Marketing

Problem Statement:

The image of luxury, refined and high-scale chocolate of Godiva is not well maintained in Belgium. The positioning of Godiva chocolate in other European countries need to be improved because every country has its own idiosyncratic culture background.

Symptoms

Godiva Europe’s performance, as measured by market share and profitability, in European countries is relatively poor and dissatisfactory compared with other major competitors in the chocolate confectionery industry. In Belgium, the market share of Godiva is only 10.3% while the market leader, Leonidas, shows a market share of 42.8%. The market shares of Godiva in countries such as France and United Kingdom are relatively small.

The 10 percent price increase has generated a loss in volume of about 7 percent.

The issues that have to be resolved to fix the problem:

1. The image of chocolate pralines in Belgium has aged. The luxury and high-scale perception of chocolate pralines is not maintained well. The current advertising medium such as gourmet, fashion or business magazines tend to reinforce the aged image of Godiva chocolates.

2. Godiva failed to differentiate itself from other competing brands in Belgium.

3. Each European country has its unique cultural characteristics that will influence the purchasing behaviors of local customers. A single advertising approach seems infeasible.

4. The production capacity of the Belgian factory is not fully utilized.

5. The new price policy has not been accepted by the market, especially in Belgium.

6. The disparity between Godiva boutiques in different countries makes the boutiques less attractive.

7. Belgium market is saturated.

Marketing objectives:

To increase the market share of Godiva Europe in Belgium and other principal European markets such as France, Great Britain, Germany, Spain and Portugal.

Marketing strategy:

The current marketing strategy on a standardization-customization continuum is unrealistic. Each country has its...