Sustainable Marketing Management: Barry Callebaut

This report analyzes the marketing mix of Barry Callebaut Group to attain the sustainability and enhance brand image over its competitors. The marketing mix of the firm is explained by incorporating different strategies like product, pricing, distribution and promotion strategy. Moreover, it explains the SWOT analysis of Barry Callebaut against its competing brands i.e. Hershey’s, Cargill, Mondelez etc.

Running Head: SUSTAINABLE MARKETING 1
Sustainable Marketing Management:
Barry Callebaut

SUSTAINABLE MARKETING 2
Table of Contents
Introduction.................................................................................................................................................3
Company Description..................................................................................................................................3
Marketing Mix of Barry Callebaut................................................................................................................4
Product strategy......................................................................................................................................4
Price Strategy..........................................................................................................................................4
Distribution Strategy...............................................................................................................................4
Promotion Strategy.................................................................................................................................5
SWOT Analysis.............................................................................................................................................5
Sustainable Marketing Principles...............................................................................................................10
Societal Marketing.................................................................................................................................10
Innovative Marketing............................................................................................................................10
Other Principles.........................................................................................................................................11
Conclusion.................................................................................................................................................11
References.................................................................................................................................................13

SUSTAINABLE MARKETING 3
Introduction
Time has experienced different phases of marketing strategy and tactics. Out of which
sustainability is the major factor that has developed marketing strategy over the time. Now, the
sustainability in marketing process and strategy has become the major focus of attention for most
of the firms. Adopting sustainability marketing strategies provides the organization a way to
respond to requests for the products and services which preserve the limited resources of world.
Marketing with sustainability assists in strengthening the brand, building trust and encouraging
loyalty among customers.
The below-report includes the marketing analysis of Barry Callebaut Company that is a leading
manufacturer of high quality chocolates and other cocoa products. This report analyzes the
marketing mix of Barry Callebaut Group to attain the sustainability and enhance brand image
over its competitors. The marketing mix of the firm is explained by incorporating different
strategies like product, pricing, distribution and promotion strategy. Moreover, it explains the
SWOT analysis of Barry Callebaut against its competing brands i.e. Hershey’s, Cargill,
Mondelez etc. This organization is using some specific sustainability principles to become more
sustainable in the chocolate industry. It can enhance its operations by implementing other
sustainability principles.
Company Description
Barry Callebaut is one of the largest cocoa grinders and manufacturers with average yearly
production of 1.7 million tonnes of cocoa. The organization was established in the year 1996 via
merger of Belgian company Callebaut and French company Cacao Barry. Currently, it is based
in Zurich, Switzerland and operates its business in more than 30 nations. This organization was
created by Klaus Johann Jacobs. Its major customers include national and multinational customer
goods manufacturers and users of chocolates like pastry chefs, bakeries, chocolatiers and
caterers. It has a global network with different production sites in Africa, Europe, South and
North America and Asia Pacific (Barry Callebaut, 2018). Barry Callebaut is committed to
manufacture sustainable chocolate to assist the future supplies of cocoa and enhance livelihoods
of farmers.

