Rogers' Chocolate Case Study

Topics: Financial ratios, Financial ratio, Retailing Pages: 4 (1203 words) Published: January 30, 2013
Critical Issues
In order for Steve Parkhill to increase the growth of Rogers Chocolates by more then doubling its current size within the next 10 years, the following issues needs to be addressed: •How to establish an effective internal operating strategy relating to efficiencies in production and forecasting demand so that the company can better plan for the future. •How to increase brand awareness within Eastern Canada and other parts of the world so that the company can grow. •How to pick the most effective distribution channel to create the greatest growth so that they can increase profits.

Situation Analysis
The Canadian market size for chocolates was US$167 million in 2006 and was expected to grow every year by 2%. Where as the premium chocolate market is growing at a rate of 20% per year (Exhibit 1). There is a large range of competition within the premium chocolate market ranging from large companies to small local companies that have a niche product (Exhibit 4). With the growth rate of chocolate decreasing and a large increase in growth in premium chocolates, larger companies are entering the premium market by acquiring companies or launching new products (Exhibit 1). There is a difference in products between the companies, which has not led to any pricing wars. A high percentage of sales occur during the two months before Christmas. It could be problematic if companies cannot produce or forecast the demand during this busy period. Due to economies of scale, larger manufactures don’t have to worry as much about newer competition (Exhibit 2). Customers are demanding for more organic products, as they are becoming more health conscious. They also want companies to practice good social responsibility by having environmental and human right concerns (Exhibit 1).

Decision Criteria
A feasible plan to strengthen retail production
Establish a strategy that will create brand awareness towards new customers •Effectively distribute products...
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