Case 5: Alfred Ritter GmbH in:

Svend Hollensen, Marc Oliver Opresnik

Marketing, page 445 - 460

A Relationship Perspective

1. Edition 2010, ISBN print: 978-3-8006-3722-5, ISBN online: 978-3-8006-4870-2,

Bibliographic information
5. Implementation and Controlling in the Marketing Planning Process432 Case 5 Alfred Ritter GmbH The German chocolate maker of Ritter Sport is considering new customers in – international markets Alfred Ritter GmbH & Co. KG ( was incorporated in 1912 as Alfred Ritter Schokolade- und Zuckerwarenfabrik. Today it is a private owned company and one of Germany’s leading chocolate manufacturers. The company is number one in the German market for 100-gram-chocolate bars. In 2009 it had a market share of 10 percent of the total chocolate confectionery market. Alfred Ritter’s square chocolate bars are well known: about 95 out of 100 Germans recognize the Ritter Sport brand. Ritter has a strong position in other European markets, including Denmark, Italy, Austria and the Netherlands. Ritter Sport chocolate bars are also available in 60 countries around the world. The grandchildren of company founder Alfred Ritter own and control the family enterprise. Operating from its base in Swabian Waldenbuch, Ritter Sport has become one of the most successful European chocolate manufacturers since its inception in 1932. In Germany the company has a significant market share and enjoys an impressive 98 % brand awareness. Known worldwide for its trademark square chocolate bars (designed to fit perfectly into the pocket of a sports jacket), Ritter Sport had a workforce of 800 employees and a turnover of € 274 million in 2009. More than 50 % of the production is now exported. As an early pioneer of recyclable polypropylene packaging, Ritter Sport has established a reputation as a trailblazer of environmentally friendly business practices. The 1912 Origin The Ritter company was the offspring of a sweet liaison that had nothing to do with business. On July 4, 1912, Alfred Ritter, a master candy maker, and Clara Göttle, a woman with a sweet smile who owned a candy store in Bad Cannstadt, a small German town near Stuttgart, got married. Shortly after, the newlyweds launched their own business, which was named Alfred Ritter Schokolade- und Zuckerwarenfabrik (Alfred Ritter chocolate and candy factory). In a rented space in a house in Bad Cannstadt, where the couple took up their first residence, they established a small candy production facility that was more a workshop than a factory. However, the name reflected the high ambitions of the Ritters. Their Kapitel_5.indd 432 03.08.2010 12:56:37 Uhr Case 5 433 business liaison turned out to be very successful. Alfred Ritter was a skilful creator of a never-ending stream of sweet novelties, which were made with the help of a handful of workers and then sold in his wife’s store. Alfred oversaw the production and logistics part of the business. Clara took care of marketing and sales, as well as of the financial side. Only two years after its foundation, the family business suffered its first severe crisis. When World War I broke out in the summer of 1914, Alfred Ritter was drafted into the army and the candy production had to be shut down. In 1917, he was discharged from the army for health reasons and transferred to a civil job at the Stuttgarter Schokoladefabrik Eszet, a chocolate manufacturer in Stuttgart. There he learned first-hand about the industrial manufacturing of chocolate, especially so-called Kremschokolade, or ‘cream chocolate.’ Cream chocolate bars were not solid but hollow and were filled with different kinds of fillings. By 1920, Alfred Ritter Schokolade und Zuckerwarenfabrik employed some 40 workers, and the demand for Ritter candy products kept rising. In 1923, the company opened a second store in Bad Cannstadt, which was also managed by Clara Ritter. Three years later, the Ritters bought their first delivery truck. At that time, the number of employees had already doubled from six years earlier. This was partly due to the fact that candy products were still made mostly by hand. Another reason was ‘Alrika’, Ritter’s brand name cream chocolate, which became a big seller. However, the property in Bad Cannstadt had already reached its limits and, most importantly, did not allow the installation of machinery for the mass production of chocolate. Once again, Alfred and Clara Ritter started looking for a bigger site. Struggles During the Depression and World War II The onset of the Great Depression in the fall of 1929 was a gift and a challenge at the same time. On one hand, it provided opportunities to acquire financially struggling businesses. On the other hand, the demand for sweets dropped significantly. After considering a number of manufacturing sites that had been put up for sale at the beginning of the economic crisis, the Ritters decided to move their business to Waldenbuch, a small town south of Stuttgart. The factory they first leased and later bought was built as a chocolate factory, and the property seemed to be spacious enough to contain future expansions. On July 1st, 1930, all production operations were moved