched general demographics in order to “create” the ideal targeted market.
Adults account for 80% of chocolate purchases (NCA Sweet Insights 13). Based on this
data, the target audience age for our media plan is an adult ranging from age 25-55.
Women are the primary targeted audience for Lindt Chocolate. Women account for 80%
of household purchases, but beyond purchasing power, women spread brand awareness to
the other markets through pass along advertising. Therefore, a woman who is targeted
will not only purchase chocolate for their family but also advertise the chocolate to
others. According to one statistic, the majority of chocolate consumers are white men and
women. Understanding this demographic is important for the campaign, however, should
not completely limit all other races. For example, the Hispanic and Asian demographic
are increasing in America, so targeting more of the minority could be effective in regards
to a secondary target audience. In regards to the employment status of chocolate
consumers, most consumers are working men and women. The demographic between
married and unmarried consumers is equal, making marital status a factor to consider but
not large enough to target one or the either.
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Lindt Chocolate currently carries more
stores along the northern East coast (as
shown in the map to the left), however
when looking at the lavation of
consumers, the large majority of
consumers. The targeted location for
Lindt Chocolates should be the southern
states extending to the Midwest. While
there are 18 markets outside of the United
States, this campaign is focused on
reaching the consumers nationally rather
than globally.
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Demographics Primary Secondary
Age 25-55 25-55
Gender Female All
Occupation Employed Employed
Marital Status Any Any
Location Southern States Midwest/Western States
Race White White, Asian, Hispanic
Through the research regarding the demographics explained above, the ideal
profile of the target audience for this media plan is employed; white, employed women
ranging from age 25-55 living in southern states. Based on demographics. Lindt
chocolate must target this audience in order to effectively increase sales and raise brand
awareness. While this primary profile is specific, a more broad audience for Lindt
Chocolate is targeted. This includes employed men and women of different races from
ages 25-55 purchasing chocolates for any occasion. The secondary profile also includes
other races such as Hispanic and Asian minorities. This target audience also is located
along the midwestern states. By viewing the table above, you can view the differing
demographics between the two audiences.
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Media Objective, Strategies, and Tactics
Media Objective
Media Objective:
The objective of this campaign is to raise brand awareness and increase sales.
Lindt Chocolate generally advertises to its consumers through various vehicles such as
print advertisements, TV commercials, and social media. With technology continually on
the rise, the use of interactive (out-of-home/digital) ads is also increasing within the
industry. This campaign will take advantages of these advancements in the advertising
industry in order to see a rise in sales as well as overall brand reputation. The use of
interactive online ads will also attract the younger consumers in the target market.
Television ads, as well as radio, will use engaging content that promotes the quality of
the chocolates as well as the affordable price with an emphasis in spots across the nation.
The campaign also reaches our target audience of women directly by placing
advertisements in women’s magazines, as well as general interest magazines. However, a
small portion of the budget was used to also advertise in men’s magazines to reach the
secondary audience.
The objective is to distinguish Lindt Chocolate from its competitors in order to create a
market loyal to Lindt. The first step to fulfilling this objective is to reach as much of the
population financially possible to get Lindt established and/or recognized by consumers.
Lindt must also distinguish themselves differently in their advertisements from their
completion and repeat their message at least twice to the target audience. This
enhancement of frequency will get people thinking about Lindt when shopping for a
sweet treat in future purchases. Lindt Chocolate is not the only brand competing for the
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public’s loyalty, their primary and secondary competitors are both advertising alongside
the brand to build their brand awareness as well. In order for Lindt to be ahead of the
other brands, it must frequently communicate to people. The goal of the campaign is to
increase brand loyalty to Lindt Chocolate over the next year and through the increased
loyalty, the sales of Lindt Chocolate will also linearly increase. This media plan will
contribute to our marketing objective stated earlier by reaching several consumers
frequently to build a buying market.
