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Table of Contents:

Executive Summary
Situation Analysis
Marketing Goals
Target Audience
Creative
Media Objectives & Goals
Media Strategy
Media Execution
Budget
Team Biographies
Appendix

01

Lindt Chocolates - Marketing Campaign


Executive Summary
Lindt is an established gourmet chocolate company. In 1847, in the town of Zurich, Switzerland,
its original chocolate factory was formed. Today Lindt aims to provide not just a treat, but a
piece of refined chocolate perfection.
Within the next few years, chocolate sales are projected to rise by two to three percent per year.
In the next three years, Lindt wants to raise its distribution from 70 percent to 90 percent and
brand awareness by ten percentage points, from 25 percent to 35 percent. To achieve these goals,
Lindt wants to shift their approach from distribution to brand awareness. Lindt has allocated $30
million to achieve these goals.
Our advertising team will run a pulsing campaign, concentrating on advertising during the
holiday months: February, April, November, and December, when chocolate is used more
abundantly. We will predominantly focus on the national markets with supplemental five spot
markets.
Were targeting white 45-54 years old and Asian 18-22 women. We will use both traditional and
nontraditional methods to better advertise to these business and family oriented women. The
media chosen to reach these target audiences will be national magazine publications, television,
Internet, and outdoors. We decided to use a variety of media to obtain a reach of 70 and the most
effective frequency of 3.3 calculated from the Ostrow Model.
The total budget of $30 million from was split into about $29.7 million in traditional advertising
and $300 thousand nontraditional and promotional methods.

Situation Analysis
Historical Perspective
In 1847, in the town of Zurich, David Sprungli and his son, Rudolph, built a factory that
produced chocolates in solid form. Years later, Rudolph divided the business he had started with
his father amongst his two sons. The elder son, Johann Rudolf Sprungli, was given the factory
and the younger son was given two retail stores.
Johann changed the name of his private company to Chocolate Sprungli and acquired the Lindt
chocolate factory in Berne, Switzerland, in effort to expand his business. The company again
converted its name to be, United Bern and Zurich Lindt & Sprungli Chocolate Factory Ltd.
Starting in the year 1994, Lindt began to acquire various chocolate companies. Kufferle
Chocolate was the first chocolate brand to be integrated into the new business and within the
next four years, Caffarel and Ghiradelli were inherited as well. At one time, Ghiradelli was a
one-regional company, but after Lindt & Spungli inherited it, it was expanded to many
international markets.
Lindt & Sprungli currently has six factories that are located in Kilchberg, Switzerland; Aachen,
Germany; Oloron-Sainte-Marie, France; Induno Olona, Italy; Gloggnitz, Austria; and Stratha,
New Hampshire.
In 2011, Lindts net profits were recorded as 4.7 million and its market share rose to 29 percent.
The year 2011 exceeded all previous years. In 2014, Lindt bought another company, Russell
Stover Candies, for about $1.5 billion.
There are currently eight Lindt chocolate cafs in the world, four of which are in Sydney and
four in Melbourne, Australia. In 2009, because of a stagnant economy, Lindt closed half of its 80
retail boutiques in the United States. Today, however, Lindt has 59 cafs and 28 markets in the
United States, primarily in the northeast. Lindt Chocolate today offers handmade chocolates,
macaroons, cakes, and ice cream.
The Market
In order to accurately describe the full market spectrum for Lindt chocolates within the United
States the markets must be broken into national and spot markets.
On a national level, chocolate sales are expected to increase by 2-3% per year. This is great for
the category, however, if Lindt is to gain a larger portion of that increase it will need to increase
its awareness, currently around 25%, within the market. There are over 200 different chocolate
candy bar brands each competing for their share of increase and growth, those with stronger
brand recognition will benefit year after year. Luckily, Lindt does have its niche market of

