Monday, November 28, 2011

Chapter 7- Business Marketing







Godiva Chocolatier: When Social Media Speaks, Godiva Listens
Posted on | September 27, 2010 | 17 Comments
Author Stephen Baker

Amid recessionary belt-tightening, chocolatier Godiva listens to an invitation-only social network to understand what women want. When the economy swooned last fall, executives at Godiva Chocolatier faced a vital concern: How would financial jitters and shrinking stock portfolios affect the market for their luxury chocolates? For answers, the New York company turned to 400 bona fide chocoholics in its online social network. It’s a Web site with an online forum. But attendance is by invitation only, and the discussion revolves around things chocolate. Through autumn and winter, as Lehman Brothers collapsed and the government scrambled to save the automakers, Godiva was busy pumping the participants in its social network for intelligence. Specifically, it wanted to know what types of products and promotions would help protect a place for premium bonbons in consumer budgets. The feedback: Advertise bargains, especially baskets of chocolate that cost less than $25. “People are budgeting, and they want to budget chocolate,” says Rich Keller, the company’s director for marketing and innovation.

Little Luxuries Mean a Lot

The Godiva community also called for luxury in small doses—goodies they could pick up for not much more than the price of a cappuccino. One winner during the all-important Valentine’s Day season was a heart-shaped chocolate lollipop that sold for $5.50. “It was a key winner for us,” says Keller. Godiva sales have slowed, he adds, but they’re still growing. Companies are increasingly looking to social networks for a 24/7 read on shifting consumer sentiments. The advantage over traditional market research? Unlike focus groups, which disband after an hour or two, Web communities stay engaged for months, or even years on end, letting companies track attitudes over time. Another plus: Participants, often devotees of a company, product, or service, work nearly for free. Godiva rewards its active community members with $10 gift certificates every month—not even enough for a couple of chocolate lollipops.

Algorithms Don’t Always Track Consumer Tastes

The online world offers plenty of other options to gauge customer response to promotions and brands but Godiva counts largely on its networked chocolate lovers—all women. Many of them log onto the site daily. Women tend to be more passionate than men about chocolate, and they express themselves more freely in the communities, Godiva’s Keller says. (The company uses surveys to reach out to men, who tend to buy chocolate mainly for the women in their lives on Valentine’s Day.)The female forum members chat frequently among themselves, swapping insights about chocolate, the economy, and whatever themes moderators raise. The 400-member group has been going for nearly a year and will soon be shutting down. In its place, Godiva plans to launch two new 300-person communities, one for Godiva customers, and the other for fans of other premium chocolates.
By Invitation Only
To populate the new communities, Godiva sends out 30-question surveys to people on its customer lists. After studying the responses, they issue invitations to a select group.The payoff for the chosen? In addition to receiving their monthly coupons, participants get to chat with others about a food they love—and to help steer the market for premium chocolate. When they speak, Godiva listens.

Stephen Baker is a senior writer for BusinessWeek in New York.

About SOS eMarketing

SOS eMarketing creates engaging experiences for customers in the digital world. For more information about topics in this article, contact SOS eMarketing about social media, branding, integrated eMarketing, food marketing:
From a customer's Perspective

