Strategic Analysis of Godiva UK's FMCG Confectionery Market Position

This report provides a comprehensive strategic analysis of Godiva UK's positioning within the UK FMCG confectionery market. It begins with an executive summary and introduction to strategic management principles. The report delves into Godiva's current market position, examining both internal and external factors. External analysis includes a PESTLE (Political, Economic, Social, Technological, Legal, Environmental) analysis to understand macro-environmental influences. Internal analysis utilizes the VRIO framework to assess Godiva's resources and capabilities. Competitive strategies are evaluated using Bowman's strategic clock model. The report also explores potential strategic directions for Godiva, including methods of business expansion within the confectionery market. Finally, the report concludes with a summary of key findings and recommendations for Godiva's strategic development.

STRATEGIC MANAGEMENT

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION.......................................................................................................................3
1. Godiva UK’s current strategic positioning in the UK FMCG confectionery market.............3
Internal analysis - VRIO model .................................................................................................6
Identification of Competitive Strategies Bowman’s Clock .......................................................7
Strategic directions (Markets, Products, Services) & methods of expansion...........................10
Methods to expand the business by the Govida .......................................................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

EXECUTIVE SUMMARY
Strategic Management is the formulation and implementation of the important goals and
objective consider by top management in behalf of higher authority of organisations. The
government intervention will affect the decisions of management. Political factors will included
the changes in government policies, trading policies, bilateral relations.The VRIO is an analysis
used internally by an organisation like Godiva, to evaluate and identify the various resources
within an company. The VRIO described as four categories or elements which are considered by
an organisation which are mentioned below
INTRODUCTION
Strategic Management is the formulation and implementation of the important goals and
objective consider by top management in behalf of higher authority of organisations. The report
is based on the Godiva UK deals in chocolates manufacturing and it related products. Godiva
sells the truffles, coffee and sweets including all the products of food and beverages. The
industry ion which Godiva forms under the confectionery productions. Their are total 600 outlet
of the organisation across the glob. The various key challenges have been faced related the
strategic management such as positioning of organisation in UK with consideration of internal
and external analysis. It is important to identified the current and future competitive strategies.
1. Godiva UK’s current strategic positioning in the UK FMCG confectionery market.
The most important aspect to find the strategic positioning of Godiva in UK need to
analyse the internal macro factors and external micro factors with different models and concepts.
From the internal and external it will easy for organisation for taking decisions related to
positioning
External analysis:
From the external analysis of macro factors with the help of different factors such as
Political, Economical, Social, Technological, Environment and legal (Swayne, Duncan and
Ginter 2012.). If the Godiva will considered these all factors inn their strategic decisions. All the
factors are in brief description as follows:
 Political: These factors are most important to considered in strategic positioning of
Godiva. The government intervention will affect the decisions of management. Political
factors will included the changes in government policies, trading policies, bilateral

relations. As the Godiva strategic decisions for positioning will affect these all factors in
which government interventions on the business organisations with high taxation rate will
increase the burden on revenue. If the bilateral relation of government with other nation
will affect to the organisation decisions. Due to trading policies Godiva have to
considered the better quality of goods and service to customer. poltical factors are the
most important to considered for Godiva strategic positioning in UK.
 Economical: These factors will affect on strategic decisions of the Godiva UK
positioning. Economy of the United Kingdom and due to the inflation, interest rate,
seasonality issues, industry growth and export and important ratio are considered. The
godivs is already ion the FMCG where the high competition in the market and
organisation have already less funds to expands the business. On other hand due to the
slow growth of industry affect to the business and management are not able to take the
decisions. It is important to considered the economy factors to take strategic positioning.
 Social: These are the factors that will affect the strategic positioning of Godiva in which
taste and preferences of society, demographic condition, lifestyle, adverting and public
relations etc. Godiva chocolates are favourite in UK due to better quality of products
positioning can be on the basis of demographic in which the age, gender and race of the
people are important before taking any decision. As the organisation need to focus on
better advertising strategies to attract more customer. If the Godiva will includes the
public relations for positioning strategies. Also the lifestyle of the customer will help
organisation management to from better decision.
 Technological: These are the factors are important to considered in strategic
management. Technological factors includes the new technology introduce in market,
research and innovations, competitor technology development. As the Godiva
management have to change the technology for better productions if the operation have to
improve for more growth it is important for Godiva to focus on the research and
innovation in organisations.
 Environment: These are the factors have to considered for strategic decisions to utilise
the natural resource and subsidisers of environment. Godiva need excess raw material for
the quality chocolate manufacturing and the products can be affected due to the climate

