Umar Draz 0499012Jana Hoenig 0504499
Sophie Werner 0505773Amanda Shonubi 0501492
Sales €3390 million
EBIT €481 million(2015 figures)
➜ Journey begins in 1845 in Switzerland➜ Leader in market for premium
chocolate➜ 12 production sites in Europe and
US➜ Most sites have separate R&D
Centers➜ Distribution in 120 countries
through 24 subsidiaries➜ 300 own stores with 13,000
employees➜ Competitive advantage
• Quality ingredients• Craftsmanship• Assortment• Innovation
➜ Introduced melting chocolate in 1879 termed as ‘Swiss Chocolate’
➜ Company enjoyed continuous growth in last ten years
Brief Company Information
R&D Spending
✓ 0.28% of sales✓ Food industry average is 2%✓ Apple spent 3% Lindt is spending less in R&D comparatively
Know How
✓ Chocolate know how within the company
✓ More than 170 years of experience
✓ Dedicated chocolatiers
Resources
Innovation Process
Consumer Testing Panel
Commercialization
Internal R&D
Marketing Studies
Consumer Focus Group
Innovations are more incremental rather than breakthrough by having close collaborations with consumers
Packaging• As closed as
possible
New Recipes• Closed process• Protected by trade
secrets• One way interaction• Maîtres Chocolatiers• Iterative
experimentations
Manufacturing• Avoid suppliers
as much as possible
• Modification in internal machinery
New ConceptGenerations
Aroma Suppliers
Consumer Focus Group
Graphic Design
Agencies
Subsidiaries all over the globe with decentralized R&D
departments
Global Company Structure
Advantages✓ Close to market✓ Enable collaborations
with different customers
Disadvantages✓ Multiple costs✓ Less consolidation
of knowledge
International R&D and Quality Department, provides only basic
guidelines
➜ Centralize R&D activities to some degree
• Lindt is planning to build a Chocolate
Competence Center
• Our analysis supports this plan
➜ Control of international R&D activities
Strategic Advice & Recommendations
Questions