2013-2014 INTEGRATED HOLIDAY SEASON MARKETING LINDT PRALINE COMMUNICATION PLAN Hongsheng Zhang 25370197
Eswar Umamaheshwar 24910139
Gabriela Goldfarb 24878693
Rei Tang 24674869
Definetion & Scope
Budget for the Campaign
Monitor and Control
Executive Summary This IMC plan is for Lindt Australia to promote their Praline product during December 2013 to April 2014 to compete with local chocolatier and international confectionary giant in this upcoming holiday season. As the prior research suggested, Lindt have competitive advantage in product quality, brand image and package design, but facing threat from substitute product, decreasing household income and also new market entrants. According to the research, the consumer group is been defined as people who live in metropolitan area, in the age of 25-40 years old, with stable financial situation and have a romantic character. By position Lindt praline with a high end image to attract people from those market segment to consider Lindt Praline as a gift option. This plan is planned to achieve product awareness increase, reinforce the connection between Lindt praline and gift option, and also increase sales both in supermarket and Lindt cafe. By using USP approach to create advertising in emotional and rational appeal with slice of life and humour technique to achieve the above objective. The story of the ad is a man who choose Lindt praline as a gift to celebrate his wifeâ€™s promotion to showcase the occasion to potential consumption. The media objective is to get contact to potential customer and sending the message to them. To approach the target market, the media is been selected. Lindt is plan to utilizing print, TV, and support media to achieve the objective. The print media will be specifically focus on magazine and personal mailers. The TV ad will be broadcast in ad time in selected TV shows. Also the support media is reinforcing the effect by using selected route Tram ad, in store promotion, partnership, social media, and web ad. Flighting methods will be used to maximize the effect and minimized the cost. By heavily promote in Nov, Dec, and Feb to match the peak of the sale. By stop promotion on the other month to reduce the cost. The estimated cost for this plan is $2,050,000. To monitor and control the influences of the campaign, a procedure is been designed to evaluate. The methods will include portfolio test, theatre test, recall test, and focus group.
Definition and Scope
This integrated marketing communication plan is to propose Lindt chocolate in Australia market on Lindt praline product though November 2013 to April 2014 to cover the holiday season and Valentine’s Day. The Lindt praline product is categorised in praline/dessert chocolate industry. The major competitors in the local market are KoKo Black, Darrell Lea, Haigh’s and many of the Australia craft chocolate manufacturers. Also Lindt praline is facing competition from international confectionary giant such as Guylian and Ferrero Rocher in Australia market. The market that Lindt praline is targeted to is young, sophisticated white collared who are living in the metropolitan areas and also people in romance. The price strategy that Lindt praline had is 150%-200% above the generic praline product such as Cadbury and Paton’s, but matches the price in premium praline product in the supermarket channel like Ferrero and Guylian. (Appendices 1) On the other hand Lindt set the price 25% to 70% lower than local craft chocolatier as KoKo black and Haigh’s. (Appendices 1)
External analysis Lindt is owned by Lindt & Sprüngli Group in Switzerland. The company has been recognising as the world’s seventh largest confectionary player and ranked number four in Australian market in 2012. (Euromonitor International, 2013) As the GDP is dropping in Australia, leads to the household income distribution decreasing (Australian Bureau of Statistics, 2013) therefore consumers buying power towards the luxury goods has decreased and directly affects the sales drop in the premium chocolate industry. The rivalry in the high-end chocolate product is extremely competitive, there are many companies that are selling premium chocolate traditionally and many of the generic chocolate brands are intending to enter this segment of the market. (“Nestle New,” 2011) The barrier is low for generic chocolate brand to enter the premium chocolate market which makes the industry more competitive. The price difference between Lindt and its competitors in the supermarket is less than 2 dollars per 100g. (Coles Online Store, 2013) In this case customers are less price sensitive when they purchase in this range of products in the supermarket. But compare to craft chocolate brands Lindt has a cheaper price as an advantage to compete with them. (KoKo Black Online Shop, Haigh’s official website, 2013) As Lindt is competing in a highly sensitive market, Lindt also needs to look out for substitution. The praline product is usually purchased as a gift and there are new gifting options in the market to replace premium chocolate such as wine, creative products, gadgets and fashion accessories. The premium chocolate sale is very cause oriented and seasonal. The purchase is very likely to happen for special occasions, like anniversaries and birthday parties. The cause of the occasion drives the customer to purchase these products. Therefore the sales are high during holiday seasons. Lindt has its own flag ship cafes in Melbourne and Sydney serving chocolate drinks and distribute the prepacked praline chocolate product as KoKo Black and Haigh’s. (“Store Location,” n/a) Also Lindt sells its praline in supermarket as Guylian and Ferrero Rocher. By covering both exclusive and mass retail channel Lindt has a great platform to gain more customer touch point and communicate with its potential customers.
