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.    

Ch. 16 - Advertising, Public Relations and Sales Promotion

Godiva's Sales Promotion & Advertising 

How significant is it for a company to advertise its products and have sales promotions? Well! It is an important aspect of a company's growth as advertising helps to ultimately increase the sales of a product as well as to strengthen or alter a brand's image. Since Godiva was the first Campbell Soup Company to launch a website in the mid 1990's, the company expected that the website would increase 15% of its direct mail business in the coming years.This exclusive website of luxury chocolate includes online ordering, recipes, a list of new Godiva products and occasional holiday's sales promotions. With changing technology in recent times, Godiva's team launched the newly designed site and re-approached the creative direction of photography, creating richer chocolate imagery to stimulate user's appetites as they browse through the site. All of these enhancements with newly designed checkout process allows customers to make their purchases quickly and easily. I'm a great fan of Godiva chocolate myself and not only for the taste but with its visually appealing website, I'm continued to be a loyal customer and make my purchases at times.

Public Relations

Although many of us have witnessed the public relations campaigns launched by different companies, but how many of us know the importance that it has for the companies. In reality, public relations helps businesses to bring repeated as well as new customers for its growth. Unlike advertising, this is a direct connection with people through campaigns that allows a company to disseminate its exact image. Godiva Chocolatier has maintained its reputation among its clients through many campaigns held at different occasions over the years. Not only for the company's own benefits but Godiva has continued to be dedicated for different causes. One good example is Hurricane Sandy. When people suffered from this devastating storm, besides delivering the best service to its clients with minimal interruption, Godiva stayed committed to donate $100,000 to American Red Cross Disaster Relief, and encouraged its customers to donate as well and show their support. This was one good gesture of Godiva to build strong customer relationship as it helped people out for a good cause. For many reasons, the implementation of PR strategies have helped Godiva in a big way to be more successful over the time.      

Ch. 14 - Marketing Channels and Retailing

Marketing Channels & Retailing Of Godiva

Marketing channels also known as distribution channels, refers to ways in which products move from the manufacturer to the distributor and finally to the consumer. Godiva's marketing channel network distribute their product to more than 80 countries and the retail Boutiques of Godiva provide the consistent image of the most expensive chocolate in its luxurious packaging throughout the stores. This upgraded standards of Godiva Chocolate helped strengthened its marketing strategies which is still creating a future possibility of expansion into unexplored countries where consumption of chocolate is increasing. 

As a personal experience at one of Godiva's Retail Boutiques, I got an opportunity to talk to one of the sales manager about their marketing strategies and how it works for their business's growth. The first question I asked the manager was "Why customers come to the store?" and his prompt reply was because of the quality product and the brand reputation which Godiva has established over the years. Looking at the store's environment, where the variety of products are being offered and the amount of customers walking in and out and buying the product was a true example of his statement. Furthermore, I asked him that "what is the most famous product in the store that sells all year around," and he pointed out those beautifully wrapped chocolate covered strawberries which are being prepared by the staff at the premises. This unique process gives a visual treat to its clients watching from the window and eventually making them buy. Another attraction in the store is the "Gold Gift Boxes" which relates to the customers for their occasional gift needs around holidays or for other personal events. Other than chocolates, the store also offers products like coffee and cookies which is not a big segment in the store, but still provides an option to increase sales. 

I observed many good things in the store such as customer dealing by the sales people and how they treat their customers ethically and provide the best customer satisfaction at the end. Every customer is coming in and out with a smile proves why Godiva gained a tremendous success in business and how the company made its ways to enter into different parts of the world. As I neared the end of my visit, I realized that I couldn't possibly leave without a little treat to myself, so I bought an 8 pcs. chocolate box with some delicious truffles of chocolate and left with a smile as well.

Ch. 6 - Consumer Decision Making

The Importance of Understanding Consumer's Behavior

The name Godiva doesn't need any recognition whatsoever and the consumers of today are well aware of the brand. The Godiva Gems platform was launched globally in September 2009. Gems are little Truffles, Caramels and solid Chocolates that are individually wrapped to enjoy anytime, anywhere. Godiva Gems are delivered in a Godiva-worthy way---quality chocolate, in vibrant packaging with colorful wrappers that have a "Touch of Gold" to remind consumers that it is the Godiva quality they know and love. Godiva Gems not only meet consumers' affordability and accessibility needs, (e.g., a $4.99 Stand Up Bag of Gems Truffles in Grocery Stores), but they also pioneered new behaviors for the brand. Therefore, by listening to their consumers demand and observing consumers' changing behavior, Godiva was able to make its brand more accessible and affordable globally. This decision to launch a more affordable and accessible line of chocolate was a bold move that would turn out to be the single biggest global launch in the history of the brand. By tapping into Universal behaviors like "sharing" and "casual gifting," Godiva offers much more vesatility than ever before. And most importantly, Godiva Gems makes the brand more relevant all year around and not just for special occasions or holidays anymore.

Types of Consumer Buying Decision and Consumer Involvement

Buying behavior is the decision processes and acts of people involved in buying and using products. The type of consumer buying decision that best describes the choice to indulge chocolate is limited decision making. This type of decision making requires low level involvement. There are five factors that determine the level of involvement.

