godiva presentation slide

Prof. Dr. Samsinar Md. SidinProf. Dr. Samsinar Md. Sidin

Goh Qi Rui (GM04596)Loh Mee Yoon (GM04496)Nurjeehan binti Ayub (GM04697)Leong Choi Li (GM04473)Wong Hor Yan (GM04518)Elizabeth A/P Asiravatham (GM04575)

Goh Qi Rui (GM04596)Loh Mee Yoon (GM04496)Nurjeehan binti Ayub (GM04697)Leong Choi Li (GM04473)Wong Hor Yan (GM04518)Elizabeth A/P Asiravatham (GM04575)

Goh Qi Rui (GM04596)Loh Mee Yoon (GM04496)Nurjeehan binti Ayub (GM04697)Leong Choi Li (GM04473)Wong Hor Yan (GM04518)Elizabeth A/P Asiravatham (GM04575)

Goh Qi Rui (GM04596)

Loh Mee Yoon (GM04496)

Leong Choi Li (GM04473)

Wong Hor Yan (GM04518)

Nurjeehan binti Ayub (GM04697)

Elizabeth A/P Asiravatham (GM04575)

Famous chocolate brands in the world from Belgian.

It has achieved remarkable success through building its image of high quality hand-made luxurious chocolate and selling it at a premium price.

In year 1974, Campbell Soup Company acquired Godiva chocolate into their business portfolio.

In July 1991, Godiva International is having

a fantastic turnaround.

Its quality and luxury image, Godiva

International is experiencing great success

in its international market.

Godiva also face huge challenge in market

like Germany.

In its home market, Belgium, not only it

failed to compete with its major competitors

Leonidas in terms of market share.

Competitors Analysis Leonidas

Different business model with Godiva Machine-made chocolate at valuable price

(360/kg vs 1080/kg) 2.6 billion francs sales and dominant

market share in U.K., France and Belgium Better known as typical Belgium

chocolate, attractive pricing and better taste

High self-consumption rate compared with Godiva 48% compared with Godiva 24.4%

Cont.

Neuhaus Similar image and positioning with

Godiva High price, high quality, nice packaging

and beautiful boutique Significantly lower market share, brand

awareness and global presence

Local small confectionary Better knowledge in local market Easier to adapt with local culture and

preferences

Cont.

S.W.O.T Analysis

Strengths High Quality product and image

Godiva is able to produce high quality products and let consumer perceived their product is very high in quality and prestigious compared with its competitors

Strong parent company High global presence Belgium Origins Strong and widespread distribution

channel

Cont. Strengths

Strong parent company

Cont.

Strengths High Quality product and image Strong parent company High brand awareness Belgium Origins Strong and widespread distribution

channel

Cont. Weaknesses

Underutilized Production capacity High production cost

Handmade chocolate cost 7 times more than machine-made chocolate

Cannibalizing brands Similar positioning of Corne Toison d’Or

and Godiva product

Cont.

Opportunities Current market growing rapidly Absence of competitors BRICs markets Worldwide Growing Chocolate

Consumption

Cont.

Opportunities Current market growing rapidly

Japan – 54.2 % United States – 45.1 %

Cont.

Opportunities Country with expanding market Absence of competitors BRICs markets Worldwide Growing Chocolate

Consumption

Cont. Opportunities

BRICs Market

Cont.

Opportunities Worldwide Growing Chocolate

Consumption

Cont.

Threats Grandmotherish Image

Fail to capture new customers nor stimulate current customers to buy more

Apathy towards hand-made chocolate Some markets respond negatively to

premium price hand-made chocolate, especially Germany and Holland

Formation of European Union Lose control over the product price

1. Maintain Status Quo

Advantages

Luxury Chocolates

Drawbacks

Loss market share to

competitors

2. Produce More Machine-Made

Chocolates

Advantages

Depress Price and Compete with Leonidas

Pull down Production

cost

Produce more and

Fully Utilizing the excess capacity

Capturing more market

share in Duty-Free

Market

Higher Gross Margin

Image on producing luxury and high-end product will pull

down

Bad Impression

Drawbacks

3. Develop Corne Toison d’Or

Strengthen Godiva’s position

Increase Godiva’s consumption rate

AdvantagesFully utilize the excess capacity at

Belgian factory

Capture additional consumers

Capture more of Belgium

market that is saturated

Lower the production

cost

Increase share in

global market

Accommodate both higher

and lower end market

Drawbacks

Alternative

WHY?

Plan of ActionShort term implementation

- Godiva- Corne Toison d’Or

Long term implementation- Godiva- Corne Toison d’Or

Short term implementation

Corne Toison d'OrCorne Toison d'Or

immediately change its brand image

market in Germany, Belgium and Holland, where the Godiva image failed.

We had define ten method of repositioning of Corne Toison d’Or chocolate .

Positioning

Tasty, energetic, high quality yet valuable products from Godiva

Consumer Benefit

For any occasion or consumed as an afternoon snack

Low-calorie chocolates Target Customers

Teenagers and young adults aged from 16-35 Product

Corne Toison d'Or will be 100% made from machine in factory in Belgium

PricingPriced at lower than Leonidas

Packaging Repackage the Corne Toison

Promotion At the supermarket, free sample of Corne Toison

Public Relations sports star and sponsorship for local sports team

Advertisingschools and colleges, internet and teenagers magazine

Retail distribution launch the brand as a new and improved product across the existing 40 retail stores

Long term implementation

GodivaGodiva

Continue its market development strategy

Introduce luxurious and prestige chocolate praline globally.

Cooperating with major player like Starbucks

Corne Toison Corne Toison d'Ord'Or

Follow Godiva expansion path to develop globally

Utilize the knowledge and experience from Godiva

complement Godiva products

Market Research

Contingency Plan

More machine-made chocolates