product extension of lindt & sprungli

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About Lindt & Sprungli

• Founded by a small family business in 1845 by David Sprüngli-Schwarz and his inventive son, Rudolf Sprüngli-Ammann

• In 2016, the group generated a total of CHF 3.901 billion with markets sales mainly from the United States and the Asian regions.

• Possesses only 5.1% of the global chocolate market according to International Cocoa Organization

Lindt & Sprungli Group Brand Sales

Global Brands: 75% SalesRegional Brands: 22% SalesLocal Brands: 3% Sales

Lindt & Sprungli only ranks 6th in International Cocoa Organization

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Lindt & Sprungli Main Competitors

STRENGTH

• Lindt & Sprungli is a successful brand as its products are of high quality.

• Lindt & Sprungli has a large variety of chocolate flavours. There are smooth white, dark and milk chocolates, flavours include; cookies & cream, strawberry, caramel, hazelnut and cocoa.

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WEAKNESSES

• Lindt & Sprungli chocolate is very expensive. It normally target middle and high class people.

• Lindt & Sprungli products are not widely available everywhere. It can be found only in hypermarket not small shop and supermarket like ‘Dream Price’ as it is positioned as a sophisticated lifestyle brand.

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OPPORTUNITIES

• Market is becoming saturated- ‘innovation and diversification will be key at this pivotal time’.

• Product Extension

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THREATS

• There is a rising societal trend towards maintaining a healthy lifestyle. There are assumption that excess of chocolates are not healthy for children.

• The threat of competitors. With competitors such as Ferrero Rocher, Kinder Bueno and KitKat

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POLITICAL ASPECTS

• Concerns about health of customers• Labour Regulations

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ECONOMIC ASPECTS

• Customers Income• Increase in inflation rate

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SOCIAL ASPECTS

• Health consciousness• Premium quality products

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TECHNOLOGICAL ASPECTS

• New innovation and technological advances

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LEGAL ASPECTS

• Rules and Regulation of other countries

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ENVIRONMENTAL ASPECTS

• Environmental friendly• Ethically sourced products

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Average Age Group

• Consumer audience age group is 20 – 30• Represents the working population• 80 % agrees to be satisfied with Lindt & Sprungli’s Products

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Lindt & Sprungli’s Main Competitors

• Ferrero Rocher leads with 32.2%• Main reasons are its

1. Provide high quality products at low cost

2. Diversification of products3. Outstanding packaging4. Integrated marketing and

communication strategy

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Cereal Bars Consumption in Mauritius

• 81% of Lindt & Sprungli’s consumers opt for cereal bars frequently. 63% of these are Overly Satisfied with the product.

•This represents a huge potential for Lindt & Sprungli to target this niche by creating an extension of its product to cereal bars. Alpen represents the main competitor

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Buying Process Influencers

• 57% of cereal consumers are influenced by taste.• Ingredients and price are also immediate influencers.• Cereal bars being low involvement product, customers are not easily influenced by advertising.

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Recommendations from the survey

• A proper positioning as a premium cereal bar for a wide audience.

• Identify the unique selling point of Lindt & Sprungli cereal bar

• A proper creative strategy that reinforce the positioning of the product and supported by a message selling the extended product value, in our case, Lindt & Sprungli’s Cereal Bars value proposition

•Using the creative strategy in the diffusion process.

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Selecting the Unique Selling Proposition

• According to the survey, cereal bars providing higher nutrients intake allied to good taste were highly motivating factors influencing the buying decision.

• Soybeans selected as main differential ingredients.

• Main buying decision drivers

• Relative Advantage• Compatibility• Complexity• Triability• Obsevability

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Relative Advantage of Lindt & Sprungli Cereal Bar

•The relative advantage of the Lindt & Sprungli cereal bars lies in its ingredients which provides higher benefits compared to its competitors.

• It matches the needs in nutrients and energy of a larger audience including, veg and non-veg as well as gluten free customers.

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Compatibility of Lindt & Sprungli Cereal Bar

• The product does not come as disruptive to the targeted audience’s values, needs and daily routines.

• The promotional mix educates the customers on the benefits of the product to their daily life focusing on portraying it as an energy booster.

