Godiva europe company
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Presented by Andrea Aguila Stefanie Aguila Natalia Salazar
Historical Background Current Situation Godiva in the World SWOT Analysis Main Questions and Recommendations Case update
Historical BackgroundCharles Van der Vekens strategies in 1991:
Changed the retail distribution networkRemoved Godivas products from numerous storesRedecorated and design of the remaining storesEstablished precise rules of stores management.
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
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."
Current SituationThe 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.
Major CompetitorsLeonidasNeuhausHas 1,500 store worldwide
Now is expanding rapidly in the international market Recently merged with Mondose and Corn Port Royal
Pursuing and international development strategyGodiva in the WorldGodiva InternationalEuropeJapanUnited StatesFactory in Pennsylvania.10 % Imported of Belgium.Imported 25 % production of Belgium.Production of 3000 tons.Belgian factory.
Market AnalysisUNITED STATESJAPANEUROPEThe 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 valentines 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.SWOT AnalysisInternal FactorsStrengthWeaknesses Strong ReputationGood Market shareGlobally well-known productQuality product Brand image in BelgiumSales declineNot enough advertising
SWOT AnalysisExternal FactorsOpportunitiesThreatsProduct line expansionChocolate consumption is high.Increased demand for chocolateSaturated market Price inflationCompetition
Main QuestionsHow 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.
RecommendationsTo 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 adsTv CommercialsWord of mouth
2. How the company could increase the sales and profits?Reason: About 1% of Godivas 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
RecommendationsTo 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.
Products placement and disponible in the most important and popular supermarkets.
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 attractiveMarketing 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.
RecommendationsMaking 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.
4. Globalization or localization?The best option is adopt localizationReason: Appeal consumer needs.Marketing Tool: Marketing Mix (P of Product)
Main Action: Adapting the product to cultural differences among countries
Time: 4 months.RecommendationsNeeds 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
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 actionsSegmentation
Time: 1 months
RecommendationsLaunching a new brand (without removing the existing in the market)Increase sales throughout the year using the push of consumer purchaseNew 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
mutibranding o multiproduct actionsUn producto de xito como lo son los chocolates Godiva deberan tener poder de atraccin para todos los consumidores.
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
RecommendationsIn Europe the Belgian chocolates have a big reputationEmphasize the origin of the brand through the packaging Add the design of the Belgian flag to Godivas packagings
Advantages:Increase reputation of Godiva ChocolateDifferentiate from competitors in JapanImprove brand awareness of origin
Disadvantages:Increase the costs of packaging
TOTAL TIME OF ACTIONS PLAN:
18 MONTHSCase Upgrade
AFTER MANY YEARS