Marketing Plan for GODIVA HONG in the Netherlands GODIVA HONG Chocolate therapy Introduction This report consists of a situational analysis and a potential market analysis of Godiva Hong. This report is prepared by the RBS Marketing Consulting Firm. RBS is the only authorized marketing strategic partner of GODIVA in Europe.
The purpose of this report is to attain insight into the success-increasing factors (strengths) and the value-decreasing (weaknesses) factors of introducing Godiva Hong to the Netherlands, and produce a feasible marketing strategy with which the product can be introduced. The analysis is done with the help of a SWOT-analysis. The market environment consists of both the macro environment and the micro environment. The structure of this marketing plan is based partly on the structure presented in Export business plan The Netherlands (2009). 2] Other academic books referenced for this report’s structure and data will be stated in the reference. 1. Profile 1. Company Profile The Godiva Company was founded in Belgium in 1926 for the production and retail confectionary products. The company was founded by Joseph Draps and was named after Lady Godiva; “a woman of great generosity and beauty left an indelible impression upon the people she reigned over in Coventry” (Godiva: 2012).  Since its inception the company has kept to its tradition of making chocolates with “a unique formula of rich chocolate with unparalleled smoothness” (Godiva: 2012). 3] The company has maintained its image of confectionery excellence by paying careful attention to quality, innovation and design, evidence of the latter can be seen through their exquisite European-style gold ballotins and handcrafted seasonal packaging. Till date the company owns and operates over 450 retail shops and boutiques worldwide and issues out six seasonal mail order catalogs yearly (Godiva: 2012).  2. Company Product Godiva offers a wide range of products from chocolate assortments and truffles; chocolate bars; chocolate treats; biscuits, coffee, and cocoa; dark, milk, and white chocolate gifts to baked desserts.
The company just recently started producing a line of cocktails called Godiva Liqueur (Godiva: 2012).  The company Godiva, plan on introducing a new line of chocolates onto the Dutch market in 2012. The new product is called Godiva Hong. The product is a special blend of Chinese red bean paste with a rich dark chocolate coating. The product seeks to blend the traditional exquisite look, smell and delicious taste of Godiva chocolates with an equally tasty red bean paste that has health benefits. The name “Hong” was given to give the product an oriental feel. Hong means red in Chinese and the color symbolizes luxury and joy. 3.
Company Mission “A passion for innovation and luxury combined with a truly memorable experience contained in each mouthful has made Godiva legendary. ” (Godiva 2012)  2. DESTEP analysis 1. Demographic Analysis: According to CBS, the Netherlands is the 27th most densely populated country in the world. The 16 million Dutch men and women are concentrated on an area of 41, 52 km?. This means that the country has a population density of 397 per km?. The emigration rate in the Netherlands is high, for this reason the population growth is expected to decrease while the aging of the population is expected to increase. Education level
According to the OECD Health data, the Netherlands has a relatively the high education rate compared to other countries in Europe. 21 % of the educated population has university degrees. Eating and buying habits Dutch consumers have diverging eating and buying habits, consumers are paying more and more attention to having a healthier lifestyle. They are eating healthier, exercising more and as a result of globalization are welcoming healthy foods and trends from other cultures (Terry B. , 2012) 2. Economic Analysis. The economical structure of The Netherlands is characterized as open, outward-looking and thinking out of the box.
The Dutch economy has a strong international focus, as the Netherlands is one of the European Union’s most dynamic centers of trade and industry. Owing largely to its favorable location by the North Sea, it plays a key role as a main port and distribution centre for companies operating worldwide. Amsterdam’s Schiphol Airport is one of the largest airports in Europe. For these reasons the Netherlands is often called, the Gateway to Europe. (Diane L. , 2011). On the other hand economic growth declined in by 0. 9% in the 4th quarter of 2008. According to CBS, the economy declined a further 3. 50 % in 2009 and another 0. 5 % in 2010. (Svend H. , 2008) Purchasing power In figure 1 shows a chart of consumer purchasing power in the Netherlands. It can be observed from this chart that before the recession consumers had a high purchasing power. (Terry B. , 2011) Fig. 1 Purchasing power of consumers in the Netherlands | |Purchasing Power developments | |Periods |% | |2004 ~ 2005 |-0. | |2005 ~ 2006 |3 | |2006 ~ 2007 |3. 1 | |2007 ~ 2008 |0. 3 | |2008 ~ 2009 |1. | |CBS, 7-12-2009 | | 3. Social and environmental Analysis Dutch people are open-minded; they are adaptable and welcome or often embrace new cultures from all over the world. (Diane L. , 2011). Majority of the people in the Netherlands speak English and more often than not other European languages. Dutch people tend to be very private; this however does not mean they are not welcoming simply value their privacy and respecting the privacy of others.
