MKT100 Assessment 2: Godiva Chocolatier Marketing Plan Report

This report provides a comprehensive marketing plan for Godiva Chocolatier, focusing on its milk chocolate offerings. It begins with an introduction to marketing principles and the report's objectives, followed by an overview of Godiva, including its history, product line, and global presence. A SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats, followed by an overview of the milk chocolate industry in Australia. The report then compares Godiva to key competitors such as Cadbury, Nestlé, Hershey's, and Lindt, assessing their product offerings, parent companies, and market shares. The target market is defined based on demographic, psychographic, geographic, and behavioral variables, supported by visual marketing examples. The report also examines Godiva's brand positioning using perceptual maps and recommends changes to the marketing mix, particularly the pricing strategy, to expand its customer base. The report concludes with a list of references.

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PRINCIPLES OF MARKETING
[Type the document subtitle]
7/18/2019
Student name

PRINCIPLES OF MARKETING 1
Contents
Introduction......................................................................................................................................2
Company and Product Overview.....................................................................................................3
SWOT analysis............................................................................................................................4
Industry Overview...........................................................................................................................4
Competitor Comparison...................................................................................................................6
Target Market..................................................................................................................................9
Perceptual Maps and Positioning...................................................................................................12
Brand positioning.......................................................................................................................12
Recommended Change in the Marketing Mix...............................................................................12
References......................................................................................................................................14

PRINCIPLES OF MARKETING 2
Introduction
Marketing includes a business process initiates from building relations in order to satisfy
customers. The key elements and concentration of a marketing plan are over the consumer needs,
wants, and expectations for which marketing is considered to be a major component in managing
the business (Sharma & Gautam, 2017). Marketing a product planning include decisions and
strategy formation from the development of the product to the promotion of product and services
provided to the customer. The report’s purpose is to develop a marketing plan for Godiva
Chocolatier and particularly milk chocolate of the brand (Adam & Kotler, 2014). The company
internal and external environment analysis will be conducted in order to provide recommended
marketing strategies in the report further.

PRINCIPLES OF MARKETING 3
Company and Product Overview
Godiva Chocolatier is founded in 1926 that is a Belgian manufacturer of chocolates that in
today’s scenario consist of 600 shops in Asia, Canada, the United States, and Europe. The
company offers various varieties of chocolates to various nations. The report includes the
marketing of milk chocolates by Godiva. It has been observed that in order to provide premium
quality chocolates to customers in various nations (godiva, 2019). Moreover, with the increase in
the use of online platforms the company has been able to reach out to maximum international
ports and customers. The parent company of Godiva is Campbell’s, which is dealing and have
been positioned towards healthy eating, which is contradictory to the sweets that are chocolates
by Godiva that are high caloric food products depicts a major challenge for the company. Godiva
first store was opened in Melbourne city in 2017. The company is manufacturing a large variety
of products like milk chocolates, milk chocolates cookies, gift boxes, milk strawberry cookies
(ausfoodnews, 2019).
Figure 1: (source: (godiva, 2019)
SWOT analysis
Strengths

PRINCIPLES OF MARKETING 4
 Finest chocolates
 Luxurious packaging
 Brand recognition
 Global presence
Weakness
 Decline in sales
 Not enough promotion
Opportunities
 Product line expansion
 Include chocolate demands in adults
 Increase in gifting occasions and trends
Threats
 Increasing competition
 Saturated market (Bach, 2017)
Industry Overview
Considering the milk chocolate industry from the graph, it can be said that 51% of consumers
prefer to have milk chocolate to white and dark chocolate, which reflects that milk chocolate has
a positive opportunity in the market that is in Australian confectionery industry
(marketsandmarkets, 2019).

PRINCIPLES OF MARKETING 5
Figure 2: (source: (marketsandmarkets, 2019)
Figure 3 : (source: (techsciresearch, 2019)
Considering the growth of the market size of Australian chocolate from the graph above, it can
be said that demand for milk chocolate has increased since 2013 and forecasted to increase till
2013. However, it has been observed that the growth is not very rapid, also depicting that the
industry is quite stagnant for the chocolate market in Australia (techsciresearch, 2019).

