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Sacha Singh
Martin Massiah
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
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
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
The Augmented
Product
• Decreased price to increased market
access
• Changed packaging to make it more
affordable and “sharable”
• Maintained quality of their product
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?
Will the
Godiva brand be
damaged?
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
Is there a risk of
cannibalism to their
existing product?
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
Question 3
• Is Godiva Gems an international or
global product/brand?
• Discuss whether the brand holds
global brand characteristics
Global Features
Question 4
• What are the possible impacts of the
country of origin and packaging
motivating consumers to purchase
Godiva chocolates?
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
Impact of Packaging
• Their packaging is
intricately designed
• Its luxurious
packaging justifies
its premium price
point
• The Godiva Gems
are uniquely
packaged so that
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?
https://www.youtube.com/watch?v=5b6_qli2y
YM

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Godiva

  • 1.
  • 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?
  • 8. Will the Godiva brand be damaged?
  • 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
  • 13.
  • 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?
  • 19.