The Dutch are also not known for their display of wealth for this reason it is very hard to distinguish between the well to do and poor in the Dutch society. 4. Technological Analysis Modern technology has been a major cause of the change in living standards in most countries. The Netherlands like many other developed countries has taken full advantage of this phenomenon to create a seemingly comfortable life for its citizens. One of the key tools that have played a monumental part in this transformation has been the internet.
Since the creation of the World Wide Web in the early 1990s, the Internet has been transformed from a mere communication tool into an undeniably incredible technology. The internet has since single handedly managed to revolutionize the way communication, business is done in today’s world. Since its inception, many tools have been developed to enable the conduction of business through the internet; one of which is e-commerce. E-commerce is a collective term used to describe the various methods of making online payments. E-commerce makes trading convenient and substantially reduces the costs involved in making trades. . Ecological Analysis The ecological rules for doing business in the Netherlands have been tightened in recent years; environmental health and safety have become very important. Businesses that wish to operate in the Netherlands have to adhere to these strict rules (HACCP rules) or face sanctions and fines. The ISO standard was introduced in the Netherlands in 2005. The ISO standards have a lot of requirements for management systems for the food industry in the Netherlands, these help to ensure safety in food chains. Alternative packaging
Alternative packaging is a hot topic in the fast consuming goods industry. Paper, tinned paper, paper box and plastic box are still frequently used in chocolate industry. However, in recent years, moves have been made to replace paper with PP material, which is cheap and excellent at protecting chocolate from heat. On the other hand PP material ages easily and has a tendency to break in low temperatures. 6. Political The Dutch government is what one calls a “monarchical government”, meaning that it is not only comprised of the ministers and the state secretaries, but also the monarch, Queen Beatrix.
Another term for describing this is: a constitutional monarchy with a parliamentary system, whereby the constitution has determined how the powers are divided between the Queen and the other institutions of the government. (Holland Handbook, 2011)  The cabinet’s responsibilities are: preparing and implementing legislation, overseeing the local government, carrying out the day-to-day business of government and maintaining international relationship. There are two houses (the Lower House and the Upper House) in the Parliament.
The Lower House is elected directly by people and the Upper House are elected by the members of the provincial councils. The two Houses of Parliament have been given 4 rights: the right to set a budget; the right of interpellation; the right to put questions to ministers and state secretaries; and the right of inquiry. Furthermore, the Lower House has been given two additional rights: the right of amendment and the right to propose legislation. (Holland Handbook, 2011) The Netherlands not only has a central government, but also provincial and municipal government and the water boards.
The central government is responsible for national interest. The provincial government concerns social work, cultural events, environmental management, energy and sports. The municipal governments occupies traffic, housing, social services, health care, water supply, education and recreation. In order to secure these activities, the provincial government and the municipal government receive fund from the central government and levy tax. The aspect is deserve to be noticed before launching a marketing plan is the Netherlands operates the same taxation system as all European countries.
Currently, the standard VAT rate is EU is 19% with a reduced rate of 6% only applying for certain goods and Service. (Government Profile: 2011) Upon business-based aspect of Dutch politics, a change of government does not usually impact domestic and international business dramatically. All in all, the Netherlands, as a the gateway to Europe, the government protects and supports its development by emphasizing strongly on tax law, health, labor, company , commercial, civil, environment and intellectual property matters. 3. Competitive Analysis-Applying Porter’s five forces . 1 Threat of new entrants The threat of new entrants to Godiva can be analyzed from the following aspects: Supply-side economies of scale; Godiva chocolates are produced in Belgium and the USA to satisfy demand worldwide. However, the company’s products which are specialty goods are not produced on a large scale, this results in the fixed costs per unit being relatively high. A new entrant could use this to their advantage by producing relatively more and competing on price. Capital requirement; a large sum of money is needed to establish a complete producing line.
