SOUTHERN NEW HAMPSHIREUNIVERSITY

GraduateSchool of Business
Program: / SNHUSchool of Business Graduate Program
Course Title : / Marketing Strategies – MKT 500
Instructor: / Jeannemarie Thorpe
Due Date: / Monday, February 16, 2004
Submission Date: / Monday, February 16, 2004
Type of Assignment: / Case Analysis
Title of Assignment: / Godiva Europe – 7th Case Study
Student Name: /

Cevdet KIZIL

Student Phone #s: /

(603) 626 9302

Student E-mail: /

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Monday, February 16, 2004

Student SignatureDate:

Assignment Grade: ______

Instructor Comments:

Godiva Europe

The problem for Godiva Company is that it wants to increase the sales and profits more but has faced several limitations, especially not being able to create a desired image in the competitive chocolate market.

Godiva Company has some constraints. First of all, Godiva has many competitors, the most important of them being Leonidas. Besides, the chocolate product itself has competitors like flowers, perfume and the wine. Another constraint is that consumers do not perceive Godiva chocolates very different from its main competitors. Then, sales and naturally profits fluctuate seasonally. After that, consumer profile, preference and income level at each particular international market are different. Next, the cost of hand-made chocolates is really high. Following this, Godiva’s Belgian factory does operate at full capacity and the U.S. factory produces a limited assortment of chocolates. Also, retail prices are not standardized. Another limitation is the distribution problem which refers the disparity between the Godiva boutiques in different countries. The firm implements standardization for, but it is costly. Then, Godiva advertisements are not effective and affording the advertisement budget may not be possible. Finally, Godiva chocolates are expensive and not suitable for self consumption.

My research says, Godiva has some good alternatives to solve the problem. First, they can continue making their website useful and full of various features so that they can use it as a strong advertising tool. Also, Godiva must continue advertising its products by the help of ally firms (e.g. Continental Airlines). Finally, if other products are observed as substitutes of chocolates (e.g. wine, flower, and perfume), Godiva can expand its production line using the same logic as they are producing Godiva Liqueur now.