Internal Analysis In 2009 Lindt partnered with Swiss tennis player Roger Federer as global ambassador, this is the first time Lindt has a celebrity endorsing for their product. (“A Perfect Match,” n/a) Not many people are aware about the endorsement in Australia. In 2010 Lindt hired DRAFTFCB Sydney as creative partner to produce their first Australian TV commercial. (“First Australia,” 2010) Besides using an outsourced creative agency and celebrity endorsement, Lindt is also heavily using social media to communicate with its customers. (Lindt official Facebook page, Lindt official Twitter page, 2013) On Lindt official Facebook and Twitter Page, the company updates Facebook message or Tweets every 1-2 days contain information about their product, event, and promotion information. SWOT Strength - Reputable creative agency - Exclusive distribution channel – cafe - Cheaper than local craft chocolatier - Small price difference with supermarket competitor - Effective utilize social media Weakness - Cause oriented consumption/seasonal - Not utilizing Roger Federer’s endorsement widely - Narrowed communication channel, only TV commercial and social media Opportunity - Health trends to drive demand for higher quality chocolate - Lower price with smaller package - Innovative product line Threat - Substitute appeared - New entrants - Decreasing spending power of consumers
Figure 2.1 Roger Federerâ€™s endorsment
Increase of sales in pralines to 15% in comparison to 2012 between November 2013 to April 2014 and the target audience is within the age group of 25 to 40 years of higher net worth individuals Increase market share from 20% to 30 % in the Australian market of confectionary in an financial year Expanding the flag ship cafes from Melbourne and Sydney to Brisbane and Gold Coast over a period of 24 months
It is important to highlight that the characteristics below refers just to PRALINES and not Lindt as a brand. The target market was chosen because the idea in the marketing plan is that the customer can already choose by themself and afford the chocolate. The analysis below will cover the target market into different aspects including geographic, demographic, psychological, psychographic, socio cultural, use related and situational. It is expected that the target market for pralines are in metropolitan areas, as can be seen Lindt stores are located in more than 100 countries, easily attracting these people. As our marketing plan is focused in Australia, the relevant stores are eight, four in New South Wales and four in Victoria. In New South Wales the stores are in Martin Place, Cockle Bay Wharf, George Street and Miranda Westfield and in Victoria are located in Collins Street, Chadstone Shopping Centre, Chapel Street and Southgate. It is interesting to perceive that every store is located specifically close to businesses and intensive flow of purchases. In addition it is expected that the target is to be between 25 and 40 years old, already in the job market having a high and stable income, the white collar. The reason for this is that pralines are not cheap chocolates; however this means quality is present as well as self-consumption. The target is enthusiastic, interested, and aware and has middle to strong loyalty towards the chocolate, even if the consumers do not purchase frequently. The trust on the brand makes it easy for them to prefer and to choose from the pralines for consumption or as a gift. Moreover, the target behaviour includes positive person who are considered romantics, involved, who enjoy new experiences and is interested not just in food but also wanting to please others. It is also important that the socio cultural aspects for this target, culture and religion are not factors that can influence, however, is expected middle to upper social class.
As Schiffman(2011) suggest that consumption behaviour is to elevate actual self to achieve ideal self, which leads Lindt to position its praline to a higher position than the target markets, but not too expansive to reduce the sales. The perceptual map below suggests the Lindt pralineâ€™s position compared with other chocolate brand. As the map shows Lindt praline is in higher position compared with other supermarket distributed premium chocolate brand, but lower than other craft chocolate brands. Thus Lindt praline is not often been purchased for self-consumption but ideal for gift and social event. The pricing and package reinforce the perception of the high end positing, and the quality of the product makes it stands out from generic chocolate brand.
Figure 5.1 Perceptual Map - Lindt Praline Positioning
Increase 30% of product awareness in this holiday season than same period of time in last year plan to archive this objective in 2 month Increase 20% of awareness to associate Lindt praline as a gift option in 2 month. Increase 20% of supermarket potential buyer to purchase Lindt over other brands, and increase 10% of the Chocolate shop buyer to choose Lindt in flagship store over competitors within the whole planed period.
