European Chocolate

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Godiva Europe


Godiva Europe


Godiva Chocolates, according to the case study is considered the “Queen of Chocolates.” However, as the case study also points out, the “Queen” is facing troubles gaining and keeping market share, and, as is the case with royalty throughout the world, is considered a bit expensive, and perhaps redundant. However, as the case study points out, the company has a recognized world brand, a brand name, unfortunately that suggests high price rather than quality.


Godiva International seeks to unify its image and product around the world. There is variation, however, between the image, consumption, and kinds of chocolates that consumers of different nationalities enjoy. Switzerland, Japan and the United Kingdom are the only countries that top Belgium, where the chocolate industry originated, in per capita consumption. The France, Germany, Denmark, and the United States fall respectively in behind Belgium. Belgium can, however, boast the largest share of chocolate candies with respect to total consumption. Chocolate consumption in general is higher in northern and Mediterranean Europe, due in part to the higher economic status of Western Europe. The chocolate industry in Belgium is unique. Chocolates, also called pralines, not only originated in Belgium, but the industry is well established and consumption rates are unique. Differences in consumption lie in socioeconomic classes. Belgian consumers buy chocolates as gifts and for special occasions, preferring to hand select the assortment. The chocolate industry in Belgium is similar to the flower industry in America due to reasons of purchasing. Godiva chocolates are said to be one of the more elite brands, but do not differ much from their competitors. Belgium is Godiva’s largest market and is home to the headquarters of Godiva Europe as well as the company’s factory. The French have different taste than the Belgians when it comes to chocolates. Godiva only has a small niche in France, but other Belgian chocolatiers such as Leonidas and Jeff de Bruges have larger market share. French consumption is very seasonal with 60 percent of all purchases made during Christmas time. Reasons for purchasing are similar to those in Belgium chocolates are a gift item and purchased for special occasions. Great Britain has a different climate than other European countries. While assortments of chocolate are valued, the British do not spend money on extravagant items such as Belgian confectionaries. Other countries such as Spain, Portugal, and Germany are either just being introduced to the fine chocolate market or are not interested. Chocolate is very popular in the United States. Consumers do not typically build their own assortments, but buy chocolates prepackaged. Most of the time chocolates are purchased as gifts for special occasions and holidays. Godiva has a plant in the United States that supplies 0% of its market share in the U.S.


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Finally, Japan has entered the chocolate industry. The market is very seasonal, with 75% of consumption occurring around Valentine’s Day. Women do most of the purchasing because they are the giver, not the receiver, of chocolates.


Marketing Mix


Packaging Packaging differs from one country to another to meet consumption needs. For instance, in the U.S., chocolates come prepackaged while in Europe and Japan chocolate assortments are custom-made. Godiva’s newest packaging strategy is to sell chocolates in collections, which are hand-made in order to ensure innovation and differentiation from competition.


Pricing Godiva Europe wishes to standardize prices in Europe to comply with the European Union. Before the Union is established, Godiva franchises only buy their necessary supplies of chocolate within that particular country. After the Union is established it will no longer be possible to keep franchises from purchasing directly from Belgium. This is a form of standardization. Prices have also increased by 10%, which the market has not easily accepted.


Place Godiva’s goal is to create a uniform and recognizable look across the board. The Godiva image, which is usually highly esteemed, has taken a dive in Europe in the past few years due to the lack of updating and care of franchises. While the Godiva image abroad is widely prestigious, a red flag has gone up because if the European image slips, the world brand image could follow. As a result, Godiva distribution has taken an active approach to improve its retail outlets. It is renovating and redesigning boutiques that will eventually encompass all Godiva stores in Europe.


Promotion Godiva wants to unify its advertising message into a global and common campaign, which leans towards the standardization end of the continuum. This task will be difficult due to the differences in the individual markets around the world. In the United States, for instance, promotion strategies have always leaned towards luxury and prestige, while in Belgium such advertising portrays a traditional and aged look. The U.S. must form a downward and more accessible theme to advertising and Belgium must take an upward approach. The new goal is to “increase the frequency of the purchase of chocolates for gifts as well as for self consumption” and to give the brand a more youthful appearance.


The main problem facing Godiva International is how to maintain the prestige of the brand name while unifying its image despite cultural barriers. The main advertising challenge is to create a common message. At first the possibility of an experimental and transition period was examined, but there was no time. Competition is a particularly prevalent challenge. The market is occupied by several other very successful brands such as Leonidas who carries 4% of the market share. Godiva does not have the production capacity that some of its competitors do. The European market is so saturated that it is hard to penetrate the market any further. Godiva also faces problems effectively utilizing its major competitive advantage having been absorbed by the Campbell Soup Company.


Godiva is on the right track in that it wants to unify its image globally. Having conflicting brand images can cause confusion and miscommunication between markets as well as within the company itself. It would be unprofitable and unsuccessful to take a “middle of the road” stance by appealing to each separate market in the same way without respecting cultural differences. Each major market can appeal to its target audiences with the same blanket message and then expand on it to fit different cultures. By doing this, Godiva will attract individual markets while at the same time unify the international corporation under the same concept.


The options that Godiva should consider is to


o Promote to Big Business by putting together Godiva gift baskets for the companies so they can give they out as client and employee’s gifts.


o Branch off the Godiva brand name into


1. Liquor


. Ice cream


. Frozen Cakes made with Godiva


o Approach luxury hotels and get them to buy Godiva so they can but on customers beds at night when the maid comes in and turn down their bed.


o Try to get more counters space in small stores like boutiques, newsstands and sporting events.


o Developed a website


o Budget lines of Godiva chocolate


In conclusion the option that I recommendations Godiva to used is Branch off the Godiva brand name into Liquor, Ice cream, Frozen Cakes made with Godiva by branching off the Godiva brand it will gain more market share in the Europe market and let people who could not afford Godiva will try it and the will start buying the regular Godiva brand Chocolate. By using the recommendation Godiva Chocolatiers will still have a deserved reputation as being the crème de la crème of luxury chocolates








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