Godiva Chocolatier and Godiva Gems

1. The product offered by Godiva is an affordable and accessible one that is made for every-day
sharing. There are three different levels of the product: the core product, the actual product and the
augmented product. The core of the product represents the benefit of this product, the benefit that
makes it valuable to its consumers, in this case the reputation of Godiva Chocolatier (high end brand).
The actual product is “Godiva Gems”, the tangible, physical good.

The augmented product, the non physical part of it, is the fact that it makes a premium quality brand
available in supermarkets at a lower price and the fact that it is accessible for everyday consumption.
2. The Godiva brand will not be damaged by “Godiva Gems” because the marketing environment has
changed and an adjustment was called for. The 80 years old reputation of Godiva is well established
and it can’t be shacked by the launch of its low-end product. Also, as the consumer behavior changed
because of the instable economy so did Godiva had to change with it.

There might be a small risk of cannibalization of this line extension for the existing product line, but if
this occurs it can be used as a strategy to capture a larger market of a different market segment. 3.
Godiva holds global brand characteristics like the fact that it is perceived to echo the same set of
morals standards all around the world; it also transcended its origins and formed a well-built, stable
relationship with consumers across countries and cultures. Godiva is also sold in international
markets and this is another characteristic of a global brand.

4. In the luxury industry, clients value the quality of the products and the brand the most. Being
produced and packaged in Turkey may alter the image of the brand so consumers of the high-end
line of Godiva chocolates may stop buying them. Even though there was a financial crisis, sales of
products like Godiva chocolates have not decreased. On the other hand, Godiva Gems, being
produced and packaged locally and also affordable may go through a boom in sales. To conclude, the
luxury brand could suffer because "country-of-origin" and "packaging" are factors that influence high-
end consumers' motivation. . When entering the Asian market and a market with Muslim consumers,
adaptation is a must in the case of Godiva Gems, the affordable line, because these particular
consumers have to be treated differently that the rest of the world, taking into consideration religion
and tradition. However, in the case of Godiva luxury chocolates, in order to preserve the image of the
brand, standardization is the best option. An international luxury brand like Godiva chocolates must
remain standardized in order for consumers around the world to enjoy and have the same experience
all the time and everywhere they go.

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