SUSTAINABLE MARKETING 4
Marketing Mix of Barry Callebaut
Marketing includes various marketing strategies which are implemented by an organization to
attract customers towards its products. With the passage of time, there is a requirement to
consider the sustainability to develop strategy that means that it has to implement sustainability
in marketing mix (Leonidou, Katsikeas, and Morgan, 2012). Marketing mix of Barry Callebut is
given below:
Product strategy
Barry Callebaut is offering various chocolates and other cocoa products under different brands
like Carma, Callebut, Van Leer, Luijckx, Chocolate Masters, Houten, Siaco, Le Royal etc. It has
positioned itself as high quality cocoa and chocolate provider to its targeted audiences
(Obermiller, Burke and Atwood, 2008). The major products of this firm include chocolates,
fillings, compounds, nuts, decorations and inclusions for desserts, ice-creams and
confectionaries. Considering the sustainability, the company is offering solution to its customers
related to taste and quality. It is focused on packaging of chocolates to practice sustainable
marketing. It has substituted its papers with the eco-friendly packaging which is bio-degradable
ingredients (Afoakwa, 2008). To process environmental sustainability, it is decreasing the
wastage of landfills and packaging. They are becoming greener and offering safety measures to
staff.
Price Strategy
Barry Callebaut is one of the premium chocolate brands that offer various products and services.
The prices of company’s products are changing with the fluctuations in the costs of raw materials
like sugar, milk and cocoa. It targets higher and middle income people for its chocolates and
prices vary from 12$ to 65$ as per their sizes and types (Hultman, Katsikeas, and Robson,
2011). To become more sustainable, this organization will introduce candies and other products
for lower prices. In the near future, firm is planning to provide a combination of excellent quality
chocolates at affordable prices. By this, the company will be able to establish a sustainable image
among targeted population.
Distribution Strategy
Distribution strategy assists Barry Callebaut Organization to approach a large customer base
through extensive distribution network. The customers are able to purchase the chocolates and

SUSTAINABLE MARKETING 5
other cocoa products from shopping malls, grocery stores, departmental stores and supermarkets
etc. customer can buy the chocolates online from e-commerce sites (Jones, et al, 2008). It is
making sustainable efforts by enhancing its supply chain. It is planning to exclude child labor
from its supply chain process. Moreover, it is focusing on offering products online as physical
offering can increase the environmental pollution due to transportation emission (de Andrade
Silva, et al, 2017). It makes sure that its operations do not harm the natural resources and
environment. It plays a main role to achieve sustainability for Barry Callebaut.
Promotion Strategy
Promotion strategy plays an important role in the marketing plan of a company. Barry Callebaut
is adopting effective promotion strategies to attract a large population towards its chocolate
products. For this, it uses various modes like print media, online media, TV ads, billboards etc. It
is using effective taglines that affect the people’s perception positively. The company prefers to
practice the modes so that it can communicate its brand messages to a large population. To
establish a viable brand image, organization is using various sustainable efforts and sustainable
marketing so that it can entice more customers (Kavoura and Stavrianea, 2014). It is reducing the
usage of paper for advertisement and preferring to use online and broadcasting mode.
Thus, Barry Callebaut is actively engaged in socially responsible and sustainable marketing by
the execution of above strategies under its marketing mix.
SWOT Analysis
SWOT Analysis is the framework which is practiced by a company to evaluate the internal and
external forces like strengths, weaknesses, opportunities and threats. It is one of the major efforts
which are made by an organization to become sustainable in the industry. The below-given table
compares different forces of Barry Callebaut with its major competitors like Hershey’s, Cargill
and Modelez. It shows how this firm positions itself against its competitors. SWOT comparison
table is given below:
Basis for
Comparison
Barry Callebaut Hershey’s Cargill Mondelez
Strengths  It is one of the
major
 Hershey’s is one of
the largest chocolate
 It is the largest
private sector
 Mondelez has
great market

SUSTAINABLE MARKETING 6
manufacturers of
high quality cocoa
products and
chocolates with
the employee
strength of 9000.
 The company is
practicing
sustainability in
product
development like
tooth friendly
chocolates,
chocolates with
antioxidants and
probiotic
chocolates.
 Engaged in
various CSR
activities such as
food safety,
environment
protection, cocoa
plantation support,
children
protection etc.
 Sustainable cocoa
is the major part
of its long-term
strategy.
 It has established
manufacturers
worldwide.
 It is making different
humanity and
sustainability efforts.
 Huge brand portfolio
of company assists it
in becoming more
sustainable (Over 50
brands).
 It is able to establish a
strong public and
social image via The
Milton Hershey
School and its school
for orphan kids.
firm of America.
 It has more
experience in
chocolate
production than
Barry Callebaut
and Hershey’s as
it was founded in
1865.
 It has more
employees than
Barry Callebaut
and Hershey’s i.e.
142,000
employees.
 Engaged in
sustainability and
CSR activities to
provide return to
the shareholders.
dominance with
its 53 labels.
 It offers more
varieties of
products than
Barry Callebaut
like snacks,
cookies and
chocolates.
 It is making
large
investment in
research and
development
process.
 It has focus on
the distribution
in emerging
nations.