Positioning statement Brand positioning from the IMC perspective is about creating an image of the brand in the minds of the customers. Lindt positioning strategy will utilise ABE model which, according to Belch (2012), contains three elements: attributes, benefits, and emotions. Lindt praline is for the white collar that from age 25 to 40 years old with romantic character, Lindt is the brand of luxury chocolate that offers all kinds of chocolates with high quality and elegant design, that will make you feel valued. Message strategy In order to achieve the objective of Lindt praline as a gift option in romance occasion and social situation, the most appropriate message strategy is the USP approach which, according to Belch, Kerr and Powell (2012), is to make a unique proposition based on functional attribute of the product. For instance, Lindt praline is not like any kinds of normal chocolates as we saw in the market. It is created with passion only by Lindt master chocolate tiers. When Lindt praline irresistible smooth centre starts to melt, it will give you the feeling that nothing you ever experienced â€“ smooth, flowing and luxuries. (Lindt, 2011). It is also the best gift for friends and families. People will be satisfied with the high quality and the elegant package design of Lindt, enjoying the tasty, and be happy to share Lindt praline with their friends. As a result of sending the gift, the relationship between you and receivers will be enhanced.
Advertising appeal Advertising appeals are generally broken into two categories: informational or rational appeals, and emotional appeals (Belch, et al., 2012). The Lindt advertisement will combine both two appeals in developing the most relevant and meaningful message for the target audiences. But base on the Praline product, the major approach will be emotional appeal. For the informational/rational appeal, the message will focus on delivering the benefits of the Lindt praline. The message will emphasise the high quality of the chocolate and the sophisticate design of the package by using visual stimuli of the store and actual package design in the advertisement. For the emotional appeal, Lindt will focus on the customers’ social and psychological needs for purchasing the product. The message is going to describe that Lindt praline would be the most preferred choice for lovers due to the advantages in quality and design. By sharing the chocolate with lovers, you would have a pleasure experience and reinforced relationship with her/him. Furthermore advertisement would also send another message that the Lindt praline can also be a reasonable gift for any social events other than romantic occasion. Audiences will create favourable feeling towards the product by express the happiness expression of receiving Lindt as a gift. Moreover, sex appeal is also a suitable approach as an emotional appeal. A research shows “advertisers portray chocolate as satisfying female sexual desires. Such advertisements lead female viewers to understand their own desire for chocolate as a natural expression of their sexy femininity.” (Fahim, J. 2010)
Advertising execution Creative execution is the way an advertising appeal is presented and it involves using executional techniques and creative tactics (Belch, et al., 2012). Lindt will utilise the execution technique of Slice of Life and Humour in the advertisement. The storyline is start with a man want to celebrate his wife’s promotion on her work, try to figure out the perfect gift for her. He thinks about his sexy wife eating chocolate, the melting, silky Lindt Praline. So he rushes into a Lindt store and chooses a box of beautifully packed Lindt Praline. He get back home set the bedroom with candle, roses and the box of Lindt chocolate. He laid in the bed and ready to surprise his wife with a very sexy pose. Then the door is opened, his wife is coming back, along with her colleague with Lindt praline in hand as well. The time is frozen, background music is stop, and the man is embarrassed, but he opens up the box of Lindt chocolate and share with his wife and her colleague, the music back on, people start to be happy and party. The couple are kissing, the camera is blurring out. In the end of the scene the slogan comes up “Lindt Praline, a gift for her and for everyone. “ The store scene shows the luxurious decoration of the shop, the repeat present of the product reinforce the product image. And the slice of life technique makes the product applicable to normal life. The humour approach makes the advertisement more memorable.
