So what’s a luxury brand to do in this economy? “Excess” has become a dirty word. A touch of luxury is fine–as long as it isn’t overdone. Anything that’s over the top is a no-no. Godiva, the upscale Belgian chocolatier, long known for marketing unabashed luxury in its luscious little bonbons wrapped in gold boxes, is faced with a dilemma.
A recent New York Times article titled: “Godiva Rides in a New Direction” points to how difficult it is for luxury brands to strike the right tone as they reposition for a new economic reality.
Rather than campaigning itself as an “alternative to mass-market candy brands” or discussing that it represents good value as a luxury brand, Godiva decided to take another tack. Why is Godiva a brand to buy during tough times? Well, we all need a few little indulgences, don’t we? And we’re all thinking gift buying and gift giving as the holiday season looms, so what better choice than a golden box of Godiva chocolates?
Godiva has launched a new campaign with an estimated budget of $3.5-$4 million. The theme? “The golden moment.”
According to Godiva CMO and Senior VP for global brand development, Lauri Kien Kotcher, the campaign will be three-pronged in its goals:
- Reconnect consumers to Godiva’s Belgian chocolate heritage. The words “Belgium 1926″ will replace the word “chocolatier” under the brand name.
- Remind consumers about what Ms. Kotcher refers to as “the chocolate deliciousness” of Godiva with camera shots of luscious candies, some half-eaten.
- Touch the emotions of consumers. The joys of giving, receiving and eating chocolates from the gold box evoke a “golden moment”. Ms. Kotcher: “the golden moment” is to “become the new brand essence” of Godiva.
Pointing out that a lovely golden box of Godiva chocolates make a lovely gift for as little as $15-$25 seems to be a good move during recessionary times. The company has also introduced a lower priced line dubbed “Godiva Gems”, featuring packages of smaller chocolates, individually wrapped to encourage sharing.
At $4.99-$9.99 per package, distribution has been expanded beyond Godiva’s own stores to include newsstands, duty-free shops and in a first for the brand, supermarkets like Publix, Safeway and Wegman’s. Perhaps wisely, Godiva Gems will not be featured in the new marketing campaign. It will be promoted with in-store advertising and signage.
According to ad agency director David Lipman, whose agency created the new campaign, “while the ads may be filled with socialites” with British accents–Lady Godiva was British, after all–the message is that “anybody could share these (happy) moments.”
“It’s aspirational,” Mr. Lipman says, “aspirational in being happy, being elated, being exuberant.”
The new Godiva campaign roll-out is timed for the holiday season–a key time in the upscale chocolate business, needless to say.
Questions:
- What do you think of Godiva’s new strategy to focus on emotive, “golden moments” rather than “luxury”? Do you think this concept might be a winner for many luxury brands? Why? Why not?
- What do you think of the curious decision by Godiva to launch its Godiva Gems line? Is it a good idea for upscale lines to offer lower-priced selections or does it cheapen the brand?
- Luxury brands have been aspirational over the past two decades, in particular. Do you think a brand like Godiva can successfully shift its position from “aspirational for luxury” to “aspirational for happiness”?
- What do you think of Lipman’s assertion that even though the ads are high-toned with socialites, they show that Godiva can be for anybody? Mixed message? Conflict?
I’d love to hear from you.
Tags: luxury marketing, Marketing
Ted, you asked,”What do you think of Godiva’s new strategy to focus on emotive, “golden moments” rather than “luxury”?
Since Godiva isn’t selling yachts, or watches with insane opportunities for fat profits, it looks like they have the right approach, esp going downstream a bit with the Gems line. Luxury car makers like BMW (1 Series) and Mercedes (C-series) have used a similar strategy. Trick is to provide the luxury experience at a lower and acceptable price point,thus introducing the brand to customers who may have thought they couldn’t afford it.
This recession won’t be around forever, and when it ends, they will have introduced their brand to a whole new round of customers…
Hi Paul,
Thank you for commenting on my post. As you point out, there are luxuries and there are luxuries. . .still, at ballotin boxed chocolates that can easily exceed $50, Godiva represents luxury in its category. Let’s face it: consumers can purchase Russell Stover chocolates for a lot less.
Interesting that you are of the opinion the cheaper entry-level Gems line might yield good things for Godiva once the recession ends. That may well happen. By offering a very few pieces of its premium chocolate at entry level price points, Godiva may well pick up new customers. Still, they may also run the risk of diluting the high end image of the brand by positioning product in supermarkets. . .BMW and Mercedes have offered lower price points on entry level cars, but remember those models are sold in the same dealerships that sell far pricier models. It seems to me this protects the overall image of the brand, even as the companies are reaching out to potential new consumers who can’t afford to purchase higher-priced vehicles. So what about Godiva chocolates being sold in supermarkets? Do you think that works?