Overall Target Coverage (Reach and Frequency Goals):
The main campaign goal encompasses the rise and fall in the overall coverage
(reach) and exposure (frequency) during the campaigning period. As stated previously
(see page 6) there was an apparent rise in Lindt Chocolates sales figures during specific
holiday seasons (Valentine’s Day, Easter, Mother’s Day, Halloween, Thanksgiving, and
Christmas). This data prompted the increase in reach and frequency in high selling
months. After conducting research, Lindt produces higher sales numbers in the southern
region. These numbers led to the decision for advertisements both at a national and spot
level. Some holidays, such as Valentine’s Day, Mother’s Day, Halloween, Thanksgiving,
and Christmas, were deemed more important and were given a higher reach and
frequency goal (refer to the flowchart on page 26). Important advertising months were
given a reach goal of 67.5% nationally and 77.3% for areas of spot advertisements. The
frequency goal for these important advertising months averaged 1.9 nationally with an
average of 2.2 for each spot location. While we are advertising to the national population
to raise overall brand awareness, we focused on major cities in southern states (our target
region) to increase regional sales. Overall, The media plan targets women ages 25-54.
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Seasonal & Regional Frequency & Reach:
Seasonal Coverage Strategies: During the pivotal points of the holiday months,
we reached 67.5% of our audience an average of two times. It’s important to reach our
audiences during the holiday months to raise awareness numbers, as well as get our
consumers to think about Lindt Chocolate as they prepare to purchase confectionaries.
Along with widespread reach, it’s crucial to pair the advertisements with a high level of
frequency. Lindt Chocolate awareness is one goal, however, building a market of loyal
consumers that actively chose Lindt instead of competitors chocolate is a significant
component utilized during the highly competitive holiday months where luxury chocolate
sales are at their highest.
Monthly Spending Report Summary:
January: A large amount of money is spent on heavy advertising to wrap up the past
December’s holiday events, celebrate the New Year, and to prepare for Valentine’s Day
in February.
February: Advertising in mid-February is critical for the brand to promote their
chocolates ahead of the competition before, during, and following Valentine’s Day. Due
to this demand, the budget was higher for this month than normal.
March: Spending slowed down as the holidays did. This allows the brand to recover from
the previous spending, and save money to prepare for the upcoming month.
April: Money spent on advertising increased at the beginning as well as through the
middle of the month to promote Easter chocolates.
May: Advertising expenditures increased again for Mother’s Day. Lindt wanted to also
increase advertisements for any leftover Easter Chocolates as well. The strong presence
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in media during the month of May creates a strong brand awareness and reputation that
will last the company through the upcoming silent (little media presence) period.
June: Advertising spending decreased as the summer progressed and the temperature rose
nation and spot wide.
July: Spending decreased again as hot temperatures began to peak, making chocolate an
easily perishable good.
August: No media spending occurred due to the demand for chocolate drastically
decreasing. The competition amongst luxury chocolates, as well as general chocolates, is
at its lowest.
September: Spending increased slowly to prepare for the upcoming Halloween holiday as
well as the drop in temperature.
October: As fall festivities approach, media spending increased during the middle and
end of the month. Competition spikes during Halloween between Lindt and other
chocolates as well as secondary competitor brands, so increasing the spending benefits
the brand in regards to competition.
November: Spending continues to rise as Halloween concludes, and the Holidays are
approaching, increasing the demand for Lindt Chocolate to increase brand loyalty. Black
Friday is also a major selling period the brand has to prepare for.
December: Advertising spending is in its prime due to the holidays. All chocolate brands,
especially luxury brands, are trying to get ahead as Christmas and New Year's Eve makes
their daunting approach.
Regional Coverage Strategies: Advertising on a national scale is one of our minor
objectives, however, the targeted audience is southern states throughout the United
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States. Our spot market consists of major cities in these southern states such as Dallas,
Nashville, Little Rock, New Orleans, Biloxi, Louisville, Atlanta, and many others. Within
our spot market, frequency is imperative to compete with the other brands trying to
capture the consumers in the bountiful market. The spot market is home to several of the
most obese cities in the country. This statistic suggests that the consumers here enjoy
sweets such as chocolate, which presents an opportunity for chocolate brands such as
Lindt to step in and make their mark within the territory. Lindt must establish itself as the
most recognizable luxury chocolate brand on the shelf through their advertisements to
build brand loyalty, which will lead to steadily increasing sales.
Overall Media Budget:
Our media budget was $27,000,000, and our estimated cost matched almost
exactly to our goals, or slightly under which gave us leftover money. Our goal was to
only spend $25,750,000 of the $27 million, and we spent an estimated amount of
$23,300,000, leaving us a $2,500 surplus afterward. When referring to the chart on page
26, Reach and Frequency was the highest around the holiday seasons, specifically in
February, November, and December in order to reach the most consumers frequently
enough to boost sales and brand loyalty. Reach and frequency was at lowest during the
summer months in order to use the budget as needed for the holidays. Consumers are less
likely to buy chocolates during the summer, and constant advertising does not show to be
effective. Allowing the brand to save its resources and allow the advertisements to run
their course, gives the industry an indication of how the campaign will succeed.
