Marketing essay: The making of Godiva Gems: from luxury & expensive to fast casual
Introduction
The following report includes the discussion about the case “the making of Godiva Gems: from luxury & expensive to fast casual”. The report includes the analysis of the case and the development of the marketing plan for the company. The report includes the development of the segmentation strategies which will reap the company with most profitable results. The report also includes the analysis of the targeted marketing strategies using which the company will increase its market share and can easily provide the customers with their required chocolate. The marketing plan also includes the positioning strategies which the company needs to follow in order to grab the market in an efficient manner. The positioning from the premium brand product or chocolate to the casual chocolate brand has been done in order to meet the market demand and meet the customer’s needs and wants. The marketing plan also includes the marketing mix strategies which the company needs to follow in order to generate demand for its products and includes the four Ps related to which the strategies needs to be made. The report also includes a conclusion at the end of the report in order to provide a summary of the complete marketing plan.
Segmentation Strategies
Segmentation can be said to be as the process under which the organizations sub divide their market into different sub sets of customers and consumers that are similar in terms of demands or needs. There are several segmentation strategies which the company can follow in order to grab the new market or segment in which it is trying to enter. This process can begin by the way of segmenting by the product specific behavior that reflects the differences in the customers and their requirements. The customers were normally segmented based on the factors like usage, purchasing behavior, preference, benefits sought and so on. The segmentation description for the company can be chosen for the company based on the ability of the research to identify the segments in which the company can sell its products (Weinstein 2004).
The segmentation strategies which the company can use were dependent on different variables. These variables mainly includes demographic, behavioral, geographical and psychographic.
Psychographic Segmentation strategy: This segmentation strategy can be used by the company as this strategy segments people based on their values and lifestyle. As the company products were purchased by people on special occasions and also when people want to impress someone. The company products were also purchased by the true chocolate connoisseurs. The company can segment the product based on the life style of the people and also sell these based on the occasions. Under this segmentation strategy the customers may be grouped on the basis of the opinions, values, attitudes, interests and so on. As the company has come up with the new premium chocolate, which will also be sold using the retail channel in the grocery stores and appreciate the casual purchases of its premium chocolate (Michman and Mazze 1998).
Behavioral Segmentation strategy: Under this kind of segmentation the company can segment the market based on the customers’ needs. Under this the behavior of buying the product from the malls or from the grocery stores were considered. This may also include the segmenting based on the variables like cost effectiveness, usage, circumstances for usage, status factors and so on.
Geographical Segmentation: This kind of segmentation can be done based on dividing the customers into different geographical locations. This is not suitable for Godiva Gems.
Demographic Segmentation: Under this method the company will market its products by the study of the different market segments and variables like age, education, occupation, gender, income and so on. Using this method the company can easily divide the customers into different groups and by analyzing each group demand and needs can launch different products (Michman and Mazze 1998).
Targeting Strategies
A target market can be said to be as that group of customers which is decided by the organization to target and use its market efforts towards them. After the confirmation of the segmentation of the market the company needs to target the company can develop effective targeting strategies for that segment (Pride and Ferrell 2011). There are several kinds of strategies which the organization can choose from. The major kind of targeting strategies which the company can use includes:
Single segment targeting strategy: Under this the company can select the single preferred market segment and can easily target by adopting the specific marketing mix aimed towards serving the segment in the best possible manner. The company can either select the behavioral segmentation or the Psychographic segmentation. This kind of strategy is useful for companies who have a small market area or have one attractive market segment (Ferrell and Hartline 2010).
Differential targeting strategy: This strategy can also be used by the Godiva Gems Company. This strategy can be used when the company targets its products for a variety of different market segments. Even when the products characteristics are different for different market segments, like the company tries to sell its true connoisseur’s premium chocolate in the malls as opposed by the other brands which were also sold at the general stores etc (Lamb, Hair and McDaniel 2008).
Product specialization strategy: This is one of the strategies which can be suggested or recommended to the company. The company can use this strategy to attract a particular type of customer segment for particular products. The company can easily tailor its products as per the variety demanded by the feasible market segments. Under this case the company Godiva Gems Company also has developed its new product Godiva Gems which are kind of individual wraped truffles that are now easily available at the drug and grocery stores apart from just being available at the malls.
