Creating Powerful Brands in Consumer Service And Industrial Markets - Case Study Example

Analysis of Chocolate Name Institution Executive summary This paper seeks to analyze Lindt chocolate as the main brand that is being discussed. It has analyzed why Lindt chocolate has been successful for a long time. Firstly, Lindt chocolate prevents tooth decay and is a nutritious brand. The brand is also successful based on the fact that cocoa butter is formulated with fatty components of beans and the cocoa solids that do not have a lot of fat and it is in powder form. The good taste is very important, as it is famous. The brand has produced different types of product to targeting both young and older generation and thus the target market is large. The CBBE model has been used in relation to brand elements, personalized marketing, marketing communication and leveraging secondary association. The key issues or challenges for Lindt brand are to make the brand have a bigger influence to everyone. One of the recommendations is to cooperate with the Food and Drug Administration to come up with regulations that will meet the consumer requirement. Make Lindt to become more standardized and keep the high quality image to customers. The last recommendation is the use of advertising techniques to create awareness of the brand. Introduction Lindt & Sprüngli is a company born in 1845 in Zurich, Switzerland. At the beginning, it was only a handmade chocolate shop. The customers are the local dessert lovers. In two hundred years, the company has inherited 6 generations and now became one of the best chocolate maker companies in the world. It is not easy to survive and expend until now while many other chocolate company has fallen. 1920s, Lindt chocolate has been sold to foreign countries, mainly Germany, France and Italy. 1960s, Lindt has made their market toward the whole Europe. After 1992, the three major markets in France, Germany and Switzerland have a market share of 80% in chocolate industry. Since then, the company continues to expand outwards, to the 21st century now, the company has become an international company and still growing strongly. In United States and Canada, also occupy 24% of the chocolate market. So far, it has 55% of market share of the whole chocolate industry. Lindt chocolate are mainly made from cocoa that is mixed with butter and sugar to produce a solid block. Lindt has different types, and they depend on the formulation of the chocolate. The brand has been successful due to various types of the brand that are formulated with different cocoa products and other additives that make it sweet. The product includes Swiss Classic, Excellence，Swiss Tradition，Lindor. They are different types of chocolate with different ingredients to satisfy different types of consumers. For example, children and adults consume it in large quantity due to sweetness. Lindt chocolate is a successful brand now. The good taste of their product is the most important factor. As we know, sweets can make people feel happy. The sweet taste of the lindt chocolate is attractive. Secondly, the brand has different types of product to satisfy different types of consumer needs. In another word, due to its multifarious products, the brand has a larger target groups. In addition, some of the product can prevents tooth decay, and itself is a nutritious brand. These are all the factors that why Lindt is successful. However, the most important reason is the Brand image that Lindt provide. This made people think Lindt differently. Brand analysis using the CBBE model Key brand positioning For the brand to be in the key position, it needs the attributes that are beneficial to the consumers. For example, Lindt chocolate contains natural anti-depressant that helps to create happiness and pleasure. It is also beneficial since Cocoa contains flavanols that contribute to increase antioxidants that help the body to get free radicals. It also helps to prevent tooth decay since it contains theobromine that prevents tooth decay. To position the Lindt brand, it needs market research that will seek to analyze the target market. Without a target market, it implies that the product will never be successful in the market (Vincent, 2012). For example, in our case Lindt has found that some females like white chocolate and older generation like black chocolate, therefore Lindt has produced white Swiss and black Swiss to the target market. Having various types of chocolate made Lindt possible to favor the entire consumer with diverse options making it possible to increase the market share. Another key positioning strategy that has to be considered for Lindt chocolate is competitive set. In the position, Lindt needs to know the competitive brand and their products. For example, One of the leading chocolate companies is located in North America and is known as Hershey Company. The company in 2008 and 2009 net profit margin was $6.06 and $8.22 million respectively. In addition, Darrell Lea is a chocolate shop that is located in Australia that sells chocolate, liquor among other products. The competitors must be addressed thoroughly, so that strategy to outdo them can be established. Through advertising and promotions among other communication tools, Lindt chocolate can dominate the market (Grinten and Riezebos, 2011). Research of the competitive product must be carried before the product is introduced in the market so that our strategy can be effective. It is the role of the management to make sure that advertising agency can be introduced where it will conduct the research and later market the brand so that awareness of the brand is attained. There is another key positioning strategy that has to be considered is differentiation. For example, the uniqueness of the Lindt brand matters a lot. This is a strong positioning strategy since the consumers need Lindt chocolate that is tasty and unique from other brand chocolates. High quality Lindt chocolate that meets the consumer’s taste and feeling needs will make it possible for the brand to venture a lot of profits. Sales will increase and thus the brand dominating the market. A strong differentiation lowers the market rivalry or competition since the brand will be on competitive edge due to its standards in the market (Kapferer, 2012). To determine whether the brand position is strong enough, the company needs to know the relevance of the product to the target market. It is achieved when the consumers are buying the brand and thus questions likely