I think it’s the right approach for right now. You still deserve a shining happy time in this bad economy and Godiva is that affordable moment.
Hi Sioux City,
I’m all for it. Brands that deliver enjoyable, memorable moments count. Especially during tough times like these. Good point. Thanks for weighing in here.
Godiva is headed in the right direction. Godiva is evolving its brand by responding to the current economic climate. This is a typical component of branding. I assume that Godiva is changing its communications to reflect this change. I also agree with Paul’s comment about Godiva providing a luxury experience at lower price point, a tactic that introduces its brand to a new customer base.
Hi Olympia,
Thanks for weighing in on my post. You may be right. There’s no doubt this economy dictates luxury brands adapt or perish.
Just one observation. You said: “I assume that Godiva is changing its communications to reflect this change.” That was one of the concerns I pointed out, Olympia. While Godiva is trying to work the “golden moment” of pleasure angle, the advertising spots are still filled with “socialites”. . .
obviously appealing to the upscale consumer. That’s why I asked whether launching smaller, price point conscious products while advertising in such a manner isn’t sending a confusing message. Your thoughts?
I appreciate your insights, Olympia. Thanks for sharing them with us.
Although I know diddlysquat about marketing I agree wholeheartedly with you that Godiva’s intention to launch smaller, price point conscious products & retailing Godiva products at supermarkets is sending a confusing message.
Hi May,
Your observation demonstrates that while not everyone is a marketer; we are all consumers. I suspect some people will find Godiva’s latest move a bit confusing, even if marketers think it’s a logical move. We’ll have to see what consumer reaction–and sales–look like on the new line launch. It will also be interesting to find out whether sales are strong over the holiday season for the core Godiva line. Thanks, May, for adding your thoughts to my post.
I have to say that this new strategy Godiva has unveiled has the potential to be extremely successful. Despite the fact that the economy is still week, everyone deserves a something special. By positioning Godiva as “special” rather than “luxury” the company opens so many more doors. By opening up their target audience, they’ve given themselves an opportunity to get in front of more potential customers than they ever have before.
Tessa Carroll
http://www.blogs.vbpoutsourcing.com
Hi Tessa,
Agreed. Right now a luxury brand has to rethink its marketing strategy. In the case of Godiva, the focus on savoring a special moment and the decadence of chocolate vs pushing the concept of high end, expensive luxury is the way to go. My only questions are these: will the advertising message confuse by trying to blend the brand’s luxury elements with the new “special moment” concept? Will it potentially alienate consumers with a mixed message? Or will it successfully continue to appeal to upscale patrons while drawing many potential new customers in? What do you think?
Thanks, Tessa. Your input and insights are always appreciated.
Hmm…if I saw Godiva chocolates in a supermarket, I wouldn’t think they’re the same as the others on the shelf, but I wouldn’t go out of my way to the Godiva store any longer, because now it’s a ‘Publix’ grade confectionery in my eyes. Simple. You can’t have both exclusivity and mass appeal at the same time. You can try..that you can do.
Hi Ambrish,
You made some insightful statements here: “Simple. You can’t have both exclusivity and mass appeal at the same time. You can try..that you can do.”
I suspect many Godiva fans will feel as you do when they see the Gems line in their supermarket. Mass distribution has a way of making new customers while potentially alienating current ones. There’s a certain sensitivity about lines that cultivate luxury and an aura of exclusivity, after all. You’ve made the point quite eloquently. This goes to the heart of my post. I thank you, Ambrish.
The practice of emotional marketing is all about getting your target audience to connect with your product, service, and brand at a very basic and fundamental level – the level of emotions. Brilliant move to add the words “Belgium 1926″ for a bit of imaginative nostalgia, overall I think the campaign is quite clever. I am not so keen on the dumb-down version of the chocolates being available at Publix, etc.I feel much the same as Ambrish. I could go for a gold box of exquisite chocolates right now! Thanks Ted for an excellent article.
Hi Donna,
Thanks for adding your insights to my post. I appreciate the kind words. Agreed: there are parts of the marketing campaign I really like, too. However, like you, I’m not sure about the idea of positioning smaller, lower-priced packages of chocolates in the supermarkets. I mean: why not take this concept and offer it in their own stores or more upscale venues as an entry level treat? Nothing against supermarkets. It’s just that some brands may not be a fit for this kind of distribution? Just wondering myself. . .