Free Essay

One Chocolate Basic

In: Business and Management

Submitted By ebojar
Words 1054
Pages 5
1) Charakterystyka przedsiębiorstwa 1.1. Opis przedsiębiorstwa

Konkurenci Globalni (Sprzedaż 2013) | W Polsce | | Mars | 17,640 USD (millions) | Ferrero | | Mondelez | 14,862 USD (millions) | Mondelez | | Nestlé | 11,760 USD (millions) | Stork | | | | Wedel | | | | Wawel | |

Target Group * Young and cosmopolitan consumers * For those who understand lifestyle as a personal statement * Young trend-conscious consumers
Marketing Objectives * World’s biggest manufacturer of premium chocolate products * Modern * Enticing * Sinfully delicious * Luxury & prestige * Easygoing lifestyle * Sensual experience * Unusual taste combinations * (e.g. Salted Caramel, Strawberry Cheesecake...)
Quantitative
* Market volume ca. 100 USD billion (only 2012 available) * Market growth saturated chocolate markets in Europe and North America * Group sales 2 883 CHF million (~ 3 459 EUR million) * Group profit 404 CHF million (~ 485 EUR million) * Share price (ISIN: CH0010570759) 46 288,- CHF
Przewagi Konkurencyjne * Quality strategy * Unique selling proposition (USP) * Premium Quality * Brand image * Extensive advertising policy
Pozycjonowanie - produkt
Wysoka cena I jakość, bardzo premium, duża różnorodność smaków (od gorzkich do bardzo delikatnych czy nietypowych)

Cena
Na rynku konkurencja oligopolistyczna kilku dużych graczy: market Share Lindt w okolicach 20%

Promocja: * Social Media (Youtube, Facebook, Twitter) * Reklamy w Kinach * Reklamy w prasie ( też w artykułach PR jako pomysły na prezenty) * TV (w niszowych kanałach National Geographic, TVN Style) * Outdoor * Kampanie ze znanymi postaciami np. Roger Federer * Nastawienie na CSR w Szwajcari/ EU/ USA ale nie w Polsce jeszcze
Lokalizacja:
1. Sprzedaż: Ponad 100 krajów 2. Produkcja 6 krajów w Europie + USA
Gdzie?
* Sklep Online * Sklepy Duty-free, Stacje bęzynowe * Supermarkety/Retail – produkt impulsowy * Sklepy Własne

5 sił Portera:
THREAT OF NEW ENTRANTS
The increase of dairy and nut allergies is having a negative effect on the cocoa and chocolate product industry

The obesity epidemic is also having an unfavourable impact on sales within the chocolate industry

According to the United Nations the growing concern for the environment means extensive investments are required in order to adhere to sustainable growing practices

Based on the above observations, which translate as barriers to entry and according to The Hershey Company (2010) there is no significant threat of new entrants in the chocolate industry

THE BARGAINING POWER OF SUPPLIERS
Suppliers can exert power by increasing prices or reducing the quality of their product

Lindt devised their own code of conduct and independent verification initiative for suppliers in Ghana

According to the United Nations it is quite difficult to be approved as a supplier for large chocolate companies due to the extensive amount of suppliers to choose from and due to organisations such as the Fairtrade Foundation

Although Lindt follow a code of conduct and verification initiative, similar to that of the Fairtrade Foundation, its suppliers are not regulated by an independent body

Based on the above, it can be noted that the bargaining power of Lindt's suppliers is relatively low

THE BARGAINING POWER OF BUYERS
According to the United Nations (2008) the buyer market of cocoa products has increased along side the concentration of the manufacturing segment

It must be noted that hotels have an abundance of chocolate producers to choose from;

* There are several producers that offer branded, packaged chocolates as the product is relatively "standard or undifferentiated" * However, Lindt's and a few other producers have a unique selling point of producing chocolate of a higher quality * This reduces the number of potential producers for buyers who wish to stock luxury chocolate products for their customers

Although Lindt will generate additional customer value for the buyer, it must be noted that it would not save the buyer money

Taking the above into consideration, the bargaining power of buyers in the form of hotels would be classified as medium

THREAT OF SUBSTITUTE PRODUCTS
There are several substitute products threatening the chocolate industry, including;

* Non-chocolate snacks such as biscuits, crisps, frozen dairy products, savoury snacks etc. * These snacks pose a threat as indulgent foods are based purely on consumer preference

The increase in obesity has lead consumers to seek alternatives to chocolate, including;

* For those with a sweet tooth - both fresh and dried fruit as well as yoghurt * For those who favour savoury snacks- Popcorn, nuts, rice cakes, seeds etc.

Energy drinks such can also be considered substitutes, as they have similar affects as chocolate:

* They provide energy by increasing insulin level with sugar

As chocolate is often given as a gift during seasonal occasions, Presents and gifts can also be considered substitute products

There are numerous substitutes to chocolate that transcend several consumer categories. Based on these findings, it can be determined that the threat of substitutes in relation to the chocolate industry is high

COMPETITIVE RIVALRY
As an industry matures and growth rates change each actor tries to gain a competitive advantage over its competitors

According to KPMG's (2012) report on The Chocolate of Tomorrow, the main triggers for competitive rivalry in the chocolate industry are consumer behaviour patterns
Consumers are segmented into three categories; 1. The Convenience Buyer 2. The Value Buyer 3. The Luxury Buyer

It can be seen that competitive rivalry within the chocolate industry is high due to the extensive number of players and how they react to consumer behaviour patterns, wants and needs

POLITICAL
-Stable, democratic government

-Concern with obesity levels

-Advertising Standards Authority

- Food Safety Authority of Ireland | ECONOMIC
- Irish chocolate market worth €625 million

-Uncertain economic climate

-12.5% corporation tax

-Inflation of cocoa prices | SOCIAL
-IEU consumers more health conscious

-Interest in ethical goods

-High population growth

-Gift giving culture | TECHNOLOGICAL
-New innovations and technological advances

-Conching process – for 24 hours to differentiate from competitors

-Warehousing is important to keep products fresh

| ENVIRONMENTAL
-Environmental policy is very important to Lindt and Sprüngli

-Efforts to reduce consumption of water and energy and optimize transport routes

-Recycled, recyclable and biodegradable packaging

-Kew raw materials are sourced from local suppliers | LEGAL
-Socially responsible

-Core values * Quality, commitment and qualification, customer orientation, social responsibility and profitability
-Safety in the workplace is very important to Lindt and Sprüngli |

SWOT SWOT ANALYSIS | STRENGTHS•Long established
•Variety of products
•Innovative flavours
•High Quality
•Strong Brand presence
•High brand loyalty
•Strong seasonal associations | WEAKNESSES•Not Fairtrade certified
•Not governed by external body
•High prices
•Not Locally made
•Not as widely available as certain competitors |

OPPORTUNITIES•Seasonal campaigns
•EU has a high chocolate consumption rate
•Trial tastings generate consumer feedback | THREATS•Health concerns
•Luxury and Convenience Competitors
•Substitute products
•Environmental concerns
•Economic downturn |

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