Godiva Chocolate

Case Study

Presented by

Ahmed Diab

Mira Morad

Mostafa Ameen

Osama Ahmed

Reem Badawy

Sherif Khalifa

12-May-09 Marketing Case Study

Contents
Introduction
– The Company
– Financial Performance
– Company History
Strategy Analysis
– External Analysis
• Environmental Analysis
• Market Analysis
• Competitor Analysis
(Neuhaus, leonidas ).
• Consumer Analysis
(Behavior in different
clutures).
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– Internal Analysis
• Marketing strategy
o Price
o Product
o Promotion
o 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)
Marketing Case Study
The Company

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Financial Performance

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Market Analysis

Operating profits Market Size

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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

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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
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Market Profitability Analysis – Porter 5
forcs model

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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

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Environmental Analysis - Macro

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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..

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Competitor Analysis

Using Lehman and

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

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Competitor Analysis
Direct Competitors in
loc
Bernac
terms of segment and al
hon

company size Company

size

Leonidas, Godiva and Leonidas

Godiva Mars Inc
Neuhaus. Internatio
Neuhaus
nal

Bernachon and
Fine Mass
Production
Bernard Dufoux. Local Chocolate

Product
small size companies. characteristic

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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

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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

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Segment/motivation grid for
Chocolate consumer

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Marketing Strategy

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Corporate Level strategy
• Yıldız Holding’s Vision
“ Believing that everybody has the right to a happy
childhood, no matter where in the world”

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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 ”

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 Business level strategy
At 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:

• Ülker (Biscuits, Chocolate) Group • International Operations Group

• Food, Beverage, Confectionery and Chewing • Financial Services Group

Gum Group
• Marketing, Strategy and Retail Group
• Packaging, Information Technologies and
Real Estate Group • HR, Legal Affairs, Trade and Media
Purchasing Group
• Food, Frozen Food and Personal Care Group
• Godiva
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SWOT Analysis
Strengths
Belgian premium chocolates, well
known with high brand equity.
Hand made
2 big factories established in Belgium
& US
Dominant position in the duty free
market
Being part of Campbell soup
Opportunities
Growth in chocolates
consumption per capita
Chocolates are used in different
occasions
Renovated stores will further
enhance the brand positioning
Weaknesses
Relatively low shares vs. competition
in the European markets
Limited distribution network relative to
competition
High cost of production
No clear difference between Godiva
& competition in the minds of the
consumers
Threats
Fierce competition especially
from Leonidas & Neuhaus
Different 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?
 

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Recommendation
Not 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

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 Thank you

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