to the new location. Despite all difficulties, Alfred and Clara Ritter kept up faith in their business. Soon after the move to Waldenbuch, they decided to start manufacturing solid chocolate bars in four varieties. Two years later, they added another chocolate product. As the story goes, Clara Ritter suggested making a solid chocolate bar that would fit in any jacket pocket without breaking. Unlike the common rectangular shape, this chocolate bar was square. To distinguish it from the conventional bars, it was called Ritter’s Sportschokolade – Ritter’s Sports Chocolate. The new launch was soon supported by advertising posters for display windows and by commercials in movie theatres. However, Ritter’s Sportschokolade was only one among about 100 different products of its kind in the market. Kapitel_5.indd 433 03.08.2010 12:56:37 Uhr 5. Implementation and Controlling in the Marketing Planning Process434 In 1935, the German government started cutting back on cocoa imports. Ritter was not able to buy enough cocoa and other raw material and began to launch candy products made from less restricted materials, such as jelly beans, fruit gum products, and candy sticks. After World War II began in September 1939, it became increasingly difficult to maintain production. Many male workers were drafted into the army and raw materials became even more scarce. In 1940, production operations were shut down in Waldenbuch. Until the end of the war, the premises of the Alfred Ritter chocolate and candy factory were used by other businesses. For a limited time, electric appliances manufacturer AEG turned the Ritters’ factory into a site for making replacement parts for certain weapons. Later, the company’s premises were employed as a warehouse. Even immediately after the war ended in 1945, the chocolate factory was used by another manufacturer to make toothpaste. A New Start in the Post-war Era The main problem during the years immediately following World War II was the same as before the war: scarce raw materials. Sugar was rationed and cocoa was simply not available. Bartering was common between businesses. Some wholesalers who were Ritter’s customers exchanged sugar for finished candy products. Customers had to bring their own packaging materials. Then, in 1947, Ritter’s warehouse burned down. The introduction of a new currency – the Deutsche Mark – in the three western sectors of Germany marked a new beginning for the country, its people, and the economy. Beginning in 1950, cocoa was available again in West Germany without any limitations. Ritter immediately resumed the manufacture of Ritter Sport chocolate and soon offered the company’s entire pre-war product range. Company Perspectives Since 1968 people have been able to enjoy ‘Ritter Sport’ outside of Germany. Today the chocolate squares are being marketed in more than 60 countries. The chocolate that finds admirers worldwide is made with great know-how, state-ofthe-art manufacturing technology, and much care in Waldenbuch. In April 1952, company cofounder Alfred Ritter died at age 66. He was succeeded by his only son, Alfred Otto Ritter, who had returned to Waldenbuch wounded Kapitel_5.indd 434 03.08.2010 12:56:37 Uhr Case 5 435 immediately after the war. However, he was soon afterwards taken prisoner by the French Allied Forces and not released until 1947. The 37-year-old had joined the family business in 1937, after he had gained some practical experience as an apprentice at three different candy and chocolate manufacturing companies. His elderly mother Clara remained actively involved in the business until she died in March 1959 at age 82. Chocolate became increasingly more popular in postwar West Germany. American soldiers who gave out chocolate bars to German civilians after the war contributed to this trend. In the mid-1960s, the company started to expand its distribution network. Until then, almost all of Ritter’s customers were located in southwest Germany, including the Frankfurt am Main area. In the late 1960s, the company started a fruitful cooperation with the DEWE advertising agency which lasted many decades and greatly contributed to the company’s growing success. After conducting a detailed study of the market, DEWE suggested that Ritter switch to ‘mono-marketing’ and focus solely on the production of square chocolate bars. They got the green light from Alfred Otto Ritter and created a campaign that transformed Ritter Sport from a chocolate product into a brand name. In 1969, the company stopped making rectangular chocolate bars and two years later ceased the production of pralines. At the same time, new fillings were created for Ritter Sport chocolate. The major national breakthrough came with the launch of a Ritter Sport bar with a yogurt filling. Supported by a massive national advertising campaign, the new creation and its marketing, which focused on feeling young and being active, tapped a huge market at a time when leisure, sports, and travel were starting to play an increasing role in people’s lives. The compact chocolate squares with the healthy filling were presented as a nutritious food that helped people stay