Inside the world of Lindt Chocolates!

Beautiful chocolate creations ranging from cakes, desserts, sundaes and signature Golden bunny. Lindt chocolates are synonymous with mouth-watering chocolates and desserts that are nothing short of perfection. With history and Swiss tradition that dates back to 170 years, Lindt & Sprungli has established itself as a leader across the globe in high-end fine quality chocolates and desserts. It is currently available in more than 120 countries. It has eight facilities to produce in Europe and the United States and has more than 9000 employees worldwide. (Lindt Chocolate World,2016)

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Image: Lindt excellence range of chocolates (Lindt Chocolate World,2016)

All set to take over the globe!

Distribution component of marketing mix refers to the network of various firms that aim to infuse manufacture’s product in the market, which gives buyer accessibility to purchase those products. (Iacobucci, 2014) It gives them the discretion to buy it when and where they want. Lindt chocolate company has more than 150 retail stores across 120 countries.

Screen Shot 2016-05-15 at 6.35.00 PMImage: Number of Lindt stores worldwide in 2015. (Statista,2015)


Distribution channel:

Lindt and Sprungli Company has been able to create two levels of distribution depending upon whether the retailer is small or large. For a larger retailer such as Coles and Woolworths, products are delivered directly from the producer to the large retailers. Product assortment is carried through general merchandise. While this is not the case with small retailers such as seven-eleven where it is delivered from wholesaler to retailer, which ultimately gets to the consumer. The strategy utilised by Lindt is an intensive distribution in which consumers purchase it based upon little decision-making at supermarkets like Coles and Woolworths and convenience stores like seven-eleven. It also uses pull strategy to promote directly to end consumers to pull through the channel.

It advertises to its consumers and offers discounts, free samples in retail stores and wholesalers.(Iacobucci, 2014). Lindt and Spungli take into consideration a good mix of both wide distribution and exclusive distribution. While selling products at retail stores like Coles and Woolworths, marketing is heavy and discounts are offered and major products offered are its chocolate range which is relatively cheaper than its desserts range. It indulges in exclusive distribution with lesser promotion and higher-quality products in its boutiques and retail stores. (Iacobucci, 2014) No signs of power and conflict were observed in Lindt and Sprungli.

Screen Shot 2016-05-15 at 7.25.49 PMImage: Promotion of Lindt chocolates on Coles Twitter page (Twitter, ,2016)

Lindt and Sprungli also have strong online presence. Consumers can purchase its products online through its Swiss website which has an option for worldwide delivery. (Lindt Chocolate world,2016)

Lindt and Sprungli also focus heavily on sales at airports across the globe. It has also entered into travel-retail exclusive portfolio in Asian countries more recently. Lindt’s own research by m1ndset found that 47% of travellers purchased chocolates for gifting purpose as Asian travellers tend to appreciate formal gifts that are very exclusive and have brand value and heritage attached to it. The Lindt can offer it all, thus surging  sales. (Pentol,2016)

Screen Shot 2016-05-15 at 7.28.11 PMImage: Lindt store at Zurich airport (Zurich-airport.com, 2016)


It’s all about the location!

Video: Lindt chocolate shops around the world (Youtube,2016)

Lindt and Sprungli has an impressive range of retail stores in the form of chocolate cafes, outlets, shops attached to the factory/manufacturing unit and boutiques. It aims to boost its sales in traditional retail outlets by having an effective promotion by serving premium quality chocolates. According to Lindt and Sprungli, it is highly important to choose the location of its retail stores. Lindt boutiques and Lindt cafes are mainly located in the heart of the major cities or on a major strip of retail stores. An example of which is Lindt boutique on 5th avenue in New York city and Collins Street in Melbourne. (Lindt Chocolate World,2016) Lindt and Sprungli have business format franchising throughout the world.

Lindt_USAlint mel
Image: Lindt and Sprungli boutique in New York City (left), Lindt and Sprungli café in Melbourne (right)

With an ever expanding global presence at the right location and a strong distribution channel, Lindt and Sprungli are certainly doing it right with the rational balance of marketing mix. Now I am off to Woolies to grab a treat of my Lindt dark choc mint!

Pratic Dugar
pdugar@deakin.edu.au
214405832


List of references:

Iacobucci, D (2014) Marketing Management (MM), 4th Edition, South-Western, Cengage Learning, Mason, Chapter 10, Channels of Distribution and Logistics

Lindt Chocolate World. (2016). Store locator. [online] Available at: http://www.chocolate.lindt.com/store-locator/ [Accessed 12 May 2016].

Oppewal, H, Tojib, DR, Louvieris, P (2013) Experimental analysis of consumer channel-mix use, Journal of Business Research, 66 (11), 2226-2233.

Passenger area. [online] Available at: https://www.zurich-airport.com/passengers-and-visitors/shopping-and-attractions/passenger-area [Accessed 14 May 2016].

Pentol, A. (2016). Lindt to showcase travel-retail exclusive portfolio in Singapore | DFNI. [online] Duty-Free News International – Travel Retail News. Available at: http://www.dfnionline.com/latest-news/retail/lindt-showcase-travel-retail-exclusive-portfolio-singapore-29-04-2016/ [Accessed 12 May 2016].

Twitter. (2016). Coles Supermarkets on Twitter. [online] Available at: https://twitter.com/coles/status/692874831562301440 [Accessed 15 May 2016].

YouTube. (2016). Discover Lindt Chocolate Shops around the world!. [online] Available at: https://www.youtube.com/watch?v=SYlxF6fiHis [Accessed 13 May 2016].

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