Big Spenders Media Plan

Table of Contents
About the Team
2

Plan Summary
3

Situational Analysis
4

Objective & Strategy

7

Media Mix
7

Media Vehicles
9

Budget & Calendar

12

Evaluation
12

Sources
14

1 Big Spenders
 About the Big Spenders
Katie Alexander is a senior from Evergreen Park, Illinois. She
is majoring in advertising with a minor in psychology. Katie is
responsible for the background and target audience research
and the research on vehicles. When she is not in class you
can find her working or watching endless hours of Netflix and
YouTube videos.

Emily Belloma is a senior studying marketing and advertising.

She is from Knoxville, Iowa. Emily tackled the task of purchasing
the media for this plan. She set the reach, frequency, and
budget goals for each month. Her hobbies include knitting and
watching HGTV.

Kelly Wallace is a junior studying advertising with a minor

in general business. She is from Naperville, Illinois. Kelly is
responsible for competitive research and the competitive
media report with this media plan. When she is not in school
you can find her working or hiking with friends.

Bennett Ford is a senior from Cedar Falls, Iowa, studying public

relations with a minor in music technology. Bennett worked
with Lucas to maintain order of the goals, strategy and tactics
as well as help lead creative for the team. When Bennett is not
stressing about graduating, you can find him relaxing with his
beautiful wife, Alicia and their rescue cat, Matthew.

Lucas Brandt is a senior from West Des Moines, Iowa, studying

advertising with a minor in entrepreneurial studies. Lucas
worked with Bennett to make sure that the teams tactics and
strategy lined up with our overall goals, as well as helping lead
the teams creative developments. Lucas spends much of his
free time working as a songwriter and producer for his own
projects apart from school.

2 Big Spenders
Plan Summary
Goal
Reposition Lindt products as an everyday chocolate

Objective
Increase brand awareness from 12 to 22 percent

Strategy
Begin repositioning by targeting a younger demographic

Tactic
Advertise nationally during most popular months and in selected spot markets all year

Demographic
Adults 18 - 34

Geographic Target
National
Boston, MA
New York, NY
Portland - Auburn, ME
Philadelphia, PA
Chicago, IL

Demographic Target
Adults 18 34

National Spot

Natl Reach: Frequency: Spot Reach: Frequency:

69.2 2.7 84 3.7

Natl Cost: Spot Cost:

$13,030,097 $16,608,344

Timing Media
January - December Digital, Radio, Outdoor

3 Big Spenders
Situational Analysis
Company Background:
Lindt & Sprngli, better known as Lindt, dates back to 1847. Lindt Chocolate was created
by David Sprngli and his son, Rudolf in the Swiss town of Zrich. What started as a small
factory-run production has grown to the present-day company with net profits of around $4.7
million. As Lindt grew in popularity, the company acquired other chocolatier companies. These
companies include: Hofbauer sterreich along with its Kfferle brand, Caffarel and Ghirardelli.
This expansion allowed Lindt to grow substantially both in profits and in production numbers.

Lindt Chocolates produces several different delicious products such as their famous truffles
and seasonal golden wrapped chocolate bunnies. One taste of any one of Lindts numerous
products and you are sure to come back for more.

With their growing popularity, Lindt opened several successful chocolate cafes around the
world. In these cafes, customers can try some of the menus chocolates and desserts as well
as breakfast and lunch items. The stagnant economy during the late 2000s forced Lindt to
close half of its 80 retail boutiques. However, with the rising economy and higher demand for
chocolate, Lindt has recovered with 59 successful Lindt cafes in 28 markets.

Although Lindt has experienced successful growth, there is still progress to be made; especially
in a market where Lindt must compete with well-known chocolate brands. To compete with
other brands such as Hersheys, Nestle and Mars, Lindt must perfect their niche marketing and
positioning strategy.