PRINCIPLES OF MARKETING 6
One of the most influencing macro environment factors that have affected the chocolate market
in Australia is the technological factor. It has been observed that technology has been
implemented in every industry including the chocolate industry in Australia; because of this,
most of the companies have started targeting customer through online mode and so as the Godiva
chocolate (Tiago, 2014). The competition has also been increased because of technological factor
as most of the companies; even the local Australian companies can target customers and increase
their global presence in the industry. Therefore, in order to gain competitive advantage, Godiva
needs to make some extra effort (godiva.au, 2019).
Competitor Comparison
Cadbury Nestle Hershey’s Lindt
A description of
the Product (be
sure to include
the Brand and
specific model)
Milk chocolates
like dairy milk
Nestle milk
chocolate, Kit
Kat
Hershey’s
creamy milk bar
Lindoor Lindt
chocolate, Lindt
swiss milk
chocolate
Name of Parent
Company
Mondelez
International
Nestle Hershey Trust
Company
Lindt & Sprüngli
company
A visual image
of the product
When was the 1853 1867 1980 1997

PRINCIPLES OF MARKETING 7
Product first
introduced into
the Australian
market?
The four major competitors of Godiva are Cadbury, Nestlé, Hershey, and Lindt. It has been
found that the most popular brand of chocolate in Australia as per the research conducted are
Cadbury chocolate bars Kit Kat, cherry ripe, Mars, Snickers, which reflects that the market
leader in Australian chocolate market is Cadbury. Moreover, it can be said that Cadbury has
gained market leadership in the chocolate market in Australia as 55% of market share is with
Cadbury owner Mondelez International. This reflects that Cadbury is one of the major
competitors of Godiva. Followed by Cadbury Nestlé is on 14% market share, which makes it
another major competitor of Godiva (confectionerynews, 2019).

PRINCIPLES OF MARKETING 8
Figure 4: Most popular brands of chocolate (source: (roymorgan, 2019)
However, Godiva has some credible competitive products to be offered to Australian chocolate
industry. The quality of the chocolate offered by Godiva is the key competitive advantage to the
company. The company is dealing with premium products and luxury products, targeting adults
who are ready to spend a large amount for luxurious packaging and excellence in chocolate
quality and taste. Therefore, it can be said that even after the largest share of Cadbury in
Australian chocolate market, Godiva has its own target market, which is not targeted by
Cadbury, Nestlé at large scale (Bach, 2017).
Considering Cadbury, the aspect, which has held the competitive advantage and considers to be
the largest competitor is price differentiation strategy. That is the company are offering various
products that are of several price ranges that help the company to target different income group
people and targeting kids, for instance. It has been observed that Nestlé is lower price offering

PRINCIPLES OF MARKETING 9
than that of Godiva and has been its major competitive advantage by targeting large middle-
income group population. Some of the milk chocolate products by Hershey are its key
competitive advantage, which provides good quality milk chocolates at cheaper prices than
Godiva and Lindt. Last competitor discussed is Lindt that is direct competition to Godiva, the
reason being this is the premium chocolate brand as well with the strategy of offering a high
quality product. Nevertheless, the pricing strategy of the company differs from that of Godiva
and also include a slightly lower price range that Godiva which turns out to be a competitive
advantage For Lindt.
Target Market
Figure 5: (source: (godiva.au, 2019)

PRINCIPLES OF MARKETING 10
Figure 6: (source: (godiva.au, 2019)
Figure 7: (Source: (adage, 2019)
The above presented three advertisement clips that the company has been using for their
marketing campaigns reflects that the company is targeting adult women who are not just
looking for chocolates but likes to enjoy the experience, packaging and luxury experience
through chocolates. The advertisement also reflects that the company is targeting people with
high income or upper class to experience the luxurious impact of chocolates. On the basis of the
marketing analysis, the target customers are identified in the table below.