SUSTAINABLE MARKETING 7
chocolate
academies
worldwide for
training artisans,
chefs, caterers and
bakers (Afoakwa,
2010).
Weaknesses  The company has
limited brand
presence among
people than its
competitors like
Hershey’s and
Mondelez.
 Strong
competition from
big industry
competitors like
Hershey’s, Nestle,
Cadbury etc.
 The above factor
leads it to limited
market share.
 As of 2014, it has
long term debt of 2.4
billion that affects its
brand image among
people.
 Huge spending on
advertisement and
promotion.
 The prices of
Hershey’s chocolates
are higher than its
competitors
(Gutiérrez, 2017).
 It is facing
issues because of
higher switching
of brands.
 Negative
publicity due
violation of
human rights,
harms to
environment and
contamination.
 Unequal
implementation
of business
processes.
 It has limited
brand presence
among
population.
 There is
decrease in the
total revenues
because of new
entrants in this
industry.
Opportuniti
es
 It can increase its
brand presence by
establishing in-
house
confectionary
production.
 Adoption of more
 It is not enough to
operate business in
60 countries. So, it
has opportunities to
expand operations in
emerging markets.
 Product
 Business
expansion in
rural regions.
 Aggressive
marketing
practices
 It can acquire
 Like Barry
Callebut, it can
expand its
operations in
developing
nations.
 It can save the

SUSTAINABLE MARKETING 8
research and
innovation
 Strategic
collaboration with
competitors such
as Hershey’s,
Cadbury and
Cargill.
diversification:
considering health
concern among
people, it can
introduce chocolate
with healthy
elements and sugar
free.
 It can become more
Innovative and
sustainable like
Barry Callebaut.
other established
firms.
 It can invest in
sustainability and
CSR activities to
regain its image.
funds by
increasing its
efficiency and
controlling
expenses on
overheads.
 It has the
opportunity to
spend money on
sustainable
development.
Threats  One of the major
threats is the
competition from
local rival.
 There is an
increase in the
cost of raw
materials like
milk, cocoa and
sugar.
 The people are
becoming very
conscious towards
health that resists
attaining
sustainability.
 Intense rivalry:
Like Barry Callebaut,
Hershey’s is facing
intense competition
from other players
such as Nestle,
Cadbury, Cargill,
M&M and Galaxy etc.
 People are becoming
very concerned
towards their health
(Blockeel, et al,
2016).
 Higher usage of
cocoa and
procurement of
cocoa’s right
quantity is major
blockage for
 Economic
instability in
country is the
biggest threat to
the company.
 Fluctuation in
the costs of raw
materials (Ramli,
2013).
 It is confronting
rivalry in all
market segments
(Saltini and
Akkerman,
2012).
 Competition
from low cost
chocolate
manufacturers.
 Increase in the
cost of raw
materials.

SUSTAINABLE MARKETING 9
Hershey’s
production.
The above analysis indicates that Barry Callebut has place itself as one of the biggest players in
chocolate industry. However, it has failed to maintain its brand presence in the industry. It is
making several efforts for sustainable marketing and sustainability that is the actual reason
behind its identifiable growth (Kumara, et al, 2012).
The below-chart indicates the positioning of Barry Callebaut against its primary competitors:
 Barry
Callebaut
 Hershey’s
 Mondelez
 Cargill
The above chart indicates that Barry Callebaut is offering high quality chocolates than its
competitors. The company is offering different cocoa products on premium prices. It is highly
sustainable as it is actively engaged in sustainability and CSR activities (Gordon, Carrigan, and
More
sustainable
Low Quality High
Quality
Less
Sustainable
Higher income
people
Superior
quality of
chocolates

