Lindt company- Marketing fundamentals

University: University of wales

  • Unit No: N/A
  • Level: High school
  • Pages: 12 / Words 2914
  • Paper Type: Essay
  • Course Code: LCBB4004
  • Downloads: 943
Question :

Topic - Lindt company- Marketing fundamentals

Word Count- 2,500 words

Learning Outcomes

Assessment Criteria

1.Examine the processes and stages of marketing including the role of the marketing environment, marketing research and the marketing mix.

2. Analyse the development of marketing in creating valuable market for customers.

3. Evaluate relevant stakeholders and analyse their impact on the marketing activities of the organisation.

· Write an essay in 2500 word based on an analysis of the fundamental principles of marketing.

· Provide appropriate academic theory and industry examples should be used in context of the discussion.


Task Descriptions


Task 1A (2000 words)

Write an individual essay and provide critical analyses and evaluate the following:

  • Stages and processes involved in marketing. Also analyse the role of the marketing mix.
  • The significance of marketing in creating base for customers.
  • Involvement of stakeholders and their impact on the marketing activities of an organisation.

Provide suitable academic theory and industry examples to support your answer as well as references to your chosen project.

Task 1B (500 words)

Write a reflection of the tactical communication tools used to form awareness and interest in your project. Also, consider the success of the tools and the academic theory that guides the application.

Answer :
Organization Selected : Lindt company


The market fundamental is the assets of the discounted present value of the stream of future cash flow attached to the asset. In this report it has been discussed about the chocolate industry Lindt's various marketing strategies and the various techniques it uses for marketing purposes. Moreover, in this report it has been discussed about the various analysis of Lindt company i.e. PESTEL, SWOT, and porters five force model (McLean, 2018).



1. Processes and stages of marketing including the role of the marketing mix.

Marketing Definition

Marketing can be defined as the term of business which is considered as an activity of exchanging offers, delivering, communicating, creating as well as processing any value for society, partner, client, or for the customer.

Main Stages of Marketing Process

Step one is to plan the company's objective, goal, and mission, this is carried out by the stakeholders and marketing leaders of the company.

Step two is the analysation of industrial positioning. This step determines where the company is situated in the overall industry. This step generally includes SWOT analysis.

The third step is to establish market tactics. In order to carry out this the organization keep in mind the marketing mix which is based on the 4 P's of the market i.e. product, price, promotion and place.

The fourth step is to putting processes to work which includes obtaining resources, developing schedules and execution of the processes.

Fifth or the last stage of marketing process is to evaluate, modify and repeat.

PESTEL Factors of Lindt Company (McLean, 2018).

Political Factor

The various political factors that affects the business of Lindt company is the authority that concerns food safety in Ireland, the authority that concerns advertising standards, consideration towards level of obesity and stable and democratic government.

Economic Factors

The economic factors that affects the Lindt company are the due to the fluctuations in the prices of cocoa, the increase in corporation tax by 12.5%, the uncertainty in the economic climate and the worth of Irish chocolate market has reached to EURO 625 million.

Social Factors

The various social factors that affects the Lindt company business is gift giving culture in the country, the country's high population growth rate, the people of the country are much interested in ethical goods as well as consciousness towards health of Irish consumers.

Technological Factors

Several technological factors affects the company Lindt such as in order to keep the products fresh warehousing is important. Moreover, in order to stand above the competition couching process is available for 24 hours. Additionally, advancement in technology and new innovations had greatly affected the business of Lindt organization (McLean, 2018).

Environmental Factors

The company's concern towards biodegradable and recyclable packing affects the environmental factors of the company. The organization has taken several steps in order to reduce the routes of transportation as well as to reduce the energy and water consumptions. Thus, the company is much focused towards its environmental policies.

Legal Factors

Overall safety is crucial concern of Lindt at its workplace. Moreover, the company is responsible too towards the social concerns of the country. Thus, this shows the company attention towards legal aspects of the country. Additionally, the organization remains commended towards quality in its products,

Porter's 5 Forces Model For Lindt Company.

Threats of New Entrants

The chocolate and cocoa product industry has faced issues due to the increase in negative effects of dairy and nut allergies. Moreover, the obesity epidemic is to having unfavourable impacts on the sale of this sector of business. Therefore, there is no significant barrier for new entrants in this industry.