"Twelve years ago, on a crisp fall morning like this one, I would have been on a train from Manhattan to Westport, Connecticut, chatting with my friend & co-worker, Sarah. When we reached our office, I would have gone to work on Pepperidge Farm cookies, and a few desks away, Sarah would begin her day on Godiva chocolates. That’s right: at the time, Pepperidge Farm & Godiva were both subsidiaries of the Campbell Soup Company. And while Sarah & I always had plenty to talk about on our long train rides out of New York City, we never once dreamed that her specialty chocolates would be sold in the same supermarkets as my cookies & crackers. Never. How times have changed. Campbell’s sold Godiva in 2008, and by last fall, the new owners announced the introduction of ‘Godiva Gems’, a line of individually-wrapped chocolates offered at supermarkets & drugstores nationwide. It’s taken nearly a century to build the mystique of the Godiva brand- - so why would anyone risk tarnishing that high-end image through low-end distribution channels? According to published reports, Godiva wants to add an “everyday” appeal to its chocolates. Now that Godiva Gems are widely available in supermarkets & drugstores, the marketing team hopes that chocolate lovers will be more likely to consume these items themselves rather than passing them along to others. The team also hopes that if Godiva Gems can attract a new group of consumers during these challenging times, some will eventually ‘trade up’ to the premium offerings sold for as much as $480 at Godiva’s 450 retail boutiques. After all, look at what Starbucks has done, selling pre-packaged coffee in supermarkets throughout the US. Consumers can go to a grocery store to buy basic Starbucks blends for in-home consumption, but if they want specialty drinks like Frappuccino & Cinnamon Dolce Lattes, they still need to visit to an actual Starbucks location. But let’s take a moment to think that through more thoroughly: even the most extravagant Starbucks drink won’t set you back more than six dollars, and for all its premium pricing, Starbucks has never, ever played in the ultra-luxury gift market. On the other hand, for almost a hundred years, Godiva’s business has been built around one thing, and it isn’t premium chocolate. No, Godiva sells the same thing as Tiffany’s: sweet nothings whose packaging is designed to speak VOLUMES about the status of BOTH the purchaser and the receiver. That’s because luxury is an elusive concept. To me, luxury is the perception of quality… sold through aspirational stories… whispered to the deepest parts of our psyches.  And because luxury has such cache and profit potential, it has always held a special siren song for marketers. But luxury is a game that can only be played by the world’s best poker players. You can never blink. You can never flinch. You can never break a sweat. Once you sell your story, you’re ‘all in’, and if you waver for a moment, the house of cards built on the consumer’s willingness to believe will collapse, and the game will be over for your luxury brand. Godiva shouldn’t be selling chocolates at Kroger any more than Tiffany’s should make a move into Wal-Mart. All rationalizations and wishful thinking aside, “mass” and “class” have always been mutually exclusive marketing concepts, and always will be."

Monday, November 21, 2011

Chapter 8: Segmenting And Targeting Markets.

 SEGMENTATION, TARGETING AND POSITIONING
This section discusses the market to be targeted for the biscuits, coffee and cocoa range of Godiva Chocolates. There are two key markets that will be targeted for the biscuits, coffee and cocoa range of Godiva Chocolates. These markets continue to follow the current market scattered to by Godiva Chocolates. These are the corporate segment and the fluent retail market. The corporate segment consists of two key groups for specific purposes. The first group is for business gift giving which is an all-year round market but does have its peak during the holiday gift giving season. The second group is for corporate incentives program which are utilized by corporates for sales incentives, recognition or rewards. The affluent retail market is composed of retail clients who have a preference for premium confectionary products. The biggest group of these retail clients is found in London and, in this first year, we will continue to focus on this area for this particular retail market. It  will only be in the second and third years that we will be considering expanding our distribution channels further outside of the London area, with the exception of the one store we have in Kent. There are currently eight Godiva stores in the United Kingdom and these are located in the following (Godiva 2007):•Seven (7) are located in central London in the following areas: Covent Garden ,Oxford Street, King’s Road, Gees Court, Knightsbridge, Fenchurch Street, Regent Street• One (1) store is located in Blue water, Kent which is in the Southeast of London but which is still located relatively near London The biscuit, coffee and cocoa range of Godiva Chocolates will continue to be positioned as a premium confectionary range and priced at a significant premium relative to mass market confectionary brands and even some of the other premium confectionary brands.

Monday, November 7, 2011

Chapter16- Intergrated Marketing Communication

Gold Standard: Godiva Revamps its Marketing Strategy to Attract a Younger Audience


