12-May-09 Marketing Case Study
Presented by
Ahmed Diab
Mira Morad
Mostafa Ameen
Osama Ahmed
Reem Badawy
Sherif Khalifa
Godiva ChocolateCase Study
12-May-09 Marketing Case Study
ContentsIntroduction
– The Company– Financial Performance– Company History
Strategy Analysis– External Analysis
• Environmental Analysis• Market Analysis• Competitor Analysis
(Neuhaus, leonidas ).• Consumer Analysis
(Behavior in different clutures).
– Internal Analysis • Marketing strategy
o Priceo Producto Promotiono 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)
12-May-09 Marketing Case Study
The Company
12-May-09 Marketing Case Study
Financial Performance
Market Analysis
Operating profits Market Size
12-May-09 Marketing Case Study
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
12-May-09 Marketing Case Study
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
12-May-09 Marketing Case Study
Market Profitability Analysis – Porter 5 forcs model
12-May-09 Marketing Case Study
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
12-May-09 Marketing Case Study
Environmental Analysis - Macro
12-May-09 Marketing Case Study
12-May-09 Marketing Case Study
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..
12-May-09 Marketing Case Study
Competitor Analysis
Using Lehman and Winner levels of competition model the competition in this market can be classified as illustrated.
12-May-09 Marketing Case Study
Competitor Analysis
Direct Competitors in terms of segment and company size Leonidas, Godiva and Neuhaus.
Bernachon and Bernard Dufoux. Local small size companies.
Bernachon
local
Company size
International
Fine Chocolate
Product characteristic
Mass Production
LeonidasGodiva
NeuhausMars Inc
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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
12-May-09 Marketing Case Study
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
12-May-09 Marketing Case Study
Segment/motivation grid for Chocolate consumer
12-May-09 Marketing Case Study
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”
12-May-09 Marketing Case Study
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 strategyAt 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:
• International Operations Group
• Financial Services Group
• Marketing, Strategy and Retail Group
• HR, Legal Affairs, Trade and Media Purchasing Group
• Godiva
• Ülker (Biscuits, Chocolate) Group
• Food, Beverage, Confectionery and Chewing Gum Group
• Packaging, Information Technologies and Real Estate Group
• Food, Frozen Food and Personal Care Group
SWOT AnalysisStrengths Weaknesses
Opportunities Threats
Belgian premium chocolates, well known with high brand equity.Hand made2 big factories established in Belgium & USDominant position in the duty free marketBeing part of Campbell soup
Relatively low shares vs. competition in the European marketsLimited distribution network relative to competitionHigh cost of productionNo clear difference between Godiva & competition in the minds of the consumers
Growth in chocolates consumption per capitaChocolates are used in different occasionsRenovated stores will further enhance the brand positioning
Fierce competition especially from Leonidas & NeuhausDifferent prices across the European Union
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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?
12-May-09 Marketing Case Study
RecommendationNot 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