The Bargaining Power of Supplier

It is in the hands of the supplier to increase the price as well as reduce the quality of the product. Thus, form the study by UN there are so many suppliers available to large chocolate companies. Moreover, as the company Lindt follows verification initiatives as well as code of conduct, therefore, independent bodies does not regulate its supplies. Therefore, Lindt company's bargaining power of supplier is low.

The Barging Power of The Consumer

The power of bargaining of the consumers is medium for Lindt company as this company and some other producers has unique selling points in order to produce high quality chocolates. Moreover, there are so many buyers present who are willing to pay good amount for the premium class product. As well as there are large number of producers which offerer branded, packed chocolates as their products are undifferentiated.

The Threat of Substitute Product

There are several substitutes to this industry such as non chocolate snacks i.e. savoy snacks, frozen dairy products, chips biscuits etc. these all provides threatening to this chocolate industry. But consumption of these all products are purely based on consumer preferences. Thus, based on several findings the threats of substitute products is quite high for chocolate industry.

Competitive Rivalry

The competitive rivalry in the industry of chocolate is quite high due to large number of players present in the market. Moreover, the preference of selection of player completely depends on the needs, wants and on consumer behaviour patterns.

Advantages and Disadvantages of Porters Five Force Model of Lindt Company


Helps in Gauging Competition.

The porters model help in knowing the competition present in the company's industry. This model helps in knowing the country that if the competition is low that the company could have pricing power and thus the company earn good profit by keeping the prices of the commodity higher.

Helpful in Planning

this model helps the company in understanding what could be the threats to the company i.e. threats through the substitute product ot through the new entrants in the market.

Dealing with Buyers and Suppliers.

This model helps the organization to deal with the power of buyers and suppliers as when the bargain power of supplier is less than the company could have dual advantage i.e. organization could get the raw material at low price and thus, it will increase their revenue generation.


Ignore Other Factors

The porter five force model only considers the above five rules and neglects the other factors. Thus, this is the biggest disadvantage of this model.

No Industry Will be Perfect Fit

Non of the industry perfectly fits in this model as every company has some shortcomings things which this model ignores. Therefore, this is another disadvantage of this model.

Not Useful for Each Industry

This model can't be applied to every organization.

Segmentation, Targeting and Positioning of Lindt Company


Psycographic factors such as lifestyle and behavioural factors such as desired benefits and situation usage as well as demographic factors such as stages of life, income, age, social class are considered while considering segmentation of Lindt company.

Segmentation and Targeting

This segmentation and targeting includes individuals who are established in life, people of higher or medium incomes, busy life are treated specially.


The market positioning of Lindt company can be explained as the experience of pure peace and bliss and not as chocolate.

Marketing Mix Elements of Lindt Company

Product Attributes

The product attribute describe the companies concern towards careful production, sophisticated premium product as well as the product of high quality.


The place attribute of marketing mix includes the company's gift shops, Lindt shops as well as its retail outlets.


The price attribute of Lindt products is comparatively higher.


For promotional attributes the company uses several classical and elegant advertising techniques. Moreover, the company uses in store promotional techniques. Additionally, the famous tennis player Roger Federer is the brand ambassador of the brand Lindt.

The Role of Marketing in Creating Value For Customers.

Definition of Marketing Concept

The concept of marketing can be defined as the philosophy which the company uses in order to find the customers needs and take actions accordingly in order to fulfil the needs of the customers.

Definition of Branding

The term branding can be defined as to promote any service, product or commodity through advertisement or through distinctive design (Baines and, 2017).

Advantages of Branding

There are several advantages of branding as it gives the organizations clear strategies to move forward, it helps in introducing new services and products, it gives confidence to business, for long run of the organization it saves time and money, branding helps in attracting the target customers, branding gives consistency, moreover, it helps in returning customers and referrals, additionally branding helps in generating customer loyalty.

Branding Strategy of Lindt

The branding strategy used by organizations Lindt includes


The company focus on producing the most smoothness and loveliness chocolates with the best tastes in order to gain customer confidence.

Grab Attention

In order to built awareness in public about the brand the company used to conduct several contests every year, where the contests are of culinary art. Thur, the company put the video of this contest on YouTube, which gives recognisance to the brand.


the company Lindt get engaged with customers through recipe offerings. Moreover, the company uses techniques to ask their customers of their favourite combination of chocolate in order to create new recipe. Thus, it has improved its confections in more customized form.