A new entrant will have to fund, fixed costs such as factory and machines, variable costs such as raw material, labor force, and advertisements. In addition, chocolate distribution is not easy. Special considerations like the temperature, and damage during transportation, will need to be taken into consideration. This will demand more requirements from a Third Part Logistics provider which will result in a high distribution fee. When all these factors are considered, the threat of new entrants to Godiva is not high. 3. 2 Bargaining power of suppliers The bargaining power of Godiva’s supplier is high.
The reasons are numerous. The key raw material for the production of chocolates is cocoa beans; these are grown in South America, Africa, and Middle East Asia. However, Godiva uses only high quality cocoa beans in the production of its chocolates and these are hard to come by, so once a supplier is selected, a corporative relationship is cultivated in order to maintain a long business relationship. The bargaining power of raw material supplier is therefore high; since the supplier can easily decide to sell his cocoa beans to Godiva’s competitors. 3. 3 Bargaining power of buyers
The diversity and highly differentiated chocolate products of Godiva keep the bargaining power of customer at a low level. As one of the most famous Belgian chocolate producers with loyal customers worldwide, when buyers think of buying chocolate with wonderful flavors and elegant packaging, they think Godiva. Same as Victoria’s secret and Starbucks, Godiva mainly focus on creating surprise, passion, and excitement around its brand (Philip Kotler, 2008).  It is also difficult for buyers to integrate forwards into Godiva due to its special handmade product line.
The bargaining power of buyers is therefore low. 3. 4 Threat of substitutes Although current market full of hundreds of chocolate producers with very competitive products, Godiva still has a stable market share. Godiva achieved this by positioning its self away from mass markets and associating its brand with other luxury brands like Armani Exchange, Victoria’s secret, Bose, Tiffany & Co, Coach, and so on. These companies share common characteristics, such as portrayal of desirable luxury in their product design or taste and their high, but not too expensive price range.
Godiva does not consider mass market products like Mars and Snickers its substitutes but rather luxury gift items like champagne, expensive jewelry or products from other high-end chocolate brands like Guylian, Neuhaus, and Leonidas, when these other product are considered the potential threat is high. 3. 5 Industry competitors The industry competitors at the same level as Godiva are few. However, Godiva’s product assortments are more deeply differentiated than that of the others. The cost of switching from other brands to Godiva for a customer is relatively low.
Godiva spreads its fixed costs per unit by producing large quantities compared to its competitors; because of this Godiva’s prices have remained competitive. In addition, Godiva has over 450 special stores and more than 1000 retail shops, which have already taken up a sizeable market share. All these factors considered makes Godiva’s, exit barrier relatively low. However, rivalry is expected to intensify when competitors launch marketing strategies such as price changing, publishing new products, and improving customer service.
Especially during special holidays like Easter, each company will launch new product to attract more market segments. 4. Competitor’s analysis Among the competitor’s list, the strong competitors of Godiva in the Netherlands are: Neuhaus, Leonidas and Guylian 1. Competitor one: Guylian Guylian chocolates are sold in over 100 countries across Europe, Asia, Australia and America. It is one of the top ten best selling boxed chocolate brands, and often seen on Valentine’s day, Mother’s day, Easter, Christmas and other popular holidays. 17] Products: Guylian’s chocolates range includes the world famous chocolate Sea Shells, truffles, assorted pralines, bars and many other gourmet creations. All made in Belgium with the finest Belgian chocolate. Strengths: • Strong brand names; • High quality chocolate made by pure cocoa butter; • Highly distinctive chocolate like Sea shells and sea horse, sugar-free dark chocolate ; • Available in most major high street retailers, including supermarkets, hypermarkets, department stores, specialty food stores, petrol stations, duty free shops. Weaknesses online-shop are not available Marketing strategy: • Constantly launching new accessories to meet customer’s special requirement. Special holidays, for instance, Guylian designed new greeting cards and chocolate boxes to enrich their product display. • Enhance product line by producing luxury sea shells and sea horse chocolate. • Enhance public realization through taking part in different product exhibitions and social activities. 4. 2 Competitor two: Neuhaus The Neuhaus group is an independent manufacturer of pralines and other chocolate delicacies in the luxury chocolate sector.