The product in Lindts case is something that the consumer directly wants to buy. The target
audience is the growing snacking population. The millennial audience likes snacks that are
quick and easy to eat, a snack that is an impulse buy. Although Lindt wants their entire line of
products promoted, the extra focus will be on premium chocolate bars. The chocolate bars will
be a good focus due to their easy edibility as well as their I ability to be marketed as an impulse-
buy product.

One challenge that Lindt faces is their premium chocolate bars come with a premium price.
The average retail price for a 3.5 ounce Lindt Excellence chocolate bar among other Lindt
chocolate bars range from about $2.25 to $3.00 in the United States. On the other hand, a 4.4
ounce Hersheys chocolate bar averages from about $1.50 to $2.00. The challenge will be to
market the chocolate as a worth the price chocolate. Convince the consumer to believe in a
quality over quantity mentality.

Lindt will be promoted through monthly spot and national advertisements. With a media mix of
television, digital and outdoor the millennial population can be targeted. According to Variety.
com, millennials spent an average of four hours and eight minutes each day watching live or TV-
connected devices during the fourth quarter of 2015. Streaming services are popular among
the age group as well, about 70% of millennials use a streaming service such as Hulu. We
want to incorporate advertising through established social media networks as well. Outdoor
advertisements in our high millennial populated cities will allow for large impression numbers
when place in high traffic areas.

4 Big Spenders
 Lindt chocolates are sold in several stores such as retailers like JCPenney and in drugstores like
Walgreens. We want to promote Lindt chocolate bars as an impulse buy snacking product. To
execute this we will be placing the chocolate bars next to checkout counters. This will create
that last minute buying impulse while consumers are waiting in line.

Current Advertising Efforts

Lindt & Sprngli regularly advertises in both print and on TV, especially around the holidays.
According to the Kantar competitive data, Lindt spent over $32.5 million on advertising for
Lindor Truffles alone in the year 2013. Of the $ 32.5 million, $13 million was spent in December
and March. These peak spending periods indicate that Lindt spends more on advertising
during the Christmas and Easter seasons. They spent over $11.4 million in advertising for their
Lindt Excellence Chocolate Bar. Although, they only spent around $15,000 on advertising for
their Lindt Hello Candy Bar. Overall, Lindt has been spending significantly on advertising for
their special chocolates, especially around the holidays. However, Lindt should increase their
spending on overall everyday products to drive sales for their impulse-buy products.
Target
With the hopes of turning a special occasion chocolate into an everyday chocolate, we will
focus on both men and women ages 18 - 34, also known as millennials.

According to InfoScout, the most popular buyers are men ages 24 and under. However, those
ages 25 - 44 drop below the average spending line and buy lindt chocolates the least out of all
other ages. Consumers ages 45 - 65+ are the most consistent consumers. They buy at a level
that is above the average spending line and do not fluctuate significantly. Because of these
statistics we want to increase the buying frequency among the young adults demographic.

There is a correlation between rising chocolate sales and a rising snack-driven society. An article
in Food Navigator-USA reveals that sales of snacks account for 40 percent of the $370 billion
U.S. packaged food market. Most of this growth comes from millennials who consume an
average of 3.05 snacks per day. Within this boost in snacking is the popularity for confections,
such as chocolates, which is expected to grow around 10 percent through 2019.

Snacking is on the rise and we want to market Lindt not only an everyday chocolate but an
impulse-buy chocolate to target the snacking demographic. Our goal is for millennials to choose
Lindt chocolates as a snack or an impulse buy to help get them through the day.
BDI & CDI
The sales of chocolates is on the rise. Total chocolate sales are expected to grow at a rate of 2
to 3 percent per year. This indicates an overall growth in the category of chocolates. Lindt has
an opportunity to increase sales in the CDI category.

Although sales of chocolates are rising, our target demographic are not buying Lindt as
frequently as impulse-buy chocolates. This leaves Lindt with an overall low BDI. With a high
CDI and a low BDI, the strategy is to increase advertising to steal the market share among
millennials.
Competition
Lindt Chocolates top competition would be Hersheys. According to The Wall Street Journal,
Hersheys is currently the number one best selling chocolate brand in the United States followed
by Mars and Nestle.

