Market Position and Sales Development of Godiva Chocolatier

This report provides a comprehensive analysis of Godiva Chocolatier's market position and sales development, focusing on the Hong Kong market. It examines Godiva's marketing strategies, including communication, branding, and market segmentation. The research aims to understand the current marketing strategies, sales growth, and the impact of market segmentation on the company's performance. Key findings include consumer preferences, the competitive landscape, and the effectiveness of various marketing efforts. The report utilizes descriptive research methods, including surveys, to gather data on consumer behavior and market trends. It concludes with recommendations for maintaining market dominance, adapting to competition, and driving future sales growth, such as leveraging digital marketing, launching new products, and maintaining high-quality standards. The report highlights Godiva's strengths, such as its brand reputation and product quality, while also acknowledging the challenges posed by competitors and changing consumer preferences.

Running head: CONSULTING REPORT
CONSULTING REPORT
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Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................3
Research Aim...............................................................................................................................3
Research Objectives.....................................................................................................................4
Research Questions......................................................................................................................4
Key Findings....................................................................................................................................5
Conclusions and Recommendations................................................................................................6
References........................................................................................................................................8

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Executive Summary
Godiva Chocolatier is a Hong Kong based company which began its processes in 1926 in
Brussels, Belgium. The company is recognized as one of the leading brand of fine chocolates.
The fine products of Godiva range from praline chocolates, shell-molded chocolates and truffles,
coffees, biscuits collections, chocolate drinks representing the dedication of the company
towards excellence. Godiva has been embodying the art of chocolates with a creative and
innovative approach towards texture, flavor and appearance. The descriptive research design was
used for collecting the necessary information from the market and then analyzed the information
based on the market aspect. Further, the descriptive research design will help in making a long-
term analysis for the company.
The paper will study the various aspects of the branding like communication strategies,
innovative ad campaigns, brand repositioning, establishing an emotional connect with
consumers, rebranding etc. This paper will determine the current marketing strategy and sales
growth and the impact of market segmentation and strategies on the market and sales
performance of the company. Godiva has been able to create an impression of bringing into the
perspective, the various strategies that can be applied by the chocolate manufacturing firm which
is seen to be in line with the technology and the product quality. The company saw its inception
in the year of 1958 from where it was seen to culminate in the global recognition and in the year
of 1972, it extended to Japan and New York. The Campbell Soup was seen to witness the sales
arrangement and it was later sold the company to a Turkish Company named Yildiz Holding in
2007. Godiva is seen to apply various internal and external strategies in response to the
competition present in the global world.

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Introduction
The leading brands of the chocolates in the world are found in the Hong Kong market. The
supermarket of Hong Kong has an array of brands in Hong Kong. The consumption of chocolate
are seen to vary from country to country. For example, the Asians are seen to eat less sugary
products whereas European are seen to enjoy it (Nudd, et al., 2016). The Asian have a clear
preference for dark chocolates due to its bitter taste. Due to the huge production of chocolates in
Hong Kong, the chocolate has always been on the shopping list of the tourists coming to Hong
Kong.
The following project has been developed for analyzing the market position and sales
development of the company and the various factors behind the success of the company. The
research work will be presented as the guidance to the researcher in knowing the importance of
analysis of the market development and sales development of a company. For this purpose, the
famous company, Godiva, Hong Kong has been taken into consideration implying the chocolate
industry.
According to Kotler, Rackham, and Krishnaswamy (2006), the sales function is considered to be
the closest contact to their customers and further a strong customer orientation (Homburg, et al.,
2007). Therefore, the information must be shared with the market analysis and R&D department
so as to improve the process of assessing, finding and selecting better and innovative ideas for
the company.
Research Aim
The particular study has been focusing on the analysis of the market position and sales
development of the company. The aim of the research is to analyse the Hong Kong market of
Godiva and find the size of the retail network of Godiva. The customer responses towards

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Godiva would be asked so as to go through the interest of purchasing and using of Godiva
products. Therefore, the demand of the products would be analyzed in this project so as to
accomplish the business objectives and sales development of the company.
It will help to throw light on the deep analysis of the market position of the company and the
various factors responsible for it. The researcher has opted for the Godiva, Hong Kong as the
case study is based on the market position and sales development of a famous and known
company. With the assistance of various models and theories and the financial growth of the
company, the researcher will attempt towards explaining the market position of the company.
Research Objectives
In light of the research aim, the research objectives were carried out in rode to help in a better
explanation of the research topic which is chosen for this particular study. The research objective
is to determine the current marketing strategy and sales growth and the impact of market
segmentation and strategies on the market and sales performance of the company (Baxter, et al.,
2014).
Research Questions
The research questions are beneficial in analyzing the topics which are helpful in assisting the
understanding of the topic in a proper and detailed manner. The research questions would be
helpful in highlighting the selected topic for the research work in order to gain significant
knowledge regarding the research study. The research questions have been listed below:
1. What is the current marketing strategy and sales growth of the company?
2. What are the strengths of the company as compared to its rivals?

