Godiva Europe

OVERVIEW

In 1974, Godiva was acquired by multinational Campbell Soup Company. Godiva International is made up of three decision centers: Godiva Europe, Godiva USA, and Godiva Japan. Godvia European is headquartered in Brussels, Belgium. The companyЎ¦s factory is also situated in Brussels, from where products are exported to more than 20 countries throughout the world, including Japan. There is another production unit in United Sates, which can provide about 90 percent of the needs of the U.S market, with the remainder being imported from Belgium.

Godiva European launched the CorneЎ¦ Toison dЎ¦Or brand. The original purpose that Godiva European acquired the Corne Toison dЎ¦Or brand is to differentiate the positioning of the brand CorneЎ¦ Toison dЎ¦Or brand. Godiva Japan is solely concerned with marketing, distribution, and sales of Godiva chocolates and imports the product from Belgium.

Prior to 1991, Godiva European experienced a loss of $10 millions, said by Charles van der Veken, President of Godiva European. Because of the changes of decoration and design of the remaining stores and established precise rules of organization and functioning applicable to those stores, these changes led Godiva transform a loss of 10 million francs to a profit of $13 million francs in 1991. Charles van der Veken is faced with the evaluation of advertising strategy.

STRATEGIC ISSUES AND PROBLEMS

1.Should Godiva allocate $13 million Belgian francs to a saturated European market or apply the $13 million for the international market?

2. Is it possible for Charles van der Veken to create a common advertising message for the entire world?

SWOP ANALYSIS

1. Strengths:

a. A integration into multinational Compbell Soup Company for global expansion.

b. A antique and high quality of brand image internationally

c. A handmade and delicate flavor of chocolate pralines with luxurious packaging

2. Weaknesses:

a. The great fluctuation of seasonality of consumption among countries may expose the problem of the planning of production and profitability.

b. The great disparity between the Godiva boutiques in different countries degraded GodivaЎ¦s brand image, mainly in European and even more particularly in Belgium.

c. The Godiva brand image has aged.

3. Opportunities:

a. The well performance with worldwide consumption of confectionery chocolate Customers pay attention to brand names and to the quality image communicated by chocolate packaging and advertising.

b. The transformation of purchase behavior from the wealthy to a mass-consumption product.

c. In Spain and Portugal, CustomersЎ¦ attitudes toward chocolate are very positive.

d. In Belgium,Customer prefers a package where he or she may select the assortment.

e. In Belgium, Chocolates are functioned as a gifts not as self-consumption.

4. Threats

There are mainly three competitors in European market: Neuhaus, Corne, and LЎ¦eonidas.

a. There is not any clearly difference of brand images among Neuhaus, Corne,and Godiva.

b. Compared with LЎ¦epmodasЎ¦s market share of 43 percent, Godiva just holds 10 percent of the market share in Belgium.

c. In France, The LЎ¦eonidas holds the largest market share and sells through 250 boutiques. Godiva and several French chocolatiers are occupied a small share.

d. British are more conservative and economic climate is not very favorable for a luxury product.

e. In Germany, a Ў§chocolates cultureЎЁ does not really exist. Germany appears to be satisfied with a classic chocolate bay and does not yet place much importance on the distinctive qualities of fine chocolates.

INSIGHTS ROM THE GODIVA EUROPE COMPANY

a. CustomersЎ¦ preference is difference among countries. The France prefers drier and bitter chocolates.

b. There is difference of consumption habits among countries.

c. The market in Belgium is too saturated.