Godiva Expansion to India Marketing Plan

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  • AnnieResourceshttp://www.godiva.com/about/faq.aspxhttp://dealbook.nytimes.com/2007/12/20/campbell-soup-sells-godiva-for-850-million/
  • AnnieHorse in indian culture & possibly altering the logoLuxury emphasis – masculine culture with elaborate displays of wealth
  • AnnieUS$5,919,039,663.39
  • AnnieResourceshttp://articles.timesofindia.indiatimes.com/2012-07-09/news/32603679_1_chocolate-industry-sanjiv-obhrai-dairy-milk
  • KatieTop down approachTarget MarketGlobals - Upper Class - Wealthy/Affluent consumersLuxury PurchasePrivate consumption is defined as the value of the consumption goods and services acquired and consumed by householdsSecondaryStivers & Seekers – expanding middle classyoung populationsAspirational PurchaseResourceshttp://www.ksoils.com/whitepapers/KS_WHITEPAPER_INDIAN_CONSUMER_MARKET.pdf
  • KatieResourceshttp://www.ksoils.com/whitepapers/KS_WHITEPAPER_INDIAN_CONSUMER_MARKET.pdf
  • KatieIndividual ChocolatesGold CollectionGold Ballotin - french for small, elegant box of chocolates (2, 4 or 8 chocolates)GiftsBasketsWedding FavorsParty FavorsBusiness GiftsTrufflesChocolate BarsBakery (Biscuits)Beverage (Coffee, Cocoa)Dipped FruitsSeasonal/Holiday/Limited Edition
  • AnnieGodiva ~ $0.11/g
  • KatieMini-BoutiquesPartner with department stores for ‘store within a store’ conceptGodiva has a history of launching within department stores (4)DebenhamsMarks & SpencerBoutiques - smaller, standalone storesLuxury Hotels (3) – Lack of organized retail space has lead luxury consumers in India to associate their favorite brands with high-end hotels. Imperial New DelhiThe OberoiITC Hotels (2) - declining retail sales may encourage partnershipTravel Retail (Airport stores) - already part of Godiva’s current strategy (3)Flagship stores – large standalone stores with wide product varietyLuxury Malls (1)DLF Emporio in DelhiUB City in BangaloreCafé experience – baked goods, ice cream, beveragesResourceshttp://www.livemint.com/Companies/81LnF5a9PQJeB0hYO2nzEL/Luxury-malls-yet-to-catch-on-as-brands-can8217t-find-the.htmlhttp://profit.ndtv.com/news/corporates/article-5-star-hotels-may-report-least-profit-in-decade-crisil-310635http://articles.economictimes.indiatimes.com/2007-09-23/news/27685537_1_luxury-brands-retail-space-itc-hotelshttp://www.godiva.com/about/faq.aspx
  • KatieMini-BoutiquesPartner with department stores for ‘store within a store’ conceptGodiva has a history of launching within department stores (4)DebenhamsMarks & SpencerBoutiques - smaller, standalone storesLuxury Hotels (3) – Lack of organized retail space has lead luxury consumers in India to associate their favorite brands with high-end hotels. Imperial New DelhiThe OberoiITC Hotels (2) - declining retail sales may encourage partnershipTravel Retail (Airport stores) - already part of Godiva’s current strategy (3)Flagship stores – large standalone stores with wide product varietyLuxury Malls (1)DLF Emporio in DelhiUB City in BangaloreCafé experience – baked goods, ice cream, beveragesResourceshttp://www.livemint.com/Companies/81LnF5a9PQJeB0hYO2nzEL/Luxury-malls-yet-to-catch-on-as-brands-can8217t-find-the.htmlhttp://profit.ndtv.com/news/corporates/article-5-star-hotels-may-report-least-profit-in-decade-crisil-310635http://articles.economictimes.indiatimes.com/2007-09-23/news/27685537_1_luxury-brands-retail-space-itc-hotelshttp://www.godiva.com/about/faq.aspx