gourmet chocolates that gives it an advantage over other brands; the ubiquity of this fact simply
needs to be spread throughout all 50 US states. Lindt has been employing a push strategy placing
products in large retail outlets, but is only inside of 70% of the 35,000 supermarkets and 149,000
convenience stores throughout the US.
The spot market analysis covers the top ten, out of 28, markets Lindt has classified as their Cafe
Cache. These markets include Boston, New York City, Portland, Philadelphia, Albany,
Chicago, Minneapolis, Burlington, Miami and Orlando. According to proprietary tests conducted
by Lindt, brand awareness increased by 20% and sales increased by 5% within the test markets.
Past and Current Advertising
Throughout the history of Lindts advertising they have always tried to position themselves as
excellent chocolate makers and that there product is more art than food. They strive for elegance
and beauty in a lot of their TV spots by using warm colors and a slow speaking spokesperson. In
there print media they strive for a sleeker look and use many black and red backgrounds. Lindt
however has not shied away from humor in there commercials with Roger Federer a professional
tennis player who has his bag full of lindt chocolate confiscated by airport security because the
guards want it for themselves. Currently Lindt is running a commercial focusing on how their
chocolate will make women melt. Their current tagline is Chocolate beyond compare.
Competition
Lindts three highest competitions are, respectively, Hershey Co, Mars Inc, and Ferrero Spa.
Hersheys spends the largest amount of money on their chocolate bars and candy. Their main
advertising expenditures go to Rises, KitKat, Payday, Hersheys kisses, and Hersheys candy
bar. Their total monthly expenditure amounts to $355,966,122, spending the most on Hersheys
candy bar and Hersheys kisses. Mars Inc is Lindts second largest competitor, with total
monthly advertising expenditures of $329,385,948. Most of Mars Incs advertising is allocated
to: M&Ms, Snickers, Twix, and Milky Way. Ferrero Spa is not as big of a competitor as
Hersheys or Mars Inc. It advertises for only two chocolates, Ferrero Rocher and Kinder candy
bar, with a total monthly expenditure of $14,270,072.
SWOT Analysis
Strengths
Lindt has a vast variety of products from which their clientele can choose from chocolate balls to
holiday themed chocolate, including bunnies, bears, reindeers, and bells. Lindt specializes in
luxury gourmet chocolate with excellent chocolate bars of many flavors. Its focus on premium
product development and quality control has ensured a Lindt to sell a better product than most of
its competitors. Regionally, Lindt has six different factories and eight different chocolate cafes

around the world. Lindt has developed a strong distribution with a market share that has risen
29% in the past few years.
Weaknesses
Lindt hasnt yet established strong brand awareness. Lindt isnt a well-known brand that the
masses recognize. Additionally, Lindt spends far less than its competitors do on advertising.
Moreover, Lindts retail boutiques have suffered due to the recession in the U.S.
Opportunities
Lindt has the opportunity to grow within the United States, outside of their leading region, the
Northeast. It has the opportunity to grow brand awareness both nationally and regionally. The
chocolate economy is projected to grow; therefore its not a dying category.
Threats
To achieve its plans, Lindt has to compete with other well-known brands such as Mars, Hershey,
Nestle, Toblerone, Cadbury, Godiva, and many more. Overall, there are over 200 brands that
produce chocolate candy bars.
Marketing Goals
Within the next few years, the total chocolate sales are projected to rise by 2-3% per year. Lindt
wants to make the most of this upturn in the next 3 years, starting with upping the distribution
from 70% to 90% and growing brand awareness by 10 percentage points (from 25% to 35%). To
achieve these goals, Lindt wants to shift their approach from distribution to brand awareness.
They especially want to concentrate on the Caf Cache, which is locating their product in
metro markets that has shown to be beneficial in their test with 20% increase of higher brand
name recall and 5% in sales. Lindt allocated $27 million to achieve those goals.
70% 90%
Distribution
25% 35%
Brand Awareness
Passion For Premium Chocolate
Target Audience
Primary Target Audience
Meet Betty. Betty is 47-year-old Caucasian who lives in Massachusetts with her husband and a
14-year-old daughter. She is a businesswoman, working on a managerial position and earning an
income of $75,000+ a year.

She is very organized and task oriented, but spending time with family is most important for her.
Betty cares for her loved ones and likes to shower them with gifts. She cares deeply about the
environment and lives a religious life. Betty enjoys freedom, nature, creativity, and curiosity. She
likes to learn about other cultures and is politically involved in her community. Since she is
always in a hurry, she enjoys the small pleasures. She is looking for excitement and simplicity,
something that would make her everyday routine easier and more involving.
Betty eats healthy, organic foods that are nutritious and give her the opportunity to experiment in
the kitchen. She uses food as a comforter and is willing to spend more money for better quality.
Before buying anything, Betty does a thorough research by reading reviews and comparing
prices on different sites or stores. She is willing to make purchases online if its easy and
convenient. She prefers getting samples to sale opportunities.
Betty stays connected to her mobile device. She doesnt watch TV unless its her favorite TV
show, Once Upon A Time, awards, or popular sport tournaments like Tour de France, World
Cup Soccer, and Wimbledon. She keeps up to date with the news. In her free time, she likes to
read. Her guilty pleasures are magazines like People, Good Housekeeping, and Bon Appetite.
Secondary Target Audience
Welcome Yoshiko, a 22-year-old Asian woman who just had her first baby boy. Yoshiko brings
in with her husband an income of $60,000 a year. She lives in San Francisco. She graduated from
college and is starting her new career as an assistant manager in administrative support center.
Consumer Insights
Primary Audience
Our primary audience are white women ages 45-54. They have a post-graduate education and
work primarily within the management business and financial operations. They make $75,000 +
a year. They are married and have one child between 12-17 years old. Those women care both
about their family and career life.
Ages 55-64 had a higher index number, but their children would be old enough by then to move
out of their parents house, which would lessen the probability of buying Lindt chocolate.
Secondary Audience
Even though Asian women are not high in number, 268,000, with an index number of 179, they
are a great secondary target audience for Lindt. Those women are between 18-22 years old. They
will soon have a child or have a newborn. They are employed part time in office and
administrative support occupations. They are married and live on the Pacific.

