Presented by Andrea Aguila

Stefanie Aguila

Natalia Salazar

INDEX

● Historical Background

● Current Situation

● Godiva in the World

● SWOT Analysis

● Main Questions and Recommendations

● Case update

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.

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

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."

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.

Product

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

Godiva in the World

Godiva

International

Europe

Japan

United StatesFactory in Pennsylvania.

10 % Imported of Belgium.

Imported 25 % production of

Belgium.

Production of 3000 tons.

Belgian factory.

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.

SWOT Analysis

Internal Factors

Strength Weaknesses

★ Strong Reputation

★ Good Market share

★ Globally well-known product

★ Quality product

★ Brand image in Belgium

★ Sales decline

★ Not enough advertising

SWOT Analysis

External Factors

Opportunities Threats

★ Product line expansion

★ Chocolate consumption is

high.

★ Increased demand for

chocolate

★ Saturated market

★ Price inflation

★ Competition

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.

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

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

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.

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.

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.

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.

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

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

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

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

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

TOTAL TIME OF

ACTIONS PLAN:

18 MONTHS

Case Upgrade

AFTER MANY

YEARS…

SITE WEB