PRINCIPLES OF MARKETING 11
Basis of target segmentation Groups Target customers
Demographic variables Age Adult
Gender Women and men
Income High-income group
Psychographic variables Lifestyle College students and couples
Geographic variables Location Australia
Behavioural variables Occasion Anniversary, birthdays, gifting
occasions
Among the identified target customers, the most dominating segment applied by Godiva is
occasional segmentation. The reason being the company objective with its marketing strategy is
to target public for using boxed chocolates in order to give to their loved ones on special
occasions like birthdays, anniversaries, Valentine day or any other special occasion. For instance,
company’s major offers are on festive seasons or nearby any special occasions. Moreover, the
company focus over gift boxes in order to prevent the right gift that people can use on occasions
including a various range of premium chocolates. The target market by Godiva reflects that the
product is highly involved product as the company is focused over the product luxury and
premium product that can be offered to the company with the inclusion of luxurious packaging.
Moreover, the advertisement also reflects the sensual experience through smell and taste.

PRINCIPLES OF MARKETING 12
Perceptual Maps and Positioning
Brand positioning
The positioning of Godiva is reflected through its perpetual map that the competitive advantage
of the company is high quality and premium pricing strategy. Therefore, the company position
itself as a bold, premium, luxurious brand to be offered as a gift to the loved one on special
occasions. As the marketing advertising reflects bold woman having chocolate and will prefer to
gain luxurious and happy experience with chocolate boxes prepared with premium quality
chocolate and integration of variety of chocolates in box, to be offered to women specifically
(Tiago, 2014).
Recommended Change in the Marketing Mix
One of the marketing mix strategies that is recommended to be changed is the pricing strategy of
the company. It has been identified that the company has been able to target only the upper class

PRINCIPLES OF MARKETING 13
because of its premium pricing strategy. The company may introduce with some of the products
that will include medium pricing range in order to attract more college-going students that would
like to gift chocolates to their girlfriends and other loved ones (Bach, 2017). Therefore, it can be
said that price differentiation strategy could help the company to target more customers and
increase the customer database. Through this, it can also gain an advantage over its major
competitors, which have gained competitive advantage due to their pricing strategies like Lindt,
Hershey and most importantly Cadbury (Sharma & Gautam, 2017).

PRINCIPLES OF MARKETING 14
References
adage. (2019). godiva-seeks-approachable-luxury-feel-holiday-campaign. Retrieved from
https://adage.com/article/agency-news/godiva-seeks-approachable-luxury-feel-holiday-
campaign/301543
Adam, S., & Kotler, P. (2014). Principles of marketing. Australia: Pearson Australia.
ausfoodnews. (2019). godiva-belgium-chocolate-opens-first-australian-store. Retrieved from
http://www.ausfoodnews.com.au/2018/01/24/godiva-belgium-chocolate-opens-first-
australian-store.html
Bach, C. (2017). Demystifying McCarthy’s 4 P’s Of The Marketing Mix; To Be Or Not To Be.
Industrial Marketing Management, 26(1), 1.
confectionerynews. (2019). Premium-chocolate-growth-in-Australia-Leatherhead. Retrieved
from https://www.confectionerynews.com/Article/2013/12/17/Premium-chocolate-
growth-in-Australia-Leatherhead
godiva. (2019). home. Retrieved from https://www.godiva.com/
godiva.au. (2019). about us. Retrieved from https://godiva.com.au/
marketsandmarkets. (2019). global-chocolate-market. Retrieved from
https://www.marketsandmarkets.com/Market-Reports/global-chocolate-market-164.html
roymorgan. (2019). more-aussies-chomping-on-chocolate. Retrieved from
http://www.roymorgan.com/findings/more-aussies-chomping-on-chocolate-
201603212333
Sharma, V., & Gautam, V. (2017). The mediating role of customer relationship on the social
media marketing and purchase intention relationship with special reference to luxury
fashion brands. Journal of Promotion Management, 872-888.
techsciresearch. (2019). australia-chocolate-market. Retrieved from
https://www.techsciresearch.com/report/australia-chocolate-market/1711.html
Tiago, M. (2014). Digital marketing and social media: Why bother? Business Horizons, 57(6),
703.