3. The Legacy
Born out of a small praline-making business run by the Draps
family in Brussels, Belgium, Godiva was originally Chocolaterie
Draps until Joseph Draps decided he wanted to produce a more
exclusive chocolate and open up a chocolate shop.
Joseph Draps created a line of chocolates with ”extraordinary
richness and design, a collection of passion and purity.” He sought
a name that embodied the timeless qualities of passion, style,
sensuality and modern boldness. With the help of his wife, Godiva
was the chosen name in honor of the legend of Lady Godiva.
1958: 1967: 1972: 2007:
1st Boutique outside Campbell Soup 1st N. America boutique opened Campbell sold Godiva to Yildiz
Belgium was opened bought Godiva from in New York City. Holding of Turkey for $850MM.
in Paris, France. Draper Family. Godiva became available in Japan.
1926: 1966: 1968: 1998: Today:
Founded 1/3 stake sold to Campbell Soup Began producing in U.S. 1st Godiva Store in Godiva available in over 80
1st Boutique in North America using Belgian recipes. Hong Kong countries around the world.
opened in Philadelphia, PA.
4. The Vision: Joseph Draps, Founder & Chocolatier
Create the world's most elegant, handcrafted
chocolates for discerning consumers
5. Future: Envisioned
We, at Godiva Chocolatier, want to be the curator for guilty
pleasures and share our miniature pieces of edible art with
the world. Like the Kaşıkçı Diamond*, Godiva is a gem
preserved by polishing and promoting it in unknown
markets.
Every time the beguiling image of Lady Godiva is seen, man
and woman will undergo an emotional reaction. Godiva will
erase all woes and brighten every smile.
Admirers will become addicted to the sensatory overload
from the indulgence occurring the moment they let go of
self-restraint and allow temptation to overtake them.
*A precious 86-carat, pear-shaped diamond on exhibit at Topkapı Palace in Istanbul.
6. Godiva Style & Core Ideology
Miniature piece of art with exquisitely balanced
counterpoint of aroma, flavor and texture.
• attention to detail
• design excellence
• top-notch service
7. Five Facets of Fine Chocolate
Everything is decided by Godiva: the choice of cocoa
beans, the degree of roasting, the fineness of grinding, the
purity and the homogeneity of the chocolate paste.
Each chocolate is a miniature uses only chocolate made from
piece of art 100 percent cocoa butter
Over 80 years of quality Belgian
chocolate production made with uses only grade A ingredients
proven processes.
Source: Godiva.com
finechocolateindustry.org
8. One-of-a-kind taste experiences
Smell the Chocolate: Savoring fine chocolate begins when you open the
box and take in the bouquet of the contents. Fine chocolates have a fresh, deep
aroma, not the overly-perfumed or sugary smell associated with artificial flavors or
preservatives.
Look at the Chocolate: Fine chocolates have a consistent color and
natural-looking satiny sheen free of air bubbles or other blemishes. The best
chocolates also display a high degree of craftsmanship in their shapes and designs.
Listen to the Sound: With the notable exception of truffles, the
couverture or outside coating of fine European-style chocolates is often molded in
a sleek, semi-hard shape that "snaps" when you bite into it.
Feel the texture: A fine chocolate is velvety smooth without the graininess
that comes from incomplete refinement.
Taste the Chocolate: Freshly made fine chocolates have very intense but
refined flavors and subtle nuances of textures. The inside of fine chocolates is
specifically intended to complement the couverture in terms of flavor and texture.
Allow the flavors to permeate your mouth. The initial taste is a nutty, roasted
chocolate flavor, followed by sweetness and other flavor components. Lastly, fine
chocolates have a longer "finish" or pleasant aftertaste that lingers on the palate.
Source: Godiva.com
9. Product Selection
Gift Baskets & Towers Gold Collection, Assorted Chocolates Truffles Chocolate Bars
$44 - $200 $3.50 - $150 $16.50 - $70 $17.75 - $70
Biscuits, Coffee and Cocoa Exclusive G Collection Bridal & Party Favors Gifts
$8.50 - $25 $24.75 - $85 $3.50 - $38
Dark Chocolate $8.50 - $70
Birthday $13 - $70
Chocolate of the Month Beyond Chocolates Thank You $15 - $150
Godiva Belgian Blends
$185 - $540 Godiva Liqueur
Godiva Baked Goods
Source: Godiva.com
Note: All Prices are in US dollars
10. Available at Godiva Boutiques & Select Retailers Only
Source: Godiva.com
Note: All Prices are in US dollars
11. The Ballotin
Godiva’s iconic, signature package is the Gold Ballotin (French
for “small, elegant box of chocolates.”
In addition, Godiva produces seasonal and limited edition
chocolates with special packaging for all major holidays.
12. Retail Distribution Channels
Online: 421,037 unique monthly visits
Boutiques: Over 480 world wide
Wholesale: Over 2,000 retailers
Catalog: Six per year
Mobile: Unknown
Source: Godiva.com
compete.com
13. Connecting & Engaging with the Consumer
Godiva has undertaken a combination of merchandising PR, in-store promotions,
web site promotions and sampling initiatives or experiential marketing to increase
awareness and market new products.