Regionality/Seasonality Reach, Frequency, and Weighting:
Regionality: Compared to the Nation as a whole, the southern region is
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significantly weighted more. This is mainly because as previously mentioned; the south is
home to America’s most obese cities, with Memphis being #1, Shreveport, Louisiana #2,
and Jackson, Mississippi #4, and much more. On the polar end of the spectrum, the West
is home to America’s thinnest or fittest regions in America in cities such as Boulder,
Colorado; Bellingham, Washington; San Diego, California; and more. We are not saying
that the west is not a viable market for Lindt Chocolate, however, when comparing the
eastern and southern regions to the west, fewer consumers purchase sweets. The southern
cities listed above are also some of the largest in terms of area and population in the
country, which makes it an abundant market for all brands of chocolate.
Seasonality: Although chocolate is a delicacy that can/is enjoyed year round, seasonality
is proven to make chocolate more or less desirable. Specifically, chocolate tends to be
enjoyed less in the unforgiving heat of the summer but tends to be more enjoyable when
the weather is a bit cooler and there is little to no worry about chocolate melting or
becoming a mess instead of a post-meal snack. Bearing in mind the spot region we are
advertising in, the weather plays a critical role in advertising to the south. Chocolate is at
a higher risk of becoming undesirable in the warmer months of the year. For this reason,
reach, frequency, and overall weighted spending is decreased to its lowest point of the
year. Less spending during the unpopular times will allow for extra spending during the
holiday months. The holiday months are, without a doubt, the most important time for
Lindt to advertise their chocolate. The holiday months can best be described as end the
October to the middle of February with a special inclusion of the end of April for Easter
time. This is when the cooler temperatures of the fall are met with the cold temperatures
of the winter, which are the perfect time to stay indoors, spend quality family time, and
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enjoy the simple things in life like Lindt chocolate. Not only does Lindt make a good
family snack, but also makes a great Halloween handout, Thanksgiving dessert, stocking
stuffer, Valentine’s day treat, and Easter egg/ basket filling. These are the biggest
examples of holidays that go into the aforementioned holiday season. During this time is
when advertising weight is its heaviest; to expand reach as far as possible and to pump as
many ads into media outlets as financially possible. Of course, where there is Lindt, there
will be compositing brands like Godiva or Ghirardelli just itching to be placed in people’s
shopping baskets, which is why Lindt needs to stride ahead of them so that when people
are doing their last minute gift shopping, they will quickly think to add Lindt Truffles to
their shopping list.
Media Strategy/Tactics
Media Rationale (Advertising Objective):
Television, magazines and online advertisements are the best-suited vehicles for the
chocolate industry to allow the potential customer to visualize the chocolate. Visuals are
important when it comes to any food product because, apart from the smell, it allows the
consumer to see what they could eat, triggering a desire to have the product.
A mix of television, magazines and online advertisements is the best option for
increasing brand awareness within the target audience. Television is good for reaching
people who pay attention to visually attractive ads due to the large majority of the nation
that watches television. Fifteen-second ad slots are best suited for a chocolate commercial
because it is long enough to raise a person’s interests and keep their attention without
boring the. The engaging content and visuals will highlight the quality of the chocolates
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that differs from its competition.
Advertisements could also appear on a digital platform such a Snapchat, Twitter and
Facebook. Twitter and Facebook advertisements could be placed within the feeds so that
people would initially start reading them as content before noticing they are truly
advertisements. Pinterest advertisements placed between the other pins (see image
below), allow the brand to target people who are browsing items and potentially create a
craving for chocolate. These advertisements in general raise awareness for the brand that
will lead to an increase in purchases that will linearly increase brand loyalty and overall
sales throughout the year.
Magazine advertisements would be primarily targeted towards women who are
the key demographic. Mandatories such a logo placements on the page in a certain size
will catch the reader’s attention and the frequency of the advertisements will create a
desire for purchase.
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The last vehicle used by Lindt Chocolate is radio advertisements, which would be
a brief fifteen seconds that emphasize the quality and affordable price of the chocolates
with audio and sound effects.
