Godiva Expansion to India Marketing Plan
-
Upload
katie-meyer -
Category
Education
-
view
3.503 -
download
2
Transcript of Godiva Expansion to India Marketing Plan
Expansion to IndiaInternational Marketing
Katie Meyer & Annie Smith-Bova
About Godiva
1926 – Founded in Brussels, Belgium
1966 - Expanded to N. America
Philadelphia's Wanamaker Department Store
1967 – Acquired by Campbell's 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
Godiva Brand in India
Why Godiva in India?
Luxury Gold Horse Logo
Additional Market Research on Lady Godiva
Chocolate in India
Indian Confectionary Industry
Rs 3,200 crore per annum
~ US $6 Billion
18-20% annual growth
Localizing the product important (small retailers)
Hard to compete on variety → market research on signature flavors
Impulse purchase → attractive product display
Market Entry: large investment in brand building & production
Switzer-land
US India0
2
4
6
8
10
12
Annual Chocolate Consumption (kg)
Competition
Specialty
Patchi (Lebanese) – 25 varieties
Individually owned chocolate boutiques
Mass
Cadbury (Kraft) 64 Years in India
25 SKUs
“mobisides”
KitKat (Nestle)
Ferrero Rocher - 14 SKUs
Traditional
Mithai - Indian Sweets
CadburyNestleFerrero Rocher
Target Market
Target
Globals – Affluent Class
Annual Income > Rs 1 Mill
By 2025
2% of Population
20% of national private consumption
Secondary
Strivers/Seekers – Middle Class
Aspirational purchase behavior
2008 – 5% of Population
2025 – 41% of Population
Brand Conscious Consumer
3rd most brand conscious country in the world
35% of Indian consumers spent money on luxury brands
Typically upper middle class, young
Makes purchases reflecting his lifestyle or the lifestyle they strive for
Positioning
Luxury/Super Premium
Not an alternative to mass-market candy brands
Little Indulgences
Ability to purchase just single chocolate
Gifting
Elaborate & customized presentation
Durability for transportation
Value
Chocolate quality
Shapes/Designs
Flavor
Localization
Variety
Health Conscious
Benefits of dark chocolate
Quality ingredients
Small portions
Product SelectionIndividual
Chocolates
Chocolate Bars
Truffles
Gift Baskets
Beverages
Biscuits
Wedding/Party Favors
Gold Collection
Ballotin
Dipped Fruit
Pricing
Per GramUS $0.11Rs 6
Per Box (1 lb)US $50.00Rs 2,721
Product Price/weight Comparison Factors
Patchi(specialty)
Rs 5/gUS $0.09/g
• Specialty handcrafted chocolate
• Emphasis on gifting
Mithai(traditionalcandy)
Rs 1.63/gUS $0.03/g
• Often boxed for gifting• Available at bakeries for
individual consumption. Sold in 2lb batches.
Toblerone (Cadbury/Kraft)
Rs 80/50 gRs 1.60/gUS $0.03/g
• New introduction for Cadbury• Premium positioning
Ferrero Rocher Rs 60/37.5 gRs 1.60/gUS $0.03/g
• Market entry within the last decade
• premium positioning• Individually wrapped
Kit-Kat (Nestle) Rs 12/45.5gRs .26/gUS $0.01/g
• 1 finger variety offered for Rs 5
• Cheapest chocolate/g despite recent price increases
Distribution
Mini-Boutiques
Partner with department stores for a ‘store within a store’ concept
Department Stores• Debenhams (3)• Marks & Spencer
(24)
Travel Retail• Airport Locations
Distribution
Mini-Boutiques
Partner with department stores for a ‘store within a store’ concept
Department Stores• Debenhams (3)• Marks & Spencer
(24)
Travel Retail• Airport Locations
Boutiques
Retail stores
Luxury Hotels• Imperial New Delhi• The Oberoi• ITC Hotels
Distribution
Mini-Boutiques
Partner with department stores for a ‘store within a store’ concept
Department Stores• Debenhams (3)• Marks & Spencer
(24)
Travel Retail• Airport Locations
Boutiques
Retail stores
Luxury Hotels• Imperial New Delhi• The Oberoi• ITC Hotels
Flagship StoresStand alone stores with a larger footprint and more product variety – café atmosphere
Luxury Malls• DLR Emporio - Delhi• UB City - Bangalore
Flagship Store
Hara
juku
, Ja
pan
Promotion
Objective
Establish Godiva as a Luxury brand for affluent consumers
Advertising/Marketing
Television
Internet
Magazines
On Site (Malls & Hotels)
Outdoor/Posters
Location Based Mobile
Direct Mail
Promotions
Targeted promotions for important holidays
Partnerships
India Fashion Week
Luxury Hotels
Weddings
Corporate Events
Pillow Chocolate
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
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
Questions