Sacha SinghMartin Massiah

Question 1 • Identify the product offered by

Godiva• Identify the different levels of the

product.• Discuss the attempts made by

the management to come up with an augmented product

What is their product?• Traditionally, high quality and

relatively expensive chocolates• Recently, high end, but more

affordable and easily accessible chocolate in the form of their Godiva Gems

Levels of the Product

There are 3 different levels of the product:1. Core product – benefit of the

product high-end brand (reputation of the brand)

2. Actual Product – tangible, physical good (Godiva Gems)

3. Augmented Product: additional products/services

The Augmented Product

• Decreased price to increased market access

• Changed packaging to make it more affordable and “sharable”

• Maintained quality of their product

Question 2• Do you think that the Godiva

brand could be damaged after the introduction of the new product to the lower end of the market?

• Do you see any risk of cannibalization of its line extension for the existing product line? Why or why not?

Will the Godiva brand be

damaged?

Why not?• They are not compromising the

chocolate quality • They are well established globally

for over 80 years since 1926 • This is their attempt to bring high

quality chocolate to a wider market by making it more affordable

• This is a strategy for them to capitalize on the economic recession

Is there a risk of cannibalism to their

existing product?

Why? • It will be a cheaper alternative for amateur chocolate lovers • It will be easier to share given the

convenience of the individual packaging of the Godiva Gems.

NB: Though cannibalism may occur, it will be minimal as can be seen in its revenue performance, only accounting for 10% of sales in 2009. The hardcore Godiva lovers will still buy their more exotic and exquisite offerings

Question 3• Is Godiva Gems an international

or global product/brand? • Discuss whether the brand

holds global brand characteristics

Global Features

Question 4• What are the possible impacts

of the country of origin and packaging motivating consumers to purchase Godiva chocolates?

Impact of Country of Origin

• Godiva originated in • Belgium is known producing world

renowned chocolatiers and one of the highest quality of chocolates in the world

• By association, Godiva chocolate is perceived as being one of the highest qualities of premium chocolate

Impact of Packaging• Their packaging

is intricately designed

• Its luxurious packaging justifies its premium price point

• The Godiva Gems are uniquely packaged so that they are easier to share among a group

Question 5• Godiva is entering new markets

like China and Turkey. • What strategy would you offer

to the company in its global product planning decisions in terms of standardization versus adaptation?

https://www.youtube.com/watch?v=5b6_qli2yYM