Media (Classes/Vehicle Selection):
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Media Mix (Budget Allocation):
As shown in the figures above, we plan to advertise the most in months with
major holidays, using mostly PrimeTime Net TV, as well as Net TV-Daytime. We
believe this will be more effective than any other time of the day because most of our
target audience (women between ages 25-54) watch TV during this time period.
December is the month we most frequently want to advertise on all channels and
magazines because chocolate sales are at their highest. We will not be showing any
advertisements in August due to chocolate sales dropping in the summer season. We will
have the least amount of advertisements on Net TV-Sports because those channels are
usually targeted more toward men, our secondary targeted audience
Net TV-Early morning would be a good time to advertise because studies show
many women watch TV in the early morning while getting ready for work, or eating
breakfast with their children. Our costs will be most expensive for Net Cable-Daytime,
Net-TV Daytime, and Net-TV Prime because as shown above, these channels will be
commonly advertised on due to the increased coverage. This campaign shows Lindt
Chocolate paying the least for Net-Cable E Fringe, Net-TV Sports, and Net-TV Early
News, as we feel these channels and times are not watched as frequently by our target
consumers. Overall, Net-TV Daytime had the highest GRP, meaning we will be using
this time as our primary time and channel to advertise.
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Executive Summary
In our first media plan, we identified our Marketing objective as a 4.5 % increase
in sales, 3% increase in market share, and reach a 25% awareness rate amongst
Americans. Our long- term goal is to improve brand loyalty amongst competing
chocolate brands as well as other snack bars. To measure the success of our advertising
campaign, a random national survey will be implemented the year prior and after the
campaign launches. Our campaign will be aimed mainly towards a female target audience
aged 25-55 years and a secondarily, men of the same age requiring a mix of old and new
media in media outlets popular amongst both genders in our media strategy. Continuing
on with the strategy aspect of our campaign, it is worth referencing the SWOT analysis of
Lindt Chocolate. Lindt is a global brand ambassador and has an excellent brand
name/brand presence, high brand loyalty, great taste and packaging, and highly regarded
as a global chocolate brand allowing room for opportunity and making Lindt a formable
player in the chocolate industry. The main disadvantage worth noting is the price of Lindt
chocolate compared to other chocolate such as Hershey’s, which poses obvious threats to
the brand. The geographic location chosen to target heavier than the rest of the country is
southern states. The south contains a high percentage of consumers for the chocolate
industry as well as a high potential in terms of population size, demographic stats, and
category sale. Lindt Chocolate can use this data to create a successful campaign that
effectively reaches the consumers. Ad execution in our campaign will include a mix of
print ads to more precisely select our audience such as magazines, posters, and billboards
as well as television and radio ads to boost frequency and brand equity, along with new
media advertisements such as social media to capture our younger audience. Keeping our
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budget in mind, our total expenditures were about $23.3 million, which worked out well
with our reach and frequency goals that were to reach 67% of our audience at least twice
during pivotal points of the holiday months. Holiday months primarily are from the
months of October through mid-February. Overall we were below our budget, which will
allow us to relocate funds to specific advertisements according to the client’s digression.
In conclusion, the above Lindt chocolate advertising campaign summarization covering
our marketing objectives and strategies proves to be thorough, precise, inclusive and
above all else, effective.
Creative Strategy:
Our creative strategy will consist of five different mediums in which we will be
advertising on. These mediums will be television, magazine, social media, radio and
billboards. We will be using TV as the main medium for our ads where we will focus our
commercials and advertisements on a theme of relaxation. An example of this
commercial would be an older lady coming home from work, ready to relax and sitting
down enjoying a Lindt Chocolate bar. These commercials we will be showing on TV will
range from 30 seconds to a minute, giving a short and sweet message of relaxation and
temptation to our audience. Our reach and frequency will both be at its highest during the
holidays for our TV ads and commercials. We will be trying to reach a wide variety of
audience during this time, as well as, our ad frequency will be at its highest.
