Godiva is expanding into India and analyzing the market opportunities and challenges. They will target affluent consumers in India and position themselves as a luxury chocolate brand. To enter the market, Godiva will open boutique stores, partner with department stores, and use promotions focused on luxury themes. The goal is to establish Godiva as a symbol of wealth and status in Indian culture. Success will require constantly adjusting their marketing strategy.

1. Expansion to India
International Marketing
Katie Meyer & Annie Smith-Bova

2. 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

3. Godiva Brand in India
 Why Godiva in India?
 Luxury
 Gold
 Horse Logo
 Additional Market
Research on Lady
Godiva

4. Chocolate in India
 Indian Confectionary Industry
 Rs 3,200 crore per annum 12
 ~ US $6 Billion 10 Annual Chocolate
Consumption (kg)
 18-20% annual growth 8
 Localizing the product important 6
(small retailers)
4
 Hard to compete on variety
→ market research on 2
signature flavors
0
 Impulse purchase → attractive
product display
 Market Entry: large investment in
brand building & production

5. Competition
 Specialty
 Patchi (Lebanese) – 25 varieties
 Individually owned chocolate boutiques
Cadbury
 Mass
 Cadbury (Kraft) Nestle
 64 Years in India
 25 SKUs
Ferrero
Rocher
 “mobisides”
 KitKat (Nestle)
 Ferrero Rocher - 14 SKUs
 Traditional
 Mithai - Indian Sweets

6. Target Market
 Target  Brand Conscious
Consumer
 Globals – Affluent Class
 Annual Income > Rs 1 Mill  3rd most brand conscious
country in the world
 By 2025
 35% of Indian consumers
 2% of Population spent money on luxury
 20% of national private brands
consumption  Typically upper middle
 Secondary class, young
 Makes purchases
 Strivers/Seekers – Middle
reflecting his lifestyle or
Class
the lifestyle they strive for
 Aspirational purchase behavior
 2008 – 5% of Population
 2025 – 41% of Population

7. Positioning
 Luxury/Super Premium  Value
 Not an alternative to  Chocolate quality
mass-market candy
 Shapes/Designs
brands
 Flavor
 Little Indulgences
 Localization
 Ability to purchase just
single chocolate  Variety
 Gifting  Health Conscious
 Elaborate & customized  Benefits of dark chocolate
presentation  Quality ingredients
 Durability for  Small portions
transportation

8. Product Selection
Individual Gold Collection
Chocolates
Truffles
Chocolate Bars Biscuits
Ballotin
Beverages Wedding/Party
Favors
Gift Baskets
Dipped Fruit

9. Pricing
Product Price/weight Comparison Factors
Patchi Rs 5/g • Specialty handcrafted chocolate
(specialty) US $0.09/g • Emphasis on gifting
Per Gram
Mithai Rs 1.63/g • Often boxed for gifting
(traditional US $0.03/g • US $0.11
Available at bakeries for individual
candy) Rs 6
consumption. Sold in 2lb batches.
Toblerone Rs 80/50 g • New introduction for Cadbury
(Cadbury/Kraft) Rs 1.60/g • Premium positioning
US $0.03/g
Rs 60/37.5 g •
Perentry within the last decade
Market
Box (1
Ferrero Rocher
Rs 1.60/g
US $0.03/g
•
•
lb) wrapped
premium positioning
Individually
Kit-Kat (Nestle) Rs 12/45.5g • US $50.00
1 finger variety offered for Rs 5
Rs .26/g • Rs 2,721
Cheapest chocolate/g despite
US $0.01/g recent price increases

10. 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

11. Distribution
Mini-Boutiques
Partner with
Boutiques
department stores for
a ‘store within a store’ Retail stores
concept Luxury Hotels
Department Stores • Imperial New Delhi
• Debenhams (3) • The Oberoi
• Marks & Spencer (24) • ITC Hotels
Travel Retail
• Airport Locations

12. Distribution
Mini-Boutiques
Partner with
Boutiques
department stores for Flagship Stores
a ‘store within a store’ Retail stores
concept Luxury Hotels Stand alone stores
Department Stores • Imperial New Delhi
with a larger footprint
and more product
• Debenhams (3) • The Oberoi
variety – café
• Marks & Spencer (24) • ITC Hotels
atmosphere
Luxury Malls
Travel Retail
• DLR Emporio - Delhi
• Airport Locations • UB City - Bangalore

13. Harajuku, Japan
Flagship Store

14. Promotion
 Objective  Promotions
 Establish Godiva as a  Targeted promotions for
Luxury brand for affluent important holidays
consumers
 Partnerships
 Advertising/Marketing
 India Fashion Week
 Television
 Luxury Hotels
 Internet
 Weddings
 Magazines
 Corporate Events
 On Site (Malls & Hotels)
 Pillow Chocolate
 Outdoor/Posters
 Location Based Mobile
 Direct Mail

15. 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

16. 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

17. Questions