fit. The strategy was a huge success and catapulted Ritter Sport into the first league among German chocolate makers. By the mid-1960s, Ritter ranked among the 15 leading German 100gram chocolate bar manufacturers with a market share of roughly 5 percent. By 1970, that percentage had already doubled. In 1960, Ritter employed 190 people. Ten years later the number had grown to 260. During the same time period, the company’s sales almost tripled, reaching DM73 million in 1970. Reaching for the Top and Out to the World In 1970, the company’s TV commercials reached consumers in all of West Germany for the first time. The Ritter Sport brand was connected with a catchy Kapitel_5.indd 435 03.08.2010 12:56:37 Uhr 5. Implementation and Controlling in the Marketing Planning Process436 slogan: ‘Quadratisch. Praktisch. Gut’ (‘Square. Practical. Good.’). Two years later, the company’s sales passed the DM100 million mark and Ritter’s market share among German chocolate bar makers kept growing. In 1974, the company made another bold move when it introduced a new packaging design. Each of the different variations of the square chocolate bars was wrapped in its own bright colour. While other chocolate bars were traditionally packaged in darker colours, such as dark red and brown or royal blue, Ritter Sport bars stood out on the shelves with their bright yellow, orange, red, green, and sky-blue packaging. Alfred Otto Ritter, however, was not able to witness the success of his decision. In late October 1974, he died from a sudden heart attack. Alfred Otto Ritter’s wife Marta took up the challenge and assumed responsibility for the family business. At the same time, a three-person advisory board was formed with chairperson Marta Ritter and two close friends of the family who had been loyal advisors to the company on business matters over the years. The advisory board chose three top managers as directors who took care of the day-to-day business affairs. In 1978, the third generation of the Ritter family – daughter Marta-Luise and son Alfred Theodor Ritter – joined the advisory board that guided and controlled the company’s management. Five years later, Alfred Theodor Ritter became the board’s new chairperson. From then on, the two took turns in heading the board every five years. Meanwhile, the company introduced another novelty in the chocolate industry in 1974. Previously, chocolate bars had been wrapped in cellophane or a thin aluminium foil, followed by a second layer of paper or carton. In the late 1960s, Ritter’s engineers were challenged to develop a new packaging solution for chocolate containing whole nuts, which could not be pressed into an exact form, since some nuts were bigger than others and protruded from the chocolate. Ritter started experimenting with plastic wrappings which at that time were used for packaging candy or chocolate-covered candy bars. However, a consumer survey conducted in 1972 revealed that their new packaging was hard to open. After some more experimenting, the company came up with a solution. The seam of the package was moved from the centre of the package to the location where the first section of chocolate broke off. It was then sealed closed with a thin layer of special glue that was easy to open. The ‘Knick-Pack ‘was introduced in 1976 and became an instant hit. It was not only easy to open but also to close again. Since then, all Ritter Sport chocolate varieties have been packaged in the’ Knick-Pack.’ In the 1980s, the domestic demand for chocolate began to stagnate. The industry panicked and prices plunged. Except for times when cocoa prices shot through the roof, this trend has continued into the new century. Competition became tougher and tougher. A number of competitors, among them the international chocolate giant Nestle, tried to launch square chocolate bars. However, Ritter defended its turf fiercely. The company was able to convince courts that consumers identified the square form with the Ritter Sport brand. To meet the challenge of the stagnating domestic chocolate market, the company followed three strategies: Kapitel_5.indd 436 03.08.2010 12:56:37 Uhr Case 5 437 First, it invested in strong advertising campaigns in both good times and bad. After a short interruption in the late 1980s, when the attempt to re-launch Ritter Sport in a new ‘high lifestyle’ campaign (was not accepted by consumers), the company returned to its roots, emphasizing high quality and its familiar slogan ‘Square. Practical. Good.’ Second, the company looked to other countries for further growth. Until 1967, Ritter Sport chocolate was sold almost exclusively in Germany. By 1987, exports accounted for over 9 percent of the company’s sales. The chocolate squares were shipped as far as Australia, South Africa, Chile, Japan, Canada, and the United States. Third, Ritter tried to reverse the downward price spiral by raising prices. An initial attempt at this had failed in 1985, a year when cocoa prices climbed extremely high. When the company tried to compensate for the higher cost by increasing prices, sales dropped significantly. German consumers, known to be very sensitive to chocolate price changes, switched to cheaper brands. In the mid-1990s, prices for chocolate bars hit bottom again in Germany. They dropped so low that many manufacturers lowered the cocoa content and used low quality ingredients in order to cover their costs. When cocoa prices rose significantly again in 2000, Ritter decided to do the opposite. The company’s second attempt to raise prices was more successful than the first one. The price raises were accompanied by an improvement in product quality. A new advertising campaign focused on the product and its higher quality, explaining the new move to consumers. Sales dropped but not significantly. The introduction of the new Euro currency in Germany might have helped, too. Suddenly, a bar of chocolate that was sold for one German Mark cost ‘only’ about 50 cents. By 2000, there were fewer than 200 chocolate manufacturers in Germany and, with the exception of Ritter Sport, the industry giants dominated the market. During the 1980s and 1990s, the company had made increasing gains against its major competitor in the market for 100-gram chocolate bars. The leading brand, Milka, had a market share of 29 percent in the mid-1990s. Ritter Sport was number two with about 18 percent but number one in chocolate bar sales at gas stations. In a difficult market, the company managed to stay at the top. By 2002, Ritter Sport’s market share in the 100-gram segment had climbed to over 24 percent. Looking ahead, Ritter Sport aimed at winning over younger people to lower the average age of the typical Ritter Sport consumer, who was 44 years of age in 2002. In 2003, the company was planning to introduce its new ‘Active-Range’, which was targeted at young people. Another priority was the company’s expansion into Eastern Europe, especially its joint venture with the Russian chocolate maker Odintsovo Confectionary Factory, where Ritter was planning to put out about 10,000 tons of Ritter Sport chocolate annually, beginning in fall 2003. Finally, the company abandoned the ‘mono-marketing’ strategy and focused more on new product development, including a range of artificially sweetened chocolate bars, a number of bars with seasonal fillings (fruity for the white ‘summer chocolate ‘range and truffle fillings for the winter months), and a line of filled chocolate bars targeted at women. In addition, the company introduced its classic range Kapitel_5.indd 437 03.08.2010 12:56:37 Uhr 5. Implementation and Controlling in the Marketing Planning Process438 in a broad variety of sizes – from mini to extra large. One possibility for the future was the introduction of chocolate made with organically grown cocoa from Nicaragua, where the company helped fund an organic farming project. In 2008 Ritter Sport was offered as an organic chocolate brand. When Alfred Theodor Ritter joined the family business in the mid-1980s, industry advisors tried to persuade the Ritters to sell the business. Even the consultants they had hired to help the struggling company advised them to sell. They refused. Key Dates 1912: Alfred and Clara Ritter start a family business. 1919: Brand name cream chocolate Alrika is launched. 1930: The Ritters move their business from Cannstadt to Waldenbuch. 1932: Ritter’s Sport Chocolate is introduced. 1940: The company is closed down until the end of World War II. 1946: Alfred Ritter Schokoladefabrik resumes operations. 1952: Alfred Otto Ritter takes over responsibility for the family business. 1960: Alfred Otto Ritter decides to focus solely on Ritter Sport chocolate bars. 1970: A TV advertising campaign launches Ritter Sport as a leading brand. 1974: Marta Ritter takes over responsibility for the family business. 1976: ‘Knick-Pack’ packaging is introduced. 1978: A third generation of the Ritter family joins the company’s advisory board. 1982: Ritter Sport Minis are introduced 2000: Ritter’s ‘higher prices for higher quality’ campaign is launched. 2002: Ritter Sport is the market leader in the 100-gram chocolate bar segment. 2005: As grandson of the company’s founder, Alfred Theodor Ritter takes over the chairmanship of the company and continues the family tradition. Situated under one roof and located next to the company grounds, the new RITTER MUSEUM and the expanded RITTER SPORT chocolate shop open their doors in the autumn to welcome visitors. 2008: Ritter Sport is offered as an organic chocolate assortment. Using the ingredients obtained from supervised organic farming, Ritter Sport tries to gain complete authority over chocolate production. A new modern wrapper design is introduced. Kapitel_5.indd 438 03.08.2010 12:56:37 Uhr Case 5 439 Ritter sport advertising slogans around the world German packaging: ‘Quadratisch. Praktisch. Gut.’ (‘Square. Practical. Good.’)• French packaging: ‘Carré. Pratique. Gourmand.’• English packaging: ‘The handy chocolate square’• English packaging (UK): ‘Quality in a Square.’ (English packaging now fea-• tures ‘Quality. Chocolate. Squared.’) Italian packaging: ‘Quadrato. Pratico. Buono.’• Danish Packaging: ‘Kvadratisk. Praktisk. God.’• Russian packaging: ‘• ??????????. ??????????. ???????.’ or ‘?????????. ???????. ???.’ Canadian packaging: ‘Quality. Chocolate. Squared.’• The international chocolate markets In 2007 the global chocolate confectionery market was worth USD 50 billion (EUR 37 billion). Europe accounted for 45 %, United States for 31 %, Asia Pacific for 18 % and the rest of the world accounted for 6 %. Overall in the chocolate confectionery business there is a trend towards more expensive and premium products. Products containing a greater proportion of cocoa are especially popular, as does exotic flavours, health and wellness variants. Among the most successful health and wellness variants are reduced-sugar products, which reflects growing consumer concerns over illnesses like obesity and diabetes. This trend has also boosted the demand for organic products. In line with the trend towards ethical consumerism, fair-trade products play an increasing role in chocolate confectionery. Once a relatively small niche, fairtrade chocolate products are now sold in all types of retail outlets, including discounters’ outlets. Furthermore, media coverage and clinical studies have focused on the link between dark chocolate and heart health. In July 2007, a study published in the Journal of the American Medical Association found a link between dark chocolate consumption and lower blood pressure. The independent nature of this study lends further credibility to chocolate’s health claims. The global market for chocolate confectionery is more consolidated in the Western regions, while the Asia Pacific market, which is rapidly catching up with the West, is more fragmented. Product innovation and stable customer tastes have kept the market secure and mature in the West, while production is only just increasing in Asia Pacific. The sheer size of the Asia Pacific market shows great prospects for the industry if it continues to expand. Tastes in chocolate vary from region to region. Milk chocolate is the most popular choice in the US, UK and Japan, while most of Europe prefers plain chocolate, and white chocolate is particularly popular in some parts of Asia. The most successful competitors in each region are those whose products most satisfy the regional tastes. Within the European market there is a clear north/south divide when it comes to chocolate consumption, reflecting among other things the difference in average temperatures in the two halves of the continent. Kapitel_5.indd 439 03.08.2010 12:56:38 Uhr 5. Implementation and Controlling in the Marketing Planning Process440 The top four countries in the rankings are all in the north. The British are the biggest consumers of chocolate in Europe, munching their way through more than 10 kg each every year. The Netherlands takes fourth sport with per capita consumption of 5 kg) while the main southern European countries covered by the report (Italy and Spain) are well down the list - Italians eat just 2.5 kg of chocolate each year while Spaniards consumer just 1.7 kg. Perhaps reflecting the fact that it straddles both the north and the south of the continent, France comes between these two groups with consumption of 4.9 kg per person. While most Europeans eat chocolate on a regular basis, their tastes differ greatly, and not just in terms of the cocoa content. For example, the most popular type of chocolate confectionery in the UK is countlines such as Kit Kat, Snickers or Crunchie, which account for 45 per cent of total volume sales, followed by moulded bars (solid chocolate bars, blocks or tablets shaped by pouring melted chocolate into moulds, with or without added ingredients such as fruit and/or nuts) at 22 per cent and boxed chocolate (13 per cent). German consumers prefer moulded bars, while the French prefer chocolate which offers simplicity and purity of taste, without additional flavours and with little sugar. Italian tastes are geared towards the more indulgent and sophisticated end of the market. In Spain, chocolate manufacturers are trying to follow the rest of the confectionery market and increase their market share by introducing low-fat products, Datamonitor claims. But this strategy has not been particularly successful and some companies are now focusing on the high quality, premium price boxed chocolate sector of the market. Generally, the Western European sales of chocolate confectionery have been affected by a rising sense of health consciousness, having a particular impact on the chocolate segment. The focus for growth is consequently shifting towards Eastern and Central Europe. Russia is the largest in volume terms - it’s a big market with very low prices. Low prices in Russia and across the East are serving to boost volume sales rates, especially as average incomes are rising, although there are still questions over the solidity of economic growth and reconstruction in some countries, including Russia. The competition in chocolate confectionary is intense. The leading multinational players with their main brands and market shares (in different markets) look like this: Kapitel_5.indd 440 03.08.2010 12:56:38 Uhr Case 5 441 Manufacturer Main brands United Kingdom (% market share) Germany (% market share) France (% market share) United States (% market share) Total World (% market share) Mars (US) Mars, Snickers, M&Ms, Bounty, Twix, Bounty, Dove, Milky Way 23 12 6 32 11 Nestle (CH) Quality Street, Milky Bar, After Eight, Smarties, Rolo 18 6 13 5 15 Cadbury (UK – USA) In beginning of 2010 acquired by Kraft Foods, USA Cadbury’s Dairy Milk, Cadbury’s Roses, Cadbury’s Crème Egg 29 – 3 – (Sold under a Hersey license) 8 Kraft Foods (USA) Terry’s, Toblerone, Milka 5 12 10 1 8 Ferrero (Italy) Kinder, Duplo, Hanuta, Mon Chéri, Ferrero Rocher 2 19 16 1 7 Hersey (USA) Reese’s, KitKat (under license from Nestle), Hershey’s Kisses – – – 34 8 Ritter GmbH (Germany) Ritter Sport, Quadrago – 7 1 – 1 Lindt & Sprüngli (CH) Lindt, Lindor, Les Pyréneens, Excellence, Champs Elyssées, Créations 70 %, Fioretto, Swiss Tradition 1 8 11 2 2 Kapitel_5.indd 441 03.08.2010 12:56:38 Uhr 5. Implementation and Controlling in the Marketing Planning Process442 Manufacturer Main brands United Kingdom (% market share) Germany (% market share) France (% market share) United States (% market share) Total World (% market share) Private Labels - 7 12 10 2 10 Others - 15 24 30 24 30 Total 100 100 100 100 100 Sources: Adapted from Euromonitor, Datamonitor and own estimates Table 1: The competitive situation (market shares) in the main international market and worldwide (2008) In beginning of 2010, UK’s Cadbury was acquired by US Kraft Foods. The global market is generally difficult for new players to penetrate, as it is dominated by a series of major international players with a long and established history of success in the chocolate market. These players include Nestlé, Mars, Ferrero and Kraft Foods, which have all experienced strong sales throughout the West. So far, Nestlé is the only one of these companies which has managed to achieve significant success in Asia Pacific, but it still lacks a leading position in the region’s markets. The leading players in the US and UK- Hershey and Cadbury – have not expanded their businesses beyond their home markets, in spite of their success on the domestic level. In United States & Canada, Hersey Co (with brands like Reese’s and Hersey’s Milk Chocolate) is a market leader in chocolate confectionary, but they are mainly a North American player. I 1988 Hersey purchased the Cadbury US operations, and since then Hersey holds the license to manufacture and sell Cadbury chocolate products in USA. This is the reason why Cadbury (now Kraft Foods) is not having any market shares in United States (see Table 1), though Cadbury chocolate are being sold there, but by Hersey. The growth of the Asia Pacific market offers great prospects for the competitive landscape, as it will allow an increase in international trade as Western companies attempt to break into the market and capitalize on regional tastes. If the Western industry leaders acquire successful positions in the Asia Pacific market, further consolidation is likely to occur as they acquire the smaller domestic players in Asia Pacific. Ritter Sport distribution In the mature Western European market, Ritter Sport is exploring new distribution channels with changing consumer lifestyles and demand trends. Impulse channels such as forecourt retailing and kiosks are a particular target, as consumers’ busy lifestyles drive demand for indulgent on-the-go snacks. This has included the development of products tailored specifically to the requirements of such channels, with smaller servings of brands. For example, the company Kapitel_5.indd 442 03.08.2010 12:56:38 Uhr Case 5 443 has introduced smaller, Ritter Sport Minis tailored to the convenience-orientated demand of impulse channels, designed for on-the-go consumption. In addition, Ritter Sport is expanding its internet activity. Ritter Sport is also expanding its distribution while seeking to maintain a focus on its premium image. Thus, while Ritter Sport products are available in a number of mass retail channels, the company is also considering utilizing branded outlets as flagships for brand development. Duty free/travel retail also plays an important part in Ritter Sport’s distribution strategy, with the company benefiting from a strong presence in airport shops. Questions 1. Please discuss Ritter Sport’s strategic distribution alternatives in order to gain further market shares in the world confectionery market 2. Ritter Sport is now considering launching a separate business unit with the name ‘Ritter Sport Chocolate Café’ chain within the Ritter Group. Please discuss pros and cons for such an international chocolate café chain. 