changes. It is important for management to considered the environment factor for
strategies decision.
 Legal: These are the factor has to consider for the strategies positioning of organisation
includes the current and future legislations, employment law, consumer protection act,
health and safety regulations. Legal factors are the most important to considered for
Godiva strategic positions decisions.
Five Force Analysis Of Godiva: It is important to considered the micro factors of the
organisation with the help of Five force model which includes:
 Competition in the industry: It is the important force in which the number of
organisation or competitor and the potential to deal in the industry will threat for Godiva.
The same products will be available at Delafee and Booja-Booja are the major competitor
of organisations. These are the micro factors that will threat for organisation and
hindrance in the strategies positioning.
 Potential of new entrants into industry: These can be the major influence for the
strategic positioning in which most of products can be copied from the new entrant into
the industry. It is easy for new entrant to sable in market to capturer the business with low
cost from the existing competitor like Godiva. It is important for the management to
considered these micro factors in the strategic positioning.
 Power of Suppliers: These force will focus on the suppliers power in front of the
organisations is moderate in these industry because raw material related confectionery
products are most important to give the better quality goods. If the organization will give
better price to the suppliers. So it is important for the management to think about the
supplier power taking any strategies decision for positioning.
 Power of customer: The most important force because in these customer will deal and
the organisation has to reduce the price or provides quality products to them. But in front
of Godiva products customer have less power to bargain due to high quality of chocolates
are selling.

 Threat of substitute products: Industry life confectionery have high rate of competition
due to the copied products of organisation speciality. Due to high threat of substitute
products in front of the Godiva will loss of revenue.
Internal analysis - VRIO model
The VRIO is an analysis used internally by an organisation like Godiva, to evaluate and identify
the various resources within an company. The VRIO described as four categories or elements
which are considered by an organisation which are mentioned below -
 Value of the Resources – Resources of an organisation can help to reduce or eliminate the
error or threats to the business. The company's stakeholders identify that the resources are
important or beneficial for the organisation or not. The various resources of an
organisation can help the business in different areas both externally an internally, also
considering economical, political, social and other advances. If a resource is helping the
organisation in any one or more of these elements than it is very beneficial for the
development of the organisation. But if the resource does not provide any benefit to the
company than its of no use as it can result as a weakness. The resources should be
suitable to the consumers, vendors and all the other elements of a business organisation.
 Rarity of the Resources – If a resource of an organisation is rare then it can be a strength
for the business. The Godiva need to identify rare resources so that is can create a huge
difference it its business operations as compared to the other organisation who are the
competitors. The resource may be rare but the organisation needs to identify if its easily
available repeatedly or not. The resources should have access repeatedly else it cant
provide a permanent advantage or benefit to the organisation. If a organisation needs to
bring a solution for a short period of time than it is not that important to have access to
the rare resource repeatedly, but if the organisation needs an permanent solution for a
issue or problem and take a continuous advantage of that resource it is important to
analysis if the resource is available repeatedly.
 Imitability of resources – The rare, unique and difficult to obtain resource make sure that
the imitation is also difficult. This provides a competitive benefit or advantage to the
organisation. Its on the organisation to whether create opportunities and use the power or
to ignore the impact of threats. It is obvious that if the resources not utilised by the

Govida may be captured or grab by the competitors. The competitors may try to imitate
or find the substitute for the rare resources. Therefore, th Govida need to ensure that the
resources they are using are really rare and difficult to imitate.
 The value of organisation – The last step of VRIO analysis, It needs to determine the
rarity, value and imitability before going further. If a resource has passed all the three
above categories than the Godiva needs to be organised in order to gain the benefits of the
resources or they will be wasted and pass away. In this technique the organisation will
ensure that the resources are ready to use and maximum benefits can be availed by their
utilisation.
Identification of Competitive Strategies Bowman’s Clock
It is important for the Godiva to form the strategies positioning without identifying competitive
strategies. From the Bowman's clock model it can be easily analyse the competitive strategies
and help to implement the strategies positioning. According to the Bowman's clock model
following factor should be considered such as:
 Low price and low added values: It is the price of position in which the organisation
will sell the products on the low prices and added the values. It is the important for
Godiva to know the competitor price to positioning on the organisation strategies and try
to add the values in them.
 Low price: These can be the second way of positioning in which the price will be the
important aspect for the organisation in which low cost market leader in market will
focus. The strategy of cost minimisations is necessary for this to be successful. Also the
revenue generate from the each products have to be set low or high but the profits will be
genrted according to the Govida management.
 Hybrid: These can be the position in which the rapid position will be involve in the
organisations. The objectives of organisations should be based on the rapid
implementations to influence the customer to added the value. It is the effective position
strategy, it is important for the organisation to added the values.