• Held a charitable auction celebrating the influence of taste and style as it is passed from generation to
generation. Pairing mothers and daughters, and protégés and mentors to benefit a variety of causes,
Godiva looks forward to continuing the success of last year’s auction.
• During Fashion Week in New York, Godiva gave sleep deprived and malnourished fashion folk a sugar fix
with chocolate deliveries. Editors were able to pick from an elaborate menu of goodies and place an order
for chocolate dipped strawberries, macaroons, berry dessert cups, and banana strawberry kabobs.
• Ringing of the opening and closing of the New York Stock Exchange bell on Valentine’s Day.
• Leveraged the promotional opportunity afforded by Miramax Films' hit Chocolat, giving holders of tickets to
the movie free samples and sponsoring a contest which offered the winner a trip for two to Brussels.
• Hired a double decker bus for 5 days to act as Godiva Chocoiste Convoy that took passengers from the
Godiva store at the World Financial Center to Times Square, all the while handing out the chocolates to the
passengers. Sent samplings and VIP pass for the convoy to media.
• Hired people to give out samples of the chocolate at the Central Park in NY
• Created a chocolate personality quiz in a new website http://www.areyouachocoiste.com/ after which the
user could redeem a free gift certificate for free chocolates.
14. Connecting & Engaging with the Consumer
Online campaigns the Godiva Way
• Create a special site engaging the target audience through the clever use
of a survey (Ex. visitor receives a free sample and Godiva obtains more
information about the target audience)
• Place a graphic/button of the new product or promotion on the homepage
of the main Godiva.com website
• Use lush photography to showcase the products
• Provide an option to see larger image of the product
• Cross-sell products using the ‘Other Options Available’ on each product
presentation page
17. Fact Sheet: China
Population (in millions): 1,321.3
Language: Mandarin (Vernacular Chinese)
Economy: China is one of the few large economies whose banking system
has not been crippled by the global credit crunch. The economy is expected to
revive by midyear and achieve GDP growth of close to 8% for 2009.
Wealth: China has 106 billionaires and 4,935 "Ultra-HNWIs" (Ultra-High Net
Worth Individuals), defined as those with financial assets of more than US$30
million.
Fifth-most millionaire households of any nation with 414,900 people owning at
least US$1 million in liquid assets.
Chinese Countries or Territories: Hong Kong, Macau, Taiwan, Singapore
Sources: china.org.cn
afp.google.com
18. Industry Experts on China
"Chinese people in the past only considered chocolate as something with a
sweet taste and brown color. Now they are beginning to realize that chocolate
can represent more than just snacks and fashionable assortments."
- Elvin Ho, Asian Pacific marketing director of Barry Callebaut, the world's biggest chocolate maker
"The maturing chocolate culture has prompted Chinese consumers to begin
asking for a greater variety of premier products. High-end chocolates are
expected to see the fastest growth in the next few years, which is also in line
with the global trend."
- Jason Foo, business development director of Aslst Chocolate, a Singapore-based manufacturer
Source: china.org.cn
19. The Global Market
The Chocolate Industry
Total global chocolate market of US$75 billion
The Premium Chocolate Category (US$8+ per pound)
Premium chocolate represents a fast-growing and dynamic market in many
parts of the world, yet is less than 10% of the total global chocolate market.
The global premium chocolate market is valued at almost US$7 billion,
which reflects a 65% increase since 2002. The premium category has risen
over 18% increase in the last year.
The Super-Premium Category (US$40+ per pound)
A narrower definition of “super premium” chocolate reduces the global
market size to about US$1.25 billion.
Source: researchandmarkets.com
20. The Chinese Chocolate Industry
• Valued at US$813 million, representing a 10% increase over prior year.
• Chocolate imports total US$56.8 million (9,521 tons), a 21.5% increase
over prior year.
- The U.S. accounts for 23% ($8.4 million - 2,233) chocolate imports.
• Chocolate retail sales are expected to reach US$1.23 billion by 2012.
• Chocolate consumption is increasing 10 to 15 percent a year as living
standards and acceptance of Western styles rise.
• Milk chocolate is the favorite flavor with Chinese consumers, accounting for
38 percent of value sales of chocolates in 2007. Of all fillings, nuts are the
most popular.
Source: china.org.cn
Source: ecandy.com/traderegulations.aspx
21. The Chinese Chocolate Industry (cont’d)
• The history of China’s chocolate manufacturing history is less than 50
years old, which has caused an inevitable gap behind foreign brands in
terms of production techniques and technologies.
- Due to inappropriate processing equipment and incomplete production
facilities, product quality assurance is difficult for many local chocolate
companies.
• Most Chinese chocolate companies are weak in product R&D, resulting in
slow product changes and updates. At present, most local chocolate
companies are stuck in an embarrassing situation of low product quality.
