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Rogers' Chocolate Presentation Khas
Transcript of Rogers' Chocolate Presentation Khas
The first Rogers' chocolates were made in 1885 by Charles "Candy" Rogers in the back of his grocery store in Victoria, B.C. He quickly became a popular man. In 1891, Rogers expanded his chocolate operation to the company's current heritage storefront on Government Street in Victoria and the rest, as they say, is history.
Today, Rogers’ Chocolate have 9 retail stores, a busy Mail Order & Online system that can ship to over 50 countries, a 20,000 square-foot factory and several hundred wholesale outlets.
Rogers’ chocolates is committed to producing and marketing fine products which reflect and maintain our reputation of quality and excellence established for over a century.
-Make the Rogers’ Chocolates brand the premier name in the Premium chocolate category.
-Become the leading developer, manufacturer and brand marketer of Premium chocolate.
-Become the premier brand for its quality, hand crafted, sophisticated chocolates.
-Bring the Rogers’ brand to the mainstream consumer market.
-Rogers’ planned to grow its business by opening more stores and franchising the business.
-Rogers’ also planned to look to the upcoming 2010 Olympic Games being held in Vancouver to reach
consumers on a global level.
-Rogers’ also looked to increase awareness of their brand by re-branding their traditional image to
inspire a new client base to try their products.
-To meet the goal of increasing sales, Parkhill felt that online orders and mail orders could be increased since 10 percent of overall sales come from Online and Mail orders. Canadians were going online more often to shop as 30 percent of men and 18 percent women shopped online in 2006.
External Environmental Analysis
Macro Environmental Factors
-Economic downturn but not apparent in premium chocolate market.
- USDFDA definition of '' chocolate''
-movement towards healthy and eco-friendly lifestyle
-Human rights concerns
-New technology for more efficient production
-Disadvantage for Rogers traditional manufacturing and attitude against change
- seasonal sales
5 Forces Model In The Premium Chocolate Industry
The competition in the premium chocolate industry can be explained by applying the Porters 5 forces model. This model, named after Michael Porter (1979), can be looked upon as a framework to analyze and structure an industry. It is a theoretical tool to elaborate the potential threats but also the chances of a particular industry. Porter mentions five forces that have an impact on an industry; suppliers, buyers, potential entrant, substitutes and the rivalry among existing firms.
The strongest Competitive Forces
From the five competitive forces, they are relatively low to moderate in affecting premium chocolate industry especially Rogers Chocolate. However, the presence of Nestlé’s , Hershey’s and Cadburys in the premium chocolate market will cause the strongest threat as they have enormous resources and experiences. The weakest forces should be the supplier as they can only affect the cost thus as long as people still love chocolates then the market is still big. The potential profitability of new entrants from outside industry is low since the barrier of entry for this industry is very high. However, it will be a different story if those big guys in the chocolate industry like Hershey’s are very serious entering this premium chocolate market as happening lately.
As a previously stated, the company has increased its retained earnings, which allows it to invest in future areas of growth. Without having this return on Investmen, the company would not be able to increase sales and brand awareness, and would therefore be unsuccessful at reaching its goals.
Rogers’ employs 110 non-unionized retail and production workers who are passionate about the brand. Rogers’ also employs sales agents, some of whom perform quite well. Some reps have other much stronger lines and just carry Rogers’ as an add-on to their existing accounts, which is greatly effective as they have already established a relationship with buyers.
Rogers’ has a 24,000 square foot manufacturing facility. The company uses age-old, traditional equipment rather than new-fully-automated equipment which would be expensive and require long-term planning to introduce into the production facilities. The company also has 13 retail locations in Biritish Columbia.
Rogers' specializes in a wide variety of premium chocolates that are enjoyed by all who experience the products. Whether looking for a truffle,nut and chews or premium ice cream, consumers can always expect high quality,handcrafted products.
Valuable Rare Imitability Organization
High Quality Chocolates Yes No Yes Yes
Product Design Yes Yes Yes Yes
Labor Force Yes Yes No Yes
Brand Image Yes Yes No Yes
Quick Online Delivery Yes Yes Yes Yes
Production / Value Chain
Michael porter's value chain applied to Rogers' chocolates is the recognition that the value of their ''chocolate culture'' is created by Rogers' plus other players.
rogers' vendors : internal marketing department
rogers' distributors : wholesalers
rogers' retailers : victoria flagship store, ferry , deli
rogers' end users : customers
Rogers' Chocolates needs to employ a forward vertical integration model for getting closer to their customer base. The company should look at these tactics :
-Sample boxes at regional corporate convections.
-Wholesale chocolate at upscale hotels for night time guest treats.
-Sign-up for regularly delivered boxed chocolates at pre-determined intervals.
-Chocolate and wine pairing evening events.
