i. Organizational vision, infrastructure, governance, and stakeholder management Before 2006 (pre-crisis) : Lindt outperformed an otherwise stagnant chocolate confectionery market growing by 17% in the first half of 2006. Against the first half, hence hindering the period profitability. While the company makes just 40% of its annual sales over this period, 50% of the fixed costs of production and marketing are nevertheless charged against the first half, hence hindering the period profitability. (Sweetest performance ever for Lindt &Sprungli)
Brand Strategy
In its more mature markets, such as Italy, France and Switzerland, Lindt is focusing on de-seasonalising chocolate consumption, away from special occasions such as Easter and Valentine's Day. The company is also focusing attention on the consumer rather than promoting its products through specialist fairs such as it used to. The latest launch, in its Excellence range, included direct mailing samples to a large number of Swiss households. The emphasis of the strategy is to develop high quality chocolate as a daily indulgence, rather than an occasional treat. In the US, the company's strategy to increase consumer awareness of premium chocolate through its branded boutiques is paying off in terms of new consumers. = WILL SHUT DOWN A FEW YEARS LATER. (Sweetest performance ever for Lindt &Sprungli)
Key capabilities in 2006, still valid today:
The company, already well placed in the planned-purchase market, will increasingly focus on premium impulse-purchase products, where competition recently stiffened due to Mars and Kraft launching their own premium ranges. However, Lindt is well equipped to fight hard: its small dimension, hence higher flexibility, allows 25% of portfolio to be modified each year, a level of innovation hardly attainable for larger companies. (Sweetest performance ever for Lindt