Take Action

By the help of social media, the company Lindt takes easy actions in order to remain shared and heard. Therefore, this has provided the organizations to build its unique recognisance in the market place. Additionally, the company donates for the patients of brain and spine injuries through Facebook and other social media, this made the company recognizable by its involvement in humanitarian effort by buying their chocolate.

The Ansoff Matrix Strategies

Product Development

The company concern towards increasing popularity of premium chocolates, as the public preference towards healthier and premium organic food. For the development of its products, the company Lindt continue to source the highest quality raw material. Moreover, it is essential for the company to keep in mind the sustainability of cocoa which is one of the important issue faced by the company.

Market Development

for continuous scaling globally the company Lindt has the ability and experience, for this the company generates mass production. For market development the company concerns with the growing population at the emerging economy.

3. Stakeholders engagement and their impact on marketing activities of the organizations.

Definition of Stakeholder

An individual who is having concern or interest in something, specially while considering business are called stakeholders (Kleinaltenkamp and, 2015).

Internal and External Stakeholders of Lindt

Internal stakeholders are the general inverters of the business and these people are greatly affected by the outcomes of the business.

It is comparatively harder to find the external stakeholders as these stakeholders did not have a direct relation with the company, but they get affected by the business operations of the company.

The internal stakeholders of Lindt company are the employee as well as the management.

While the external stakeholder of the Lindt company are customers, suppliers, society and the government.

Lindt Companies Communication With Stakeholders and Their Impact on Marketing Activities

Lindt company directly communicate with is several internal and external stakeholder in order to have the most effective impact on its several marketing activities such as promotion through social media and through other digital mediums. Moreover, the company communicate with its stakeholders by conducting meeting, these conduction of meetings for the effective planning of marketing strategies requires the presence of all the stakeholders.


Communication Definition

The information exchange through writing, speaking or through some other medium is called communication (Deepak and Jeyakumar, 2019).

Communication Model

The systematic representation is called communication model if it helps to understand how the communication work is done. There are basically two models of communication i.e. transactional and linear. The linear is the process of communication between sender and receiver, thus, it is a simple process while transactional model in built upon linear model.

Integrated Marketing Communication

The concept of integrated marketing communication can be explained as a simple process which ensures different form of message & communication are link together. For instance integrated marketing communication can be explained as a tool of promotion which integrate all the tools in order to work together in harmony.

The Different Type of Promotion Used by Lindt Company

The different types of promotion methods used by the Lindt company is the company uses the advertising technique, for this advertisement the company takes the help of television, newspaper, magazines and several other sources. More over, the company uses the latest digital medium technique in order to promote its product i.e. advertisement on social medial such as on Facebook, Instagram, YouTube etc.

moreover, the company uses public relationship and sponsorship technique in order to promote its product. As by sponsoring on several event conducted worldwide the company has gained recognizable reputation in the market place. Thus, this made the company brand as the recognizable image in the minds of the public of its consumers (Davis, 2017).

Personal selling is the another method to promote its products, as the company has opened several outlets such as Lindt sores which directly sell its products. The in store promotion posters which includes famous tennis player Roger federer help to attract large number of its customers.

Direct marketing and promotion through sales are the techniques used by the organizations Lindt to increases their product sell. Thus, this helps in increasing their revenue generation.


I must recommend to the company Lindt for their promotional and marketing activity the company must take use of social media. As social media is one of the technique that the company can use in order to promote their product as its is the cheaper and effective way to promote the product. I must recommend the company must take usage of marketing campaign, as marketing campaign generates effective brand awareness in the minds of the target customers (Perreault, 2018).

Also read:- Marketing Principles & Practice


This report can be concluded as, the market fundamental is the assets of discounted present value of the stream of future cash flow attach to the asset. In this report it has been discussed about the chocolate industry Lindt's various marketing strategies and the various techniques it uses for marketing purposes. Moreover, in this report it has been discussed about the various analysis of Lindt company i.e. it PESTEL, SWOT and porters five force model. Additionally, the company Lindt has started commuting in order to promote biodiversity, life of farmers, improving quality as well as involvement of local suppliers.(Chaffey and Smith, 2017).

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