Even though South East has a better index number and population, through Mintel we have
determined that most of the Asian population lives by the Pacific.

Media Objectives
Based on the budget amount of $27 million for national and $3 million for spot advertising for
the upcoming year, spending will be allocated toward advertising in magazines, on TV, Internet,
and outdoor. We will deposit $10,350 to promotional efforts, sending three couples to see Lindt
factory in Switzerland. About $300,000 will be allotted towards nontraditional media, including
social media sites like Pinterest, Facebook, and Instagram.
The Ostrow Model was used to determine the most effective frequency of 3.3 and an average
reach of 70 for the whole year, while placing special attention on holiday months: February,
April, November, and December.
Reach = 70
Frequency = 3.3 Ostrow Model
GRPs = 70 x 3.3 = 231
Creative
After thorough research on Lindts situation, specific goals, strengths, and weaknesses, a
campaign was designed to meet those objectives around a perfect target audience for Lindt bars.
The tagline Let Your Buds Travel was chosen to show Lindts long history and background in
perfecting their gourmet chocolate. Lindts multiple flavors of chocolate bars were developed
through the usage of highest quality ingredients from all around the world.
Positioning statement
Lindt is not just chocolate, Lindt is an experience. With over 150 years of perfecting chocolate,
Lindt has been able to gather the finest ingredients from all around the world. With Lindt, people
will be able to taste the world.
Taglines
Worth its weight in gold
Let your taste buds travel
Refined to perfection
Create divine moments
Chocolate beyond compare

Lifetime of perfection
Indulge in excellence
Chosen Tagline
Let your taste buds travel
Reasoning
Lindts target audience consists of women who enjoy learning about other cultures, usually
through foreign travel. These women believe that learning is a lifelong journey. They treat food
as a pleasurable comforter. Lindt can give them luxurious gourmet chocolate with the best
ingredients from around the world, letting their taste buds travel.
Media Strategy
Lindts new media strategy will follow a pulsing pattern. High months include those containing a
related holiday. Average months include those leading up to high months. The remaining months
are considered low months. The pulsing pattern is defined as follows:
High Months: December, February, and April
Average months: January, March, May, October, and November
Low months: June, July, August, and September
Of the ten Cafe Cache locations, five have been chosen to receive part of the $3 million spot
advertising budget. These locations include Chicago, Minneapolis-St. Paul, Miami, Cincinnati
and Charlotte. This decision is based upon estimated value percentages within each market.
These five selected markets will produce the most cost efficient selection.

On a national + spot scale our budget has been evaluated based upon previous years media
mix, as well as share of voice within the market. The budget is as follows:
Natl Television - 53%
Cable - 25%
Network - 25%
Syndication - 3%
Mags - 30%
Outdoor - 7%
Internet - 5%
Spot TV - 3%
B2B - 1%

Slight changes have been made from previous years media mix in order to achieve greater
national + spot share of voice. Lindts 2013 Media Mix is as follows:

Over 83 percent of the budget is reflective of past marketing strategy. The plan is to maintain
consistency is these competitive media and to trade around in the 17 percent that is left over.
The SOV percentage breakdown will help explain these decisions and are as follows:

Notice that Lindts former campaigns have already placed Lindt within the top 3 competitors
within all identified media outlets. Also, media outlets have been arranged, from left to right, in
order of most percentage of budget to least, according to the 2013 media mix. The top three
media are by far the most important of any. This is why the new campaign budget reflects these

same figures. The new campaign will not diminish in position in comparison to other companies
within these media. However, within the lower 17 percent media have been simplified and more
money has been added to prospective media. Outdoor, internet, syndication, spot TV and
B-to-B will receive a larger portion of the budget in order to raise our SOV percentage for this
campaign and to reach previously defined goals and objectives.
Overall, the new media mix will deliver the message to the target audience in a way that is
meaningful to them. This has been done in accordance with the succeeding plan defined within
the media execution and promotional and non-traditional efforts of this book.

Media Execution
We are using specific media vehicles that are targeted specifically to our audience. For television
we are using: Once Upon a Time with an index number of 110, Awards Category 110, Tony
Awards 132, Tour de France 160, WImbledon 142, World Cup Soccer 169, U.S. Figure Skating
170, and Emmy Awards 141. For Internet we are using SuperPages.com with an index of 349,
Pandora.com 226, Imbd.com 149, LivingSocial.com 226, Amazon.com 133 LinkedIn.com 160,
and Wikepedia.org 146. Lastly, for magazines we used Airline Magazine with an index number
of 150, General Editorial 120, Architectural Digest 290, Bon Appetit 208, Good Housekeeping
153, People 125,Travel Category 149.

