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GODIVA EUROPE.
Term Paper ID:28481
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Essay Subject:
Case study of chocolate company. Discusses chocolate-making process. Problems keeping market share in Europe. Suggestions for revitalizing sales.... More...
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5 Pages / 1125 Words
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Paper Abstract:
Case study of chocolate company. Discusses chocolate-making process. Problems keeping market share in Europe. Suggestions for revitalizing sales.
Paper Introduction:
Case Study: “Godiva Europe”
Introduction
Godiva Chocolates, according to the case study is considered the “Queen of Chocolates.” However, as the case study also points out, the “Queen” is facing troubles gaining and keeping market share, and, as is the case with royalty throughout the world, is considered a bit expensive, and perhaps redundant. However, as the case study points out, the company has a recognized world brand, a brand name, unfortunately that suggests high price rather than quality. This paper, following a brief explanation of how Godiva makes its chocolates, will then examine the problems attendant to the brand in Europe, and will conclude with ideas to revitalize the sales of the product in Europe.
Text of the Paper:
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Given that data, the company should adopt apositioning strategy that takes on Leonidas, rather than a strategy of re-educating consumers. On the other hand, the markets in the United Statesand Japan are successful, inasmuch as both of these countries have a well-established consumer base of people who will buy quality items, whetherthey can afford them or not. A Considered Strategy The question pondered by van der Veken has a great deal to do withthe marketing strategy the company should adopt. Further labor costs are added by thepackaging, which has won several design awards, but is quite expensive. The data presented in the case for Godiva Europe is summarized inTable 1 below. For what Godiva considers a quality product for adiscerning market is actually considered expensive and not sufficientlydifferentiated as a distinctive product. Both processes are primarily done by hand, thereby adding a greatlabor cost to each chocolate. This fact alone has a strongimpact on its market share. The tone of the new messages should be"Luxurious--Energetic--Modern--Upscale--Emotionally Involving." Thisedict, however, presents a problem for the rest of the strategy listed onthat page. Chart One showsGodiva's share (1 .3) as opposed to Leonidas (42.8) and all other brands. Or acommercial could use the oldest concept of marketing, a side-by-side "PepsiChallenge," but with a very decided "Lady Godiva" dose of outrageousness.The announcer could be seen placing a box of Leonidas under a steam roller,and then picking up the smashed box. Table 1 About Europe|Country |Competition |Purchase |Attitude toward || | |Occasions |Price ||France |Leonidas, Jeff de|Highly Seasonal |Neutral || |Bruges | | ||UK |Saint Michael |Too new to rank |Reserved, but || | | |tending away from|| | | |high prices for || | | |luxury that || | | |doesn't last ||Spain/Portugal |None mentioned |Gifts |Neutral ||Germany |Traditional |None |Neutral || |chocolate bars | | ||Holland |NA |NA |Too Expensive | We can see from this table that Godiva has severe volume marketingproblems in Europe. Re-Branding a Brand An advertising survey prepared by an American firm gave van der Vekensome information about how the brand was perceived. According to the case study, hewas wondering Isn't the investment in making hand-held chocolates disproportional to the expectations of our customers? These considerations led Charles van der Veken to wonder about thewisdom of maintaining current operations. Do they really perceive the added value of these hand-made chocolates? (Case Study. 685) isinteresting, though contradictory. His initial reactionwas that he was worried about trying to transplant American-styleadvertising to the European market. And with that new positioning, the potential toattract new customers is increased. Shell-molding involves using an intricate mold, filling it withchocolate, inverting it so that most of the chocolate runs out, adding acenter, and then sealing the bottom with chocolate. We certainly need to wake up our old fashioned Godiva, butwe should also be careful of overly radical changes" (Case Study, p. The sum ofthe strategy was to maintain the brand image while positioning it in theminds of a younger consumer. He would place this next to a box ofGodiva and ask people which of these boxes they would give to a loved one. The namesake of the company did notgain a place in history because of her quality, or her mind, but primarilybecause she was outrageous, and rode through the streets naked. An empire is made by makingsomething people use everyday." Of course, chocolate isn't used every day,but the concept could be applied to Godiva. And, according to the case, thecompany can be said to be three companies -- Godiva US, Godiva Japan, andGodiva Europe. Inside Godiva Chocolates A summary of the information in the case study, and on Godiva's website, details the labor-intensive nature of the production process. 674). Are they looking for people who are currently "Luxurious--Energetic--Modern--Upscale--Emotionally Involving" or are they looking forpeople who want to be "Luxurious--Energetic--Modern--Upscale--EmotionallyInvolving." This difference is crucial, and it appears that the strategythe company is considering is designed to favor the first option, that offinding people who already meet those criteria. Aren't these chocolates just a bit too sophisticated? This is because of thefact that based on the evidence in the case, the most successful company isLeonidas which has opted for both quality and volume and low prices. In fact, the company is at awatershed moment, since it has opted to maintain a position in the world ofluxury items, instead of the world of foods. The strategy that the company considered was to maintain Godiva'simage (in Europe) of quality but appeal to a younger market. The case study quotes his reaction."The least one can say is that differences in mentality exist between ourtwo continents. The choice of words in item 9 (p. However, as the case study points out, the company hasa recognized world brand, a brand name, unfortunately that suggests highprice rather than quality. The campaign could be humorous, such as showing parallel situationsin which a person (very common, very middle class, very much like everyonein Europe) gives a box of Leonidas to his boss, and nothing happens.However, when he gives the boss a box of Godiva, the world opens up. This paper, following a brief explanation ofhow Godiva makes its chocolates, will then examine the problems attendantto the brand in Europe, and will conclude with ideas to revitalize thesales of the product in Europe. Seeking out the "Want-to-Be's" Since the case study suggests that there are more people in Europedevouring Leonidas chocolates than Godiva chocolates, there is a solidconsumer base of chocolate eaters in those countries in which Leonidascontrols the market. Asthe web site says, "When assortments of these shell-molded chocolates arethen packed into Godiva's distinctive gold ballotins and seasonal boxes,they are sought by discerning customers everywhere" ("About" 2 Online).The key word in that quotation is "discerning," a concept that has informedGodiva since the very beginning, and a concept that is at the root of itsmarketing problems. Consider the market share it has in its home nation, one that is, bythe way, considered to be the world capitol of Chocolate. This bit of outrageous tweaking of a competitor (one should say thecompetitor) can serve to skillfully position the Godiva product in theminds of the new consumer. Chart One: Godiva's Market Share in Belgium [pic] Godiva in Europe When Godiva was purchased by Campbell's Soup, the financial influxallowed for greater worldwide expansion. This is a bold approach, but it is one that fits withthe very corporate name of Godiva. 679). Oneof the oldest adages of the marketing world is that "A good living is madeby making something people use once a year. Ingeneral, there are two processes involved: enrobing and shell-molding.Enrobing involves covering a center (cherry, caramel, etc.) with meltedchocolate. Case Study: "Godiva Europe" Introduction Godiva Chocolates, according to the case study is considered the"Queen of Chocolates." However, as the case study also points out, the"Queen" is facing troubles gaining and keeping market share, and, as is thecase with royalty throughout the world, is considered a bit expensive, andperhaps redundant.
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