It is established in over 50 countries with 1500 sales outlets.  Products: Neuhaus’s chocolate products consist of Pralines, Ice Cream, Confectionery, Boxes, and other chocolate. Strengths: • Very strong brand name which has over 100 years Belgium Royal chocolate; • Deeply differentiated product line; Concentrated on their core products; • Neuhaus products are available in many boutiques, department stores, shopping centers, airports and online-shopping center. • Favorable access to distribution networks; Well organized online customer service Weakness: • Fewer specialty stores in the Netherlands. • Price is comparatively high. • Niche market share Marketing Strategy: • Focus on their core business; • Special customer service: offer corporate discounts starting for order of $1000 or above; Provide free customize gift card with logo ; • Use newsletter to receive customer’s feedback and improve their products. Guarantee customer’s buying chocolate will be delivered next morning. 4. 3 Competitor three: Leonidas
Leonidas is a world-renowned chocolate maker. It is famous for its freshness, generosity and traditional taste. It’s selling over 100 different kinds of Belgian chocolate through 1,400 outlets around the world.  Product: Butter cream chocolates; Special cream chocolates; Ganache chocolates; candied fruit; Marzipan; Liqueur cream chocolates; Cream caramel chocolates; Pralines; Plain chocolate Strengths • Clarify assortment of products according to ingredients, design, occasions and taste. • Good reputation among customers With 250 specialty stores in the Netherlands, customers can buy their products at any city • Price is acceptable even for personal consumption Weaknesses • Online shop is not available; • European market too saturated Marketing Strategy • Launched a new premium product line “L”, smaller and more refined chocolate, similar to Godiva’s ‘G’ collection (Chang Sub Kim, Deyeon Kim, March, 2008) • Clear organization mission: A century of freshness, generosity and tradition • Large number of shops to create a sense of “A word of chocolate is closer than you think” for customer . SWOT ANALYSIS | |Strengths |Weaknesses | |Environme| | | |ntal | | | | | | | | |.
Efficient and effective distribution channels and |·New taste | | |systems | | | |·High-quality product | | | |·Healthy product | | | |. High market share | | | |.
Unique taste | | | |. Unique design | | | |. Product specialty | | | |. Existing marketing policy | | | |. High market share | | | |.
New Marketing policy | | |Organizat|Opportunities |Threats | |ional | | | | | | | | | | | | |·Expanding the market |.
Substitute product | | |. Product Diversification |. Competitors | | | |. Product extension | 5. 1 Strength: Healthy product: Godiva Hong is has health benefits; according to Chinese medicine the red beans that we will used in the new chocolates have health improving effects. Scientific research has proven that the red beans are a good source of protein, soluble (and insoluble) fiber, folate (vitamin B12), magnesium, potassium and a number of other health promoting nutrients.
The researchers concluded that it reduces heart attack by more than 80% . According to USDA researcher Ronald Prior, red beans contain even more proanthocyanidins than blueberries, cranberries, and small beans . So it is one of our most important strong points that we will be providing health with taste. High quality: Godiva is already famous for its high quality products. Godiva Hong, will offer customers the same quality in taste and exquisite design of its packaging. Godiva considers its quality as one of its strengths because it already has a satisfied amount of targeted consumers; its experience in this field becomes its strength.
Efficient and effective distribution channels and systems: Godiva has a very efficient and effective distribution system. Godiva Hong can be ordered online from Godiva’s official website or other websites. It can also be ordered via telephone. Existing marketing policy: Godiva has various strategies for marketing its products. The company has its own website that has a web shop, they also have a catalogue system; their catalogs are released usually in the fall, holiday, Valentine’s Day, Easter, spring, Mother’s Day and summer periods. During the holidays 10 million books are circulated. Godiva’s most recent data card lists 35,200 catalog buyers from the last 12 months.
They are also well equipped with seasonal promotional offers and strong media coverage policy.  This existing marketing policy will be used to help promote Godiva Hong. Unique taste: The new product has a rich chocolate coating outside with traditional Godiva flavor and a red bean paste inside. It will have an aroma that evokes interest, curiosity. The product will merge the unique taste of sweetened red bean with the traditional rich taste of Godiva dark chocolates. Unique design: The packaging for Godiva Hong will be an elegantly designed bamboo box covered in red silk. In Chinese tradition the color red symbolizes warmth, passion and luxury.