Full market coverage strategy: This strategy can also be used by the company in an appropriate manner. Looking at the segmentation strategy and the move of the development of the chocolate that will be available at all the grocery and drug stores the company is targeting the entire market segments. The organization is offering a variety of the marketing mixes to every major market segment available in the market.
Positioning Strategies
Positioning is the process by which the companies try to create an image or identity of the company brand in the minds of the targeted market for its products. The positioning strategy that can be adopted by the company is the changing of the image from the premium chocolate brand to the regular and casual brand which the consumers can buy individually for themselves and does not need to wait for gifting or waiting to be gifted. The company is trying to position its brand which is not always available in the malls and are used or bought by the customers on some special occasions or for gifting to make impression. The company needs to position its brand as a regular brand and also to be used by the people to consume it individually also (Sengupta 2005).
The company can make the brand as consumers own brand which is highly available at each drug and grocery store and they can purchase it easily whenever they want. Earlier the company brand was mostly used at occasions or for gifting to near and dear ones or to them on whom they want to leave some impression. Now the company strategy has been changed and is using the product characteristics to position its brand. The company needs to market its brand to be sounding to be luxurious but that cannot just be used on special occasions and are also not just for others, the company encourages the product for oneself one or more frequent basis (Hooley and Graham 2008).
The positioning strategy that the company can adopt ids based on the use and its application like the product is not just for gifting and for others the company is now positioning it’s as the regular use brand that can be used by one self for its personal consumption and can easily be shared. The company has made it available at each grocery store and drug store contrast from its previous availability only in the malls and high class stores where the customers have to visit specifically to purchase them. The company has put its insights together and launched a new product premium chocolate that are available in the regular retail stores and which are presented individually in wrapped treats. The company has analyzed the consumer’s behavior and make available for the customers to use it like the casual products of the luxury Godiva chocolates.
Marketing Mix Strategies
Just launching of a product in the market and winning the customers in the market in the initial phase is not enough, the sustainability of the company while meeting competition in long term is vital. Marketing mix is the term which is used to identify the ingredients of the business activity and its corresponding market space. The marketing mix for Godiva Gems includes the combination of factors like product, price, place and promotion (Lamb, Hair and McDaniel 2008). These are popularly known as the four P’s.
Product: The product of the company was earlier treated to be as luxury and expensive. The product is highly purchased for gifting purposes. The company is moving the product image from the expensive to the fast casual product which will be available t each grocery and drug stores. The company product has been converted to a individual treat and impulse treat. The product of the company has been targeted to be made to the reach of the individual chocolate eater from the only gifting purpose (Lamb, Hair and McDaniel 2008).
Price: The pricing of the company product was earlier very expensive and was usually available in malls and is highly purchased for gifting purpose for leaving an impression or to some special persons. The pricing of the company product is one of the crucial factors that have impact the company sales. After the adoption of the new strategy the company decreased the price of its products and reduced it in a manner that it looks luxurious but still remains in the approach of the people (Lamb, Hair and McDaniel 2008).
Place: The place factor is also one of the crucial variable for the decrease n the sales of the company product. The company product was highly positioned as the luxurious brand and was mostly available in the malls and was away from the reach of the customers who want to eat or consume the product in casual manner. The company has made the place strategy changed and made them available to the customer near their reach and that can be easily approached by the customers.
Promotion: This is also one of the most vital factors which will have a great impact on the company sales and revenue. With the change in the company promotion strategy from the premium and expensive brand to the fast casual brand and making them available easily to the customers the strategy is highly beneficial for the company in long term (Lamb, Hair and McDaniel 2008).
Conclusion
From the analysis of the above marketing plan and the recommendations it can be said that the company Godiva gems has utilized the best strategy to make its brand popular for the regular consumption. The company segmentation of the product can be done in different manner which will depend on the situations of the market. The company also target the market based on the selected segmentation strategy. It can also be concluded that the company has repositioned its brand from the expensive and premium brand to the fast casual brand in order to increase the market and make them available to the customers for their personal consumption use. It can also be concluded that the company also needs to make changes in its marketing mix strategies in the form of the product, price, place and promotion which will help and aid the company to market its products and generate the demand for it in long term and make it a product for fast casual use from the luxury and expensive brand.
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