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Executive Summary

GODIVA is a premium chocolate brand in UK and is sold to the higher end
income customers. It the company has more than 450 POS around the
globe and is trying to keep its position at the top through venturing into
new markets. These progressions prompted a change to GODIVA's present
corporate strategy, diversification and furthermore, vertical integration in the
practical areas of the organization. Various organizations compete to amass most
of the customers by offering them their desired chocolate. Direct competition for
Godiva Chocolatier incorporates celebrated chocolate making organizations that
all consistently endeavor to be the most famous chocolate selling organizations.
In spite of the fact that it is an industry which is very much challenging, it is
without a doubt very attractive and GODIVA can possibly remain in the arena by
utilizing its brand image and enhancing its market efforts.

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............................................................... Error! Bookmark not defined.................................................................................................................. Alternative Strategy ........................................................................ 13 2 ................................... 4 Opportunities and Threats (Consumers/Customers) ........................................................................................................................................................................................................................... 12 References .............................................................................................. 8 Product Differentiation ......................................................................................................................................................................................................... 1 Overview of GODVIA ........... 8 Research & Development ......................................................................................................................... 8 (GODIVA Differentiation Strategy).......................................................................................................................................................................................................... 10 Recommendations – Market Expansion Strategy (GODIVA Chocolate Supplements) .................................................... 8 Quality Control ................................................................................................................................................................................................................. 9 Cost reduction strategy............................................................................... Alternative strategy ............................................... 10 Problem Identification ............. 5 Company Level (VRIN Model) ........................................................................................................................................................... 3 The PEST ANALYSIS OF GODIVA ................. 8 Services .. 12 Conclusion ............................................................................................................... 9 Problem Identification . 6 GODIVA’s Business-Level Strategy ..................................................................... 10 Market Expansion Strategy ...................................... 3 Competitors ............... 5 Porter’s Value Chain ................................................................................................................................................... Error! Bookmark not defined..................................................................................................................................................................... 8 Possible Strategies to Be Implemented .................................................................................................................................................... 7 Porter’s Generic Competitive Strategy ............................................................................... 3 Development & Growth ..... 4 Michael Porter’s 5 Forces Analysis ............................................. 5 GODIVA’s Internal Environment ..............................................................................Contents Executive Summary......... 6 ......................................................................................................................................................................................................

Lindt and Sprüngli put their items in the racks of drugstores and supermarkets. Development & Growth Earlier corporate strategy of GODIVA was to be seen as a premium and top notch chocolate brand. GODIVA developed with the idea of 'classic chic' during the time with its high caliber. Christmas. current value sales of chocolate confectionery increase by 4%. and also to the expansion and furthermore. Middle East to Far East. UK market is the one of the largest market for chocolate industry and in 2016. Overview of GODVIA GODIVA was originated in 1926. the consumers purchase chocolates as gifts on Easter. for example. expensive items and gold boxes. The story of GODIVA began with the Draps family relationship with chocolate and their fantasy to share their passion and talent of chocolate with the world.79 trillion. with a number of products ranging from $5 to $10. presenting premium offerings and better packaging. Be that as it may. Chocolates and holidays are inter related in UK. they are also becoming more health conscious. similar to Louis Vuitton. This healthy indulgence trend causes health conscious consumers turn on nutritious bars instead of candy bars and the increase in demand of premium dark chocolates. with 85% of adults purchasing chocolate. and from its modest establishment it turned out to be one of world's most eminent lavish chocolate brands. Competition and rivalry in the chocolate market was additionally a gigantic factor in the difference in GODIVA's procedure. The PEST ANALYSIS OF GODIVA Political & UK is the most settled democracy of the world with the law enforced more Legal effectively than anywhere globally. GODIVA understands that not every person can bear the cost of $50 box of chocolates as day to day purchasing.8Billion (Euromonitor. reaching $18. Fair electoral system. GODIVA has extended over Europe to North America. Other chocolate brands. A change in the current corporate strategy of GODIVA was initiated due to the prevailing progression. GODIVA products have to be labeled in accordance to the regulations set by the UK government and have to ensure that all the labels and packaging are approved before selling Economic UK is one of the largest economies globally with a GDP of $2. a worldwide player and on the top of the premium chocolate industry. It was established by the Draps family which was headed by Pierre Draps. Mars. vertical integration in its major functional areas. and Ferrero Rocher were redesigning their products. Hersey's. Belgium. Socio-cultural The change of attitude and lifestyle of consumers has greatly affected the chocolate confectionery market in UK. GODIVA entered the mass channel In 2011. valentine’s and Halloween. While consumers are still looking to indulge. 2016) Chocolate confectionery remains popular in UK. Technological E-Commerce has become very important part of business and it has helped 3 . in Brussels. UK also has a global influence on the political and economic policy making.