5 Big Spenders
 Based on the graph below, Lindt Chocolate is positioned in the eyes of the consumer as a high
quality with a high price. Although it is positive to be seen as high quality, Lindt Chocolates
goal is to be the everyday chocolate and to be on the same playing field as Mars, Nestle, and
Hersheys.

Currently Lindt Chocolate is making $3.39 billion in revenue a year according to the Lindt
and Sprngli annual report. Lindt Chocolates main competition is Nestle or Mars. With Lindt
Chocolates goal to be the number one seller of chocolate bars, a big brand to focus primarily on
would be Mars. Mars does an excellent job of brand awareness and making profit among younger
generations. According to the graph, not only is Mars Chocolate considered inexpensive, but it
is also considered higher quality.

Something that Mars does to stand out above over chocolate brands is that it creates fun
commercials that millennials can relate to and enjoy watching. They have been running the
ad campaign for snickers by saying, Youre not you when youre hungry for quite sometime
now, and it has been selling great. Currently Mars Chocolates are seen as a spur of the moment
purchase whereas Lindt is seen as a special occasion chocolate. In order to truly compete with
the big named chocolate brands, Lindt Chocolate is going to have to find a way to appeal to the
everyday chocolate buyer.

Mars, specifically Snickers, is outspending Lindt Chocolates by an outrageous amount in

advertisements. Snickers bars totals over $64 million for spending on advertisements a year
where Lindt Chocolate bars only spends $13.7 million a year. Hersheys spends the most per
year with a total of $72.5 million on advertising per year. In order for Lindt Chocolate to truly
compete with Mars and Hersheys, they are going to have to increase advertising significantly
in order to generate more brand awareness.
6 Big Spenders
Objective & Strategy
Objective
Our objective is to increase brand awareness from 12 to 22 percent. Right now a major portion
of Lindt Chocolate buyers are between the ages of 45 - 65. We want to expand to other
demographics in order to increase sales. A major opportunity we see to make this happen is
the rise in consumption of packaged snacks, particularly in millennials. By targeting a younger
demographic than we have in the past, we will boost Lindt Chocolate sales.

Strategy
To help build brand awareness with the demographic we set, we elected to follow the trends
and buy in the vehicles where our demographic frequents. Through research and evaluation,
our group found this included TV shows, YouTube, Hulu, Facebook, Instagram, Twitter and
Pinterest, and a new outdoor component as best selected vehicles.

While our budget limited us more to our spot markets, we were happy that this allowed us to
target cities high population cities to create a heavy ground war technique in the Lindt Cafes.
These cafes provide Lindt a great opportunity, where consumers can try and become more
familiar with the products and brand, and in return become loyal to the Lindt brand.

Our campaign timing had five selected peak months when holidays encourage chocolate buying.
We felt that utilizing these months as ramps to heighten awareness of all that Lindt has to offer
would serve best, rather than months when chocolate buying is not as high. Advertising in
Lindt Cafe markets during these peak holiday months we believe would hopefully have people
lining outside the door.

Media Mix
Overview
Media placements for this campaign will be a mix of national and spot market. The spot markets
we selected are the top five locations in the U.S. with Lindt Cafes. The budget did not allow us
to effectively launch a national campaign for all 12 months of the year. We could not achieve
a high enough reach if the budget were spread nationally all year. We based the goals on a
minimum reach of 60 and a minimum frequency of three. Any month that fell below a 60 reach
we found as ineffective.

We strategize that the best way to disperse the budget was to advertise nationally only during
the months where chocolate buying would be the highest (February, April, October, November,
and December). These are also the months of the biggest holidays.

During the remainder of the months, we will only be advertising in our five selected spot
markets. The markets we selected are large cities which have a high population of younger
demographics. It is important to advertise all year in these select cities to be sure the customer
remains aware of the Lindt cafes as well as the Lindt brand in general. Taking all of these factors
into account, 44 percent of the budget will be spent on national advertising and 56 percent will
be allocated to the selected spot markets.

