Case Study

By: Cherry-lyn Apuada Kristine Versoza Naume Zamora

I.

The Company Godiva Chocolatier, one of the creators of the world's most elegant, hand-crafted chocolates, originated in Brussels, Belgium. For

generations, Belgium has had a tradition of perfectionism, from its Rubens paintings and gothic architecture to products made of intricate lace, glittering crystal and its fabulous cuisine. a. History 1920sGodiva Chocolatier traces its roots to 1926, when Pierre Draps started making chocolates in Brussels, Belgium, for sale to local shops. His son

Joseph began working for the family business at the age of 14 and shortly after World War II took control of it. When he decided to open a shop of his own, he sought a distinctive name to give it and turned to his wife for ideas. She suggested Godiva, after the legendary countess who had protested high taxes by riding nude through Coventry, England. 1958 The first Godiva boutique outside of Belgium was opened St.Honore in Paris on the fashionable Rue

1966 -

Made its debut in North America at one of the countrys most elegant department store

Wanamakers in Philadelphia, Pennsylvania. 1972 First boutique in North America opened in New Yorks fashionable Fifth Avenue. Expansion chocolates continued became in Asia. The in first Godiva in the

available

Japan

prestigious Nihonbashi, Mitsukoshi Department store in central Tokyo. 1974 Godiva was purchased by the Multinational Campbell Soup Company. b. Company Now Since its introduction to America in 1966, Godiva continues to be the leader in the premium confectionery category. Godiva Chocolatier owns and operates more than 450 boutiques and shops worldwide where consumers can find a comprehensive selection of Godiva offerings. Godiva products are also available at finer department and specialty stores. Additionally, the company issues six seasonal mail-order catalogs a year in North America and accepts phone and internet orders.

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

II.

Positioning and Brand Image

Positioning (Godiva International)

To adult who wants a quality product for special moments, Godiva is an accessible luxury branded by Godiva Chocolatier and distinguished by superior craftsmanship. Brand Image Godiva is associated as most expensive, nicest

packaging and most beautiful store

III.

Problem

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. IV. Constraints a. Consumers do not perceive Godiva chocolates very different from its main competitors.

b. Sales and naturally profits fluctuate seasonally c. Godivas Belgian factory does operate at full capacity and the U.S. factory produces a limited assortment of chocolates d. Godiva chocolates are expensive and not suitable for self consumption

V.

Objectives
1. To differentiate Godiva as premium chocolates

and the luxury image to other competitors.

2. To increase the demand without damaging the

brand image. 3. Develop advertisement theme to entice buyers of competitors product to switch to Godiva brand

VI.

SWOT Analysis a. STRENGTH: Global leader of luxury chocolates Handmade chocolates Dominantly in duty free market
Part of Campbell Soup Company.

Belgium factory has over 3000 tons of annual production capacity b. WEAKNESS: Low market shares in European Market Hight cost of production

 High seasonality consumption and emphasis on freshness Poor advertising channels No Clear difference between Godiva and competition in the minds of consumers c. OPPORTUNITIES:
Growth in chocolate consumption Chocolate are frequently used in different occasion. Broaden the market on Duty free

d.

THREATS: Standard price due to European Union. Huge gap to competitors in market shares

VII.

Alternative Course of Action

1. Godiva Europe should wait for the Godiva

International advertising campaign to reinvent the old fashioned of the entire Godiva.
2. Godiva

Europe will pursue the advertising

strategy and use the additional 13 million bf.

3. Improved

and

reinforced

Godiva European

distribution.

VIII.

Relevant Information a. Consumption Industrial chocolates are sold in pre wrapped boxes with or without brand names. The sales of generic boxes are stable in Europe, while sales of brand boxes are increasing. The

consumers pay attention to brand names and to the quality image communicated by chocolate packaging and advertising. Chocolate consumption is higher in the northern Europe, Switzerland had the highest per capita consumption as well as in chocolate candies. Countries like Spain, Italy, and Japan are susceptible to one day reaching such a level of consumption roughly comparable to Switzerland, the United Kingdom and Belgium. b. Purchase Behaviour
1. Chocolates are offered at holiday and other

special occasions, and are eaten among friends in an atmosphere of warmth.

2. The consumption of chocolate in all categories is associated with pleasure. A qualitative study of the Belgian Market shows that this pleasure is associated with the idea of refinement, taste pleasure, and gift. 3. Chocolate paralines are offered as a gift while chocolate bars are purchased for self

consumption. c. Consumer Analysis

1.

Consumers pay attention to brand names and to the quality image communicated by chocolate

packaging and advertising. 2. 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.

The idea of health of a pure

product devoid of

chemicals, is also in the consumer's mind

d. Trend

IX.

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.

X.

Plan of Action

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. 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. (1 or 2 Boutique/s) Aggressive ad campaign to penetrate the market. As well

Person Involved Sales and Marketing Dept.

Year 2

Sales and Marketing Dept. Operation

Year 3

Management Sales and Marketing Dept.

Year 4

Management 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. world. Aggressive ad campaign to penetrate the market. 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.