Godiva Chocolatier did just that to celebrate its 80th anniversary this fall, updating its direct creative approach, redesigning its retail stores and even revamping its signature gold box with new pieces and packaging. The company — which has seen double-digit direct growth in recent years — is currently smack-dab between its two busiest times of the year, the December holidays and Valentine's Day, says Beth Sash, director of e-commerce and direct marketing.Godiva's customers often buy for friends and family but aren't afraid to indulge themselves, notes Sash. "We're seeing more and more customers coming into our boutiques daily to buy one or two pieces for themselves as a treat in the middle of the day."Recent efforts to contemporize the brand have helped Godiva reach a more aspirational, fashion-forward audience, she adds. It now attracts younger people overall, 25- to 35-year-olds vs. 35- to 49-year-olds previously.
Godiva does extensive cross promotion between the catalogs, its Web site and retail stores. "First and foremost, we want customers to be able to shop in the way they're most comfortable," says Sash. "We see the catalog as a marketing vehicle that drives traffic to the Web, the phone and stores."To that end, the print catalog features navigation tips for shoppers who choose to buy online. On the print catalog page highlighting wedding favors, for example, there's a URL for www.godiva.com/favors, so users can go right to that page rather than having to navigate through the site.Catalogs are released seven times a year, in the fall, holiday, Valentine's Day, Easter, spring, Mother's Day and summer periods. During the holiday season 10 million books are circulated, and Godiva's most recent data card lists 35,200 catalog buyers from the last 12 months.Ancillary direct mail is done to support specific product launches. For example, a self-mailer was sent to create awareness for November's debut of the G American Pies Collection. Recipients were invited to bring the card into the nearest Godiva boutique that carried the chocolates for a two-piece sampler.ROI on such mailings is gauged both by who redeemed the card and who ultimately bought a box of the chocolates, using match-back analysis at the end of the season.Match-backs also are used to determine the crossover between retail and catalog customers. "Let's say we send out X number of catalogs to consumers. Well look back and see how the consumer purchased," Sash says. "Did they call? Did they go to the Web site? Did they go in-store? We'll match up the control group. It's not an exact science, but at least we're getting a rough estimate."In contrast, e-mail marketing ROI is judged primarily on direct clickthroughs.
"We pretty much look at the sales that come directly from the e-mail vs. what the cost of sending the e-mail is, knowing that there are some people who may get the e-mail and then walk in the store or call on the phone," she explains.Sash says the company doesn't really feel its competition is rival premium chocolate brands, but rather other luxury products like champagne and exotic blooms. Still, Godiva isn't about to be a wallflower this Valentine's Day.The chocolatier has planned its biggest Valentine's promotion ever, with a grand prize of a $1 million diamond shopping spree from Hearts on Fire and a year's worth of Godiva chocolates. In addition to the traditional method of finding game pieces in boxes of candy, consumers will be able to go to www.godiva.com/heartsonfire and enter online. Not missing a heartbeat, Sash says Godiva will use the opportunity to collect information from entrants for future marketing efforts.Godiva's media plans include image and tactical print in magazines like Vogue, InStyle, Harper's and Vanity Fair, as well as regional newspapers in key markets during the holidays.

Monday, October 31, 2011

Chapter 10- Product Concepts

Beyond Chocolate
Godiva Liqeur
Godiva Baked Goods

Godiva Chocolate is one of the premier chocolatiers today. These elegant, hand crafted chocolates are available in over eighty countries of the world.
Godiva was founded in Brussels, Belgium in the early 20th century by Joseph Draps. Intrigued by the legend of the generous and beautiful Lady Godiva, Draps named the company in her honor. With increasing popularity of his chocolates Daps opened the first international Godiva boutique in Paris in 1956. Other European shops soon followed.
The American debut of Godiva Chocolatiers came in 1966 in Philadelphia's prestigious store, Wanamaker's. The popularity grew and today there are over 250 Godiva Boutiques across the United States.


Godiva Chocolates Molding Process

Draps used a method called shell molding, which is still used today in the manufacture of Godiva Chocolates. The process of shell molding begins with an intricate mold into which rich, melted chocolate is poured. The chocolate is then poured out, leaving a layer of chocolate in the mold. The layer is cooled to form a shell. The shell is filled with any one of Godiva's rich centers and then another layer of melted chocolate is added. When the chocolates are cooled they are released from the mold.
Another method, book molding, is done by molding two identical molds and then putting them together. This is how the heart, the walnut, and the scallop are created.
The last method that Godiva uses is called enrobing. Enrobing chocolate is the process of taking a pre-formed center and dipping it in melted chocolate until the correct thickness achieved.
Combinations of these chocolates, both milk and dark, can be found in the famous Godiva Gold Ballotin.

Royal Godiva ClassicRoyal Godiva Classic
Amazon Price: $69.95

Godiva's Natural Ingredients

Godiva uses high quality ingredients including large amounts of butter and heavy cream which add the luxurious mouth feel that Godiva is so well known for.
Fruit, dried with a special process, are used for the fruit filled chocolates, and no artificial flavors or colors are used. This gives the Godiva chocolates a fresh flavor that just can't be created artificially.
One of the things that Godiva is known for is creating unique products rather than merely copying existing ones. For example, while many companies have peanut butter cups Godiva has created almond butter dome. Almond butter takes the dome far out of the realm of the mundane peanut butter cup. As a nod to their European roots, many of the chocolates have hazelnut praline, a traditional filling and a favorite of many Europeans