The design and color of our package is to stir up these feelings in our clients. The use of Chinese materials in the packets of Godiva Hong will give it a unique texture [pic] Product specialty: The color and all other materials that will be used for Godiva Hong will represent the brand’s luxury and excellence. Color, design, materials of Godiva Hong will be a perfect representative of Chinese culture also. High market share: According to the annual report of 2006 Godiva’s market share is in good position and its increasing . So it is a strong point for the new product. Well organized Godiva boutique established its image as a luxury good; it attracts a huge amount of customer.
We will make it stronger using our effective marketing policy. New Marketing policy: Godiva has media plans including image and tactical print in various magazines such as Vogue, In Style, Harper’s and Vanity Fair, and also regional newspapers during the holidays. Direct mailing is done to support some product launches . Exhibitions will also be organized in several shopping centers and our boutiques, free samples will be given to current customers when they visit our boutiques to buy our other well-known products. Godiva Hong will also use product placement and sponsorship to meet its objectives. 5. 2 Weakness New taste: Our main weakness is the new unfamiliar taste.
This taste is familiar with Chinese people but for European people it will be a totally new taste. It is a weakness that we need to overcome by promoting this new taste in an attractive manner: Well organized promotion, attractive packaging and designing. We will also maintain and combine the existing taste with the new product and also the same aroma so that the existing customer can identify this new product as a part of Godiva. 5. 3 Opportunities Expanding the market: After Godiva Hong has gained enough recognition with the current customers of Godiva, the target market will be expanded to include young customers (20-30) to expand our customer segment. Product Diversification:
We will diversify our product portfolio in future by promoting more new taste inside Godiva chocolate. This will open an opportunity for us to enrich our market share. Product extension: In future we will look forward to extend our product to more diverse product line. We will make Ice-cream Hong, Candy Hong and more. 5. 4 Threats Substitute product: Godiva Hong is a luxury product, the company considers other luxury products like Champaign or flower bucket its substitute. The relative price and performance of these substitute products are a threat. Still we can overcome this threat by maintaining our customer oriented marketing policy. Competitors:
In Netherlands competitors like Neuhaus, Leonidas and Guylian are able to cause great threat to Godiva because of their brand positioning and quality production. Still we can overcome this threat by establishing the uniqueness of the new chocolates with the new unique taste and its strong brand positioning policy. 6. Marketing Strategy 6. 1Marketing Objective 6. 1. 1 Awareness Objective In 2012, Godiva will embark on a campaign to introduce its customers in the Netherlands to a new line of oriental themed chocolates called Godiva Hong. 6. 1. 2 Sales Objectives • Increase overall brand sales by 3% with the introduction of Godiva Hong by the second quarter of 2014. Widen target market for Godiva Hong by focusing mainly on young adults (ages 20 – 30) by 2016. 6. 2 Marketing Strategy Since Godiva Hong is a new product, creating awareness for it will take a front seat in the company’s promotional activities. The product will be introduced through Advertisements, Exhibitions and Social Media. The product will primarily be introduced on the company’s website and its customer catalogs. The advertising for Godiva Hong will focus on staying true to Godiva’s position as a high end chocolate brand that is unique and glamorous. The adverts will appeal to the customer’s emotions by branding the product as a luxury treat.
The adverts will be telecast on all major Dutch television channels at prime times. There will also be adverts about Godiva Hong placed in luxury magazines the company already advertises in; they include Vogue, Forbes, In Style, Harper’s and Vanity Fair. The company will strike a deal with KLM to distribute free samples of Godiva Hong to their first class passengers. A similar deal will be struck with some 5 star hotels in the Netherlands to put free samples of Godiva Hong in welcome baskets. Exhibitions will also be organized in several shopping centers and our boutiques, free samples will be given to current customers when they visit our boutiques to buy our other well known products.
These exhibitions will also be used to attract new customers, and will give the company the opportunity to get feedback from our customers on what they think of the new product. The sales objective will be achieved with the aid of social media. Through data and tests conducted in the past the company has managed to form a very good picture of who its current customers are. Through these tests they know demographic figures such as, 75% of our current customers are over the age of 32, 60% have children; more than 85% have completed college. They also gathered some psychographic information such as these customers love to indulge but are still health conscious.
With the aid of this data, the company will communicate individually with these clients through social media (Face book, Twitter and blogs). The new product Godiva Hong will be introduced to them, as a treat with exquisite taste, the health benefits of the new product will also be emphasized while asking them questions and using their responses to improve on the marketing strategy. Godiva will also use product placement and sponsorship to meet its market expansion objectives. The company will hire the services of popular Dutch celebrities like artistes Nick and Simon by placing the new Godiva Hong in some of their videos. This strategy is to help make Godiva Hong attractive to young adults.
