Godiva Company Recommendations to Improve the Marketing Plan - 825 Words

Godiva Company: Recommendations to Improve the Marketing Plan (Research Paper Sample) Content: Godiva Company: Recommendations to Improve the Marketing Plan Student Name Institution Date Table of ContentsIntroduction3Improving Segmentation, Targeting and Positioning3Recommendations for the Marketing Mix4Conclusion5Reference List7 Introduction Godiva Company adopted a new strategy that targeted to encourage consumers to purchase more of its products. This is after customers showed change in their purchasing behaviour as they shied from luxurious and expensive products. The decision to change its approach on how to win over consumers provided the company with a reliable competitive advantage. This research provides recommendations on segmentation, targeting and position strategies, and marketing mix strategies. These are of significance in improving the marketing plan and increasing sales in the Singapore Market. Improving Product Segmentation, Targeting and Positioning According to Malhotra (2013), segmentation, targeting and positioning strategies can be used to improve products or services and increase sales. In the initial stages, Godiva Company opted for the luxury products consumer segment in the Singapore market. However, only a small consumer group could afford such high prices. Since majority consumers favored low priced chocolates it became challenging for Godiva to compete against other companies such as Nestle Company (Holmes, 2011). To overcome the competitive pressure, Godiva sought an undifferentiated strategy that fit the low earning consumers. Dibb and Simkin (2013) explain the undifferentiated strategy is critical in targeting customers as most consumers are moved by low prices while making purchasing decisions. Godivaà ¢Ã¢â€š ¬Ã¢â€ž ¢s decision to produce an affordable product was effective in seeking to keep its consumers loyal to the brand. However, the company should make more efforts to be consumer intimate where they serve specific needs of their customers. For example, Godiva introduced the premium chocolate to encourage casual purchasing. As global economic conditions changed, price seemed to be the most significant element in customersà ¢Ã¢â€š ¬Ã¢â€ž ¢ decision making in the Singapore and global market. As the company introduces drug stores and grocery supplies, it will be more effective to expand into other territories such as online services, targeting a broader customer base. Recommendations for the Marketing Mix Amstrong et al. (2014) claim a marketing mix defines a companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s marketing options in regards to the product, price, place and promotion. It assists a company develop a product that meets the needs of given consumers, directs the company on a suitable place to target the customers, the best price to offer and how to promote successfully (Amstrong et al., 2014). The basic idea behind a product is a customerà ¢Ã¢â€š ¬Ã¢â€ž ¢s expectations. For instance, Godiva noticed customers purchased its chocolates only on special occasions due to their packaging and pricing. Although, customers preferred competitor products, which were less costly, these products failed to meet their expectations. The company introduced the Godiva gems to give quality to consumers at affordable prices and increase sales. The packaging was also made more attractive and offers customers a variety of colours and flavours. Most customers prefer purchasing products within their reach (Amstrong et al., 2014). Initially, Godiva Company supplied its products only in malls limiting the reach of many customers. Expanding supplies to drug stores and grocery stores presents an advantage to the company. However, it would be more effective to present products in kiosks and even school stores; simply any place that potential consumers could be accessed. It is good to notice the company also offers online purchases to reach a broader consumer base. Customers opted for competitor products since they were within their reach and could meet their demands at any time. In this case, Godiva should expand more not giving the customer the chance to opt for anything else. Presenting a worthy product at the suitable place is only part of a customerà ¢Ã¢â€š ¬Ã¢â€ž ¢s decision making journey. A large number of customers make their final decisionà ¢Ã¢â€š ¬Ã¢â€ž ¢s basing on price (Varey, 2012). As observed, customers moved to substitute products as the lesser prices offered were to their advantage. However, noting how some customers still preferred Godiva products to the lower end brands, it shows offering them slightly cheaper products of good quality would maintain their loyalty. According to Zwick (2008), promotion is a critical step...