7 Big Spenders

Spot Markets
Boston, MA (14 stores)
New York, NY (6 stores)
Portland - Auburn, ME (3 stores)
Philadelphia, PA (3 stores)
Chicago, IL (3 stores)
Reach & Frequency Goals
For both national and spot markets, our reach goals did
not fall under 60. The majority of our frequency goals
were around 3 views. For national media, the average
reach goal was 66. The average frequency goal was
2.6. The goals for the spot markets were slightly higher
because we factored in the importance of the markets
as well the lower cost. The average reach goal for spot
markets was 73 and the average frequency goal was 3.5.

Earned Media Owned Media

Media is earned when people are discussing your
brand. A good example of this is when people
share or retweet your posts. This gains exposure
to your brand, with little cost. To increase earned
media, social media content will continue to be
visually pleasing and increase calls to action to
interact with the brand.
We recommend creating a hashtag that
customers can use if they purchase Lindt
Chocolate or if they visit one of the cafes.
Public relations also falls under the category of
earned media. It is important to distribute press
releases when major news about the company
occurs and have these systems in place in case
of a media crisis. To have a completely integrated
marketing campaign, Lindt must leverage a
combination of owned, earned, and paid media.
Lindts Marketing Trifecta
Owned, Earned, and Paid Media
Shares
Mentions
Reposts
Earned Owned
Lindt already has an established social
media presence. The Facebook page has
over 1.5 million likes. The Instagram page
has less followers, with 71.3K and averaging
around 2,000 likes per post. Twitter is their
third social media platform being used. It
has the least amount of followers (55.4K)
with lower engagement, averaging less than
20 likes and shares per post. Lindt also has a
blog where users can subscribe to updates.
Having followers on social media is incredibly
valuable. The people who decided to follow
Lindts accounts have essentially signed up
to hear more about the brand. The audience
on social platforms have opted to receive
updates from Lindt, so they will be more
likely to actually pay attention to what is
being posted. Owned media is completely
in Lindts control, they can tailor the
messages shared to exactly what they want
the customer to know.
Website
Blog
Facebook
Twitter
Instagram

Medium Mix
Paid TV, digital, outdoor

Digital
Radio
Integrate all three for a
Outdoor
comprehensive marketing
plan

8 Big Spenders
 Competitive Media Report
Many of our competitors, such as Hersheys, advertise nationally each month. Other smaller
competitors dont advertise every month and instead focus more on the months that contain
holidays. Currently, the two months that Lindt Chocolates advertises for their chocolate bar is
in is June and July. Since Lindt is typically seen as a special occasions chocolate, a better time
for Lindt to advertise would be during holidays such as Christmas and Valentines Day.

In order to properly compete and be an everyday chocolate, Lindt needs to put out monthly
advertisements. Top chocolate bar seller, Hersheys, currently has monthly advertisements
investing in a total of $72,562, 203. Our budget does not allow for that type of spending, but
advertising monthly in our spot markets will begin to reposition the brand to an everyday
chocolate.
Media Timing
The reach and frequency are higher for the months of February, April, October, November, and
December. These have large holidays where customers will be more likely to seek out Lindt
Chocolate. With the budget, we were not able to advertise nationally each month and still
have an effective reach and frequency. However, we were able to advertise each month in our
spot markets. It is important to keep up with advertisements in the spot markets because they
are home to the Lindt Cafes. If customers are not aware of the Lindt Cafes they may not visit
them, resulting in an overall decrease in revenue. Outdoor advertisements will only occur in
the spot markets. We found that a national outdoor campaign was too expensive compared to
the returns on reach and frequency.

