Godiva Draft v3

12-May-09 Marketing Case Study

Presented by

Ahmed Diab

Mira Morad

Mostafa Ameen

Osama Ahmed

Reem Badawy

Sherif Khalifa

Godiva ChocolateCase Study


ContentsIntroduction

– The Company– Financial Performance– Company History

Strategy Analysis– External Analysis

• Environmental Analysis• Market Analysis• Competitor Analysis

(Neuhaus, leonidas ).• Consumer Analysis

(Behavior in different clutures).

– Internal Analysis • Marketing strategy

o Priceo Producto Promotiono Distribution

• Competitive advantage

– Corporate Level strategy• Mission ,Vision and Values.

– Business level strategy• Business units• Relationship with corporate parent

(Campbell Soup)

Godiva Europe , The Case – Synopsis– SWOT analysis– Dilemma– Recommendations (Alternatives)


The Company


Financial Performance

Market Analysis

Operating profits Market Size


Potential Market

New Users : to develop tea rooms where customers can eat pastries → Market penetration

New geographic areas : Middle East → Market development

More usage : Promote more use of purchasing chocolate as a gifting not only self-consumption


Market Decline

Price pressure due to :

1.Enormous amount of manual labor

2.Inaugurated branches & standardization of retail price in the European level

Saturation : like in Belgium market

Customer disinterest : like in Germany “chocolate cultural” not exist , & in “UK” economic climate not encouraging luxurious products


Market Profitability Analysis – Porter 5 forcs model


Market Trends

Different from country to country

Belgium : Saturated

USA : chocolates are very popular offered in a prewrapped packages

Germany : chocolate cultural not yet exist

Spain & Portugal : reception of chocolate was excellent

Japan : Seasonality as 75% from sales executed near Valentine’s day


Environmental Analysis - Macro



Competitor Analysis

The handmade luxury chocolate segment.

Leonidas (Market leader) started the mass-production sold at a low price.

Neuhaus. which is also pursuing an International development strategy..


Competitor Analysis

Using Lehman and Winner levels of competition model the competition in this market can be classified as illustrated.


Competitor Analysis

Direct Competitors in terms of segment and company size Leonidas, Godiva and Neuhaus.

Bernachon and Bernard Dufoux. Local small size companies.

Bernachon

local

Company size

International

Fine Chocolate

Product characteristic

Mass Production

LeonidasGodiva

NeuhausMars Inc


Consumer Analysis

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

The higher prices of chocolate pralines with respect to the other categories of chocolate do not inhibit the consumer but limit more impulsive purchases.

The idea of health of a pure product devoid of chemicals, is also in the consumer's mind


Consumer Analysis

Studying the main companies in the same strategic group in the fine chocolate industry segmentation of market can be based on:

– Characteristics of people (Age, gender) – Purchase/use situation (size of purchase, purchasing

behavior and choice criteria). – User needs and product characteristics (Price preference,

Quality and brand preference


Segment/motivation grid for Chocolate consumer


Marketing Strategy


Corporate Level strategy

• Yıldız Holding’s Vision“ Believing that everybody has the right to a happy

childhood, no matter where in the world”


Corporate Level strategy

• Yıldız Holding Mission

For Yıldız Holding, customer satisfaction comes above all. Being aware of the needs of the society that we live in and our aim is to achieve customer satisfaction through providing products that meet customers’ needs, produced using the latest technology and with no compromises on hygiene and quality.

• Gidiva mission“ To be the world’s most preferred Luxury chocolate brand ”


Business level strategyAt the end of 2007, Yıldız Holding took a giant step for both itself and

Turkey in the way of globalization by acquiring Godiva, world’s leading premium chocolate and chocolate products brand.

The activities of Yıldız Holdingcan be gathered into eight main groups and Godiva:

• International Operations Group

• Financial Services Group

• Marketing, Strategy and Retail Group

• HR, Legal Affairs, Trade and Media Purchasing Group

• Godiva

• Ülker (Biscuits, Chocolate) Group

• Food, Beverage, Confectionery and Chewing Gum Group

• Packaging, Information Technologies and Real Estate Group

• Food, Frozen Food and Personal Care Group

SWOT AnalysisStrengths Weaknesses

Opportunities Threats

Belgian premium chocolates, well known with high brand equity.Hand made2 big factories established in Belgium & USDominant position in the duty free marketBeing part of Campbell soup

Relatively low shares vs. competition in the European marketsLimited distribution network relative to competitionHigh cost of productionNo clear difference between Godiva & competition in the minds of the consumers

Growth in chocolates consumption per capitaChocolates are used in different occasionsRenovated stores will further enhance the brand positioning

Fierce competition especially from Leonidas & NeuhausDifferent prices across the European Union


Dilemma

.Charles vander Veken is faced with developing an advertising campaign for Belgium prior to the launch of Godiva’s international campaign.

Should Godiva Europe allocate an additional $13M bf toward the saturated Belgian market or hold back and wait for the launch of the international campaign?


RecommendationNot to spend the additional $13 M bf on the saturate Belgian market and develop a new marketing campaign, with new objectives and a consistent global message, which will allow Godiva to make its image more youthful in Belgium and be flexible enough to adapt when expanding its efforts internationally

Given the differences in consumer behavior, purchasing patterns, brand image and cultures throughout Europe and the rest of Godiva’s markets, we believe that Godiva must adapt its marketing mix to accommodate these differences in order to protect its image and be successful

Direct the financial resources to develop:– Online distribution channels (which already happened)– Target new geographies (Market development) example: Middle East & South

Africa


Thank you

Documents

Godiva Draft v3