  • KatieMini-BoutiquesPartner with department stores for ‘store within a store’ conceptGodiva has a history of launching within department stores (4)DebenhamsMarks & SpencerBoutiques - smaller, standalone storesLuxury Hotels (3) – Lack of organized retail space has lead luxury consumers in India to associate their favorite brands with high-end hotels. Imperial New DelhiThe OberoiITC Hotels (2) - declining retail sales may encourage partnershipTravel Retail (Airport stores) - already part of Godiva’s current strategy (3)Flagship stores – large standalone stores with wide product varietyLuxury Malls (1)DLF Emporio in DelhiUB City in BangaloreCafé experience – baked goods, ice cream, beveragesResourceshttp://www.livemint.com/Companies/81LnF5a9PQJeB0hYO2nzEL/Luxury-malls-yet-to-catch-on-as-brands-can8217t-find-the.htmlhttp://profit.ndtv.com/news/corporates/article-5-star-hotels-may-report-least-profit-in-decade-crisil-310635http://articles.economictimes.indiatimes.com/2007-09-23/news/27685537_1_luxury-brands-retail-space-itc-hotelshttp://www.godiva.com/about/faq.aspx
  • Katie
  • KatieBecause of brand building, we expect to spend 20% of our revenue on marketingAlready targeting a sub-set based on availabilityTelevision – 100 million householdsInternet – 5% of populationMagazinesOn Site (Malls & Hotels)Location Based MobileDirect Mail
  • KatieReinforce the tradition of gold in Indian culture - a symbol of status & wealthEmotional appeal of creating a momentFor you and someone else – gift givingFor yourself - individual indulgencesResourceshttp://www.moodiereport.com/document.php?c_id=37&doc_id=25782http://www.nytimes.com/2009/11/16/business/media/16adnewsletter1.html?_r=1
  • AnnieGeneralGodiva priced at $.11/gmChocolate consumption in India remains at present levels (.25kg/person/yr)Affluent Revenue1% of Indian population considered “affluent” (12 million)Godiva can capture 40% of this market within the first yearRevenue: $132 MChocolates: 110 MMiddle Class Revenue30% of Indian population considered “middle class” (90 million)25% of middle class eat 1 chocolate per yearRevenue: $109 MChocolates: 90 MTotal Revenue - $240MTotal Chocolates – 200 M
  • Godiva Expansion to India Marketing Plan

    1. 1. Expansion to India International Marketing Katie Meyer & Annie Smith-Bova
    2. 2. About Godiva 1926 – Founded in Brussels, Belgium 1966 - Expanded to N. America  Philadelphias Wanamaker Department Store 1967 – Acquired by Campbells Soup Company 1972 - 1st Boutique – 5th Ave NYC 2007 – Sold to Yildiz Holding (largest consumer-goods company in Turkey) 450 Stores in 80 Countries Leader in the Premium Confectionary category
    3. 3. Godiva Brand in India Why Godiva in India?  Luxury  Gold  Horse Logo  Additional Market Research on Lady Godiva
    4. 4. Chocolate in India Indian Confectionary Industry  Rs 3,200 crore per annum 12  ~ US $6 Billion 10 Annual Chocolate Consumption (kg)  18-20% annual growth 8 Localizing the product important 6 (small retailers) 4  Hard to compete on variety → market research on 2 signature flavors 0 Impulse purchase → attractive product display Market Entry: large investment in brand building & production
    5. 5. Competition Specialty  Patchi (Lebanese) – 25 varieties  Individually owned chocolate boutiques Cadbury Mass  Cadbury (Kraft) Nestle  64 Years in India  25 SKUs Ferrero Rocher  “mobisides”  KitKat (Nestle)  Ferrero Rocher - 14 SKUs Traditional  Mithai - Indian Sweets