the cost of customers to new brands is low  Gourmet chocolate lovers are price conscious and do not opt any alternate based on price only  GODIVA has a strong brand image and so with strategically priced products it holds high retention of its customers Bargaining power of  Food imported into the UK is guarded by strict regulations suppliers  GODIVA has pledged to work with suppliers who commit to provide high quality chocolate for production  Cocoa bean suppliers are highly unlikely to be substituted since it is the main ingredient for purchasing chocolates 4 . Incorporated  Gevalia Coffee  Pepperidge Farm Cookies Michael Porter’s 5 Forces Analysis Threat of new  Sales of chocolate has increased by 4% in 2016 creating active platform of entrants new entrants  New entrants may not be a significant threat since Mars and Hershey’s hold high dominance by 64. Direct rivalry for Godiva Chocolatier incorporates renowned chocolate making organizations that all consistently endeavor to be the most well-known chocolate organization. A wide range of organizations contend to gather the most clients by having a coveted chocolate.11% and the market shows high level of brand loyalty Threat of substitutes  Demand for healthier snack options is increasing such as candies. in the growth of retail business upto 60. Competitors Direct Competitors and Brand Images Chocolate is a snack that many individuals appreciate.  Hershey  Ghirardelli Chocolate  Dove Chocolate/M&Ms by Mars. Hence. The government is also making efforts based on the scientific information to reduce any risks caused by the environment. biscuits and chips and nutrition bars are a close substitute of chocolate  Even during the economic downturn there is a maintained level of the demand of chocolate Bargaining power of  Consumer are increasingly concerned with the sustainability and organic buyers ingredients which influence their choice of purchase and brand  GODIVA chocolates are priced higher than its competitors such as Lindt and Ghiradelli. 78% of the UK population accounted for having a social media profile in 2016 and use e-commerce for their purchasing Environmental The purpose of the UK Environmental Protection is to guarantee that all Britishers do not face any risk of health and environment.4%.

it was derived that there is solid rivalry in the chocolate business.  Growing number of health focused energetic consumers  Reaching out wider audience through  Increasing number of substitute use of new marketing tools such as TV products channels. heavy advertising done by competitors is likely to influence the loyalty of the customers of GODIVA despite the fact that it has a solid brand image and a loyal customer base. and GODIVA can possibly remain in the arena by focusing on its brand image and enhancing its marketing endeavors. Hershey’s. Moreover. countries with more 450 boutiques and  The design of the “GODIVA” packaging is shops globally designed to have a “wow” factor as it  GODIVA is further expanding its network represents an attractive and rich looking 5 . Hershey’s. Nestle and Ferrero Rocher are offering premium higher priced chocolates  Mars. Opportunities and Threats (Consumers/Customers) Opportunities Threats  New products to enter the market –  Strong competitors and aggressive youth/younger generation with new competition positioning of youthful. their chocolate gives sales rising upto 52% of the company’s consumers a fantasy of elite status who annual sales are craving for better than a Hershey’s or  GODIVA is found in more than 80 Ghirardelli chocolate. It has affluence when entering their specialty successfully achieved 32 thousand points store and is well known for their gold of sales around the globe and has packaging and high-end products become a global brand with international  Additionally. Albeit new entrants and players may not act like a threat and risk to GODIVA. Despite the fact that chocolate industry is very challenging. it is significant that GODIVA keeps up a positive association with its customers and suppliers as they hold direct and solid power to bargain. posing high competition to GODIVA  Lower price product brands such as Mars. it is without a doubt vert attractive. Lindt and Ghirardelli are among the few top brands which are marketing their chocolates in the FDM channel aggressively Through the examination of Porter's 5 forces. fun innovative. Nestle. Rivalry among  Competitors such as Lindt and Ghirardelli have already entered the mass competing sellers market. social media with investments in marketing efforts  Growing number of health focus consumers  Strong demand of premium chocolate GODIVA’s Internal Environment Company Level (VRIN Model) Strengths Valuable: Rare:  GODIVA is considered as the world’s leading premium chocolate and  GODIVA is associated with luxury and chocolate coated products.