Business Level Strategy
- Wholly owned stores including a wholesale sector distributing directly to:
- independent gift and souvenir shops
- large retail chains
- tourist retailers
- corporate account purchases
- high quality speciality stores
- online orders
-Affluent and large accounts for its high price point products.
- Targeting tourists so that they become loyal mail order customers spreading business.
Roger’s delivers the finest quality of chocolate to customers. Their exceptional quality along with local Victoria company provides customers with the value in quality as well as exclusivity factor
-Broad product line retaining quality and service.
The Target Market Analysis
Current Market Includes
-Older, more traditional customers
-Middle-aged, childless couples
-Empty nesters with high incomes
New Target Market Should Include
-Younger demographic population
-Varied geographic regions
Target Marketing Wholesale
Rogers’ Chocolates needs to focus their market efforts on the customers that generate the most sales for their firm. For example this targeted market would be the 239 customers who make up 87% of Rogers’ wholesale revenue.
-Hotel and Guide magazines where
-Enroute magazine avaliable on Air Canada
-In flyers on ferry boat brochure rack
-Seasonal print, radio, and TV advertising in Victoria only
-Donated products to charitable and promotional events
-Hand-wrapped, high quality chocolates
-Famous Victoria Creams
-Truffles, flavored nuts, chews and almond bark
-Rich dark, milk and white chocolates
-Baking and fondue block
-Special limited-edition decorated Christmas tins
-Personalized gift baskets
-Customized corporate gift baskets with company logo stamped on the chocolate
-Valentine’s Day hand-wrapped chocolate hearts
-Mother’s Day chocolate boxes
Premium Chocolate Market Analysis
- Canadian market size chocolates is $167 million US dollars in 2006
- Premium chocolate market growing at %20 annually
- 20% of heavy users accounted for 54% of Premium chocolate sales
- Demand for dark chocolate
- Environmental and human rights concerns.
-In 2006, sales totalled $11,850,480
-Retained earnings $569,692
-The company’s sales had decread from the previous year but its earnings had increased.
-Rogers’ performance was relatively stagnant over the past 2 years.
-The retail locations which were performing at an optimal level in 2006 included:
-Downtown Victoria store: Sales of over $2 million annually and contributed 45.3% overall.
-Factory: Sales of over $700,000 and contributed 36.7% overall.
- Sidney: Sales of over $400,000 and a conribution of 29.1% overall.
- Tudor Sweet Shoppe: With over $500,000 in sales and a contribution of 22.86% overall.
-Strong regional brand vs a few global competitors
-Highly differentiated products with fixed price points
-Customer brand loyality
-Premium quality focused brand
-Godiva backed by Nestle
-Bernard Callebaut Premium chocolate
-Lint Master Swiss Chocolatier
-Purdy’s Chocolates based in Vancouver
-Rocky Mountain Chocolate Factory
-Laura Secord Chocolate Company
Roger’s Strategic Position and Competitive Advantage:
- The current strategic position for Rogers can be identified as focused differentiation. It is serving the niche market of wealthy consumers, people who are willing to spend extra amount for the chocolate of their choice. The corporate segment of the population is also the one which has no issue with spending. In addition to this, tourists are also a part of the niche market being served by Rogers’ chocolates. Therefore it can be concluded that within the local and international context, Rogers’ is using the strategic position of focused differentiation.
-The main competitive advantage for Rogers is that it is able to serve the niche market with high quality chocolates which are highly valued by its consumers.
*Revenues and Margins
-Equipment and Processes
-Record Keeping and Forecastig
-Styling and Packaging
-Asia and Oceania
-Affortable Luxory Products
-Healthy Lifestyle Movement
-Private Label Chocolates
*Licensing, Franchising and Partnerships
-Cadbury and Hershey
*Environmental and Human Concerns
-Bring some changes in the design of its packaging, for some of the items
Increase brand awareness and reach out to a greater number of customers through electronic or print advertisement to increase sales and revenue.
-Expansion in the local market through effective use of social media which is less costly as compared to other means of advertising.
-Use effective tools to forecast changes in the consumer’s demand of chocolate in the local market, and match the production processes accordingly to avoid extra expenses.
-Communicate its initiatives in community building and corporate social responsibility with the public.
Use effective public relations as a means of promoting the positive image of the brand.
-To improve the financial performance of the company, management can increase its market share to improve the sales and revenue.
Improve the management at Sam’s Deli that can be a significant source of financial contribution to the company.
-Add a section of Roger’s chocolates at Sam’s Deli so that the visitors to the restaurant may also purchase the assortment, which will improve the financial position of the company.
-Franchising into retail outlets will generate more profit, as this sector already accounts for half of all profits generated by sales. Expanding into untapped other continent markets is a very promising opportunity.