Inside a Godiva Shop

Godiva CollectionGodiva Collection
Amazon Price: $49.95

New Collections and Releases

Each year Godiva comes out with new chocolate collections. Fans wait impatiently until these amazing concoctions are introduced, often in collectible boxes and tins. The selections are always incredible, the containers always beautiful.
Godiva has very high ratings for both its product and its customer service. Many of the products are certified Kosher.
Fall 2008 Gold Ballotin
The new Ballotin for fall contains 36 pieces of the luxurious chocolate. Included in the 36 piece collection are:
  • Dark Chocolate Ganache Bliss
  • Milk Chocolate, Pecan Caramel Duet
  • Macadamia Mosaic
  • Midnight Swirl
  • White Chocolate Rapsberry Star
  • Praline Heart
  • Much more
The Ballotins are available in both larger and smaller sizes. From a tiny four piece collection to a huge140 piece collection there is a Ballotin for every taste and budget.

Monday, October 24, 2011

Chapter18- Sales Promotion and Personal Selling

Sales Promotion

Godiva launches mobile application for chocolate sales
Godiva launches mobile site for chocolate sales Godiva understands the importance of the mobile channel for its brand
Godiva Chocolatier opened yet another sales channel with the inauguration of a mobile application that plays on the impulses of chocolate-lovers.
The Godiva Mobile commerce platform was developed in partnership with Digby. The new application provides access to Godiva's best-selling products, which are updated daily to keep content fresh.
"Mobility represents the fourth leg of a multichannel marketing strategy," said Dave Sikora, CEO of Digby, Austin, TX. "The first legs were retail stores, catalogs and the Web and now mobile has come into the picture, creating another opportunity and another channel.


"Mobility is different than the other three legs, as it is a significant opportunity for merchants and retailers to get close to their customers," he said.
Godiva Mobile is meant to make lives easier for consumers who haven't planned in advance or want to buy chocolates while on the move.
The chocolate brand sells through retail stores, catalog, e-commerce and corporate sales. Campbell Soup Co. sold the brand recently to a Turkish company. Adding mobile to the channel offerings extends Godiva's reach as well.
Users can visit www.godiva.com/mobile to download the Godiva commerce platform. Once downloaded, the platform gives users a directory of Godiva products with the option to buy right on the spot.
Digby is a mobile commerce platform provider whose flagship service, Digby Mall, includes content from retailers such as Barnes & Noble, Godiva Chocolatier and FTD.com.
The Godiva mobile application gives consumers quick access to Godiva's most popular products. Consumers can also complete a shopping transaction in less than thirty seconds from a BlackBerry smartphone without having to endure the frustration of using a mobile browser. The transactions are password-protected.
The application includes product descriptions and full-color images. Users can even integrate their address book with the application, which offers the ability to enter shipping information with a few clicks.
Consumers with GPS-enabled phones can get access to Godiva stores in their areas.
"When you think about mobility and people who are mobile, they tend to be very busy," Mr. Sikora said. "People are usually trying to get something specific done when using their mobile phone and aren't just browsing like they do on their PC. Therefore mobile devices do not have your entire attention like the PC does.
"[Digby's] platform gives retailers the ability to play on the reflex of the consumer," he said. "We are letting merchants be in the palms of the consumer's hand, while at the same time providing convenience to the person."

Friday, October 14, 2011

Chapter 17- Advertising and Public Relations

Major Types of Advertising

Institutional Advertising: Since the mid-1990s, interactive marketing has taken on greater importance in the company's direct marketing area. In 1994 Godiva was the first Campbell Soup Company to launch a web site. According to Susan M. Dingwall, head of direct marketing for Godiva, the company hoped the web site would bring in 15 percent of its direct mail business in 1996. The Godiva web site includes online ordering, recipes, a list of new Godiva products, a store locator, and an ongoing soap opera entitled, "Murder and Fine Chocolates." Godiva has maintained an upscale, golden image for its product. The company has created this image through its advertising, packaging, and distribution. Godiva calls its advertising campaign "silhouettes." This campaign has been designed to "reflect a more approachable, warmer, friendly mood," according to Godiva literature. It is intended to project "a Godiva whose premium image is more generically perceived." Godiva advertises its chocolates in "upper tier" magazines including Bon Appetit, Forbes, Food & Wine, Travel & Leisure, and Gourmet.