• The first is previous experience with the product. At Godiva, most consumers have some previous experience with the brand. 
• The second factor is consumer interest. For consumers who may have a genuine interest in chocolate, will find a relaxing atmosphere with the variety of chocolates Godiva offers. 
• The third factor is perceived risk of negative consequences. The kind of prices and promotions as well as variety of Godiva's products available at Godiva Stores or in other Supermarkets and Drug Stores will have less chances of having negative influence on its consumers. 
• The fourth factor is situation. For example, consumer may choose to indulge at Godiva Store because they might have guest in town or want to impress someone with the upscale modern surroundings.
• The fifth factor is social visibility. The ability to interact with others at places like Godiva Boutiques where people are being pampered in a luxurious environment and having their favorite chocolates served in Gold-Gift Boxes. 

I find all these factors to be limited decision making because the consumers probably have some knowledge of what to expect at Godiva Chocolatier.

Cultural and Social Influences on Consumer Buying Decision

The cultural and social influences have great impact on a product's sale. The cultural factor can be described what you value or a social class. The social factor can be described as having a hip and classy atmosphere to have a social interaction. Godiva brand has the strength to entertain its consumers both socially and culturally, and with these offerings, it would definitely influence the consumer to spend their hard earned money. One good example of cultural influence on consumer buying decision is Chinese market in Chocolate industry.

China is a rapidly growing consumer market and more and more companies throughout the world are looking for ways to develop marketing, branding and communication that is relevant to Chinese consumers. Seen as an exotic food product, it has taken decades for Chinese people to accept the chocolate. Now the Chinese market is ready for chocolate from the taste and the culture.  Good news for imported chocolate is that the new generation of consumers has much deeper understanding of chocolate including its taste, making process and culture. In 2007,  Belgian Chocolatier Godiva made its first foray in Asia's mooncake market, which is a bakery product traditionally eaten during Chinese Mid-Autumn Festival. Now for the first time in the U.S., Godiva brings you exquisite mooncakes, a modern twist to a reserved Chinese tradition. Godiva is the first major Chocolatier to offer US customers an alternative to the traditional mooncakes. This chocolate's version is being sold in select Godiva stores in California, Washington D.C., Hawaii, Maryland, Nevada, New Jersey, and New York, as well as off the Godiva website online.This trend will probably increase the daily consumption of chocolate which means the market will expand greatly. 

Ch. 5 - Developing a Global Vision

Global Vision of Godiva Chocolate

Globalization is about demolishing barriers--physical, geographic, political, cultural, economic, social, legal, religious, etc. --to enable collaboration, the sharing of ideas, and the conduct of commerce between people, companies or organizations outside local markets. Today, we live in a digital age where the free flow of communication and creativity has allowed for globalization to evolve. The rapid advancement of technology and breakthrough of new media has brought about social, cultural, and economical shifts. Global brand recognition without a global vision is no longer possible in today's time where consumers live in real time.

The Godiva Global Team of Chefs 

The Godiva global team of Chefs and Chocolatiers keep the Belgian tradition alive and delicious. Consequently, the global team of Chefs and Chocolatiers has the pleasure of creating extraordinary Belgian chocolates that are available in over 80 countries. One of the Senior Chefs of Godiva David Funaro joined the company in 2007. At Godiva, Chef David's primary focus is the development of new chocolate and pastry products for Japan and Pacific Rim markets.Another Chef Wilmots Ilse, who worked as a Chocolatier in a pastry shop and then joined Godiva and eventually found her way onto the Research & Development team. "Together with our American colleagues we create and develop the finest, most delightful, and wonderful chocolates," she says proudly. Godiva's vision is to own the ultimate chocolate experience that inspires passion for its brand around the world. Having established as the brand for Chocolate Gifting, Godiva aims to build on its success, and expand its breath of brand awareness by pushing to be the best of everything chocolate. Godiva endeavors to widen its global footprint and reaching out to more markets. It has over 500 retail outlets globally and focuses on building capabilities to adapt to its increasing local markets.
 

Global Marketing Standardization

Developing a global marketing strategy is a key concern for multinational companies. Firms ascribing to Global Standardization theory view the world as one entity, not a collection of national markets. It is not surprising that Godiva Chocolatier, Inc., one of the creators of the world's most elegant, hand-crafted chocolates has a tradition of perfectionism. In keeping with this tradition, the founder of Godiva, Draps family kept this unique formula of rich chocolate with unparalleled smoothness and with a remarkable eye for detail, set forth the standard for Godiva's innovative selection of elegant, European shell-molded designs and beautiful packaging.Through the years, these standards have been maintained as assiduously as Drap's recipes have been guarded. As a result of adherence to Draps heritage, Godiva chocolates evoke the greatest in confectionary excellence. The same careful attention to quality is apparent in the exquisite European-style gold balloting and handcrafted seasonal packaging that has earned Godiva a reputation for design excellence as well as its taste. From Brussels to New York to Paris to Tokyo, it is Godiva that brings the best of Belgium to the world.