I participated in a two-day MBA case competition for Lindt Chocolate. We were asked to evaluate and recommend how the shared service model could be implemented in North America.
After evaluating Lindt's history in NA and globally we decided to recommend they use the shared service model to implement a CSR plan.
I handled:
- creation of the PPT
- consumer research for confectionery industry, purchase decision factors, brand awareness, consumption trends
- business benefits for integrating CSR into the global business practice
6. Source: Confectionary News
450
400
350
300
250
200
150
100
50
0
Mondelez Mars Nestle Hershey Lindt
US Dollars
in Millions
7. 63% of
consumers
don’t know how
find a firm’s
Corporate
Sustainability
Report
Source: Environmental Leader 2012 Consumer Survey
8. Source: Rank a Brand: Chocolate
E Rating
A
C
C
C
C
C
C
C
C
C
C
C
C
E
Lindt
Hershey's
Bros
Rolo
Smarties
Nesquik
Kinder
After Eight
Nestlé Crunch
Nestlé Hot Coco
Lion
Nutella
Kit-Kat
Green & Black's
10. • Lots of mobility on prices,
consumers willing to pay
premium for “fair trade” or
“Sustainable” brands
• Average across small
sustainable brands: $5.46
11. • BCG report around sustainability interviewed corporate leaders across multiple
industries, indicates that if sustainability is made a business case, added profits are
hugely impacted
Source: BCG Perspectives
18. Supplier power: Medium
• Low # of premium cocoa
suppliers
• Trade regulations
Threat of new entrants: Medium
• Large competitors with economies of scale
and scope
• Usually customers are loyal to brand
• Ability for Niche players to capitalize on
market share
• Companies with established distribution
channels can challenge the current players
• High margins in premium chocolate
Existing firm rivalry: High
• Rivals have huge amount of resources
• Ability to absorb advertising spend
• High fixed costs associated with
capacity increments
• High exit barriers
• Firms compete on quality & brand
rather than price
Buyer power: Medium
• Low switching costs
• Distributors and retailers
have high bargaining power
• No monopsony in industry
• Consumer might react
strongly to higher pricing
• Switch to healthier foods
easily
Threat of substitute products: High
• Numerous substitute products like ice-cream, yogurt,
fruits, low end chocolate
• Alternates readily available
• High product differentiation in mkt place