Product Advertising: Godiva makes premium chocolates in a myriad of flavors, shapes, and assortments. The Godiva catalog lists approximately 40 different products including chocolates, cocoa, coffee, and biscotti. The Godiva signature assortment is its Gold Ballotin, offered in seven sizes. The Ballotin is a gold box embossed with the Godiva logo and wrapped with a gold tie. The word "ballotin" comes from the French diminutive "ballot," which means small package of wares for sale. There are ballotins to mark every occasion including birthdays, weddings, births, and all holidays. Truffles are another famous Godiva assortment.

Monday, October 10, 2011

Chapter 15- Retailing

The Retailing Mix-

Product: Godiva chocolatier Truffles

Location: Godiva 5th ave store between 52nd and 53rd hrs:9am-8pm saturday 9am-10pm sunday 9am-6pm

Promotion/strategy: online website,catalogs,paper ads,commercial

Prices: a twelve box of assorted chocolate truffles cost $24

Presentation: the atmosphere of the store is elegant and high class

Personnel/customer service: friendly,builds a personal relationship with the customer, very attentive, provides info on their products,uses persuasion to coax the customer into buying one if their products

Saturday, October 1, 2011

Chapter 6- Consumer Decision Making

Consumer Behavior
  • 66% of chocolate is consumed between meals
  • 22% of al chocolate consumption take place between 8pm and midnight
  • More chocolate is consumed in the winter than any other seasons
  • Interested in buying luxury products and enjoying up-maker tourism
  • Big spenders on wellness, accounting for 14%of their passion dollars
Shopping Behavior
  • General gift giving- Bithday, romantic gesture, thatnk you, etc.
  • Seasonal- New Year, Easter, mother's day, Valentine's day and other Holidays


Saturday, September 24, 2011

Chapter #5- Developing a Global Vision


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.

Wednesday, September 21, 2011

Chapter 4- The Marketing Enviorment

Godiva's Target Market- Women and Men who are in charge of planning events such as wedding, formal parties and business events.

External Enviorment 

Godiva launches integrated online strategy with Range Online Media

Godiva Chocolatier has selected Range Online Media to work with the chocolate and gourmet gift company on an integrated online strategy consisting of paid search, search engine optimization and media services.
“We have really great ideas on how we want to build a cohesive plan and look at how all the media work together, said Misty Locke, co-founder and president of Range Online Media. “Together, we're really going to elevate their search and online media.” Before working with Range, Godiva managed its paid search in-house and outsourced its search engine optimization, Locke explained. She added that Range expects to have a kickoff meeting with Godiva on June 25. “We've already started transitioning all of the campaigns,” she said. Although Locke could not comment on specific marketing plans for the chocolate company, she spoke generally of the challenges luxury retailers face. “Luxury marketers tend to have a very loyal customer base so when you're trying to expand a brand and get new customers I think that's a challenge for most luxury retailers,” Locke said. “So you have to be very strategic about acquiring new customers and not watering down your brand.” Range's other luxury clients include Neiman Marcus Direct, Hermes of Paris and Burberry. Godiva did not respond to a request for comment by press time. However, in a statement, Beth Sash, business director, e-commerce and direct marketing for Godiva Chocolatier said, “Aligning with Range Online Media and utilizing their understanding of our unique marketplace is a natural fit as we seek to further expand our online presence and our base of customer loyalists.”

Sunday, September 11, 2011

Chapter 3- Ethics and Social Responsability

As chocolate lovers, we all have our favorite Godiva pieces. But do we always know whats in the chocolate that makes it so rich and irresistable?Ethically, Godiva's chocolate is best known for their rich expensive chocolate, but can everybody afford it? The Godiva consist of "high quality" chocolate, but ethically they dont reach out for a group of customers that can afford it.
Godiva's provides for information about the chocolate and their types of brand but they dont provide information of how the chocolate is made, such as the ingredient and how much calories it is. A lot customers go by presentation and most of these ingredients can cause high cholesterol and high blood pressure.




Godiva's social Responsability is show on this article below.