 Differentiations: The objective of these positioning for the products at the level to give
high value in the products. The more they will offer the differentiated products with less
price in which the added the values in the goods and service. The better they will focus
on the organisations products to get the attraction to the customer and give high
competitions. If the organisation is not able to give the productions on the differentiation
the customer will be focus on the all the factors.
 Focus Differentiations: This strategic decision can be based on the better opportunity
and only focused to the differentiation in the products and services. The way they need to
be focus on the competitor goods and service and implementations the decision according
to the competitor focus on the differentiations. It can be considered in the strategies
positioning and the competitor strategies will be based on the focus of differentiations.
 Risky High margins: it is the high risky positioning of margins for the organisation. The
Godiva have to focus on the various factors in which the risky margin on the products
have to considered for the position will give the high risk for the loss of revue or get
better revenue depends on the positioning (Godoy and Naidich, 2012). It is important for
the organisation to considerer the competitor margin on the various products and the
profits margin has to be analyse before positioning. The way it has to be deal in the other
goods and service has to take the high risky margin will impact on the goodwill.
 Monopoly pricing: The most important aspect is the monopoly pricing have to decided
by the Godiva will more loss to the organisation. The products which they are offering to
the customer are also available at the competitor outlet with less price. The way it deals
with the monopoly price will have adverse impact on the organisations.
 Loss of Market shares: Due the loss of market shares the positioning will be adverse
impact on the organisation. The competitor will be focused on the various stratgies of the
organisation. So if the Godiva will positions according to the competitor style and the
market share will be loss than the customer will shift towards the competitor.

Strategic directions (Markets, Products, Services) & methods of expansion
The Godiva needs to adopt the strategic opportunity matrix as it is a most common used
technique to identify the company's strategic direction. It analyse the product with the various
markets. The four element in a strategic opportunity in the marketing plan of the Godiva are
described below -
Market Penetration – The market penetration refers to a strategy or plan of selling the products
which already exists within the organisation and the market. The Godiva can use this
approach in order to increase the market share of the existing products. Godiva has a variety
of products which can not gain much shares within the market by using the market
penetration technique it can resell and increase the sales of those existing products. The
Illustration 1: Bowman's Clock Model
Source: tutor2u

much more effective and aggressive promotional programs can be used in order to gain the
customer attention and increase the popularity of the existing products within the same
market. The Godiva can make use of this approach easily as its a same practice of selling the
known products in a familiar market.
Development of market – This refers to selling the existing products on services in various new
markets. There are various ways the Godiva can develop its markets. The different tools are
as follows -
- Various new channels of distribution
- Various policies of pricing to attract different customers and create new market segments
- New geaographical markets such as exporting the products in other countries
- New packaging style or product dimension.
Product development – The product development states a strategy or plan to grow and develop
the products of an organisation the Godiva can introduce new product or can develop the
existing products with some innovation or creativity in order to regain the market share and
popularity in the market. There products can be modified and and develop competition in the
market (Evans, Stonehouse and Campbell, 2012.). These modified products can create and
develop an appeal and demand in the existing market. This approach is completely reflecting
the modification of the existing products of an organisation to sell those in the market with
enhanced demand.
Diversification – This approach is concerned with the introduction of new products in various
new markets. This strategy involves a risk factor as the business or organisation is entering
into new markets which is unfamiliar to the organisation. The new products needs to be
introduced in new markets to gain popularity and attract the customers. With the help of
diversification the Govida can enhance its market area as well as market shares. The new
market can help the organisation to increase its profit share.
Methods to exapand the business by the Govida
 Increase the sales and products in the existing market – The Govida in order to
expand its business needs to increase its sales and products. The Govida can introduce
new variety of products in the existing market to increase the sales by attracting the

customers. The new products can be introduced with considering the customer's taste and
preferences so that it can grow and increase the sales.
 Developing a new market segmentThe Govida can grow and expand its business by
entering into new markets or new geographic areas. The organisation can introduce its
products into new markets and geographical area in order to develop its market share and
increase the sales. The new market will help the organisation to attract and make new
customers, by entering into new market segment the organisation can achieve the
enhancement in the number of customers (Barney,2012).
 Starting a chain – The Govida should focus on developing a chain of its organisation, it
can help the organisation to grab attention as well as covering a large market segment.
The Govida can make chains of the various stores to easily provide services and products
to the customers. It helps in creating a brand image and gaining popularity within the
market.
CONCLUSION
The above report concluded the strategic position of the Godiva within the UK. The
PESTLE framework is used to identify the various external macro as well as micro environment
of the Godiva. The study also describes the different competitive strategies which can be used by
the organisation to improve or strengthen its position within the UK market. A complete strategic
report has been created in order to identify the various aspects of marketing and developing the
products of the Godiva organisation. The report also consist VRIO analysis and its importance
with context to the Godiva. Furthermore, the report defines the strategic direction such as
market, services and products which are needed to be considered in the strategic plans of the
organisation with the methods of expanding the organisation or business within the market.

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