BUSI 1319 Consultancy Project: Godiva Hong Kong Market Analysis

This coursework report analyzes the market position and sales development of Godiva Chocolatier in Hong Kong. The study examines Godiva's marketing strategies, including the 4Ps of marketing, market segmentation, and consumer behavior. It explores the company's branding, communication strategies, and the impact of market segmentation on sales performance. The report includes a literature review, methodology, market industry analysis, SWOT analysis, and survey analysis to assess Godiva's strengths, weaknesses, opportunities, and threats. The research aims to understand Godiva's current marketing strategy, sales growth, and the factors influencing its market position, providing recommendations for future sales growth. The report also reflects on consumer preferences, the impact of advertising, and the role of price and product attributes in consumer choices within the chocolate industry. The research is based on a descriptive research design and includes an analysis of the Hong Kong market, considering the preferences of Asian consumers for chocolate products.

Coursework Header Sheet
Course BUSI 1319 Consultancy Project Course School/Level B/UG
Coursework Report Assessment Weight 65%
Tutor Dr David Chu Submission Deadline 13 Apr 2017
Student ID 000948206
Coursework is receipted on the understanding that it is the student's own work and that it has not, in whole
or part, been presented elsewhere for assessment. Where material has been used from other sources it has
been properly acknowledged in accordance with the University's Regulations regarding Cheating and
Plagiarism.
Tutor's comments
Grade Awarded___________ For Office Use Only__________ Final Grade_________
Moderation required: yes/no Tutor______________________ Date _______________

Research Project Report
Godiva

Table of Contents
Abstract..........................................................................................................................................2
Introduction....................................................................................................................................3
Research Aim...............................................................................................................................4
Research Objectives.....................................................................................................................4
Research Questions......................................................................................................................5
Literature Review..........................................................................................................................5
Methodology.................................................................................................................................10
Philosophies...............................................................................................................................10
Strategy......................................................................................................................................11
Design........................................................................................................................................12
Implementation..........................................................................................................................12
Research Design...........................................................................................................................13
Market Industry analysis............................................................................................................14
Product policy............................................................................................................................14
Marketing Strategy: 4 Ps of Marketing Strategy.....................................................................15
Positioning, Targeting and Segmentation..................................................................................16
Data Collection and Analysis......................................................................................................17
SWOT Analysis.........................................................................................................................17
Survey Analysis.........................................................................................................................20
Analysis, Results and Discussion of Survey..............................................................................29
Conclusions and Recommendations...........................................................................................30
Reflective Report.........................................................................................................................31
REFERENCES............................................................................................................................32
APPENDICES..............................................................................................................................33

Abstract
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.
Introduction
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.
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. 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 and
Jensen, 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 analyze the Hong Kong market of
Godiva and find the size of the retail network of Godiva. The customer responses towards
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.
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?
3. What are the strategies that can be employed by the company for advancing the sales
volume of the company?
Literature Review
After having a detailed study regarding the principles of management of marketing, the behavior
of consumer purchasing and other attributes of the concept of marketing mix like product and
place strategy can be well aligned with the pricing an promotion strategy and the brand loyalty
concept with all significant attributes of the best brand. Instead of the detailed research of
different papers of research, the articles are also used to understand the practical implementation
of this concept.
Consumer also learn about the chocolates from various other sources which are mainly from the
families and friends either from their personal experience or through advertisement. Whether an
advertising or a promotion help or hurt a brand and its image is under consideration. In long
terms, the advertisement aids a brand by building more loyalty and sensitivity regarding price in
the consumers regarding their purchase behavior. The decision regarding a purchase which

pertains to a specific brand as well as loyalty of the outcome of various characteristics of a
product must be taken. (Mela, et al., 1997). Advertisers and promoters must always remember
that messages of advertisements are interpreted variously between various genders (Hogg, et al,
2003). The research states that women are able to pay more attention on the characteristics or
details of a particular advertisement when they are asked to assess the messages in the
advertisement. Studies which are conducted previously have given significant proof regarding
the females who are more easily engaged in the elaboration instead of men. (Maldonando, et al.,
2003). As per (Gwin, et al., 2003), the females usually have high tendency to take into
consideration the information which is external and related to any other person. Women are
considered as aggregated processors who may put in efforts to collect all the information which
is available regarding the advertisement of a product which can alter the perception of a
consumer in terms of a product and its content regarding attributes and the proportion and may
also influence the taste of a consumer for the attributes. The intake of food was supposed and
predicted by a food record of 3 Day. 13% of men and 28% of women were selected for the study
who was craving for the food. Out of those cravers, women were more concerned frequently
regarding their weight instead of men. The intake of energy was more in the cravers at the time
of snacks. Below 40% of the cravers were reported to be hungry ta the time when they suffered
from serious hunger and craving. The female category of cravers got engrossed in the cravings in
similar manner like men. They were reported to be experiencing the negative feeling frequently
unlike the male category who felt the positive feelings more frequently. The outcome of the
study reveals that the episode of food craving is associated strongly with the mood in various
ways in men and women.
As per a research by Flanders Trade and investment, the maximum number of brands which
leading in the world market of chocolates are found in the market of Hong Kong. There exists an
array of brand in each of the supermarket of Hong Kong. The consumption of Chocolate
differentiates in every country. Asians usually consume very les products of sugar like
chocolates if compared with their counterparts in Europe. As per the preference, the customers in
Asia prefer and like dark chocolates due to its taste which is bitter. Presenting of gifts is the
tradition in Asia, especially during the visits and while meeting the relatives and friends during
the periods of festivals. New Year in China is the busiest time to present the beverages and food