W market. Porter’s Value Chain Primary Activities and Costs Supply Chain Management Belgian atelier (Supplies to R. Middle East. Russia and Turkey box of chocolate. Inimitable: Non-substitutable:  Due the support and financial  Though the market has other capabilities of its parent company. biscuits. This allows GODIVA to substitutes do not have is the brand be able to confine any information name and image that GODIVA has about their research on possible new  The process GODIVA uses for shell products and flavors or ways of molding gives them an edge over manufacturing products and flavors or substitutes as the knowledge required ways of manufacturing products and for this refine and sophisticated process developing these new findings is not present in substitutes.O. this is not a parent company owns major portions of major issue for GODIVA as what those its supply chain. GODIVA is able to have strong chocolate such as candies. GODIVA research and development for its production and innovation of its product lines are largely enclosed within a closed ecosystem. chips control of its own supply chain as its or mass market chocolates. Yildiz alternatives or substitutes to premium Holding. GODIVA would be required to be in all businesses which they plan to have products for  Though it is hard for competitors to imitate or replicate GODIVA’s products. produces in small batches for 800 SKUs) Operations  GODIVA currently owns the largest global network of premium 6 . most of GODIVA’s product prices exceeds all its competitors which results in a major weakness for GODIVA especially to price sensitive customers. Weaknesses  As mentioned earlier. By doing this it creates a high level of secrecy without allowing any new research or development being prematurely leaked to competitors. Due to this. themselves without having to use an external vendor in any stage of the process. as well as substitutes not having the same brand image and name that GODIVA has. to China.

which do not have any substitute even its real to be recreated by the rivals (Rao. GODIVA has been investing into technology advance to further elevate their e-commerce systems to heighten online customer experience. 2012). GODIVA is the participating member of the World Cocoa Foundation (WCF). it has allowed GODIVA to extend its operations around the globe to cater to the mass of consumers in the world.  Due to the trend of increasing sales being conducted through e- commerce. and Save the Children Foundation to help give to the society and ensure support of farmers. and the layout was modified to surround the customers with chocolate. Cocoa Horizon Foundation. Such as appointing retail veterans from Burberry.  GODIVA Possess a Global Team Of Chefs. Human Resource  GODIVA usually sources for candidates from competing brands who Management held high ranking positions as it feels it would provide a better fit to its company through their skillsets and experiences. Distribution  GODIVA is found in more than 80 countries with more 450 boutiques and shops globally  GODIVA is intending to continue expanding its number of boutiques with an estimate of 50 new stores yearly  In addition to its brick and mortar stores. partners and protect the environment. chocolate shop  Due to GODIVA’s reputable global image as luxurious chocolate company. This enables GODIVA to make one of a kind flavors and extreme smoothness in their chocolates. Chocolatiers and taste- and Systems Development testers which conduct product research and development to further improve on GODIVA’s product and also expand its current product range through introduction of newly created products such as Dark Chocolate Bars with new flavors like Orange & Ginger and Toasted Coconut. As 7 .  GODIVA’s logo was also changed in 2014 to align itself to the promotions Yildiz Holding to education on Belgian heritage to improve the awareness that GODIVA origin from Belgian instead of “somewhere exotic” Service  Due to recent initiatives to further enhance instore experience for customers a relocation of instore cashier was made. instead of a previous impression of being a fortress Support Activities and Costs Product R&D. the Body Shop and Kellogg’s. GODIVA also allows its customers to pre-order and order from its websites with delivery services that are as efficient as next day deliveries Sales and Marketing  GODIVA’s marketing and advertising efforts are coordinated by its parent company Yildiz Holding. Technology. GODIVA’s Business-Level Strategy The core competency of GODIVA is its expert knowledge and capacity to produce a premium quality chocolates. General Administration  One of GODIVA’s key focus in its operations and activities is on sustainable practices. .