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Complexity of Lindt & Sprungli Cereal Bar

• The level of complexity should be as low as possible..

• There won’t be any secondary attached actions during the consumption phase

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Trialability of Lindt & Sprungli Cereal Bar

• Lindt & Sprungli’s cereal bars will be sold as one off and boxes of 5 and 12. Hence, we allow the customers to have a first-hand try with the product without binding them to it.

• Packaging will provide all the required information to address the customer's questions

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Observability of Lindt & Sprungli Cereal Bar

•Customers are more prone to adopt Lindt & Sprungli’s cereal bars if they can see the benefits of the product on their immediate surroundings.

• Promotional mix will use influencers such as Roger Federer as its brand ambassador.

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Knowledge Aspect

Give information about Lindt & Sprungli Cereal Bar, billboards and TV adverts should be considered in order to create awareness and give information about the product to create that desire.

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Persuasion Aspect

Salespeople will give full details of the product and the potential customers will be able to make use of their senses to test the product.

Make use of sensory marketing in order to develop the desire and willingness to buy the product since it is a food item

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Decision Aspect

With an audience becoming more health conscious, it is important to market products with an emphasis on their health benefits in order to attract consumers.

Lindt & Sprungli will hence make use of the USP of the cereal bar, which is its ingredient to demonstrate its benefit across different channels.

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Implementation Aspect

Proper marketing mix will determine the success of the product usage.

A well-informed customer will eventually have better probability of choosing the product.

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Confirmation Aspects

Lindt & Sprungli will make use of its Roger Federer, who is already their brand ambassador, to give an authenticity to the product

Lindt & Sprungli will diversify its flavours to satisfy more people’s tastes and therefore will not only work on the retention of its consumers and create loyalty but also on the attraction of new customers.

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Creative Strategy 3 Main Aim

•Create strong brand awareness of the extended Lindt & Sprungli’s cereal bar.

•Drive sales and market penetration as well as consumer adoption.

•Change the buyer perception and buying habits for a frequently used product.

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Our selected creative channels (1)

Social MediaReinforce the online presence of the brand and drive engagement from our targeted audience as well as inferred endorsement from advocates.

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Specialized locationsThe targeted audience are frequent visitors of supermarkets and sports centre. As such, we will target these areas to intensify the trial phase and increase purchase.

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Prints and AdvertsThese channels will help in the awareness and evaluation phase where they will play an important role in educating and creating classical conditioning between the brand and the customers.

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Buyer Persona

To facilitate the understanding of how our target audience will mostly react to our marketing triggers, we created our buyer persona.

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BackgroundGender: Male/Female/OthersAge Group: 20 -30 years oldEducation Level: All levelsIncome: Rs 12 000+

Goals and ValuesProfessional Goals: Raise & PromotionValues: Job security, status, professional success, health assurance

Change Expectations and Purchase CriteriaChange Expectations: Higher health benefitsPurchase Criteria: Price, taste, packaging and health benefits.

Challenges and ObjectionsDaily Challenges: Time management, proper eating habitsCommon Objections: Lack of time

Adoption Process Funnel

Based on the above persona, we defined our marketing strategies according to the 5 steps in the adoption process which are

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•Awareness•Interest•Evaluation•Trial•Adoption/Rejection

Awareness

Main aim: Creating awareness around the new product

Marketing Efforts:

- Focus on providing information.-Adverts launched with emotional connotation. - Repetition to drive classical conditioning through jingles.

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Interest

Main aim: Provide subsequent information about the product

Marketing Efforts:

- Provide information about the product- Have call to actions to activate purchase decision- Focus on showcasing the USP of our product

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Evaluation

Main aim: Facilitate the choice of the consumer for Lindt & Sprungli’s soybeans cereal bars.

Marketing Efforts:

- Use of testimonials from engaged customers. - Use of the brand ambassador in adverts.

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Trial

Main aim: Ensure the conversion from trial to adoption

Marketing Efforts:

- Encourage tasting at different strategic places. - Customer Feedback to improve engagement and product quality.

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Expected Outcome of the Marketing Campaign

•Early trials with the product leading to adoption. •Improve the long term revenue goals of Lindt &

•Sprungli through effective positioning.

•Improve the adoption process with proper communication strategy.

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