gifts. Bringing the gifts home for the families and friends after travelling is a strong habit in
Hong Kong and the most top product in the list of shopping is chocolate in the Hong Kong. The
product attribute and brand preference are the features or characteristics which a product may not
or may include both the extrinsic and intrinsic features. Understanding customer’s preference for
choosing a specific product on the basis of the characteristics and attributes aid the marketers to
get to know clearly the reason behind the preference of a customer for a specific product. Both
intangible and tangible characteristics of a product are significant equally to choose either a
brand or a product. It is not proven completely that few of the attributes and characteristics are
more linked to the loyalty of the customers than the others. A researcher has suggested that the
marketers must more concentrate on the number of attributes with which the brands must be
associated and not the kind of attributes. For the products of low investment, the customers have
more objective vision of the characteristics of the attributes like cosmetics or food as they being
promoted and advertised constantly. Price is considered as any other form of the attribute which
is used by the customer for the evaluation of the product. The price is considered as an indicator
and pointer of quality with high prices which indicates high quality. It is a perception of
consumer that a high price may be attributed towards high control of quality cost. Some of the
consumers are highly sensitive towards the price like elasticity in demand, whereas the high cost
may also shift the consumers towards the competitive brands. Thus the prices may have negative
or positive influence on the consumers.
Various sources are available in journals, magazines, newspapers and articles etc. Firstly, the
chocolate offers benefits from different facets like dark chocolates, psychology and physical as
well as mental aspects and it is also the most helpful and healthy chocolate as compared to any
other type or variant of chocolate. In chemical terms, an Anandamide which is cannabinoid and
endogenous in nature is included in the Chocolate and is present in brain. Antioxidants fight
against the cancer and also prevent the disease of heart and flavonoid are said to lower the bad
cholesterol and raise the good cholesterol. Consequently, the stroke, deep vein thrombosis and
heart disease risk can be easily reduced by intake of chocolate. More than that, chocolate consist
of low index of glycemic. Therefore it keeps the level of blood glucose stable relatively. A
researcher in Salk Institute have identified in the primary evidence that flow of blood in the brain
is improved by dark chocolate and may also to sharp and improved memory consequently. The

brain memory and function will become an increasingly significant issue and matter as the
generation of baby boomer continues to grow. As per Wootton and Home in the year 2007, the
practice of intake of dark chocolate may increase the power of mind. Home is an expert in
cognitive psychology and Wootten is a biochemistry expert. According to Home, there is high
amount of chemical substance which is present in dark chocolate and is required by the brain
while it is working and also for the muscle to be relaxed around the vessels of blood which
enhance the flow of blood to the brain. According to Taubert in 2003, and his colleagues at the
Germany based Cologne University, dark chocolate helps to control the high blood pressure. The
team of Taubert hired seven women and six men who were aged between 55 and 64 years. All of
those were diagnosed with the high blood pressure. Every day they used to get half white and
half dark chocolates. The patients who ate dark chocolate experienced high drop in the pressure
of blood while those who took white chocolate were not able to experience the drop in blood
pressure. The researcher also suggested that consumption of food habits and other parameters
related to food are not stagnant over the time. It is also suggested that consumption habits of food
must be checked in every ten years to highlight the consumption of food trends and evaluate all
efforts to leverage the healthy eating and food safety as is done in the nations where the food
consumption surveys based in population is conducted in previous years. Sobal and Osman
investigated the link between the physiology and culture with craving of chocolate among
Americans and Spaniards. They were assessed using English and Spanish version questionnaire.
The responses of them were assessed separately for women and men in the Spanish and
American samples using the multivariate analysis to monitor the variables like involvement in
culture and variability in chocolate. The craving for chocolate is there in both male and female
Spanish individual but instead only female category of students in America. If the cultural
involvement in America is controlled and monitored, it is reported that more than 90% of the
women in America and more than 50% of men in America will have the craving for chocolates.
On the other hand, if the cultural involvement in Spain is controlled, the outcome will be that
more than 90 percent of women and more than 70 percent of Spanish men will crave for
chocolate, which depicts that difference in gender is no longer important. These outcomes
suggest that culture in America motivates disproportionately the cravings for chocolates among
female category than males. The globalization leads to similar pattern for cravings among the