    6. 6. Target Market Target  Brand Conscious Consumer  Globals – Affluent Class  Annual Income > Rs 1 Mill  3rd most brand conscious country in the world  By 2025  35% of Indian consumers  2% of Population spent money on luxury  20% of national private brands consumption  Typically upper middle Secondary class, young  Makes purchases  Strivers/Seekers – Middle reflecting his lifestyle or Class the lifestyle they strive for  Aspirational purchase behavior  2008 – 5% of Population  2025 – 41% of Population
    7. 7. Positioning Luxury/Super Premium  Value  Not an alternative to  Chocolate quality mass-market candy  Shapes/Designs brands  Flavor Little Indulgences  Localization  Ability to purchase just single chocolate  Variety Gifting  Health Conscious  Elaborate & customized  Benefits of dark chocolate presentation  Quality ingredients  Durability for  Small portions transportation
    8. 8. Product Selection Individual Gold Collection Chocolates TrufflesChocolate Bars Biscuits Ballotin Beverages Wedding/Party Favors Gift Baskets Dipped Fruit
    9. 9. PricingProduct Price/weight Comparison FactorsPatchi Rs 5/g • Specialty handcrafted chocolate(specialty) US $0.09/g • Emphasis on gifting Per GramMithai Rs 1.63/g • Often boxed for gifting(traditional US $0.03/g • US $0.11 Available at bakeries for individualcandy) Rs 6 consumption. Sold in 2lb batches.Toblerone Rs 80/50 g • New introduction for Cadbury(Cadbury/Kraft) Rs 1.60/g • Premium positioning US $0.03/g Rs 60/37.5 g • Perentry within the last decade Market Box (1Ferrero Rocher Rs 1.60/g US $0.03/g • • lb) wrapped premium positioning IndividuallyKit-Kat (Nestle) Rs 12/45.5g • US $50.00 1 finger variety offered for Rs 5 Rs .26/g • Rs 2,721 Cheapest chocolate/g despite US $0.01/g recent price increases
    10. 10. DistributionMini-BoutiquesPartner withdepartment stores fora ‘store within a store’conceptDepartment Stores• Debenhams (3)• Marks & Spencer (24)Travel Retail• Airport Locations
    11. 11. DistributionMini-BoutiquesPartner with Boutiquesdepartment stores fora ‘store within a store’ Retail storesconcept Luxury HotelsDepartment Stores • Imperial New Delhi• Debenhams (3) • The Oberoi• Marks & Spencer (24) • ITC HotelsTravel Retail• Airport Locations
    12. 12. DistributionMini-BoutiquesPartner with Boutiquesdepartment stores for Flagship Storesa ‘store within a store’ Retail storesconcept Luxury Hotels Stand alone storesDepartment Stores • Imperial New Delhi with a larger footprint and more product• Debenhams (3) • The Oberoi variety – café• Marks & Spencer (24) • ITC Hotels atmosphere Luxury MallsTravel Retail • DLR Emporio - Delhi• Airport Locations • UB City - Bangalore
    13. 13. Harajuku, Japan Flagship Store
    14. 14. Promotion Objective  Promotions  Establish Godiva as a  Targeted promotions for Luxury brand for affluent important holidays consumers  Partnerships Advertising/Marketing  India Fashion Week  Television  Luxury Hotels  Internet  Weddings  Magazines  Corporate Events  On Site (Malls & Hotels)  Pillow Chocolate  Outdoor/Posters  Location Based Mobile  Direct Mail
    15. 15. Messaging Give Gold | Golden Moments• Reinforce the tradition of gold in Indian culture - a symbol of status & wealth• Emotional appeal of creating a moment • For you and someone else – gift giving • For yourself - individual indulgences
    16. 16. Results Total Revenue – $240 M Sales – 200 M Chocolates Success – be prepared to constantly and quickly adjust the marketing mix Exit Strategy – if market traction cannot be gained after 1 year after flagship stores are in place  Consolidate operations in India to global travel retail
    17. 17. Questions

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