Media Vehicles
Television Vehicle Examples
We will use ABC and NBC as our vehicles for the morning network TV, daytime, early news
and late night news mediums. During the morning time alone, Good Morning America and the
Today Show have large viewerships allowing for large numbers of impressions. According to TV
Newser, advertising during Good Morning America would have around 4.8 million impressions
and the Today Show would have about 4.7 million impressions. Also, ABC and NBC had a larger
viewership among chocolate bar consumers versus CBS during their early evening news. MRI
data has ABC coming in at around 18 million candy bar consumer viewers, NBC has 15 million
consumer viewers and CBS has 14 million.

Fox is our vehicle for prime time TV. According to BroadcastingCable.com, Fox has the most
watched primetime series by millennials which is Empire. The number of impressions during
an episode of Empire is about 3 million just for those who are ages 18 - 34. Fox also has the
fourth, sixth, and ninth most watched programs by millennials.

The prime cable network vehicles that we chose are the Food Channel, MTV, Comedy Central,
E!, Adult Swim, and the Discovery Channel. Each cable network has a candy bar consumer
index of over 100. According to Statista.com, all but the Food Channel are within the top 25
most watched cable channels by millennials.

The national syndication network vehicle that we chose is TBS. TBS features frequent reruns
of popular shows such as Friends, How I Met Your Mother and Family Guy. All three shows have
higher indexes of candy bar consumers that are around 110 or over.
9 Big Spenders
 Television Media Buys
Mediums Unit CPP CPM
Net TV-E Morning :15 $15,662 $23.30
Net TV-Daytime :15 $19,473 $28.97
Net TV-Early News :15 $15,396 $22.90
Net TV-Prime :15 $22,996 $34.21
Net TV-L Nite/L News :15 $10,197 $15.17
Net Cable-Prime :15 $11,413 $16.98
Net Cable-L Fringe :15 $4,226 $6.29
Natl Syndication :15 $10,050 $14.95
Spot TV-Daytime :15 $3,430 $33.33
Spot TV-Early Fringe/News :15 $4,984 $48.43
Spot TV-Prime :15 $8,785 $85.36
Spot TV-Late Fringe/News :15 $3,381 $32.85
Spot Cable :15 $2,820 $27.40

Outdoor Media Vehicle Examples

We chose buses and billboards as our outdoor vehicles. Both vehicles allow for large numbers of
impressions. Because we are advertising in larger millennial populated cities, high impressions
are key. According to the nonprofit Transit Center, millennials are twice as likely to take public
transit than middle-aged Americans and seven times more likely than those aged 60 and over.

Outdoor (Spot Only)

Mediums Unit CPP CPM
Outdoor 25 Show $328,186 $4.80
Outdoor 75 Show $328,186 $1.63

10 Big Spenders
 Digital Vehicle Examples
Digital media is quickly becoming one of the most popular mediums. Utilizing
it is a major tool in our plan to reach millennials. To decide which vehicles
to use we took data from MRI and incorporated the total chocolate bar user
data. The higher chocolate bar users were those ages 18 - 34. Thus, we chose
vehicles that had high chocolate bar user numbers.

The vehicles that we will be using for sites are Weather.com, Google Maps, and
Pandora.com. All three of these had high chocolate bar user numbers, with
Google Maps and Pandora both hovering around 30 million users. Weather.
com had even higher numbers with users hovering close to 50 million users.
Because of these high numbers we will also advertise on the mobile versions
of these websites. Video networks are also extremely popular among
millennials and candy bar consumers. The amount of candy bar consumers
that use YouTube is around 72 million.

We also want to advertise on the publisher video site Hulu. Although there
is no data on Hulu in MRI, millennials frequently use publisher video sites to
stream their favorite shows. According to a study by Business Insider, only
3 percent of millennials surveyed claimed that they did not use a streaming
service.