3. Please prepare a proposal for organizing, implementing and controlling the future international marketing plan of Ritter Sport Sources:• Euromonitor• Datamonitor• Public information• Kapitel_5.indd 443 03.08.2010 12:56:38 Uhr 5. Implementation and Controlling in the Marketing Planning Process444 References Almquist, E., Heaton, L. and Hall, N. (2002), Making RM make money, Marketing Management, May/June, pp. 17-21. Andreasen, A. R. (1994). Social marketing: Its definition and domain. Journal of Public Policy and Marketing 13 (1), pp. 108-14. Arnold, D., Birkinshaw, J. and Toulan, O. (2001), ‘Can selling be Globalized? – The pitfalls of Global Account Management, California Management Review, Vol. 44, No. 1, 2001 Bartlett, C. and Ghoshal, S. (1989) Managing Across Borders: The transnational solution, Harvard University Press, Boston, MA. Berkowitz, E. N., Kerin, R. A., Hartley, S. W. and Rudelius, W. (2004) Marketing, Mc- Graw-Hill, Boston Best, R. J. (2000) Market-Based Management, Prentice Hall, New Jersey. Booms, B. H. and Bitner, M. J. (1981) Marketing strategies and organisation structures for service firms, in Donnelly, J. H. and George, W. R. (eds) Marketing of Services, American Marketing Association, Chicago, pp. 47-52 Buttle, F. (1989) Marketing services, in Jones, P. (ed.) Management in Service Industries, Pitman, London, pp. 235-259 Dibb, S. (2002) ‘Marketing Planning best practices’, The Marketing Review, No. 2, pp. 441- 59 Carroll, A. B. and Buchholtz, A. K. (2000) Business and society: ethics and stakeholder management, South-Western College, Cincinnati Charter, M. K., Peattie, K., Ottman, J. and Polonsky, M. J. (2002) Marketing and Sustainability, BRASS, Cardiff Clegg, A. (2002) One ad one world?, Marketing Week, June 20, pp. 51-52 Crane, A. and Matten, D. (2004) Business ethics: a European perspective, Oxford University Press, Oxford Donaldson, T. and Preston, E. (1995) The stakeholder theory of the corporation: concepts, evidence, and implications, Academy of Management Review, 20(1), pp. 15-91 Downes, L. and C. Mui, Unleashing The Kuller APP (Boston): Harvard Business School Press, 1998. Evans, P. B. and Wurster, T. S. (1997) ‘Strategy and the New Economics of Information’, Harvard Business Review, Vol. 75, No.5, (September-October), pp. 70-82 Evans, P. B. and Wurster, T. S. (1999) ‘Getting Real About Virtual Commerce’, Harvard Business Review, Vol. 77, No. 6, (November-December), pp. 85-94 Evans, P. B. and Wurster, T. S. (2000) Blown to Bits: How the new economics of information transforms strategy, Boston, Harvard Business School Press Faris, P. W., Bendle, N. T., Pfeifer, P. E. and Reibstein, D. J. (2006) Key Marketing Metrics, Pearson, Harlow Ferrell, O. C. (2004). ‘Business ethics and customer stakeholders’. Academy of Management Executive, Vol. 18, No. 2, pp. 126-129. Fletcher, R., Bell, J. and McNaughton, R. (2004) International e-Business Marketing, Thomson Learning Gow, D. (2008) Record US fine ends Siemens bribery scandal, Guardian, 16 December, p.24 Kapitel_5.indd 444 03.08.2010 12:56:38 Uhr References 445 Grönroos, C. and Ojasolo K. (2004) ‘Service productivity – Towards a conceptualization of the transformation of inputs into economic results in services’, Journal of Business Research, Vol. 57, pp. 414-23 Harridge-March, S. and Qinton, S. (2009) Virtual snakes and ladders: social networks and the relationship marketing loyalty ladder, The Marketing Review, 2009, Vol 9, No. 2, pp. 171-181 Harvey, M., Myers, M. B. and Novicevic, M. M. (2003), ‘The managerial issues associated with global account – A relational contract perspective’, Journal of Management Development, Vol. 22, No. 2, pp. 103-129 Hastings, G. (2003). ‘Relational Paradigms in Social Marketing’, Journal of Macromarketing, Vol. 23, No. 1, June pp. 6-15. Hollensen, S. (2003) Marketing Management, Financial Times/Prentice Hall, London Hollensen, S. (2004) Global Marketing – A decision-oriented approach, Financial Times/ Prentice Hall, UK Hollensen, S. (2006) Marketing Planning: A global perspective, McGraw-Hill, Berkshire Jobber, D. (2010) Principles and Practice of Marketing, 6th ed., McGraw-Hill, Berkshire Johnston, R. and Jones, P. (2004) ‘Service productivity – towards understanding the relationships between operational and customer productivity. International Journal of Productivity and Performance Management, Vol. 53, No. 3, pp. 201-213 Katayama, O. (1994) ‘Not toying around’, Look Japan, November, pp. 22-3. Keegan, W. J. (2002) Global Marketing Management, 7th ed., Prentice-Hall, Upper Saddle River, New Jersey Kotler, P. and Armstrong, G. (2009) Principles of Marketing, 13th ed., Pearson, New Jersey Kotler, P. (1997) Marketing Management: Analysis, planning, implementation and control (9th ed), Prentice Hall, Englewood Cliffs, NJ. Kotler, P. (1999) Kotler on Marketing, Free Press, New York Kotter, J. P. and Schlesinger, L. A. (1979) Choosing strategies for change, Harvard Business Review, March-April, pp. 106-111 Krikke, H., Blanc, I. L. and Vedde, S. (2004), ‘Product modularity and the Design of Closed-loop Supply Chains’, California Management Review, Vol. 46, No. 2, Winter, pp. 23-39. Lenskold, J. D. (2004) Customer-centric marketing ROI; Harvard Business Review, January/February, pp. 26-31 Maignan, I. and Ferrell, O. C. (2004) Corporate social responsibility and marketing: an integrated framework, Journal of the Academy of Marketing Science, 32(1), pp. 3-19 Meffert, H. and Kirchgeorg, M. (1998) Marktorientiertes Umweltmanagement, 3rd ed., Schäffer-Poeschel, Stuttgart Ortman, R. F. and Bucklmann D. M. (1998) ‘Estimating marketing costs using activity-based cost drivers’, Journal of Cost Management, July- August, pp. 5-15. Owen, J. (2009) How to manage: the