LIVE LIFE SWEETER, LONGE

Heart disease is the number one killer of American women in the United
States and Godiva Chocolatier has great potential to be a philanthropic partner with
the American Heart Association. We came up with the idea of partnering with the
American Heart Association after coming across research about the health benefits
dark chocolate has on your heart. Research suggests consuming a small bar of dark
chocolate a day can reduce high blood pressure and LDL cholesterol by up to ten
percent, while giving you additional endorphins to boost your daily mood! This
partnership seemed like a logical way to increase daily purchases while educating
consumers about the risks of high blood pressure and cholesterol.
With the American Heart Association, we suggest Godiva produce a special
line of dark chocolate products (solids, bars, truffles, etc) packaged in red foil
wrappers, in lieu of the signature gold foil. Printed inside the wrappers will be
healthy heart facts to educate consumers, specifically women, about the risks of
heart disease. Some examples include: “A positive attitude is a very important part
of staying healthy,” “Add physical activity into your day by walking, jogging, cycling
or dancing with someone you love,” “This chocolate contains Oleic Acid; a healthy fat
that is also found in olive oil,” “Heart disease is the #1 killer of American Women.
Visit www.americanheart.org to find out more.” Our idea is to annually donate one
third of the profits from the American Heart Association product line directly to
American Heart Association’s “Go Red For Women” campaign, that educates women
about the dangers of high cholesterol and blood pressure, while raising money for
the research, treatment, and diagnosis of cardiovascular diseases. Every time
someone purchases a piece of red, foil wrapped dark chocolate, Godiva will donate
money to the American Heart Association’s cause.
We also found that February is the National Heart Health Month. In
accordance with the product line, Godiva pledges to donate ALL profits made from
the American Heart Association product line during the month of February to free
heart examinations. Godiva and the American Heart Association will sponsor a bus
that travels from city to city performing free heart screenings for anyone interested.
It will be a great way to help people lead healthier lives, without the expenses. We
believe the product line and free heart screenings are excellent ways to incorporate
philanthropy to the Godiva name while increasing daily consumption of Godiva
chocolates in a health conscious world. We want everyone to be able to “Live Life
Sweeter,” longer.

Here are also some ethical comment people made about Godiva the company.

Pros
The pay is good and work/life balance is somewhat achieved only because my job is in California, where we are not allowed to go over 40 hours (8per day), without going into overtime. The company is very strict on avoiding overtime, but of course they have their ways of getting around this. The 50% discount is attractive if you like chocolate. I have a built an amazing team at my store and we all treat each other with respect and dignity.
Cons
This company could learn something from the example of the team at my store. I am on my third district manager this year. He is completely incompetent and clueless when it comes to people. This job is all about sales and money. Nothing else. The company rolled out a new mission called "Our Way", which is a complete joke. It encourages feedback, but when you offer it, you are accused of being negative and making excuses.I thought the problems were just with the district manager. And don't get me wrong. He is a horrible boss. But he was trained well by his boss, the regional director. She chews you up as quickly as she spits you out. You give them your goals and they laugh in your face. You answer their questions with well thought-out responses and they call you names.
Godiva likes to call themselves a "luxury brand". They compare themselves to high-end retailers like Nieman Marcus and Saks Fifth Avenue. How many "luxury retailers" do you know that require employees to stand in front of their stores, yelling at passers-by like common carney-folk, trying to get them to come inside the store. In Godiva's world this embarrassing tactic is known as "grabbing". And it must be done everyday, without exception. This is supposed to "delight" the customer. "Delight" is one of the standards of "Our Way".Another way we delight our customers is by constantly and relentlessly selling extra product to them. We are trained to suggest our highest-priced items to our customers, regardless of if that item fits their needs. Then we are to continue selling to them until they tell us to STOP! Then we are supposed to continue after that. Sounds delight-ful, doesn't it.



Friday, September 9, 2011

Chapter 2- Strategic Planning for Competitive Advantage

Gold Standard: Godiva Revamps its Marketing Strategy to Attract a Younger Audience


Godiva Chocolatier did just that to celebrate its 80th anniversary this fall, updating its direct creative approach, redesigning its retail stores and even revamping its signature gold box with new pieces and packaging. The company — which has seen double-digit direct growth in recent years — is currently smack-dab between its two busiest times of the year, the December holidays and Valentine's Day, says Beth Sash, director of e-commerce and direct marketing.Godiva's customers often buy for friends and family but aren't afraid to indulge themselves, notes Sash. "We're seeing more and more customers coming into our boutiques daily to buy one or two pieces for themselves as a treat in the middle of the day."Recent efforts to contemporize the brand have helped Godiva reach a more aspirational, fashion-forward audience, she adds. It now attracts younger people overall, 25- to 35-year-olds vs. 35- to 49-year-olds previously.
Godiva does extensive cross promotion between the catalogs, its Web site and retail stores. "First and foremost, we want customers to be able to shop in the way they're most comfortable," says Sash. "We see the catalog as a marketing vehicle that drives traffic to the Web, the phone and stores."To that end, the print catalog features navigation tips for shoppers who choose to buy online. On the print catalog page highlighting wedding favors, for example, there's a URL for www.godiva.com/favors, so users can go right to that page rather than having to navigate through the site.
Catalogs are released seven times a year, in the fall, holiday, Valentine's Day, Easter, spring, Mother's Day and summer periods. During the holiday season 10 million books are circulated, and Godiva's most recent data card lists 35,200 catalog buyers from the last 12 months.

