Case Study

By: Cherry-lyn Apuada Kristine Versoza Naume Zamora

Belgium. England. 1958 The first Godiva boutique outside of Belgium was opened St. when Pierre Draps started making chocolates in Brussels. hand-crafted chocolates. from its Rubens paintings and gothic architecture to products made of intricate lace.I. She suggested Godiva. Belgium has had a tradition of perfectionism. History 1920’sGodiva Chocolatier traces its roots to 1926. he sought a distinctive name to give it and turned to his wife for ideas. for sale to local shops.Honore’ in Paris on the fashionable Rue . originated in Brussels. glittering crystal and its fabulous cuisine. a. His son Joseph began working for the family business at the age of 14 and shortly after World War II took control of it. one of the creators of the world's most elegant. The Company Godiva Chocolatier. Belgium. For generations. after the legendary countess who had protested high taxes by riding nude through Coventry. When he decided to open a shop of his own.

the company issues six seasonal mail-order catalogs a year in North America and accepts phone and internet orders. Additionally. The in first Godiva in the available Japan prestigious Nihonbashi. Godiva products are also available at finer department and specialty stores. Mitsukoshi Department store in central Tokyo. 1972 First boutique in North America opened in New York’s fashionable Fifth Avenue. 1974 Godiva was purchased by the Multinational Campbell Soup Company. b. .1966 - Made its debut in North America at one of the country’s most elegant department store Wanamaker’s in Philadelphia. Company Now Since its introduction to America in 1966. Godiva Chocolatier owns and operates more than 450 boutiques and shops worldwide where consumers can find a comprehensive selection of Godiva offerings. Expansion chocolates continued became in Asia. Godiva continues to be the leader in the premium confectionery category. Pennsylvania.

c. Turkey. Products 70% of Godiva paralines are machine made. 2008.On December 20. The acquisition was completed on March 18. Campbell announced that it entered into an agreement to sell Godiva to Istanbul. which owns Ülker group. based Yıldız Holding. the largest consumer goods manufacturer in the Turkish food industry. 2007. for $850 million. and 30% are handmaid .

“nicest packaging” and “most beautiful store” III. Godiva is an accessible luxury branded by Godiva Chocolatier and distinguished by superior craftsmanship. Positioning and Brand Image  Positioning (Godiva International) “To adult who wants a quality product for special moments. Problem .  Brand Image Godiva is associated as “most expensive”.II.

Sales and naturally profits fluctuate seasonally c. To differentiate Godiva as premium chocolates and the luxury image to other competitors. IV. Godiva’s Belgian factory does operate at full capacity and the U. b. Godiva chocolates are expensive and not suitable for self consumption V. factory produces a limited assortment of chocolates d. .Godiva Europe is in the process of developing an advertising campaign for Belgium but Godiva International is planning to create a common advertising message for entire world. Constraints a. Consumers do not perceive Godiva chocolates very different from its main competitors.S. Objectives 1.

SWOT Analysis a. WEAKNESS:  Low market shares in European Market  Hight cost of production . STRENGTH:  Global leader of luxury chocolates  Handmade chocolates  Dominantly in duty free market  Part of Campbell Soup Company. Develop advertisement theme to entice buyer’s of competitors product to switch to Godiva brand VI. To increase the demand without damaging the brand image.2. 3.  Belgium factory has over 3000 tons of annual production capacity b.

Godiva Europe should wait for the Godiva International advertising campaign to reinvent the old fashioned of the entire Godiva. . OPPORTUNITIES:  Growth in chocolate consumption  Chocolate are frequently used in different occasion. Godiva Europe will pursue the advertising strategy and use the additional 13 million bf.  Huge gap to competitors in market shares VII. High seasonality consumption and emphasis on freshness  Poor advertising channels  No Clear difference between Godiva and competition in the minds of consumers c. Alternative Course of Action 1. THREATS:  Standard price due to European Union.  Broaden the market on Duty free d. 2.

and are eaten among friends in an atmosphere of warmth. Italy. Improved and reinforced Godiva European distribution. . The consumers pay attention to brand names and to the quality image communicated by chocolate packaging and advertising. b. and Japan are susceptible to one day reaching such a level of consumption roughly comparable to Switzerland. Purchase Behaviour 1. Countries like Spain.3. Switzerland had the highest per capita consumption as well as in chocolate candies. while sales of brand boxes are increasing. Consumption Industrial chocolates are sold in pre wrapped boxes with or without brand names. VIII. the United Kingdom and Belgium. The sales of generic boxes are stable in Europe. Relevant Information a. Chocolates are offered at holiday and other special occasions. Chocolate consumption is higher in the northern Europe.

taste pleasure. to The higher prices of chocolate pralines with respect the other categories of chocolate do not inhibit the consumer but limit more impulsive purchases. 3. 3. A qualitative study of the Belgian Market shows that this pleasure is associated with the idea of refinement. 2. Consumer Analysis 1. The consumption of chocolate in all categories is associated with pleasure. is also in the consumer's mind . The idea of health of a pure product devoid of chemicals. Chocolate paralines are offered as a gift while chocolate bars are purchased for self consumption. Consumers pay attention to brand names and to the quality image communicated by chocolate packaging and advertising. and gift. c.2.

d. Trend .

Best Alternatives Godiva Europe will put on hold their planning for new advertising campaign for Belgium and consider the Godiva International new objectives that will stretch out the entire Godiva internationally. .IX.

Plan of Action .X.

Year 4 Management Sales and Marketing Dept.Activities Year 1 • Aggressive advertising/campaign on all special occasion • Determine all the special occasion aside from the regular occassions • Create special boxes and ribbons that are ready for gifts • Personalize Section in every boutique. (1 or 2 Boutique/s) • Aggressive ad campaign to penetrate the market. Operation Year 3 Management Sales and Marketing Dept. . Extend the use of handmade chocolate • Reinforce on the distribution on Duty Free market • Extend the market by supplying the upscale Department Store of Godiva Products • Maintain market presence by sponsoring some social events and advertisement in TV and Magazines • Scrutinize on all the riches cities in the world. Developed a new Godiva Boutique on the potential cities (Feasibility and Marketing Plan) • Maintain market presence by sponsoring some social events and advertisement in TV and Magazines • Put up a new Godiva Boutique on the potential city. As well Person Involved Sales and Marketing Dept. Year 2 Sales and Marketing Dept.

.• Year 5 • • • • as on the different occasions Maintain market presence by sponsoring some social events and advertisement in TV and Magazines 2-3 New Boutique to Open on Management one of the richest cities in the Sales and Marketing Dept. Aggressive ad campaign to penetrate the market. world. As well as on the different occasions Maintain market presence by sponsoring some social events and advertisement in TV and Magazines Customer Service to accommodate the growing customers.

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