3. Question 1
• Identify the product offered by Godiva
• Identify the different levels of the
product.
• Discuss the attempts made by the
management to come up with an
augmented product
4. What is their
product?• Traditionally, high quality and
relatively expensive chocolates
• Recently, high end, but more
affordable and easily accessible
chocolate in the form of their Godiva
Gems
5. Levels of the Product
There are 3 different levels of the
product:
1. Core product – benefit of the
product high-end brand
(reputation of the brand)
2. Actual Product –
tangible, physical good (Godiva
Gems)
3. Augmented Product: additional
6. The Augmented
Product
• Decreased price to increased market
access
• Changed packaging to make it more
affordable and “sharable”
• Maintained quality of their product
7. Question 2
• Do you think that the Godiva brand
could be damaged after the
introduction of the new product to
the lower end of the market?
• Do you see any risk of
cannibalization of its line extension
for the existing product line? Why or
why not?
9. Why not?
• They are not compromising the
chocolate quality
• They are well established globally
for over 80 years since 1926
• This is their attempt to bring high
quality chocolate to a wider market
by making it more affordable
• This is a strategy for them to
capitalize on the economic recession
10. Is there a risk of
cannibalism to their
existing product?
11. Why?
• It will be a cheaper alternative for
amateur chocolate lovers
• It will be easier to share given the
convenience of the individual packaging
of the Godiva Gems.
NB: Though cannibalism may occur, it will
be minimal as can be seen in its revenue
performance, only accounting for 10% of
sales in 2009. The hardcore Godiva
lovers will still buy their more exotic and
12. Question 3
• Is Godiva Gems an international or
global product/brand?
• Discuss whether the brand holds
global brand characteristics
15. Question 4
• What are the possible impacts of the
country of origin and packaging
motivating consumers to purchase
Godiva chocolates?
16. Impact of Country of
Origin
• Godiva originated in
• Belgium is known producing world
renowned chocolatiers and one of
the highest quality of chocolates in
the world
• By association, Godiva chocolate is
perceived as being one of the
17. Impact of Packaging
• Their packaging is
intricately designed
• Its luxurious
packaging justifies
its premium price
point
• The Godiva Gems
are uniquely
packaged so that
18. Question 5
• Godiva is entering new markets like
China and Turkey.
• What strategy would you offer to the
company in its global product
planning decisions in terms of
standardization versus adaptation?