Ch. 8 - Segmenting and Targeting Markets

The Importance of Market Segmentation

Markets are usually categorized into different market segments which caters to a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. The market segmentation plays an important role in valued business as it divides a market into meaningful segments and allows the company to define subgroups based on preferences, characteristics, wants, age, gender and more. For a brand like Godiva, it is really important to have an appropriate market segmentation. Therefore, using these marketing strategies Godiva has been focusing on their customer's wants and needs by providing comprehensive selection of products available at their stores. Godiva Chocolatier mainly work with milk, dark, and white chocolate out of which they create large variety of products such as truffles, bars, candies, cakes, drinks, biscuits, coffees etc., Godiva surely wants to reach every single customer of all ages and make them satisfied with the variety of products they carry. Over the years, Godiva has been taking every step in segmenting a market by reaching out to grocery and drugstores as well with lower priced chocolate bars and candies other than their luxury items available at Godiva Boutiques.

Selecting Target Markets

The selection of a target market is a very important decision for a company as it requires significant effort and commitment to implement an appropriate and targeted marketing mix. There are some important considerations involved before choosing a target market which includes segment size, segment growth rate, profit margins, competitors, distribution channels, role of brand, goals and resources. Godiva continues to be the leader in the premium confectionery brand worldwide. There are two key markets that Godiva targets, the affluent retail market and the corporate market segment. The affluent retail market caters to customers who have a preference for premium confectionery products and look for something exquisite to indulge. The corporate segment seeks for gifts for special events such as, weddings and parties. Godiva's target market is just not limited to these segments and events but they also produce seasonal and limited edition chocolates for all major holidays providing an increased level of business throughout the year.

Ch. 11 - Developing and Managing Products

The Importance of New Products

Businesses are always in a rush to introduce new products to the market. In reality, new product development could be critical to the firm's long term survival for several reasons. Since all products have life cycles, so eventually they enter a decline phase with respect to sales and profitability. At some point, these products must be removed from the market and new products must exist to take their place in favor of company's existing levels of sales and profits. Another reason why new products are important is that they can provide a competitive advantage in the market. When a company continuously try to improve existing products and develop new products stay a step ahead of their competitors. This advantage can translate into greater sales and higher profits. New products can also enhance the company's image. Most consumers are attracted to new things and those companies which continually strive to introduce new products are most likely to be at the forefront of attention by existing and new customers.

Godiva Chocolate's Life Cycle

Godiva Chocolatier has defined the art of fine chocolate making by selecting the most superb ingredients. The lines of products Godiva is introducing every year has created new standards of business. Godiva's selection of premium chocolates is diverse and attractive. Their classic truffles, baked chocolate goods, chocolate assortments and chocolate of the year assortment all come together on Godiva's impressive website. Products usually go through four different stages which includes, introductory stage, growth stage, maturity stage, and decline stage. Since Godiva Chocolates are known as much as for their appearance as they are for their refined taste. Therefore, Godiva has not experienced a decline in its products due to consistent creativity and innovation and effective business management.

Ch. 18 -Social Media and Marketing

Social Media  

In modern age, technology has become an integral part of businesses to become more successful. Social media is a tool which facilitate conversations between buyers sellers which creates an engaging experience for customers in the digital world. To my understanding, companies are beginning to realize that they need to understand this phenomenon and get into the conversation. In this turbulent economy, the use of social media helped many businesses to stabilize their sales by bringing online customers to make extra purchases. Using social media, my company Godiva Chocolatier has developed marketing strategy to build deeper relationship with their customers. Collecting data effectively results in superior accountability. It is a way of communication through social media (e.g., Facebook, Twitter etc.) that listens to customer-driven innovation. Godiva leverages the data obtained in social media networks and uses it to cultivate relationships with their clients. Through online business, Godiva is making special offers relevant to their customer base to find out exactly who and what to ask when conducting new product research via social media. 