The chocolatier has planned its biggest Valentine's promotion ever, with a grand prize of a $1 million diamond shopping spree from Hearts on Fire and a year's worth of Godiva chocolates. In addition to the traditional method of finding game pieces in boxes of candy, consumers will be able to go to www.godiva.com/heartsonfire and enter online. Not missing a heartbeat, Sash says Godiva will use the opportunity to collect information from entrants for future marketing efforts.Godiva's media plans include image and tactical print in magazines like Vogue, InStyle, Harper's and Vanity Fair, as well as regional newspapers in key markets during the holidays.

Godiva's Mission Statement

Godiva’s mission statement is to go global and to promote a high quality
product and service. Godiva chocolate is made to bring sheer delight to their
customers. Their slogan sounds like: “Look, smell, listen, feel and taste that’s
what Godiva chocolate is all about.” The corporate objective is the expansion of Godiva. The store locators can be in Godiva Boutiques, a total of 23 franchises as well as fine department
stores, duty free locations and other gourmet shops that carry Godiva pralines a total of 277 stores.


The History of Godiva a Rich Chocolatier

It all started back in the day more like fourteen centuries before Godiva introduced luxury chocolates to the American market. The cocoa bean is considered a original symbol in the Mayan and Aztec cultures. They use the beans as currency. Those wealthy enough to have an excess of beans use them to make a chocolate drink that gives them "wisdom and power". In 1926 in where the name "Godiva" came from.

1926 - Lady Godiva

Mass production of chocolate servered create a universal appetite for the confection, in all its forms. But it also spured a growing demand for "luxury" chocolates made with the choicest ingredients by expert chocolatiers who blended flavors and textures into formidable, one-of-a-kind taste experience.
The Draps family begins a chocolate-making "atelier" in Brussels, the city that introduced chocolates to the Swiss more than two centuries ago. Some years later, the Draps' son, Joseph, takes over the company and, at his wife's suggestion, names it after Lady Godiva whose legendary exploit made her name synonymous with grace, nobility and flair. Draps' vision is to create the world's most elegant, handcrafted chocolates for discerning consumers.You all must be asking, who is Drap. Drap was the Godivachocolatier founder
 80 years ago. His full name was Joseph Draps in Brussels,Belgium. He name the company after a famous legend named Lady Godiva. The first Godiva shop to be opened outside of Belgium was opened in Paris on the Rue St,Honore, which is known for its fashionable stores and people. By 1966 Godivachocolates were selling exceptionally well in Europe so the company decided toexpand its consumer reach by selling to high end strip malls in North America. In 1967 Godiva was purchased by Campbell Soup Company. Five years afterthe company was purchased  Godiva opened its first boutique in New York on Fifth Avenue.It's not surprising that Godiva Chocolatier, one of the
creators of the world's most elegant, hand-crafted chocolates, originated in
Brussels, Belgium. For generations, Belgium has had a tradition of
perfectionism, from its Rubens paintings and gothic architecture to products
made of intricate lace, glittering crystal and its fabulous cuisine.
In keeping with this tradition, Joseph Draps introduced
Godiva chocolate to Belgium in 1926. Draps opened the doors to his shop on a
cobblestone street on Grande Place, selling his unique formula of rich
chocolate with unparalleled smoothness. With a remarkable eye for detail, he
set forth the standard at Godiva for innovative selection of elegant, European
shell-molded designs and beautiful packaging.
Through the years, these standards have been maintained as
assiduously as Draps' recipes have been guarded. As a result of this adherence
to Draps heritage, Godiva chocolates evoke the greatest in confectionery
excellence. The same careful attention to quality is apparent in the exquisite
European-style gold ballotins and handcrafted seasonal packaging that have earned
Godiva a reputation for design excellence.