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3. What are the strategies that can be employed by the company for advancing the sales
volume of the company?
Key Findings
Data which was gathered by using questionnaire was assessed using simple percentages.
Graphics and tabular methods were used to examine and analyze the data. Analysis using simple
percentage was used to calculate the proportion of level of satisfaction in aggregate respondents.
Likert Scale is used to capture the ratings of various parameters like Price, Packaging, Taste etc.
In order to determine satisfaction level for different categories, aggregate mean is used. Since the
Likert scale is put to use to identify the level of satisfaction starting from 1 till 5 and 2.5 being
the center point., the combined value of mean shows the high level of satisfaction and vice versa.
The survey was conducted to identify the popularity and reach of Godiva Chocolates in Hong
Kong. The respondents were asked the questions like the brand of chocolate that they eat
normally and the characteristics they find in a chocolate (Dörnyei, Z. 2007). The consumers of
chocolate ranked the Godiva in top five best chocolates they ever had. It was observed that
Godiva is facing high competition from the foreign brands. The respondents for this survey were
population from upper, upper-middle and middle class population. 100 respondents were
selected for this survey. Many respondents chosen were from 18-25 years and from 25-50 years
of age group. Mostly 70% of the people rated Godiva as the most liked chocolate in Hong Kong
due to its taste. 66 percent of individuals preferred to use the chocolates for gift purposes for
multiple occasions.

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Conclusions and Recommendations
Conclusions
Godiva Chocolates have emerged as a leader in market in the industry of chocolates in Hong
Kong and also embraces the traits of being preferred over the group. Godiva has applied
practically this marketing principle (Kotler, et al., 2006). The strategies for marketing of Godiva
has increased the market share of chocolates and employs short cut and conventional
promotional strategies for sales. Godiva Chocolates has hit the mind of the customers in the first
place which is considered as the significant aspect of the customer. Godiva has played for the
benefits to be drawn in the long run by targeting at mindset of customers instead of the wallets of
the customer. The stunning efforts of marketing are out of box and exceptional spectacle and it
lies in the valuable and precious teachings for all the form by targeting to take a toll over the
industry.
Recommendations
 Maintain the dominance and control in the segment of chocolate in Hong Kong and other
parts of the world.
 Media like Internet is the prominent place to market the goods and confectionary items.
so it must provide the potential segment of customers the access to Godiva Products and
also allow large sales because of large group of customer overall.
 A lot of new competitors are entering the Hong Kong Market. Therefore it must develop
new marketing strategies so that it may not lose the share in the market.
 Godiva Chocolates must aim to increase the volume of sales by minimum 20% in next
years (Garrone, et al., 2016).

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 Every year, one major new product must be launched in Hong Kong form the
international portfolio.
 Liberal trade policies may expose the threat to Godiva Chocolates as many new
competitors and products will enter market. Thus Godiva Products must maintain and
sustain their strong distribution of marketing strategies so that it may not lose its share in
market.
 They must maintain good and high standards and must be watchful about their products
being sterile.
 They must bring many different flavors of Godiva chocolates by focusing over the
market segment which is highly health conscious. Therefore they should bring out the
chocolates which are low in sugar so that people of every age group can enjoy their
products (Cho, et al., 2008).

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References
Baxter, P., & Jack, S. (2008). Qualitative case study methodology: Study design and
implementation for novice researchers. The qualitative report, 13(4), 544-559.
Cho, S., Huh, J. and Faber, R.J., 2014. The influence of sender trust and advertiser trust on
multistage effects of viral advertising. Journal of advertising, 43(1), pp.100-114.
Dörnyei, Z. (2007). Research methods in applied linguistics: Quantitative, qualitative, and mixed
methodologies. Oxford University Press.
Garrone, M., Pieters, H. and Swinnen, J., 2016. From Pralines to Multinationals. The Economics
of Chocolate, p.88.
Homburg, C., & Jensen, O. (2007). The thought worlds of marketing and sales: which
differences make a difference?. Journal of Marketing, 71(3), 124-142.
Kotler, P., Rackham, N., & Krishnaswamy, S. (2006). Ending the war between sales and
marketing. Harvard Business Review, 84(7/8), 68.
Nudd, T., 2016. At 90, Godiva Proudly Looks Back as It Charts a Path Forward: The Belgian
chocolatier has a lauded history but needs to court younger buyers.