Mobile Technology 

In recent times, another popular way of  making purchases are the mobile apps. Many companies have designed mobile apps for their customers' convenience which helped increase their businesses, resulting in higher sales by the users. In 2009, Godiva developed their first mobile app, which allowed mobile users to purchase the products directly from their iPhones or Smartphones. Most people carry their Smartphones with them, so it made their lives easier to locate nearby Godiva stores to satisfy their need for chocolate cravings. From 2009 to 2010, Godiva saw a 57% increase in mobile revenue. 

Blogs

Blogs have been around since the late 90's and started to gain increased importance for businesses. When done well, blogs are cost effective marketing tools for driving lead generation and sales.  I've been reading and writing blogs myself and know how influential they are for the readers as well as for the company or the product it is written about. It gives an opportunity to find out information about any product and give your own comments to appreciate the product which eventually allows the other users to try the product. A brand like Godiva have good reviews most of the times by its fans since Godiva is always coming up with new introductions and flavors. Their vast line of product is always attracting new and existing customers. Blogging helped Godiva to appreciate its product in a big way.   

    

Ch. 10 - Product Concepts

Godiva's Product Concept

A product is the basic key term for any business's growth and must have a potential to sell in the market. The product concept is a proposal that consumers will prefer products that have better quality and features as opposed to a normal product. Godiva Chocolatier initially started as a craftsman chocolatier and has now grown into one of the most prestigious chocolate brands in the world. The name Godiva doesn't need any recognition whether its product is selling in Godiva Boutiques or in any other supermarkets or drugstores. A consumer's product can be classified into four most popular types which includes; convenience product, shopping product, specialty product, and unsought product. Godiva is one such brand that caters to all these categories for all consumers' needs. 

Types of Consumer Products

For example, convenience product is relatively an inexpensive item which needs little shopping effort. Since Godiva's regular chocolate bars are conveniently available at most drugstores and thus fulfill the need in general for any walk in customer who is craving for chocolate. On the other hand, shopping product is comparatively more expensive and available at selective stores. Therefore, Godiva's luxury stores provide this facility for those who are looking for style and quality in form of sophisticated chocolate products. Specialty product is a type of product which needs exclusive buyers and Godiva with its iconic signature packaging of chocolate satisfy their customer need for special occasions. The company is proud to have such reputation of having groundbreaking products with quality ingredients, elegant styling, innovative selection, attention to detail and beautiful packaging. The unsought product is usually referred to as newly introduced product which is either unknown to a potential buyer or the buyer isn't actively seeking for it. Over the years, Godiva began to create truffles, ice cream, liqueur, and much more for its clients and always coming up with new ideas and introducing new products. The intriguing taste for chocolate helped Godiva to maintain its customers and not stopping them of trying new products which are an exploration of flavors, textures, and aromas.

Ch. 17 - Personal Selling and Sales Management

Customer Relationship Management & Selling

Building a long-term customer relationship plays an important role for a business's success. The practice of relationship selling and sales management increases attention on long-term buyer-seller connection which emphasizes personalization and empathy as key ingredients in developing and keeping satisfied customers. Godiva's sales team is making all efforts in building a strong relationship with its clients by providing the best service possible.They intend to apply strategies resolving all customer related issues by identifying the source of the problem and using pro-active strategies to prevent it from recurring. A personal example of being a loyal customer is my frequent visits to a Godiva boutique near my job where I always make my purchases. This is because of the customer service and care I get from the sales people and how they provide me with the service I'm looking for. It is very important for sales people to know the customer's sensibility and treat them the way they expect to be treated. Not only just for the products, but this increased level of customer service helps Godiva boutiques to bring repeat customers to their retail locations.

The Impact of Technology on Selling

Technology has influenced many consumers to purchase more products by ordering online than just going to physical stores. With this rapid growth of purchasing power, Godiva has experienced tremendous success by reinvigorating its prestigious brand and introducing innovative collections of its coveted confections and expanding into new channels. These luxury chocolates are now available to a wider consumers worldwide.  From the experts' perspective, relationship between salespeople and customers is always required whether it is an on location sale or ordering by phone or online, however, technology has only helped to improve that relationship. Godiva's online offerings, such as Gift Certificates and Rewards is surely getting bigger and better for its marketing strategies.