to occur on which type of the brand are of high quality product and the unique one. Through differentiation, the consumers can differentiate other companies, and thus they treat the company superior to the others. Use of four level of the CBBE pyramid The brand element involves the use of slogans, symbols, logos, URLs and characters among others to create awareness of the product. It is achieved through integrated marketing communications, effective advertising, and effective promotion. The brand needs pricing strategy so that consumers are motivated. In the brand identity in salience level, the brand is identified that meets the consumer requirements. Awareness must be created in the brand identity that will link the brand with its name, logo and the symbol so that the consumer needs can be addressed. In the level, the target market is the young and older individuals, to create awareness of Lindt chocolate then personalized marketing and marketing communication tools must be used. The leveraging Secondary association can also be used since the Lindt can borrow brand knowledge from other chocolate brands so that consumer requirements are achieved. The logo of some product of Lindt chocolate is below. Brand Meaning In the second level of CBBE, pyramid brand meaning incorporates imagery and performance. Through the use of brand elements, the consumer purchases are increased. A personality and value are created since the consumers feel part and parcel of the Lindt brand, it acquired through the experience in purchases and thus meeting the consumer needs. Through the use of imagery, awareness of the brand is made since it communicates a hundred times than writing. The use of symbols and logos increase the purchases since it shows that the brand is effective and fit to human consumption. Personalized marketing also applies in this stage where the target of the brand is made for an individual customer. All the information concerning the consumers is collected so that a marketing research is created so that it can appeal to many customers as possible. The aim is to make sure that the Lindt brand is going to reach as many people as possible through the target of the specific customer compared with other chocolate brands. The marketing communications are used to influence the Lindt brand entry to the target market. For example, the use of mass media like television and radio stations can be used to create awareness of the brand. Leveraging secondary association can also be used where the Lindt brand can be linked with other products in the advertisement so that a relationship in consumption can increase the consumer purchases. The performance of the Lindt brand must be reliable and durable so that the consumers can accept the brand in the market. Brand Effectiveness and efficiency must be acquired since if it is not effective and does not consider the pricing strategy there is a possibility of the brand not being accepted in the market. Brand Response The level is concerned with the feeling and the judgment of the consumers. In this stage, fun and excitement should be attained. This is made through the use of images that will influence the excitement since in the brand element slogans and symbols are used. This is one of the advertising techniques that are used, but the symbols and images must respect the consumers but entertain them. The use of personalized marketing can also be done where individuals can use the Lindt chocolate in their birthdays for personalized marketing strategy. Communication tools need to be addressed so that awareness of the brand can be achieved at the personalized level. The target market, especially for the young generation, can fit at the personalized marketing. Judgments of the consumers play a significant role in the brand market acceptance (Kapoor, 2009). For example, high quality chocolate is likely to be considered by both the target market. The brand must meet the customer requirements and should not have negative effects even in excess consumptions. The brand must be credible and superior from other brands that are locally produced. Considerations like leveraging secondary association should be available and thus in case the brand is not performing well in market target then the management can borrow ideas on how to attain and retain the loss made. Brand relationship The last step of the CBBE pyramid is the brand relationship. The level ensures that the Lindt brand will support the community when the brand is accepted in the market. Corporate Social Responsibility is addressed at this stage since the Lindt brand should give back to the society. For example, in the Australia chocolate company ensures that the needy children are educated as a way of giving back to the society. This increases the Lindt brand awareness based on the fact that the community wants to be associated with the company as compared with other chocolate brands. The brand must be loyal to the consumers and willing to help in case the community needs help. For example, the environment is one of the biggest challenges that are experienced worldwide. It is important for the company to come up with the strategy that can clean the environment where they are operating and the surrounding (Ambrose and Harris, 2011). The aim is to ensure that the consumers will consume chocolate in a clean environment and thus increasing the purchases due to the favorable environment. Through personalized marketing, the company should be aware of the needy individuals since when marketing in the target market specific consumers may express his or her challenges. So that the brand can be accepted in the community, it is important to address the challenge. Marketing communications are important tools that create awareness to the community the tool should be used wisely in the target market so that profit and sales can increase significantly. Identification of key issues One of the key issues that are identified in Lindt brand marketing is that standard high-quality Lindt chocolate that will not have negative side effects is formulated. The Food and Drug Administration (FDA) must work with the government to make sure that high-quality product that is free from high cholesterol products is eliminated. This is quite challenging for monitoring and needs to be done on daily basis. The use of fatty products and sugary products are associated with terminal illness, and thus it is important for the Food and Drug Administration to regulate about the formulation of the brand. In