The Rebranding of Godiva

Alex Torelli, Max Puro, Tim Cronin and Karen Emodi

Brand History

• Company was named after an old English legend

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• Grew a reputation for luxury in the department stores of Belgium
• Continues to be their strongest distribution channel

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• Under Campbell’s:
• Focused on high-end “gifts” segment
• Primarily in North America
• Minimal advertising spend, given few resources

Yildiz Holding Co.

• Began as two brothers baking biscuits at a factory in Istanbul

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• Started as a company producing chocolates in Turkey in 1972

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• Has aggressively expanded product offering and modernizing supply-chain, while sticking to confectionary treats
• Strategic partnerships in US, Japan, Europe and Middle East

Godiva Under Yildiz

• Despite the financial crisis, Godiva’s business was stable for the first two years

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• Invested heavily in its store networks

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• Upper management at Yildiz looked to enter the Food, Drugstore & Mass (FDM) segment

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• International sales represented 50% of Godiva’s sales in 2013
• Ülker decided to make changes

Godiva Under Yildiz

• Aggressive goals:
• $2B turnover short-term,
• $5B turnover in the coming 10 years

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• Rebranding:
• Merchandising,
• PR,
• in-store/website promotions

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• Continues to own and operate > 480 stores worldwide with over 425,000 unique monthly visits

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“We would like our customers to be able to afford Godiva products every day. I believe in ‘happy moments.’ Godiva must be self-indulgent.”

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Marat Ülker, 2014

Current Market Conditions

• The U.S. chocolate confectionery market is quite competitive and slightly complex

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• Direct Competitors:
• Premium: Lindt & Sprungli, Ghiradelli, Ferrero Rocher
• FDM: Hershey’s, Mars, Nestle

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• 80% market share in the luxury chocolate segment

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The Problem

Yildiz wants to take them mainstream, yet Godiva represented only a 2.3-2.7% market share in retail value between 2009-2013.

SWOT Analysis

Strategic Recommendations

Capitalize on strengths: Maintain quality, brand reputation and in-store profit margins

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Thinking Global

and Acting Global

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- Maintaining traditionalism of products i.e. no cultural variety

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- Risks of mass rejections due to lack of relatability

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Luxury > Affordability

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- Internationally recognized as a ‘golden’/luxurious brand

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- Popularity of cheaper products may compromise Godiva’s elegance

Strategic Recommendations

Create New Assets: New product, new promotions, new experiences

“A little taste of

Godiva chocolate..

Anytime and

anywhere!”

New Products,

New Retailers

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- Introduce a lower-priced line (similar to 2009 strategy)

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- Risks of damaging Godiva’s premium brand image

Loyalty Rewards

Program

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- ‘GIP’: Godiva Important Person; discounted offers and exclusive emails from Yildiz Holding.

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Conduct Tours in

Factories

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- Manufacturing factories in certain countries can be a tourist attraction - new experience for customers

Strategic Recommendations: Summary

Extension. Adaptation. Creation.

Offer virtually unchanged product

in markets outside home country

Change elements of design, function,

packaging according to different

country markets

Develop new products and experience for the world market

Questions?