Loh Mee Yoon (GM04496) Nurjeehan binti Ayub (GM04697) Leong Choi Li (GM04473) Wong Hor Yan (GM04518)

Elizabeth A/P Asiravatham (GM04575)

Prof. Dr. Samsinar Md. Sidin

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.

PRICING

BRAND IMAGE

HIGH COST

LOW LEVEL GROWTH

LOW CONSUMPTION

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 dOr 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
Global Leader

Luxury Chocolates

Save Cost

Drawbacks
Forgo the opportunities to grow

Loss market share to competitors

Difficulties in sustaining its growth in Europe Market

2. Produce More Machine-Made Chocolates

Advantages
Pull down Production cost
Produce more and Fully Utilizing the excess capacity

Capturing more market share in Duty-Free Market

Depress Price and Compete with Leonidas

Higher Gross Margin

Drawbacks
Image on producing luxury and high-end product will pull down

Bad Impression

3. Develop Corne Toison dOr

Strengthen Godivas position

Increase Godivas consumption rate

Advantages
Fully utilize the excess capacity at Belgian factory Capture additional consumers Capture more of Belgium market that is saturated Accommodate both higher and lower end market

Lower the production cost

Increase share in global market

Drawbacks
R&D COST ADVERTISING COST RISK

Alternative

WHY?

Continue to strive more on achieving higher revenue

Increase consumption rate

Use its STRENGTH to utilize opportunities in the market Ought to penetrate into different countries in obtaining an even larger segment in the global market

Change from WEAKNESS to STRENGTH to avoid the threat of losing market share

Plan of Action
Short term implementation

- Godiva - Corne Toison dOr

Long term implementation

- Godiva - Corne Toison dOr

Short term implementation

-strengthen its current position as luxurious high quality hand-made chocolate -use different approach in different market. -standardized image globally introduce the concept of "White Valentines", -reinforce the health benefit of chocolate

Godiva
-Traditional market-focus on developing Corne Toison d'Or -New market marketing effort build Godiva prestige image

Corne 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 dOr 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

 Pricing

Priced 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 Advertising schools 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

Godiva
Continue its market

Corne Toison d'Or

Follow Godiva expansion path to develop globally Utilize the knowledge and experience from Godiva complement Godiva products

development strategy Introduce luxurious and prestige chocolate praline globally. Cooperating with major player like Starbucks

Capture more market share

Contingency Plan
Fully utilize production capacity (Belgium)

Involved Developing Market amount huge Corne Toison of investment dOr Research

High Risk

More machine-made chocolates

Advantages Disadvantages

Strive utilize its competitive advantages benefits from growing market Evaluation on alternatives recommendation is done with detailed plan of action Market Test & information gathering recommendation is feasible or not?

Communication operation, finance & sales departments achieve goal.