many countries, diabetes and blood pressure among other illness is associated with intake of high fatty and sugary products. The fat products and sugary formulated chocolate brands may result in weight increase that can transmit other diseases like obesity for the young children. The second challenge that is identified apart from health related issue is that for the Lindt brand to be accepted in the market deserves a lot of research and advertisement. For example, the advertising techniques that are used are costly since it will involve the use of communication tools like online services, television and radio programs that are used to advertise the Lindt brand. Other communication tools that can be used are the use or leaflets, door-to-door advertising and the use of fliers and banners. The mood of advertising is costly based on the fact that one has to include advertising agency that will conduct research on the target market. The third key issue is competition from internationally formulated chocolates brands. For example, in the case of United States Lindt chocolate that comes in the market with three different types. The chocolate liquor, cocoa butter, and cocoa solids are competitive in Australia since their formulation is different from that one of United States. It is obvious that the Lindt brand though formulated from Cocoa the ingredients and other flavors may be different making it tasty and high-quality brand that has competitive advantage over the other types of chocolate. The international Lindt brands are regulated by the government and thus if extensive advertising is not conducted it implies that the locally produced types of chocolate will not venture high profit and sales as compared to Lindt chocolate. The fourth key issue that is identified with the brand is that it requires a well-preserved room that will be used for the storage and still where customers can rest while enjoying it. Machines and experts who can formulate a standard Lindt chocolate without a lot of fats and sugar are needed. It is based on the fact that if they are not monitored then it implies that Food and Drug Administration will not permit the company to operate. Lindt chocolate needs clean set up structures that will not be contaminated with other products since it is a brand that is consumed raw and thus if not well regulated healthy hazards may immerge. Recommendations I recommend the government together with the Food and Drug Administration to make sure that high quality and standard Lindt brand is produced. Only but a few companies should be allowed to formulate Lindt chocolate products so that healthy of the targeted market is considered. Fatty products and sugary products may result in the negative effect of the body for the young and the old generation, and thus they should be prohibited. Lindt brands should not be sold before they are tested by the Food and Drug Administration so that rules and regulations are followed strictly. Failure to regulate and to monitor implies that the healthy issues are likely to occur. Diseases like blood pressure and obesity for the young generation implies that the future is not longer, and thus individuals are not attaining the goals due to sickness. I recommend the use of advertising method to create awareness of the product. Though the method is expensive, it is best since in long-term plans it leads to the attainment of the goals. It can take a long time but when the product is accepted in the market, it will have a competitive advantage over all the other brands. I recommend the use of social media like Facebook, YouTube and Google among others since they have an option where online services can be conducted. The use of television and radio stations can be used during the prime hours where individuals will know the benefit of cocoa to the human body. I recommend formulation of a high-quality Lindt brand that will be competitive globally. It implies that the Lindt brand need be under the government regulations, and standards met. The licensed companies that formulate the Lindt brand need to be monitored now and then so that high-quality brand that satisfies the consumer need is achieved. Lastly, I recommend the government to fund the companies that produce the brand so that they can have enough machines for the production, and workforce that needs to satisfy the demand for the brand. Strategies used by the brand to build awareness To ensure that the Lindt brand awareness is increased, it is important to use communication tools that advertise the brand. For example, through the use of television and radio stations slogans, jingles and characters can be used to create awareness. For example, one of the slogans that can be used for the Lindt chocolate is “taste it gets it”. Cartoons can also be used to advertise the Lindt brand since many consumers like to watch cartoons (Plessis, 2005). The use of positive brand image also plays a significant role in the creation of awareness where images of various types of chocolate can be used to create awareness. The second strategy that can be used to create awareness is the use of digital media. For example, currently innovation and technology has simplified the way of doing things. Many people engage in social media where they interact and share information (Chernatony and McDonald, 2003). Through the use of Facebook, YouTube and Google consumers can share information about the Lindt brand through liking and posting in their timelines and thus creating awareness. The method is fast and efficient to the young and old generation, and thus the target market is associated with the use of social media. The third effective strategy that can be used to create awareness of the Lindt brand is through the use of billboards and fliers. The method is not expensive compared to the other method of advertising since one just needs billboards that will be permanent placed at a central location where consumers can see it (Christian, 2011). The billboard should contain the slogans, images of the Lindt brand and the healthy benefits to the consumers. The use of direct marketing can also create awareness since the staffs who are employed to advertise the brand will use door to door method of advertising. Appendices Figure one shows Customer Based Brand Equity Figure two shows Food and Drug Administration (FDA) regulation and naming of the ingredients Product Chocolate Liquor Milk Solids Sugar Cocoa Fat Milk Fat Lindt Milk chocolate ≥10% ≥12% Lindt Sweet chocolate ≥15% Read More