Figure 7.1 Sex appeal in Chocolate ad
Market analysis and target market identification As we have already defined our target market in the earlier section of the report we would like to touch base with consumers in the age group of 25 to 40 year olds male and females. As per the market analysis these are basically people who have the spending power for such luxuries. They are also individuals or groups who are interested in giving something expensive but also quality based product that can reflect the emotion that is behind giving such luxuries. These are people who are generally in good positions at work or have the luxury of buying such products. The market at present is looking for value based on the money spent, it does not matter what segment of the market they are in they are always looking for value on the money spent on products. Who shall we advertise to? We have developed a strategy to promote the Lindt product of praline during the holiday season which prolongs till Easter covering the most likely time for consumers to purchase chocolates, this includes times during Christmas, new year’s, valentine’s day and Easter. Here we are targeting consumer’s parents to young people in relationships, friends, corporate houses who send gifts during Christmas, new years and Easter. So the strategy involves vouchers, customization of products and gift boxes of pralines and the likes in this category. Where to promote? The promotion plan of Lindt basically involves a lot of areas and various media carriers which balance each other in the promotion activity of the IMC plan. Based on a media diary of an average person of our target market we have formulated a plan to execute the IMC plan. Figure 8.1 are the depiction of an average target person’s day during the week and the week end all the activities they would be involved in during these times
Visit a pub or bar Walking in the street
Donâ€™t work Car (alone) 200 Car (share/pooled)
Park in parking station
Visit a shopping centre Drive in traffic
Take a taxi Visit a sandwich shop
Visit a cafe
Not stated Work from home
Walking/jogging Other forms of transport
People 16-39 years of age
Figure 8.1 Typical Daily Media Diary with age 16-39
(Belch, M, Belch, G, Kerr, G, & Powerll, I. 2012)
Establishing Media objectives During the summer which brings the holiday season in Australia we have decided to execute or IMC plan these are from December 2013 to April 2014. During this period is when the sales of chocolates per say sales are high and the emotion of gifting is what draws a lot of consumers to buy chocolates which is the easiest and safe way of gifting to people and pralines as a product is a high seller during this time. We cover Christmas, New Year, Valentine’s Day and Easter during this time and Lindt has a speciality for developing Easter bunny chocolates and these are a big attraction too. We have decided to integrate an Easter bunny as a praline chocolate for the market during the Easter time to bring about a change and freshness into our product line and this being effective for the sales. The objectives are as follows: Reach 65% of the target audience at least three times over a period of six months Use broad cast media and other modes of media to provide and 85% coverage to the target market over a six month period Concentrate heaviest advertising during summer and autumn with lighter emphasis in winter and spring
Media activity The Different Media to be used to attain the desired output of the IMC Plan The Medias are: (1) Print – Magazines, Personalised Mailers (2) TV (3) Support Media a.Trams b. In-store Promotions c. Partnership d. Social Media e. Web Advertising (1) Print Magazines These will carry advertisements which is has been crafted for the occasion during the period of it being published and the assortments of pralines available to the consumer during that season or occasion e.g. during Easter, bunny shaped pralines would be high selling and attractive to the consumer, all this will be in synchronization with the television ad campaign and the time of being published. The Women’s Weekly, Vogue Australia, Marie Claire, and Men’s Magazine will be targeted to publish our advertisements. Those magazines will cover all our target market to provide significant market coverage for our advertisement in order to achieve the IMC objectives such as brand awareness and acknowledge customers for Lindt praline as well as to trigger customers to purchase the product. Lindt will purchase the full page place (285 x 230 mm2) to place our art work. Mailers Advertising in this medium comprises of direct personalised mailers that would be delivered to the high profile suburbs and residents that are identified, which would have mailers entitling the intended consumer a certain percentage of discount and also making them aware of the new and innovative pralines that have been made available in the market. 14
(2) Television As Explained in the creative strategy this would be aired on times during the shows that are more responsive to the kind of product we have in the market available for the promotion and this will also help us get our target market as these will be aired during shows like master chef, the bachelor etc. We would be airing a 30 sec commercial before the start of the program and 15 sec during the breaks of the program start from November. Television shows are: • Anthony Bourdain - No Reservation • Master Chef Australia • Melbourne Weekender • The Bachelor (3) Support media Trams Trams would be branded based on the routes No.8 started from Moreland through city to Toorak passing by two of our Lindt cafe in Collins Street and Chapel Street. It would be able gather visibility of the product in those areas where the target market resides. Promotions Promotions in the store and in supermarket would be done with price-off, bonus pack technique to increase direct sale. Partnership Tying with products such as high end products where pralines would be given away/purchased with associated product. Like • Rolex watches Set praline as welcoming snacks for customer coming into Rolex store. Since Lindt and Rolex both having Roger Federer as brand ambassador, which give us a chance to cooperate to promote our brand during Australia Open. • Wines Jacob Creeks Selling praline next to Jacob Creeks in Dan Murphy, 1st Choice and other bottle shop • Hotels Give away small bags of pralines to selected five stars hotels as welcome gift, such as Grand Hyatt, Sofitel and etc. Association with department stores Associating with department stores where vouchers would be handed over gift cards and discount vouchers on purchases made over $100 will be received $10 voucher. Department Stores Like 1. David Jones 2. Myer Social Media • Facebook Vouchers to redeem a Small package of sample to the members of our fan page on Facebook would be given. • Twitter The tweeter pages will updates on the latest offer and promotion on pralines • Web Advertising Banner ads on exclusive websites such as Yahoo 7 and nine MSN that would elevate our web presence, and would bring about a higher visibility online. Fuelling in the familiarity with the brand and the product. 15
Geographic Coverage of the promotion The promotion is limited to Melbourne and Sydney which would elevate our brand and the product strength which would add value to bring about popularity in the market for us to expand to two other cities in Australia. The next targeted cities are Gold coast and Brisbane. This is one of our objectives and underlying reason with such an aggressive campaign.