Promotional and Non-Traditional Efforts


Since the holiday seasons are Lindts most productive sales months, Lindt will emphasize
different seasonal products throughout certain times of the year. One Valentines Day, Lindt will
advertise and sell chocolate bouquet arrangements as well as personal messages inside chocolate
bars. When customers order, they will be able to write a personal message and Lindt will print
the message and put it inside a Lindt Chocolate bars wrapper. On Easter, Lindt will sell its
chocolate bunnies, chocolate lambs and decorated chocolate Easter eggs. On Christmas,
chocolate wreaths, chocolate reindeers and hot chocolate with mug sets will be sold.
Lindt will also begin a social media contest on Facebook, Instagram and Pinterest where
contestants will be asked to answer the question, How do you celebrate with Lindt?
Contestants will be asked to share their story and the most creative way to celebrate with Lindt
will win a trip to one of the Lindt Chocolate factories and a week vacation for two in Zurich,
Switzerland. Included in the trip is:
$1,100 in airfare per person
$1,800 in hotel expenses
$300 in food costs

$250 for rental car


There will be three winners of this campaign with a total trip expense of $10,350.

Budget
In 2013 Lindt spent $47,979,274 on advertising. Lindt has allocated $27 million towards their
2016 budget as well as an extra $3 million to help with spot marketing. Since we have a smaller
budget than the years before we have made sure to arrange our media buying to its maximum
potential.

Natl Television - 53%


Cable - 25%
Network - 25%
Syndication - 3%
Mags - 30%
Outdoor - 7%
Internet - 5%
Spot TV - 3%
B2B - 1%

Estimated
$15,300,000
$7,500,000
$7,500,000
$900,000
$10,000,000
$2,100,000
$1,500,000
$900,000
$300,000

Actual
$14,706,000
$6,887,200
$6,920,900
$897,900
$9,323,300
$2,253,300
$1,601,600
$1,627,700
$488,200

Promotions - >1%

$10,350

$10,350

We are still maintaining a large portion of our budget on national television, however by
reducing spending in this medium we have allowed ourselves to grab a larger share of voice in
other sets of mediums. Due to saturated markets it was ineffective to put the full predicted
spending into certain medias like national television, however any leftover budget was used to
promote more effective mediums like business to business and spot TV. Our promotional
campaigns have a small budget of less than 1 percent because its implementation costs are so
minimal. With this specific budget we manage to exceed all of the reach and frequency goals set
before us without calculating for how outdoor would affect those numbers.

Appendix

Meet The Team


Maja Zelewska is a senior studying Industrial-Organizational Psychology and minoring in
communications. She is from Warsaw, Poland. After graduation, she plans on continuing her
education pursuing an MBA in HR, to later on start a career in the hospitality industry. Maja
made sure that all aspects of the campaign were finalized and delivered professionally to the
client.

Morgan is a junior at Brigham Young University-Idaho majoring in communications with an


emphasis in public relations and a module in journalism. Morgan was born in California and has
lived in San Diego her whole life. Morgan currently works at the BYU-Idaho Outdoor Resource
Center due to her love for all outdoor activities that are water-related, but hopes to soon intern
for Deseret News this winter, 2016, in Salt Lake City, Utah.
Lauren Gold- is a senior studying communication with an emphasis in public relations. In her
studies at BYU-Idaho she has enjoyed learning photography, visual media, and writing. She is
from Southern California and loves the sun, golden retrievers, and the beach. She hopes to do
public relations for an athletic organization after she graduates.

Joshua Garlick is a senior communications major studying at Brigham Young University - Idaho.
He is from Southern Nevada and aspires to continue his studies at the J. Reuben Clark School of
Law in order to become an intellectual property lawyer. His long term goals include working as a
lawyer within the communications field. His other areas of study, and passion, include public
speaking, research development and analysis, market research and law.
Chandler Miller is a junior communications major studying at Brigham Young University - Idaho.
He is emphasizing in advertising and is working towards a professional career with an
advertising firm in research and strategy development.

Appendix (All supportive documents including the Ostrow model)

Here is the EV % Evaluation for the Cafe Cache:


Top 5 markets include:
- Chicago, IL = 21.6%
- Minneapolis-St. Paul, MN = 12.9%
- Miami-Ft. Lauderdale, FL = 10.2%
- Cincinnati, OH = 8.5%
- Charlotte, NC = 8.3%

Link to MFP flow chart and goals


https://docs.google.com/spreadsheets/d/1qdmwRVPI9bmYcKZch7cRtLPsELeBnABWB8p
r094kIi0/edit?usp=sharing

1 color copy
1 black and white copy

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