• With their considerable financial power, multinationals can play their
technological and cultural cards, as well as promote their premium quality
and unique tastes, to rapidly capture the Chinese market.
- Foreign chocolate brands such as Dove, Cadbury and Hershey’s have
captured 70% of the Chinese chocolate market.
Source: economist.com
22. Competition - Direct
Direct Indirect
Cadbury: Significant producer in China with its
brands ranking in the top three in sales for chocolate,
sugar confectionery, and gum.
Saw sales skyrocket 87% in 2006 with less than US Hershey’s: Determined to achieve 23% Chinese
$5 million in sales in premium chocolate. Only market share of the local market by 2010 and the
premium chocolate manufacturer with a worldwide runner-up position in China. Partnered with Lotte to
distribution. have candy produced in China.
Nestle: Sales have doubled in China since 2001
Local Chinese Companies: Unable to
compete with multinational companies on a level-
Has shown the greatest premium sales growth last playing field because improvement is needed in
year per Packaged Foods. product quality, select of raw ingredients, production
facilities, use of international technologies, product
innovation and brand management.
Non-category: Champagne, Exotic Blooms,
etc.
Source: mediapost.com
23. Market Opportunities & Challenges
Opportunities
• Belgian chocolates enjoy a sterling reputation for high-quality ingredients.
• China has a fast-growing middle-class and large population
• Growing level of health conscious consumers within China
Challenges
• Educate the target on the quality and taste difference between Godiva and
mass-produced premium chocolate already on the shelves.
• Higher prices of global players scare away Chinese customers who do not
have the purchasing power of their Western counterparts.
• Difficult to gauge how popular chocolate goods will be once country is
more fully developed, but growth will likely be significant.
• Perception of a Turkish owned American company that produces Belgian
style chocolates.
Source:: fool.com
25. The Discerning Godiva Consumer
Characteristics
• 66% of chocolate is consumed between meals
• 22% of all chocolate consumption takes place between 8P and
midnight
• More chocolate is consumed in the winter than any other season
• Interested in buying luxury products and enjoying up-market tourism
• Big spenders on wellness, accounting for 14% of their passion dollars
Shopping Behavior
• General gift giving - Birthday, romantic gesture, thank you, etc.
• Seasonal - New Year, Easter, mother's day, The Night of Sevens /
Magpie Festival (V-Day), Winter Solstice Festival, etc.
• Other - Treat self, dinner party, house staple, etc.
Sources: sfu.ca
china.org.cn
businessweek.com
26. Cultural Tidbits
People Identity
Many ethnic groups exist in China; however, the pre-eminent ethnic group is the Han
Chinese (92% of the population). The term Zhonghua Minzu describes Chinese
nationalism in general. Much of the traditional cultural identity within the community
has to do with distinguishing the family name.
Social Values
Most social values are derived from Confucianism and Taoism with a combination of
conservatism.
Literature
The Five Cardinal Points are the foundation for almost all major studies. Concepts
covered a wide range of subjects including poetry, astrology, astronomy, calendar,
constellations and many others.
Source: en.wikipedia.org
beijingmadeeasy.com
27. Cultural Tidbits
Leisure
The most common game is Mah Jong. The same pieces are used for other styled
games such as Shanghai Solitaire. Others include Pai Gow, Pai gow poker and other
bone domino games. Weiqi and Xiangqi is also popular. Ethnic games like Chinese
yo-yo are also part of the culture.
Superstitions
White is the color of death and is thus avoided. Yellow is the color of heaven. The
dragon is a divine being capable of bestowing happiness and good fortune. Red and
gold are both extremely auspicious, but do not write in red as it is considered rude.
Gifts
Etiquette dictates you must bring a gift when visiting a Chinese person in their home.
Fruit, flowers, tea or sweets would be appropriate or cigarettes or alcohol if you know
the person partakes. Foreign items have prestige value.
Source: en.wikipedia.org
beijingmadeeasy.com
29. The Task: Expansion within the Asian Market
Budget: US$2.5 million (CNY 17,110,500)
Location: Shanghai, China
• Set the stage for Godiva to own the luxury chocolate category in China.
• Identify consumer segments Godiva should pursue and recommend
effective methods to reach and engage the target.
- Understand the tastes, habits, behavior and expectations of consumers
and adapt our communications to suit the culture.
30. China: Market Challenges
Challenges
• Educate the target on the quality and taste difference between Godiva and
mass-produced premium chocolate already on the shelves.
• Higher prices of global players scare away Chinese customers who do not
have the purchasing power of their Western counterparts.
• Difficult to gauge how popular chocolate goods will be once country is
more fully developed, but growth will likely be significant.
• Perception of a Turkish owned American company that produces Belgian
style chocolates.
Source:: fool.com
31. Measuring Campaign Success
• PR coverage of the campaign/event/product
• Media/broadcast coverage of the campaign/event/product
• Store sales
• Visits to the specifically designed website associated with the campaign
• Clicks from the Godiva.com homepage to the new product section or
promotion