art of making things happen, 2nd ed., Pearson Prentice-Hall, Harlow Pitt, L. F., Ewing, M. T. and Berthon, P. (2000) Turning Competitive Advantages into Customer Equity, Business Horizons, September-October, pp. 11-18. Polonsky, M.J. and Rosenberger III, P. J. (2001), ‘Revaluating Green Marketing: A Strategic Approach’, pp. 21-30. Kapitel_5.indd 445 03.08.2010 12:56:38 Uhr 5. Implementation and Controlling in the Marketing Planning Process446 Quelch, J. A. (1992) ‘The new country managers’, The McKinsey Quarterly, no. 4, pp. 155- 65. Quelch, J. A. and Bloom, H. (1996) ‘The return of the country manager’, The McKinsey Quarterly, no.2, pp.30-43. Reichheld, F. F. (2003) The one number you need, Harvard Business Review, December, pp. 46-54 Robbins, S. P and Coulter, M. (2005) Management, 8th ed., Prentice Hall, New Jersey Rust, T. M., Ambler, T., Carpenter, G. C., Kumar, V. and Srivastava, R. K. (2004) ‘Measuring Marketing Productivity: Current knowledge and Future directions’, Journal of Marketing Vol. 68, October, pp. 76–89 Rust, R. T., Moorman, C. and Bhalla, G. (2010) Rethinking Marketing, Harvard Business Review, January-February 2010, pp. 94-101 Samli, A. C., Still, R. and Hill, J. S. (1993) International Marketing: Planning and practice, Macmillan, London. Sanyal, R.N. and Samanta, S.K. (2004), ‘Determinants of Bribery in International Business’, Thunderbird International Business Review, Vol. 46, March-April, pp. 133-148. Shelly, B. (1995) ‘Cool customer’, Unilever Magazine, no. 2, pp. 12-17. Unilever (1996) Introducing Unilever. Simkin, L. (2002) Tackling implementation impediments to marketing planning. Marketing Intelligence & Planning, Vol. 20, No. 2, pp. 120-26 Stapleton, D., Sanghamitra, P., Beach, E. and Julmanichoti, P. (2004) ‘Activity-based costing for logistics and marketing’, Business Process Management Journal, Vol. 10, No. 5, pp. 584-97 Strebel, P. (1996) Why do employees resist change?, Harvard Business Review, May- June, pp. 86-92 Stroud, D. (2008) Social networking: an age-neutral commodity – Social networking becomes a mature web application, Journal of Direct, Data and Digital Marketing Practice, Vol. 9, No. 3, pp. 278-292 Szigin, I., Canning, L., Rappel, A. (2005) Online community: enhancing the relationship marketing concept through customer bonding, International Journal of Service Industry Management, Vol. 16, No. 5, pp. 480-496 Thomas, D. (2004), ‘Natural’ cigarette launch causes health controversy, Marketing Week, May 10, p. 8 Valdmanis, T. (1999) Alliances gain favour over risky mergers, USA Today, February 4, p. 3B Wilson, G. (1993) Making change happen, Pitman, London Workman, J. P., Homburg, C. and Gruner, K. (1998) Marketing organisation: and integrative framework of dimensions and determinants, Journal of Marketing, 62, July, pp. 21-41 Kapitel_5.indd 446 03.08.2010 12:56:38 Uhr About the authors 447 About the authors Svend Hollensen ( is Ph.D. and Associate Professor of International Marketing at University of Southern Denmark (Sønderborg). He has practical experience from a job as International Marketing Coordinator in a large Danish multinational enterprise as well as from being International Marketing Manager in a company producing agricultural machinery. After working in industry from 1983 to 1987 (the last two years as International Marketing Manager) he received his Ph.D. from Copenhagen Business School (CBS) in 1992. He has published articles in international recognized journals and is the author of the following globally published textbooks such as Essentials of Global Marketing, Global Marketing and Marketing Research – An International Approach. Svend Hollensen has also worked as a business consultant for several multinational companies, as well as global organizations like World Bank. Marc Opresnik ( / is Ph.D. and Associate Professor of Business Economics, in particular Marketing and Management, at the Fachhochschule Lübeck, Germany, and a visiting professor to other international universities such as the East China University of Science & Technology (ECUST) in Shanghai and the European Business School London. He has 10 years experience from working as Senior Marketing Manager, Business Development Manager and Global Coordinator Project Planning in Strategy & Portfolio for Shell International Shell International Petroleum Co. Ltd. Marc Opresnik has worked as a business consultant for several multinational companies, institutions and governments. Autoren.indd 447 03.08.2010 12:57:05 Uhr

Chapter Preview



Marketing – A Relationship Perspective

Moderne Grundlange zum Marketing

Das Lehrbuch behandelt eines der wichtigsten und aktuellsten Themenfelder des modernen Marketings. Der Ansatz verbindet dabei den klassischen Ansatz der strategischen Marketingplanung und seiner Instrumente mit dem neuen Ansatz des Relationship Marketing. Der ganzheitliche Ansatz des Buches umfasst dabei die aktuellen Marketing-Grundlagen, Praxisbeispiele sowie anwendungsorientierte Fallstudien und eignet sich somit ideal sowohl für Manager und Entscheidungsträger im Marketing-Bereich, Studenten in Bachelor- und Materstudiengängen sowie Dozenten und Trainer.