These are the tools Godiva will use to meet its marketing objectives for Godiva Hong. The company will focus first on its current clients and when enough attention has been created on the product in that domain it will widen its target market to include young adults. 6. 3 Target market and Positioning The people of Netherlands like other European countries will continue to embrace the consumption chocolates in search of indulgence. In recent years, chocolate consumption is being enhanced by a growing demand for healthier, higher quality products that incorporate new tastes. These circumstances in the Dutch market offer a good opportunity for confectionery products like Godiva Hong.
When Godiva Hong is introduced its primary target market will be the current customers of Godiva products in the Netherlands. After the product has gained recognition and acceptance from the current flock of Godiva customers the target market will then be widened to include young adult (people between the ages of 20 and 30 who have just started working careers). Godiva Hong like all other Godiva products is an upscale luxury product, and like the other products will be positioned as such. The aim is to strengthen the products position as a high-end product that customers will be proud to buy. 7. Marketing action plan 7. 1 Description of product
Godiva Hong is an oriental themed chocolate with sweetened red bean paste and a rich dark chocolate coating. Instead of traditional nut, alcohol, walnut or jam filling, GOVIDA is going to use sweetened red bean paste. It is a healthy traditional Chinese filling in Baozi, Zongzi, Yuanxiao, moon cakes and other snack. It is sweet, soft and melts smoothly in the mouth. The packaging for Godiva Hong is an elegantly designed bamboo box covered in red silk. 7. 1. 1 Product Classification Godiva already has several different product lines: chocolate assortments and truffles; chocolate bars; chocolate treats; biscuits, coffee, and cocoa; dark, milk, and white chocolate gifts; and baked desserts.
Godiva Hong is a new product with a brand extension strategy that appeals to existing market. It is a new product in the chocolate collections& treats product line. In addition to chocolates, Godiva also sells truffles, coffee, cocoa, biscuits, dipped fruits and sweets, chocolate liqueur, shakes, wedding and party favors and other items arranged in gift baskets. Godiva’s signature package is the Gold Ballotin (French for “small, elegant box of chocolates”). Godiva also produces seasonal and limited-edition chocolates with special packaging for all major holidays. Godiva also has license for the production of ice cream, cheesecake, coffee pods and liqueur that comes in several chocolate-related flavors. (Godiva, 2012) 7. 1. Package Because the target market of Godiva Hong is middle and high class people, the packaging was designed to unique and elegant in order to evoke a sense of luxury. Chinese elements were added to the design in order to give an inclination to the origin of the product: • On the wrapping paper or baskets, the Chinese knotting will be presented. • Also environmentally friendly, materials such as bamboo will be used in the design for the packaging • So our traditional package for present product line is better changed as red for main color. 7. 1. 3 Service Several special services are provided as follows: • Online and telephone order.
Customers can order Godiva Hong online or via telephone, due to a standing contract the Godiva company has with UPS they can be assured of a timely delivery. • Gift card. Beautiful gift cards and exquisitely-designed packages can be sent with every order at the customers’ request. • Unique design. Customers can get involved in the production of their chocolate orders by designing the chocolate shapes themselves with the aid of our chocolate design software online. • Name and blessings. Names and blessings can be carved into the chocolates or the packaging upon the customer’s request. 7. 2 Price The main purpose of price strategy is to price Godiva Hong at an acceptable level, while aiding in the promotion of the product 7. 2. 1 Pricing strategy for Godiva
Godiva Hong seeks to attract customers who are willing and proud to pay a little more for high quality product. Our target customers are the current Godiva customers; mainly middle and high class people who are looking for high quality chocolates as gifts for birthday, wedding, special events and business purposes. The price of Godiva products has stayed stable over many years. This proves Godiva has a strong brand image that does not compete on price. 7. 2. 2 Pricing for Godiva Hong Godiva Hong is a new product with a brand extension strategy that appeals to existing market. So, the price of our new product will be set to meet the consistency of existing product in the chocolate collections& treats product line.