SUSTAINABLE MARKETING 10
Hastings, 2011). The company will be able to attain a viable and sustainable development in the
industry.
Sustainable Marketing Principles
Sustainable marketing principles are the marketing efforts which are made by a company to
support the long run performance of the system. It fulfills the demands and needs of customers
while increasing their capabilities. Barry Callebaut is adopting several sustainable marketing
principles to entice more population towards its cocoa products (Gopaldas, 2015). It is very
important for the organization to become sustainable as people are very much concerned towards
society and environment. This is the reason that Barry Callebaut is engaged in CSR and
sustainability activities.
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SUSTAINABLE MARKETING 11
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SUSTAINABLE MARKETING 12
Societal Marketing
Under sustainable marketing principles, Barry Callebaut has adopted societal marketing to entice
the people towards its cocoa products. Societal marketing is a concept of marketing which holds
that a firm should make its marketing decisions not only by looking at the wants of customers
and needs of a company but also long term interests of society. Barry Callebaut is conducting a
marketing research to recognize demands and preferences of people (de Melo, Bolini, and
Efraim, 2009). Considering them, it makes marketing and product decisions for the long term
benefits of society. While developing its marketing efforts, organizations considers that people
always change their tastes and preferences for the chocolate products.
Considering the needs and demands of people, it is planning to offer 100% sustainable
ingredients in all of its products. It is very much concerned about the cocoa farmers. By the
implementation of CocoaAction strategy, the company commits to track the farmer’s poverty by
strengthening farmers to earn better income via training, financing, coaching and planting
material. The needs and preferences of customers enable the company to launch more product
categories like healthy and sugar free chocolates (Carroll and Shabana, 2010). It promotes its
products on social media and television because people are actively using the social media
platforms and it reduces the wastage of paper. Thus, the company is adopting societal marketing
after understanding the needs and preferences of customers.
Innovative Marketing
Innovation marketing is one of the major principles which needs that an organization seeks real
product and improvements in marketing. The organization which overlooks better and new ways
to perform the activities will lose the customers to competitors which have found better and more
innovative way. Looking at the changing market trends and customers’ needs, Barry Callbaut is
making a huge investment in the research and innovation. It has developed a strong research and
development process to consider the needs and demands of customers. It has made innovation in
its product development process such as probiotic chocolates, tooth friendly chocolates and
chocolates with anti-oxidants (Cronin, et al, 2011). This principle of sustainable marketing
assists the company in attracting more customers towards its chocolates and other cocoa
products.

SUSTAINABLE MARKETING 13
Other Principles
However, Barry Callebaut Company has adopted effective principles to stay competitive in
today’s business environment but still there is a scope of improvement. So company needs to
adopt some other principles for sustainable growth in the market. The company can adopt
customer relationship management that can help the organization in developing good
relationships with its customers. It can assist the Barry Callebaut to retain them for a long time
(Fiore, et al, 2016). After selling the chocolate, the company can take the feedback of customers
so it can know about their response towards products. It should contact with the customers on
their anniversaries and birthdays. In addition to this, it needs to emphasize on value proposition
and to place itself as social responsible brand among targeted population. It can develop a
positioning statement that shows higher quality of Barry Callebaut company’s chocolates and
cocoa products (Weinstein and Pohlman, 2015).
Conclusion
Thus, it is hereby concluded that Barry Callebaut is one of the leading manufacturer of
chocolates and other cocoa products. To become more sustainable, the company has adopted
effective marketing strategies and sustainable principles. The report has included the marketing
strategies of Barry Callebaut which assist it in gaining more competitive advantage over its
competitors. The analysis concludes that this organization can practice its strengths to overcome
it weaknesses and opportunities to overcome threats. By the use of effective sustainability
principles, it is able to establish a better brand image among population. Thus, the company has
developed its image as a leading manufacturer in chocolate industry.

SUSTAINABLE MARKETING 14
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