2. INDEX
● Historical Background
● Current Situation
● Godiva in the World
● SWOT Analysis
● Main Questions and Recommendations
● Case update
3. Historical Background
Charles Van der Veken’s strategies in 1991:
❏ Changed the retail distribution network
❏ Removed Godiva’s products from numerous stores
❏ Redecorated and design of the remaining stores
❏ Established precise rules of stores management.
4. Why is Godiva a successfully company?
Intrinsic Attributes: The finest Chocolate
Godiva international brand External attributes: The brand with the most
luxurious packaging
Intangible attributes : The most famous chocolate
brand in the world
5. Godiva’s goals
The Godiva's current concern is to promote an international image of a product
not only as a food product but as a luxury product, emphasizing the production
and decoration of the chocolates by hand, and through its packaging design.
Consumer Profile Current Positioning:
"The product is directed to adults who want a quality product for special
moments."
6. Current Situation
The company is actually in a bad situation regarding their advertising strategy
and brand image, since their image against the belgian market sees that
Godiva has a lower exclusivity for its high price and their saturated market
which has caused lost sales and customers.
8. Major Competitors
Leonidas
Neuhaus
- Has 1,500 store worldwide
- Now is expanding rapidly in
the international market
Recently merged with Mondose
and Corné Port Royal
- Pursuing and international
development strategy
9. Godiva in the World
Godiva
International
Europe
Japan
United States
Factory in Pennsylvania.
10 % Imported of Belgium.
Imported 25 % production of
Belgium.
Production of 3000 tons.
Belgian factory.
10. Market Analysis
UNITED STATES JAPAN EUROPE
● The chocolates are
seen as a gifts.
● Own company.
● There are more than
275 stores.
● The chocolates are
seen as luxury
products.
● 75 % of sales was in
valentine’s day.
● The market in Japan
is growing and for
this it is an attractive
market.
Belgium: The market
was saturated.
Spain and Portugal: The
idea of chocolates is new.
Great Britain: Belgian
chocolate is recognized.
France: The chocolates
are seen as a gifts.
12. SWOT Analysis
External Factors
Opportunities Threats
★ Product line expansion
★ Chocolate consumption is
high.
★ Increased demand for
chocolate
★ Saturated market
★ Price inflation
★ Competition
13. Main Questions
1. How to make Godiva image more
exclusive in Europe?
❏ Reason: A worn and outdated image , the market was saturated and there
are many competitors.
❏ Marketing Tool: Marketing Mix (“P” of promotion)
❏ Main Action: Reconstruct quickly the Godiva image and give priority to the
visibility/presentation.
❏ Time: 2 month.
14. Recommendations
● To give special offers, gifts and free samples to attract customers.
● Advertising in "upper tier" magazines including Bon Appetit, Forbes, Food
& Wine, Travel & Leisure, and Gourmet.
● Online ads
● Tv Commercials
● Word of mouth
15. 2. How the company could increase the
sales and profits?
❏ Reason:
- About 1% of Godiva’s purchases are for gifts and about 4.4% is for
personal consumption.
- The sales and naturally profits fluctuate seasonally.
- Decrease the frequency of shopping.
❏ Marketing Tool: Marketing mix “P” of product and place.
❏ Main Action:
- Modernize the product and recover the lost sales.
- Invest in new manufacturing plan.
❏ Time: 3 months
16. Recommendations
● To motivate our current Godiva franchise to purchase on more frequent
occasions (gifting and self-consumption).
● Godiva has a great luxurious appeal to both types of markets, it is very
important for them to maintain high quality of standards for the
presentation of the products in boutiques.
● Product’s placement and disponible in the most important and popular
supermarkets.
17. 3. How Godiva can overcome its
weaknesses against the Belgian Market?
❏ Reason:
- The high price of chocolates are creating a problem in Belgium due to
high rate of handmade production.
- The boutiques are less attractive
❏ Marketing Tool: Marketing Mix (“P” of Price and Place)
❏ Main Action:
- Modify its brand image.
- To reduce costs of production and to increase the utilities.
❏ Time: 3 months.
18. Recommendations
❏ Making the big part of the production in the factory.
❏ Making the product more affordable and accessible
❏ Making discounts in supermarkets and stores.
❏ Making boutiques more modern, upscale and luxurious.
19. 4. Globalization or localization?
The best option is adopt localization
❏ Reason: Appeal consumer needs.
❏ Marketing Tool: Marketing Mix (“P” of Product)
❏ Main Action: Adapting the product to cultural differences among countries
❏ Time: 4 months.
20. Recommendations
❏ Needs to do is capture the remaining market with an appeal of affordable
luxury despite cultural and economic differences.
❏ Creating a common advertising message and they will need to take a
segmented market
21. 5. Should Godiva proposes a mid range
product?
❏ Reason: Godiva sales are generated particularly in festive seasons like Christmas
and saint Valentin due to the high prices
❏ Marketing tool: Marketing Mix (“P” of Product)
❏ Main action:
- Multibranding actions
- Segmentation
❏ Time: 1 months
22. Recommendations
Launching a new brand (without removing the existing in the market)
❏ Increase sales throughout the year using the push of consumer purchase
❏ New market segment
❏ Advantage: The brand could increase their sales in countries like Germany.
❏ Disadvantage: It could lose prestige and the brand image could undergo a crisis
23. 6. Can we change the perception of Godiva
in Japan?
❏ Reason: Japanese are unaware of the origin of the brand; considering Godiva
many times as a French or English or just like an European brand
❏ Marketing tool: Marketing Mix (“P” of Product)
❏ Main action:
- Branding strategies
- Packaging strategies: Modify packaging
❏ Time: 1 year
24. Recommendations
❏ In Europe the Belgian chocolates have a big reputation
● Emphasize the origin of the brand through the packaging
● Add the design of the Belgian flag to Godiva’s packagings
❏ Advantages:
- Increase reputation of Godiva Chocolate
- Differentiate from competitors in Japan
- Improve brand awareness of origin
❏ Disadvantages:
- Increase the costs of packaging
mutibranding o multiproduct actions
Un producto de éxito como lo son los chocolates Godiva deberían tener poder de atracción para todos los consumidores.