Price for Godiva Hong |Beaded Easter Egg |€25 | |Enchanted Easter Gift Basket |€90 | |Signature Chocolate Truffle Assortment |€40 | |Gift Box |€30~€70 of different sizes | |Delights Gift Basket with Spring |€75 |
Price for Godiva Hong and competitors (cooperation as small size gift box) |Godiva Hong |€40 | |Neuhaus |€48 | |Leonidas |€36 | |Guylian |€20 |  7. 3 Place The main purpose of our place strategy is to choose the best distribution channels to sell Godiva Hong. 7. 3. 1 Traditional distribution channel:local malls Thanks to our existing local malls which provide maturity distribution channels, Godiva Hong can be bought wherever and whenever the customers want to purchase it. 7. 3. 2 New distribution channel: online and telephone order
In recent years, online and telephone orders have attracted a lot of attention. According to Godiva’s last marketing report, the quantity of orders through these two new distribution channels is increasing year by year. So, it is a good choice to sell Godiva Hong also through these two new distribution channels. The customer can just log in our online order website to buy chocolate as the follow: http://www. godiva-online-store. eu/index-en. htm. Due to the contract with UPS a timely delivery is assured. Other services provided on the website are gift cards. The customers can just buy it on the website. It has €30, €50, €100 different choices. 7. 3. 3 New distribution channel: co-worker website
The customers can also buy Godiva Hong on other websites as follows: • Gift for euro • Pick up flowers • Gifts n ideas These website are co-operating with our company. So the customers can buy Godiva Hong from these websites when they buy some other gifts and flowers. 7. 3. 4 New distribution channel: Fashion event& business press release Godiva is co-operating with event organizers for fashion shows and business press releases. Association with these events is to aid in the extension of Godiva Hong’s the popularity as a luxury brand. Also, the patrons of these events make up our core clients so, sales could also be generated by selling Godiva Hong at these events. 7. 4. Promotion
The main purpose of our promotion strategy is to introduce Godiva Hong to existing customers and potential consumers. 7. 4. 1 Marketing channel: advertisements Advertising is Godiva’s traditional marketing channel. Advertisements have had tremendous impact on sale of Godiva products. So we will still adapt this marketing channel. The commercial advertising will be concentrated in following Medias: • Television. The period of time that we will advertisement will be related to special event such as Easter, Queen’s Day. • Magazine. The magazines that we will consider are included Vogue, Forbes, In Style, Harper’s and Vanity Fair this kind of high-fashion magazines. • Internet including social media.
Social Media channels such as face book or twitter will be used to communicate to our clients individually on the merits of Godiva Hong. 7. 4. 2 Marketing channel: The shopping center exhibition Promotional exhibitions are also an important marketing channel for Godiva. It is soon April. Several holidays, such as Easter, Queen’s Day, are in the April. We will have promotional events in shopping centers where our shops exist. The customers can have tasting sessions for Godiva Hong in our shop for free. Feedback will be gathered from them on how to further improve the product or its marketing strategy 7. 4. 3 Free sample delivery Several main strategies are implemented to improve the popularity of Godiva Hong for the first three months. Strategy one:
Existing customers, who will buy our traditional products, will have a small Godiva Hong sample for free. Strategy two: According to the last six months order records, the Godiva Hong sample will be sent to those customers as a gift, who ordered other products of chocolate gift baskets, seasonal gifts, gifts by occasion and business gifts product lines. Strategy three: In the airport, the Godiva Hong sample will be provided in the first class of KLM. Strategy four: In some international 5-star chain hotels, the Godiva Hong sample will be provided as a gift in the welcoming basket. Bibliography and References  Cougar, 2005, Godiva Case Study, Strategic Issues, Problems, and Opportunities, [online], http://www. oppapers. om/essays/Godiva-Case-Study/65561, [accessed 15th Mar. 2012]  Diane L. , 2011, Holland Handbook, 2nd, EXPT Media,, Rotterdam, Netherlands  Godiva, 2012, Godiva Chocolatier Inc, [online], http://www. godiva. com/category/chocolate-collections-treats/id/131. gdv, [accessed 15th Mar 2012]  Ilhantek, 2006, Godiva Europe, Problems, [online], http://www. oppapers. com/essays/Godiva-Europe/90574, [accessed 15th Mar 2012]  Lofthouse, R. 2007. Luxury chocolate is piling on the pounds as Godiva becomes the latest to tempt buyers. The Business. [online]. [Published 18 August 2007]. Available from: http://www. factiva. com [accessed 15th Mar 2012].  Milmo, C. 2007.
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