The schedule of the media campaign will be set as Flighting because we are leading with seasonal products. In order to develop awareness and increase the purchasing over the products the plan is increase the contact with the target market during specific times. In addition, this choice is regarded the understanding that Pralines are short purchase cycle products. It is important to highlight that not all the media will be used at the same time. Our media strategy is regarded events that are period of high potential of sales and mantain contact with the target during quiet periods. During November, the main objective is develop awareness so in december consumers will be looking forward to purchase presents for christmas and new year, to effect actual growth of sales. In February justified because is Valentines Day, we understand this period as high potential to increase sales promptly. The April promotion is to sell praline with easter bunny and also clearance of the stock.
David Jones and Myer Vouchers
Master Chef Australia
Anthony Bourdin - No reservation
Media Schedule Detail
Nov 2013 ~ Apr 2014
Lindt Praline Advertising Activity
Budget for the Campaign
For increasing the effectiveness of the IMC plan the Company has given us the freedom to be liberal with the expenses and we have adapted the bottom up approach of the model of budgeting. Hence based on our objectives we have formulated the budget and for every mode and media spends are as on the next page.
$40,000.00 $30,000.00 $30,000.00
Televison Production Costs
Print Linked to Campagins
$12,000.00 $2,000.00 $20,000.00 $50,000.00
Facebook Twitter Web Advertising In-store Promotion
Website & Maintainence
Master Chef Australia
Anthony Bourdin - No reservation David Jones and Myer promotion Vouchers
Budget for the Campaign
Monitor and Control
Lindt will test the message variables and media strategies of the advertisements in order to assess whether the message is memorable or attractive to the target audiences, and whether the message is clear and precise to explain the product, also the whether the advertisements achieve the IMC objectives. A set of procedures have been put into place in order to keep a check of how the campaign has been responded too. Whether there has been any effectiveness of the IMC plan, those process are as below: Portfolio tests for print message Portfolio tests are designed to expose a group of respondents to a portfolio consisting of both control and test the ads. Lindt will choose three suburbs which are Toorak, Malvern and City centre to ask what information they recall from the ads. The total respondents been set are 300 people. If the ads yield the highest recall, the ads are the most effective. Pretesting finished digital ads A traditional and popular laboratory method – theatre tests will be used for Lindt to test the finished digital advertisements. 300 respondents been split into two groups 150/150 will be invited to the test. The first group will view the ads one week before the second group. When entering the theatre, they are told a draw will be held for gifts and they are asked to complete the product questionnaire asking which advertisement they would prefer if they win. The respondents then required to set in the different section in the theatre by age and sex. After they saw the ads, they are asked to complete a second form for a draw. Thus, how much interesting in and the reaction to the commercial will be illustrated to Lindt to develop the ads. Post-testing of printed ads The recall test will be used for the print ads. 200 respondents will be selected. Interviewers will ask respondents to recall the ads they have seen in the magazine. Several questions will be asked to respondents such as “Do you remember seeing an advertisement for Lindt?” more detailed information will be asked to respondents in order to evaluate the memorability of Lindt ads. Post-tests of digital commercials Lindt will use diagnostics to measure the recall and persuasion of the digital commercials. 400 TV users will be invited to do the test. The test will be going to determine the viewers’ evaluation of the ads; as well as how clearly the creative idea is understood and how well proposition is communicated. The test also will examine the respondents’ rational or emotional actions to the ads in order to make sure whether the ads will achieve the IMC objectives or not.
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