its Chocolate Dipped Strawberries and Soft Serve Ice-creams. for instance. Quality Control GODIVA has an extravagant and superb brand picture and is known for its first rate chocolate with stunning quality. GODIVA can create a tremendous line of items. Research & Development A broad differentiation strategy is employed by GODIVA. GODIVA's R&D division comprises of a worldwide group of special chefs and chocolatiers working on the development of new products and their goal is to develop an innovative. With GODIVA selectiveness in its items joined by a decent grouping of different items to look over GODIVA keeps the clients faithful to its image and continues pulling in new steadfast clients. 2014) With such stringent checks to ensure faultlessness in each piece of chocolate it produces. (The Huffington Post. differentiation strategy is utilized by GODIVA for focusing on its gourmet chocolate for its elite class consumers. Its chocolates are promoted in- accordance with its brand image of modernity and sophistication enabling buyers to be loyal to GODIVA. their area of Truffles Chocolate which offers an extensive variety of flavors when contrasted and different contenders. creative and exceptional product that gives customers a broad assortment and variety of chocolates. 2016) A series of taste testing is done on the new products before launching it in the market. Other than this. as well as for the mass market. (Lupo. Through its predominant R&D capacities. (Godiva. (Cassell. 2014) Product Differentiation GODIVA is additionally separated through its line of items. Porter’s Generic Competitive Strategy (GODIVA Differentiation Strategy) A broad differentiation strategy employed by GODIVA help GODIVA to differentiate its products from the ones of its competitors by providing diverse and innovative products and services to the customers. 2010) Before GODIVA's chocolates are made prepared for the racks the generation division runs various quality checks to guarantee that nature of the item is "GODIVA Worthy".per Porter's generic strategy. it 8 . GODIVA is likewise delivering selective items for its exceptional clients not at all like its rivals. for instance.

the chocolate-plunged strawberries are sold at a high cost of US$42 for 6 pieces and US$80 for twelve. The system isn't sufficiently straightforward a considerable measure of abilities and preparing is required to make the best quality chocolate . customized messages imprinted on to premium looking cards with a text limit of upto 40 characters.3 million chocolate-dipped strawberries in 2012 alone. (Godiva. it is currently an item sold throughout the entire year. Showers and Business Gifts. (Godiva. 9 .isolates GODIVA from its resistance in light of its exactness and perfection. It came about to add up to the sales of 5. ivory ribbon services which are specially customized for customers buying gift boxes. value added services are provided by GODIVA to increase its product differentiation for example. 2016) Shipping is also provided by GODIVA for the chocolate-dipped strawberries and to guarantee the freshness of the product. take care of the expense of the generation. Services For the further differentiation of its products. Regardless. 2016) GODIVA likewise serves Weddings. It was at first sold just amid the occasions yet because of the ubiquity.plunged strawberries. (Godiva. 2016) Hence. special and costly shipping methods are used. GODIVA conveys new strawberries into the kitchen every morning which are then hand-dove autonomously by the expert gourmet specialists. To give the best quality things to the shoppers. making of GODIVA's chocolate-plunged strawberries is over the top similar to time and cash. Possible Strategies to Be Implemented Cost reduction strategy Problem Identification Chocolate-dipped strawberries of GODIVA are one of the unique and most remarkable items sold by GODIVA.

Alternative Strategy Since the healthier options in the market have low price sensitivity. bring down the distribution cost. which included more than 30. 2004) Based on the results of the Nielsen's 2015 Global Health and Wellness Survey. In reality. and perhaps expanding the profits and increasing sales by integrating backwards. Moreover. the strawberries utilized. fats and sugar contents of their products. 2016) Alternative strategy Vertical integration can be adopted by GODIVA by extending operations in reverse to lessen the cost of materials provided. With these movements. The WHO has advised the companies to review their marketing strategies and focus on the marketing practices which uphold the health issues and promote the products which are healthier. it can't address the issues of the health conscious consumers who belong to the premium chocolate industry. it would be more useful for GODIVA to comprehend the neglected needs of its potential buyers and develop a separated 10 . it would not be successful to execute any strategy pull in more buyers by reducing price. GODIVA will have the capacity to supply itself freely which will diminish the production cost and price. (Nielsen. the work. with GODIVA's present product line being offered to its buyers. (Godiva. Market Expansion Strategy Problem Identification The World Health Organization (WHO) has suggested in its global diet. (World Health Organization. 2015) After such a shift in the tends of the market. it has now appeared as problem for GODIVA as consumers are shifting far away from such snacks that are considered as unhealthy towards alternates that give a better general nourishing profile. that the producers of food and snack should start improving the nutritional quality of their products by bringing down the salts. and worldwide efforts by WHO to educate better dietary patterns to the worldwide consumer market. GODIVA would have the ability to cut down creation cost and cost without affecting the item quality and will be moreover pulling in the mass market as it would be more moderate.000 people about their choices of food and snacks and their willingness to spend on nutritious food. and procedure of conveyance. The cost can be controlled and diminished in various zones in GODIVA. and the readiness of the consumer market to spend more for more on healthier options is still consistently expanding. giving a development in deals and an expansion in piece of the overall industry. physical activity and health strategy. it was clinched that the buyer market's attitude about sound nourishment alternatives has moved and they will pay more for items with extra medical advantages and help with weight reduction. and decrease overheads. for instance.

