godiva expansion to india marketing plan

Expansion to IndiaInternational Marketing

Katie Meyer & Annie Smith-Bova

About Godiva

1926 – Founded in Brussels, Belgium

1966 - Expanded to N. America

Philadelphia's Wanamaker Department Store

1967 – Acquired by Campbell's Soup Company

1972 - 1st Boutique – 5th Ave NYC

2007 – Sold to Yildiz Holding (largest consumer-goods company in Turkey)

450 Stores in 80 Countries

Leader in the Premium Confectionary category

Godiva Brand in India

Why Godiva in India?

Luxury Gold Horse Logo

Additional Market Research on Lady Godiva

Chocolate in India

Indian Confectionary Industry

Rs 3,200 crore per annum

~ US $6 Billion

18-20% annual growth

Localizing the product important (small retailers)

Hard to compete on variety → market research on signature flavors

Impulse purchase → attractive product display

Market Entry: large investment in brand building & production

Switzer-land

US India0

2

4

6

8

10

12

Annual Chocolate Consumption (kg)

Competition

Specialty

Patchi (Lebanese) – 25 varieties

Individually owned chocolate boutiques

Mass

Cadbury (Kraft) 64 Years in India

25 SKUs

“mobisides”

KitKat (Nestle)

Ferrero Rocher - 14 SKUs

Traditional

Mithai - Indian Sweets

CadburyNestleFerrero Rocher

Target Market

Target

Globals – Affluent Class

Annual Income > Rs 1 Mill

By 2025

2% of Population

20% of national private consumption

Secondary

Strivers/Seekers – Middle Class

Aspirational purchase behavior

2008 – 5% of Population

2025 – 41% of Population

Brand Conscious Consumer

3rd most brand conscious country in the world

35% of Indian consumers spent money on luxury brands

Typically upper middle class, young

Makes purchases reflecting his lifestyle or the lifestyle they strive for

Positioning

Luxury/Super Premium

Not an alternative to mass-market candy brands

Little Indulgences

Ability to purchase just single chocolate

Gifting

Elaborate & customized presentation

Durability for transportation

Value

Chocolate quality

Shapes/Designs

Flavor

Localization

Variety

Health Conscious

Benefits of dark chocolate

Quality ingredients

Small portions

Product SelectionIndividual

Chocolates

Chocolate Bars

Truffles

Gift Baskets

Beverages

Biscuits

Wedding/Party Favors

Gold Collection

Ballotin

Dipped Fruit

Pricing

Per GramUS $0.11Rs 6

Per Box (1 lb)US $50.00Rs 2,721

Product Price/weight Comparison Factors

Patchi(specialty)

Rs 5/gUS $0.09/g

• Specialty handcrafted chocolate

• Emphasis on gifting

Mithai(traditionalcandy)

Rs 1.63/gUS $0.03/g

• Often boxed for gifting• Available at bakeries for

individual consumption. Sold in 2lb batches.

Toblerone (Cadbury/Kraft)

Rs 80/50 gRs 1.60/gUS $0.03/g

• New introduction for Cadbury• Premium positioning

Ferrero Rocher Rs 60/37.5 gRs 1.60/gUS $0.03/g

• Market entry within the last decade

• premium positioning• Individually wrapped

Kit-Kat (Nestle) Rs 12/45.5gRs .26/gUS $0.01/g

• 1 finger variety offered for Rs 5

• Cheapest chocolate/g despite recent price increases

Distribution

Mini-Boutiques

Partner with department stores for a ‘store within a store’ concept

Department Stores• Debenhams (3)• Marks & Spencer

(24)

Travel Retail• Airport Locations

Distribution

Mini-Boutiques

Partner with department stores for a ‘store within a store’ concept

Department Stores• Debenhams (3)• Marks & Spencer

(24)

Travel Retail• Airport Locations

Boutiques

Retail stores

Luxury Hotels• Imperial New Delhi• The Oberoi• ITC Hotels

Distribution

Mini-Boutiques

Partner with department stores for a ‘store within a store’ concept

Department Stores• Debenhams (3)• Marks & Spencer

(24)

Travel Retail• Airport Locations

Boutiques

Retail stores

Luxury Hotels• Imperial New Delhi• The Oberoi• ITC Hotels

Flagship StoresStand alone stores with a larger footprint and more product variety – café atmosphere

Luxury Malls• DLR Emporio - Delhi• UB City - Bangalore

Flagship Store

Hara

juku

, Ja

pan

Promotion

Objective

Establish Godiva as a Luxury brand for affluent consumers

Advertising/Marketing

Television

Internet

Magazines

On Site (Malls & Hotels)

Outdoor/Posters

Location Based Mobile

Direct Mail

Promotions

Targeted promotions for important holidays

Partnerships

India Fashion Week

Luxury Hotels

Weddings

Corporate Events

Pillow Chocolate

Messaging

Give Gold | Golden Moments• Reinforce the tradition of gold in Indian culture - a symbol of status &

wealth• Emotional appeal of creating a moment

• For you and someone else – gift giving• For yourself - individual indulgences

Results

Total Revenue – $240 M

Sales – 200 M Chocolates

Success – be prepared to constantly and quickly adjust the marketing mix

Exit Strategy – if market traction cannot be gained after 1 year after flagship stores are in place

Consolidate operations in India to global travel retail

Questions