Godiva is an international company that specializes in the manufacture of chocolate. Currently, the company has over 450 stores worldwide. Over the years, the company has undergone difficulties that are attributed to the following:
• Most customers have been suspicious of the quality of the product
• Recession caused a drop in the sales volume
Despite the odds, Godiva has lived up to the expectation of its loyal customers by providing products that suit customer needs. One of the ways of maintaining the customers’ base is by keeping up with the market trends and getting feedback from the customers.
Godiva’s customers are the greatest assets of the company because a drop in customer base will lead to a significant decrease in profits. The composition of the target market is mostly women in their late twenties. One of the strategies that the company uses is the 4Ps of marketing. The product packaging suits the needs of the customers at the right place with the correct price. The friendly prices make customers loyal to a product. The competitors of Godiva include Guittard, Nestle, Lindt, Kron Chocolatier and Ghirardelli (Jones et al., 273). Godiva produces dark, white and milk chocolate varieties. To remain relevant in the industry and maintain its customer base, Godiva carries out a SWOT analysis. The strengths, weaknesses, opportunities and threat analysis acts as a yardstick to future developments and realization of the company mission, vision, and goals.
Strengths
The main advantage that Godiva can bank on is a well-established brand. Most of the households can associate with Godiva chocolate because they have seen or heard about it. As a result, customer brand loyalty increases. An increased brand loyalty will mean that the company is guaranteed the sale of products and services. Brand loyalty helps a company to outdo its competitors (Rubin, 68). Godiva will surpass its competitors such as Lindt regarding sales due to the customer loyalty. Besides, Godiva makes quality chocolate that attracts some customers. Everybody wants to be associated with quality that is why he or she gets to purchase Godiva products. The quality of the product is coupled with a longer shelf life.
Customers often shy away from products with a short shelf-life. Godiva chocolate is guaranteed a continuous presence in the market if it capitalizes on the strengths. On the other hand, Godiva has a skilled workforce. The employees can work together to produce results that are in line with set standards. A skilled workforce is easier to work with because of their ability to learn and adapt to the changes in the market and manufacturing. The strengths together with good management help in aligning the company to prosperity.
Weaknesses
One of the weaknesses that the firm has is poor planning. Poor planning goes ahead to affect the quality of the product produces and puts the customer base at risk. The company risks losing its customer base when the product quality deteriorates (DuBrin, 126). Customers who associate with quality will shift to other brands. Besides, poor planning reduces the morale of the workforce. Secondly, Godiva chocolate company does not have proper coordination in the top management. When the top management lacks coordination, most of the decisions of the firm are conflicting. Conflicting decisions result in a bad performance of the company.
Thirdly, Godiva does not enjoy a good relationship with other foreign areas. An example of this scenario is Asia. The company did not get a positive reception as it did in other countries except for Hong Kong. The company should address the weaknesses if they have to remain in business. Godiva should work hard to meet the gaps before the competitors capitalize on them. One way of dealing with the weaknesses is company analysis and market research. Customers act as an excellent source of information on what is trending in the market.
Opportunities
The best chance that Godiva has is the ability for expansion into other countries that it has not set foot. The development provides Godiva with a chance of accessing other markets and making more profit in return. The best way to enter the new markets can be through franchising. Godiva can collaborate with firms that are in the foreign areas so that it establishes a base. Developing a franchise agreement is better because a company relies on the already existing reputation to get customers (Moutinho et al., 304). When Godiva enters the new markets, another opportunity comes. Godiva will have the opportunity to rebrand in the franchise agreement and make a new look product for the direct market. Although Godiva will have to take time before they adapt, they will get an active base in the end.
Another opportunity that the company can use is its ability to develop new marketing strategies for the products. Marketing will help in popularizing the products so that many people get access to them. The marketing team can be internal, or it can be outsourced to fill the void that is in the marketing team. Advertising makes households know the product and eventually make advances of purchasing. Lastly, Godiva can engage people on social media. Social media is a very open platform where views come from all over the world. When properly used, the media can be an excellent platform for growth. The company is in upmarket magazines such as Forbes, Appetit, Food and Wine, etc. the three are good magazines that can steer the company to greater heights. The magazines are associated with prestige. Thus, Godiva will be a prestigious brand.
Threats
One of the threats that Godiva faces is brands having similar features. The brands are not differentiated. As a result, customers are not able to see clearly what products belong to Godiva and which ones that do not have a clear indication on the packaging. The packaging of a product will make a customer realize the company that made it. Godiva should use good marketing strategies so that they capture the attention of the marketers. Godiva faces the threat of new entrants (Hill et al., 57). There are upcoming companies that make chocolate and other products that are similar to what Godiva makes. Such groups pose a cutthroat competition in the market and make better products.
Strategies of Godiva
One of the new strategies that have been employed by the company is the expansion of the IT framework. The structure helps in customer relationship management (CRM) and process automation. Currently, the company is working on ways of producing an augmented product that fits particular needs. An alteration can be done to the flavor, ingredients or the nutrient composition. The forecast of the company is to set base in 2000 supermarkets each year. Such a prediction helps the company to establish itself in environments that are a new. Another strategy is the pricing strategy. A Godiva chocolate costs close to $4.99 depending on the environment. Changes in price will depend on the availability of the shops and the market share.
Work cited
DuBrin, Andrew J. Essentials of Management. Mason, Ohio: South-Western/Thomson Learning, 2012. Print.
Jones, Gareth R, and Jennifer M. George. Contemporary Management. Boston, 2006. Print.
Hill, Charles W. L, and Gareth R. Jones. Essentials of Strategic Management. Australia: South- Western/Cengage Learning, 2012. Print.
Rubin, Lawrence C. Food for Thought: Essays on Eating and Culture. Jefferson, N.C: McFarland, 2008. Internet resource.
Moutinho, Luiz A. M, and Charles S. Chien. Problems in Marketing. London: Sage Publications, 2007. Internet resource.