The social media vehicles that we will be advertising on are Facebook,

Instagram, Twitter, and Pinterest. Facebook has the largest following of candy
bar consumers, with numbers hovering around 95 million. We will implement
pre-roll ads on these sites. Banner ads will be showcased on and retargeting
will be implemented if a customer visits the Lindt official website.
Digital Media Buys
Mediums Unit CPP CPM
National
General Sites/Ad Networks IMPS $6,836 $3.00
Targeted Sites/Ad Networks IMPS $5,421 $4.00
Video Networks IMPS $17,619 $13.00
Publisher Video Sites IMPS $16,432 $22.00
Social IMPS $7,171 $8.00
Mobile IMPS $8,963 $10.00
Spot
General Sites/Ad Networks IMPS $1,047 $3.00
Targeted Sites/Ad Networks IMPS $830 $4.00
Video Networks IMPS $2,697 $13.00
Publisher Video Sites IMPS $2,516 $22.00
Social IMPS $1,098 $8.00
Mobile IMPS $1,372 $10.00
11 Big Spenders
Budget & Calendar
Month Cost
This data includes the costs of both national
January $1,386,181
and spot advertising. There were not national
advertisements for each month. Only February, February $3,094,972
April, October, November, and December had
March $3,094,972
national advertising. This calendar is the most
effective way to distribute the $30 million budget April $3,094,972
between the 12 months.
May $2,034,047
June $2,034,047
July $2,034,047

August $2,034,047
September $2,034,047

October $3,094,972
November $2,709,088
December $3,875,134

Total $29,683,441

Evaluation
This campaign will increase brand awareness. We evaluated our success by comparing our
initial goals to our results once the media was placed. We did not have a reach goal of less
than 60. We do not believe a reach of less than 60 is an effective use of the budget. We met
all of our reach goals in both the national and spot markets.

The frequency goal was around three for most of the months. If we did not meet the
frequency goal it was very close. With this plan, we exceeded our GRP goal in the vast
majority of every month. We were able to achieve this while still being under budget.

This media plan will undoubtedly raise brand awareness for the Lindt brand nationally and
especially in the select spot markets. This plan will help position Lindt chocolate into an
everyday chocolate.

12 Big Spenders
 National Media
Goals Results
Month Reach Frequency GRPs Reach Frequency GRPs
February 65 2.5 163 68.2 2.6 178
April 65 2.5 163 68.2 2.6 178
October 65 2.5 163 68.2 2.6 178
November 60 2.6 156 65.2 2.5 163
December 75 3 225 76.4 3.1 237

Spot Media
Goals Results
Month Reach Frequency GRPs Reach Frequency GRPs
January 70 3 210 83 3.7 307
February 80 4 320 84.8 3.4 288
March 65 3 195 85.5 3.9 333
April 80 4 320 84.8 3.4 288
May 70 3 210 83 3.7 307
June 70 3 210 83 3.7 307
July 70 3 210 83 3.7 307
August 70 3 210 83 3.7 307
September 70 3 210 83 3.7 307
October 80 4 320 84.8 3.4 288
November 70 4 280 81.2 3.3 268
December 80 5 400 89.5 4.6 412

13 Big Spenders
 Sources
http://mediaflightplan.com/files/LindtChocCaseR3_2015-03-02.pdf
http://www.foodnavigator-usa.com/R-D/Millennials-drive-snack-growth-reshape-how-Ameri-
cans-eat-Euromonitor
https://milkavslindt.wordpress.com/2013/10/25/fierce-competition-in-the-market/
http://www.report.lindt-spruengli.com/14/ar/en/annual_report/markets.htm
http://www.wsj.com/articles/at-mars-inc-fun-size-chocolate-and-right-size-conglomer-
ate-1414602664
http://www.therichest.com/rich-list/most-popular/the-top-10-bestselling-chocolate-bars/
http://investorplace.com/2013/10/buy-hershey-stock/#.WCt283fMw_U
http://infoscout.co/brand/lindt
http://variety.com/2016/tv/news/millennials-media-habits-vary-life-stage-says-nielsen-re-
port-1201738264/
http://www.adweek.com/tvnewser/cbs-this-morning-delivers-its-most-watched-november-
sweeps-in-over-two-decades/312423
http://www.broadcastingcable.com/news/upfront-central/
mbpt-spotlight-18-shows-you-should-be-advertising-reach-millennials/139335

14 Big Spenders