(Cravens and Piercy. strong and extensively squeezed chocolate to piece centered at the exceptional purchaser showcase. This will convince the expend more nourishments through GODIVA chocolate supplements which will taste tantamount to chocolate and furthermore give the body all the required supplements and minerals it needs off. embedded with very much picked supplements and minerals to influence a tasty. the brand image of GODIVA will be further elevated 11 . GODIVA Chocolate Supplements will be a mix of GODIVA's available premium Belgium chocolate. (Nielsen. 2012) This procedure will help deliver another product offering of GODIVA named as GODIVA Chocolate Supplements. GODIVA Chocolate Supplements will fill in as a dietary supplement for clients and buyers which will enter the market as a bit of chocolate instead of the run of the mill pill or tablet shape. 2015) By introducing GODIVA’s Chocolate Supplements.product offering the consumer the attributes he is attracted to. Following table lists down possible types of variants of the GODIVA Chocolate Supplement and the possible different components to be used in the product.

It would empower GODIVA to get a handle on the rising patterns of wellbeing cognizant clients who will spend for more gainful options. With this move. Through the utilization of this. we have recognized and assessed the qualities. we assume that through the utilization of the Market Expansion Strategy in which GODIVA would exhibit another item offering 'GODIVA Chocolate Supplements' it would empower GODIVA to better deliver to the market and impact them to utilize GODIVA items in their everyday lives. They likewise attempt to secure their domain by offering to the mass market with chocolates of lower price. would enable GODIVA to reach to the segment which had never been taped before due to its demand for healthy and nutrients fortified snacks. we inferred that GODIVA's present adapted business strategy is a safeguard as indicated by Miles and Snow's business level strategies. shortcomings. With everything taken into account. With this adjustment in its business-level strategy. we have picked that the best contrasting option to be considered is the Market Expansion Strategy. GODIVA would moreover need to increment and besides move its consideration on its endeavors on showcasing from advancing its excellent foundation and history of GODIVA. we have then strategized potential alternate systems that can be actualized to increase the profitability of GODIVA by expanding the aggregate sale of GODIVA's items in the UK market. We prescribe GODIVA to move its business strategy as a protector to an analyzer with cost initiative focused system. With these movements. The new line would likewise have the capacity to serve its current segment of market. GODIVA can focus on a more extensive group of onlookers and increment its piece of the pie. openings and dangers that the organization is presented to. we suggest a shift in GODIVA's business-level methodology of being a 'defender' to turning into an 'Analyzer'. 12 . Conclusion Through our intensive investigation of both the inner and outside condition of GODIVA. With reference in view of GODIVA's corporate and business-level strategies that currently prevail. GODIVA would have the ability to cover more gets of its objective market. to advancing its crisp and new wellbeing cognizant line of chocolate supplements and highlight on the medicinal favorable circumstances in this chocolate and its top notch quality. which earlier GODIVA items were not capable address. GODIVA would be more ready to tap on new improvements and changes in its industry to guarantee the organization's long haul adaptability and flourishing. After further indepth examination and appraisal of the substitute systems proposed. As an analyzer. Successful launch of GODIVA’s Chocolate Supplements line. as a premium chocolatier for the health conscious consumer. GODIVA presently is keeping up a safe position as a premium chocolatier brand and offers a product range that is limited as compared to the competitors. GODIVA can present market development procedure with separated situating concentrating on another result of chocolate supplements which contender brands still can't seem to take advantage of. as the new line is as yet considered as a superior chocolate with extra medical advantages pressed into it. As a defender. Recommendations – Market Expansion Strategy (GODIVA Chocolate Supplements) After much assessment. This would ensure GODIVA's whole deal development and position as the market pioneer. By executing this change.

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