Vuković Ena, 65623

The Legend of Godiva The famous story of Lady Godiva is the inspiration behind

the Godiva Chocolatier name. In the year of the Belgian Lord 1040, the people of Coventry

were crushed by heavy taxed imposed by their Lord, Leofric the Dane, Count of Chester, to finance his wars.

His young wife, moved by the poverty of the people, implored him to reduce the charges. Knowing that she was extremely prudish, he threw down a challenge which he was sure she would never accept.

The Legend of Godiva

To cross the town on horse back, covered by nothing but her long hair. Lady Godiva agreed on condition that her husband should never impose a tax again and that the people stayed cloistered at home with doors and shutters closed. This legendary tale has been illustrated many times in paintings, tapestries, sculptures and literature.

In 1926, Godiva was founded Founder and master chocolatier Joseph Draps He sought a name for his company that embodied

timeless values balanced with modern boldness – much like our lady of legend.

Belgian Heritage

In 1926, Draps opened his first Godiva Chocolatier shop on a cobblestone street on Grand Place, Brussels’ central square.

His standards for Godiva remained in place until today: quality ingredients, elegant styling, innovative selection, and beautiful packaging.

Godiva, everywhere

After years of being exclusive to Belgium, Draps began the international GODIVA expansion in 1958 by opening a Godiva boutique in Paris on the fashionable Rue St. Honoré.  

Openings in the United Kingdom, Germany, Italy, and more soon followed.

Then in 1966, Godiva traveled across the pond to the United States, where Godiva became available at one of the country’s most elegant department stores, Wanamaker’s in Philadelphia.

Six years later, the first stateside GODIVA boutique opened on New York’s fashionable Fifth Avenue.

Expansion also extended into Asia, where in 1972 Japan’s prestigious Nihonbashi Mitsukoshi Department Store in central Tokyo became the first to carry Godiva.

In 1998, the first Godiva store in Hong Kong opened in the upscale Sogo department store, followed later by locations in Taiwan and Singapore, and then China in 2009.

In September 2010, Godiva opened its first store in Turkey in the heart of Istanbul. 

Today the GODIVA brand is known – and loved – in over 80 countries around the world. 

Godiva owns and operates more than 450 boutiques and shops worldwide, where you can find a comprehensive selection of Godiva offerings.

Godiva products are also available at finer department and specialty stores. Additionally, Godiva issues seasonal mail-order catalogs in North America and accepts phone and internet orders.

From New York to Paris, Tokyo to Dubai, it is GODIVA that brings the best of Belgium to the world.

In 1967, New Jersey-based Campbell Soup Company acquired Godiva Chocolatier and invested heavily to turn it into a worldwide renowned brand.

In August 2007, Campbell Soup Company announced that it was looking for strategic alternativs for its Godiva busines.

The company decided to sell Godiva when a strategic review reported that luxuries lke chocolates were , strategically unfit for the Campbell Soup Company, which was focusing on simple meals and engaging in mass-market products.

Major international food giants and conglomerates such as Hershey. Mars, Nestl6, and Lindt made bids for Godiva.

0n December 20, 2007, Campbell announced that it entered into an agreement to sell Godiva to Ulker Group, one of the largest consumer goods companies in the Turkish food industry.

The acquisition was completed on March 18, 2008, and Godiva was officially sold to Yildiz Holding, the owner of Olker Group, for $850 million.

The purchase of the world-renowned Godiva brand was a step toward the company becoming a regional power.

The company already dominates the Turkish market and exports its products internationally to 95 countries; it has strong roots and brand presence in the Middle East and Turkish Republics.

The Godiva takeover will allow Ulker Group to enter into the

global markets and take a serious step in its attempts to be a global company.

Besides, this deal is being viewed as a success story for the Turkish economy since $850 million is the largest amount of money a Turkish firm hasever paid in acquisition of a foreign firm.

Godiva Gems

In fall 2009, the chocolatier decided to go mass market and introduced a lower-priced line named "Godiva Gems," intended to help consumers perceive the premium Godiva brand as more affordable or accessible.

Gems are marketed as ideal for enjoying a "little taste of Godiva chocolates anytime and anywhere."

Godiva delicious chocolates have traditionally been packaged and sold primarily as gifts, and have been available only in exclusive stores and department stores.

With the launch of the new Godiva Gems, the chocolatier has broadened the availability and accessibility of its high-quality chocolate.

The Godiva Gems are individually wrapped packages of smaller peaces of chocolates so that they can be shared.

This exciting move for Godiva and its consumers is in line with the changes in the consumer behavior brought on by the sluggish economy.

With the sales of Godiva Gems, the company is trying to play a different game other than its offering of its famous gold boxes of Godiva chocolate.

Already. Gems have accounted for '10 percent of sales in its 423 company stores since the early-September 2009 introduction.

The company also forecasts that Gems will be in 2,000 supermarkets by year-end.

Discussion Questions

1. Define "the product" offered by Godiva. ldentify the different levels of the product. Discuss the attempts made by the management to come up with an augmented product.

The product offered by Godiva is an affordable and accessible one that is made for every-day sharing. There are three different levels of the product: the core product, the actual product and the augmented product.

The core of the product represents the benefit of this product, the benefit that makes it valuable to its consumers, in this case the reputation of Godiva Chocolatier (high end brand).

The actual product is “Godiva Gems”, the tangible, physical good. The augmented product, the non physical part of it, is the fact that it makes a premium quality brand available in supermarkets at a lower price and the fact that it is accessible for everyday consumption.

2. Do you think that the Godiva brand could be damaged after the introduction of the new product to the lower end of the market? Do you see any risk of cannibalization of this line extension for the existing product line? Why or why not? Discuss.

The Godiva brand will not be damaged by “Godiva Gems” because the

marketing environment has changed and an adjustment was called for.

The 80 years old reputation of Godiva is well established and it can’t be shacked

by the launch of its low-end product. Also, as the consumer behavior changed

because of the instable economy so did Godiva had to change with it.

There might be a small risk of cannibalization of this line extension for the

existing product line, but if this occurs it can be used as a strategy to capture a

larger market of a different market segment.

3. Is "Godiva Gems' an international or a global product/brand? Discuss whether the brand holds global brand characteristics.

Godiva holds global brand characteristics like the fact that it is perceived to echo the same set of morals standards all around the world; it also transcended its origins and formed a well-built, stable relationship with consumers across countries and cultures. Godiva is also sold in international markets and this is another characteristic of a global brand.

4. What are the possible impacts of the "country-of-origin" and "packaging" in motivating consumers to purchase Godiva chocolates.

In the luxury industry, clients value the quality of the products and the brand

the most. Being produced and packaged in Turkey may alter the image of the

brand so consumers of the high-end line of Godiva chocolates may stop

buying them.

5. Godiva is entering new markets like China and Turkey. What strategy would you offer to the company in its global product planning decisions in term of standardization versus adaptation?