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The Making of Godiva
Gems
2016
1
Contents
1. Introduction .............................................................................................................................2
Part 1 ..........................................................................................................................................3
2.0 Segmentation, Targeting and Positioning Strategies of Godiva ..............................................3
Part 2 ..........................................................................................................................................4
3.0 Marketing Mix Strategies ......................................................................................................4
4.0 Conclusion ............................................................................................................................6
5.0 References .............................................................................................................................7
2
1. Introduction
The case study is based on the luxury chocolatier Godiva and it's recent market insight where the
company tried to figure out consumers buying behaviours (when people buy the products and what
consumer perceive about a product) of chocolate products. Godiva has two types of consumer,
first, people who buy chocolate in special occasion (holiday season and birthdays), second,
chocolate connoisseurs. Godiva sell its products at mall boutiques that requires the consumer to
go for a spherical trip to the mall to buy a chocolate.
Source: (Godiva, 2026)
The paper discussed the development of Godiva Gems market segmentation that looks forward to
reaping striking results of the company’s profit. Moreover, the paper presented the targeting and
positioning strategies for the Godiva Gems, following that will bring the positive changes in the
current Godiva’s performance. Finally, the paper demonstrated the marketing mix strategies of
Godiva Gems and proposed a few effective recommendations to improve them.
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Part 1
2.0 Segmentation, Targeting and Positioning Strategies of Godiva
Segmentation Strategy
According to Hunt & Arnett (2004), market segmentation is dividing the target market into the
subset of demographic, geographic, occasional, psychographic, and behavioural and the needs of
each subset are similar. As stated in case, Godiva follow occasional and behavioural market
segmentation strategies. However, these segmentation strategies do not include the people who
love chocolate or chocolate connoisseurs as these people prefer the premium chocolate instead of
buying lower end brands. Therefore, to cover this market Godiva must add up a new market
segmentation that is psychographic segmentation. As indicated by Webber (2009), such
segmentation is measured analysing the targeted consumer’s activities, opinions, and interests and
highly focused on the way people spend their time and some external forces.
Figure 1: Market Segmentation Strategy of Godiva (Self-Designed)
Godiva Germ
Occasional
PsychographicBehavioral
4
Targeting Strategy
Dou et al. (2010) identified that target market is the people whom, the company aims to sell its
products and company target them based on research into their hobbies, interests, and needs.
Chocolates are for everyone and people like chocolates especially children’s and women.
Therefore, Godiva’s target market should be everyone, no matter what the age is. Nonetheless,
Godiva Gems is a premium brand and target the higher earnings individuals in the society but
when a chocolate is priced at $4.99 anyone can buy them especially when it is for the particular
occasion or someone love chocolate. Therefore, Godiva can target everyone in its segmented
market and generate a striking output.
Positioning Strategy
Positioning is systematic way developing an identity or image of the brand in its customers mind
(Cravens & Piercy, 2006). To keep its brand as a premium one, Godiva sells in only mall boutiques.
However, they emphasizing local grocery or drugstore distribution with the concept “premium
chocolate, available in regular retail channels.” Moreover, Godiva is focusing on the concept of
sharing as people enjoy sharing chocolates with friends, families, co-workers. Therefore, Godiva
providing products such as Ghirardelli Squares and Lindor Truffles that easily can be shared. Apart
from these strategies, Godiva may offer outstanding packaging benefits if someone buy chocolate
for a special occasion, like birthday parties as a major portion of customers buy chocolates for the
occasion. Focusing on the marketing indulgence, health benefits, and innovative failover
chocolates can bring major positive changes in the market share of Godiva.
Part 2
3.0 Marketing Mix Strategies
Introducing an innovative product and getting a higher market share in primary years will not
secure a long-term sustainability for Godiva. However, a well- structured marketing mix strategy
can keep Godiva for a longer term in the market. A marketing mix is often crucial when
5
determining a product or brand's offer and often associated with the four Ps: price, product,
promotion, and place.
Product: The luxury chocolatier Godiva‘s products (Spring, Dark Chocolate Truffles, Truffle
Flight) usually purchased and gifted on special occasions as holiday and birthdays (Godiva, 2016).
However, Godiva setting its product, premium to the fast casual product that is decent, considering
the purchasing trends.
Price: Customers are not price sensitive in buying products for special occasion or in holidays and
when they love the product. However, when it comes to its new distribution strategy, selling
products through the drugstore or grocery store, the price will play a significant role and Godiva
has to revise its current product price.
Table 1: Marketing Mixes for Godiva (Makadok & Barney, 2001).
Place: Selling through the drugstore and grocery stores along with mall boutiques, will increase
the sales rate of Godiva’s product. Therefore, this distribution strategy seems a well developed
with high potentiality.
Promotion: Changing a brand image or identity of a renowned company demands higher
promotional activities. Typical promotional activities include; TV and newspaper advertising,
radio, magazines, outdoor signage etc. However, when it comes to Godiva and today’s
promotional trend these tools isn’t much beneficial (Olhager, 2003). Therefore, Godiva should
utilize promotional tools such as; Contests, Customer Appreciation Events, Product Giveaways,
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End-Cap Marketing and Point-of-Sale Promotion, Branded Promotional Gifts and regular
promotion by online community like Chocolate Talk.
Apart from these traditional marketing mixes, chocolatier Godiva must work with ppeople,
process, and physical evidence. Godiva’s physical evidence can be consistent branding across
communications and processes may involving more sales staff in conversion. Finally, Godiva’s
people marketing mix strategy possibly- investment higher in online facilities.
4.0 Conclusion
This comprehensive analysis of the “The Making of Godiva Gems” case demonstrates, segmenting
the market in three subsets such behavioral, occasional, psychographic; targeting each segment;
focusing on the marketing indulgence, health benefits, and innovative flavor chocolate with the
concept of “premium chocolate, available in regular retail channels” willpower striking results for
Godiva in years to come. Furthermore, apart from four traditional marketing mixes, luxury
chocolatier Godiva must work with people, process and physical evidence at the same pace.
7
5.0 References
Cravens, D.W. and Piercy, N., 2006). Strategic marketing (Vol. 7). New York: McGraw-Hill.
Dou, W., Lim, K.H., Su, C., Zhou, N. and Cui, N., (2010). Brand positioning strategy using
search engine marketing. Mis Quarterly, pp.261-279.
Godiva, (2016) [online] Available at<http://www.godivachocolates.co.uk> [Accessed on: 20th
July, 2016].
Hunt, S.D. and Arnett, D.B., (2004). Market segmentation strategy, competitive advantage,
and public policy: Grounding segmentation strategy in resource-advantage theory.
Australasian Marketing Journal (AMJ), 12(1), pp.7-25.
Makadok, R. and Barney, J.B., (2001). Strategic factor market intelligence: An application of
information economics to strategy formulation and competitor intelligence. Management
Science, 47(12), pp.1621-1638.
Matsuno, K. and Mentzer, J.T., (2000). The effects of strategy type on the market orientation-
performance relationship. Journal of marketing, 64(4), pp.1-16.
Olhager, J., 2003. Strategic positioning of the order penetration point. International journal of
production economics, 85(3), pp.319-329.
Webber, M.J., 2009. Chocolate marketing and other aspects of the confectionery industry
worldwide. Industrial Chocolate Manufacture and Use, Fourth Edition, pp.636-655.