Godiva Europe Case Study

Essay by DbleK09University, Master'sA+, August 2007

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BibliographyKernin, Roger A. and Peterson, Robert A. Strategic Marketing Problems: Cases and Comments. 11th Edition.

GodivaGodiva is a chocolate company famous for its elegant hand-crafted chocolates. It originated in Brussels, Belgium. In July 1991, the President of Godiva Europe, Charles van der Veken completely restructured the company. He fired the marketing staff and changed the retail distribution network by removing Godiva’s representation from numerous stores. These changes were done to the Godiva-Belgium network making these franchises comparable to those in the United States and Japan.

Godiva was purchased in 1974 by the multinational Campbell Soup Company. Godiva International is made up of three decision centers: Godiva Europe, Godiva USA and Godiva Japan.

The current concern of Godiva International is to convey a similar image of Godiva chocolates across the world: the image of a luxury chocolate that is typically Belgian. Belgium is the birthplace of chocolates and where the consumption is strongest.

In Spain and Portugal, chocolates are a new concept. Godiva was first to introduce its chocolates a few years ago and consumers were very receptive. Godiva has opportunities to expand in these markets. With the right marketing techniques Godiva has the ability to grow.

Godiva also had opportunities to grow in Japan. One problem is that 75 percent of chocolate purchases take place around Valentine’s Day. Godiva must find ways to attract the Japanese market to chocolates on other holidays and occasions, not just Valentine’s Day.

Godiva hand-makes 30 percent of their chocolates and the other 70 percent is machine made. Of the 70 percent machine-made, 60 percent are decorated by hand. Since Godiva hand-makes some of its chocolates, it has an advantage over other chocolate companies. This is also a reason Godiva is more expensive than other chocolate companies. Consumers are drawn to these chocolates...