We will be using magazines, social media, billboard, and radio as our secondary
medium of advertising and we will continue the relaxation theme from our Television
ads. An example a magazine advertisement in our campaign would include, a blown-up
image of a younger woman relaxing, eyes closed in a bed with chocolate colored silk
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sheets. The Lindt logo will be located in the bottom right corner while body copy will be
listed slightly to the left still located at the bottom of the page. In the left-hand corner, the
Lindt Chocolate product will be placed to complete the advertisement. The social media
advertisements will have a little inspirational relaxing post with either a picture of the
product or small gifs of people eat Lindt Chocolate. The billboard advertisements will
include a dark chocolate background with a picture of Lindt’s Premium Chocolate, with a
catchy headline that will help promote the brand image as well as keep the relaxing
theme for out campaign. Our radio ads will consist of someone speaking softly in
temptation for you to eat Lindt Chocolate. They will also last about 30 seconds, enticing
you to buy Lindt. These ads will have a high frequency and will occur often on differing
radio stations.
Creative Constraints:
Lindt Chocolate’s ads will work well in many types of media. Short television ads
are effective because they are can attract the eye, thereby enticing potential customers to
buy Lindt Chocolate immediately, or the next time they go to the store and want to treat
themselves. Television is also geographically flexible, which means that the ads can vary
based upon the market in each region of the country. Although the ads are expensive and
short lived on television, they are very cost effective because they will be reaching a large
audience. The amount of other advertising on television means that there will be a large
amount of clutter and that will decrease the level of attention that customers would have
for available for the advertisement but short and attractive advertisements could remedy
this problem.
Magazines are ideal for Lindt Chocolate advertisements because of the
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appealing high-quality color images, which further perpetuate the idea that the chocolate
is desirable. Due to the year-round purchasing of chocolate, it is perfect that magazine
advertisements have such a long life, and will reach pass-along readers. One other major
advantage of magazine advertisements is that the audiences for each magazine are very
specific. It would be best, to not advertise the seasonal products because of the slow
reach of magazines.
New media and online advertisements are great for being able to customize the
target audience of the advertisement. The novelty effect and the ability to avoid being
part of the clutter are pluses of this type of advertising but there is a concern of being able
to measure the number of people who have seen the advertisement.
Radio is not particularly suited for Lindt Chocolate advertisement because it
would be almost entirely reliant upon the ability of the listeners to hear a message and be
able to visualize the product and the attention rate is low if done in some formats. In
addition to the product itself being more appealing with a visual media, there is the
problem of the stations being too saturated with advertisements to the point that listeners
frequently change the channel when they start hearing advertisements. There is little
catalog value of radio advertisements because a person cannot rewind or find the
information again if they were interested in the chocolate, they would have to wait for the
next set of commercials to start after the music but they may have already ended their
commute by then. The main advantages to radio include the geographic flexibility that
allow us to personalize the advertisements to the specific spot zones which will not only
reach our goal of increased sales but also build brand image. Specialized stations also
allow us to reach out target audience more efficiently, which is why we chose to include
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a few radio advertisements within the campaign.
Works Cited
Kill, J. (2016, March 25). Chocolate makers still haven't mastered online shipping. Retrieved from http://fortune.com/2016/03/25/chocolate-online-shipping-problems/ Lindt SWOT Analysis, USP & Competitors. (n.d.). Retrieved from http://www.mbaskool.com/brandguide/food-and-beverages/773-lindt.html NCA Sweet Insights. (n.d.). Consumer Insights: Chocolate. Retrieved from http://www.candyusa.com/wp-content/uploads/2015/08/Chocolate_ConsumerInsights.pdf Snyder, R. (n.d.). History of Chocolate: Chocolate in the American Colonies. Retrieved from http://www.history.org/history/teaching/enewsletter/volume9/jan11/featurearticle.cfm Markets. (n.d.). Retrieved from http://www.report.lindt-spruengli.com/14/ar/en/annual_report/markets.htm Satioquia-Tan, J. (2015, July 24). Americans eat HOW MUCH chocolate? Retrieved from http://www.cnbc.com/2015/07/23/americans-eat-how-much-chocolate.html Said, S. (2013, October 04). The Most Expensive Chocolates in the World. Retrieved from http://www.therichest.com/luxury/most-expensive/the-most-expensive-chocolates-in-the-world/ Chocolate History: Who Invented Chocolate? (2015, June 16). Retrieved from http://facts-about-chocolate.com/chocolate-history/ Story of Lindt. (2013, June). Retrieved March 20, 2017, Retrieved from http://www.lindtusa.com/shop/story-of-lindt Cassell, D. (-0001, November 30). Industry Trends: Premium Chocolate. Retrieved March 30, 2017, from http://digital.bnpmedia.com/display_article.php?id=448144