Spaniards, though the differences in gender regarding cravings are not much clear as compared
to United States.
Methodology
The present chapter will describe the methodology of research, design of research, data analysis,
and data collection, sampling design, target population, ethical considerations, reliability and
validity of the study.
Research methodology is defined as a systematic framework to gather data and information from
a stipulated population to understand the phenomenon and generalize the facts which are
obtained from large population. Methodology supposes the design of research, population, data
collection instruments, ethical and moral considerations, analysis and interpretation of data.
Therefore, methodology aids the reader and researcher to know the research process.
Philosophies
The research philosophy is defined as the method which is designed to support the researcher to
efficiently and effectively conduct the research. Furthermore, it is defined as the notion of
research which has helped to get the clear idea and thought related to the topic of research. The
philosophy of the research is relied on model of research which is phenomenology, epistemology
and axiology. Also, knowledge, facts and ethics are included these aspects. The notion of
research is treated like the base of research work which has aided to complete the research
adding code of ethical conduct, information and facts. For our research study, the research
philosophy is an integral part of notion and pillar of the research which has helped our company
to assess the results and the facts in appropriate way to give effective outcome to the client
regarding this specific project. The paradigm of the research philosophy is Interpretivist which
quarrels with logic regarding research work. Realism conflicts with real and actual facts while
positivism conflicts with the knowledge of research. Also, to get to know the Market Analysis
and Sales Development of Godiva in Hong Kong, we have chosen the post positivism and
realism as the research philosophy to assess it efficiently and effectively. The post positivism is
like the positivism’s sub-part which has helped to assess and examine the data which is gathered
to cross check it further to make sure that outcomes are well interpreted to provide the client

exact idea regarding the research. In addition to that, the research philosophy had helped to
identify that whether the information gathered by us is relevant and is we able to obtain the
outcome on real basis after the interpretation of data. The work regarding the research was
assessed sufficiently and as the research knowledge is dealt with the positivism, we analyzed that
the work done by us was effective and efficient to maximum extent.
Strategy
In order to meet the objectives of the research, various methods and tools are used to gather the
data. The methods of data collection used by our company were quantitative and questionnaire
was designed as a tool to examine and assess the information with data relating to the responses
by respondents. Customers were interacted on one to one basis and were filled personally by all
respondents. It was also floated online which included objective and subjective questions that
were easy to interpret and answer. All the questions related to the behavior and choice of
customers while purchasing the chocolates. Furthermore, the probability and stratified sampling
were used to gather the information and data from secondary sources were used to gather the
information from annual reports of company, journals and research papers and the outcomes
were assessed to understand the scenario of current market. The annual reports and documents of
Godiva Chocolates were utilized appropriately. The statistical tool of MS Excel was used to
interpret and analyze the data as they were represented in graphs or charts form to interpret the
information. The information was used for determination of the research findings. The analysis
of data used the formal statistics process to interpret and analyze the data by conforming to the
code of ethical conduct. The data was gathered by using the questionnaires and it was filled by
respondents. It has been assumed that qualitative and quantitative research is appropriate for this
type of research to get the interpretation of data efficiently and effectively.
Design
This research has used primary and secondary research to assess the various aspects of analyzing
the Market and Sales Development of Godiva in Hong Kong. The primary method of research
supported to identify and analyze the responses which are collected to get the appropriate results
and secondary method of research helped to understand the information by making use of
various sources of company resources of Godiva Chocolates and online modes. The descriptive

design of research supported to collect the information by using appropriate areas and after that
the analysis of data was done. Furthermore, the product’s descriptive nature aide to identify
various questions regarding the creation of project, objectives and aim,, the requirements of
resources to complete the project etc. Furthermore, the descriptive analysis helped to determine
the current context of variable. In addition to that, the project included involved different
quantitative measures which were employed by using descriptive analysis. In order to meet the
goals, many of the theories and the research philosophy were used to keep the present scenario
and the aim of the research in mind. The design and methods of the research were appropriate for
determination of the Market Analysis and Sales Development of Godiva in Hong Kong. Thus,
the research design was suitable and appropriate for this research type.
Implementation
Our Company made a plan effectively for effective conduct of research. In the beginning, we
recognized the topic for the research and after that we formulated the research objectives,
determined the scope and defined the needs and requirements. Furthermore, we collected the
information and data through secondary research sources like annual reports of Godiva, books
and journals to understand the activities and operations of Company. We collected the
information by using various sources of primary research like questionnaire and interviews of
employees of Godiva Chocolates to understand the objectives of market strategy and relate it
further to the Market Analysis and Sales Development of Godiva in Hong Kong. In addition to
that, 100 respondents were collected to get the responses and interpret the data realistically. The
information was stored in MS Excel and MS Word to assess and analyze the information
efficiently and effectively. The presentation of data was done using charts and graphs for client’s
better understanding. The secondary source data was presented using management analysis tools
like SWOT analysis. These methods help in determination of the impact of external and internal
environment on activities and operations of the Godiva. The objective of this research was to
conduct the investigation about the different dimensions of the presence in market and the
development of sales of the company. The selected approach of case would be considered as best
to understand the present and future position and state of the corporation with subsequent
improvement in the corporation. The objectives of this study were: