Rogers’ Chocolates is not using its core competency of strong retail sales ability and its distinctive competency of producing a wide variety of high-quality, hand-wrapped chocolates to attract a sufficient market niche of worldwide tourists and high-income, middle-aged couples that are mainly empty nested or child-free, so that they can maximize their market share and profit volumes in a rapidly growing market in which globalization, product innovation toward a more health-conscious product, and growing buyer preferences are major driving forces. Their tremendous ability in retail sales, in which their 11 stores accounted for 50% of total sales, and financial leverage have not been utilized to expand Rogers’ to profit and market potentials due to a major focus on wholesale accounts. It was stated that wholesale accounts rendered lower profit margins than retail sales, yet the company would ship inventory back to the factory from retail stores to fill back orders and completely goes against the company’s goal of doubling or tripling the company within 10 years.
1. Since retail sale of liquor is a monopoly in Canada, it could be a good idea to form strategic alliance with liquor (wine) retailers and sell throughout Canada as these high-end products go well together. This would be achieved by creating a manufacturing facility in northern Ontario to help distribute products. This would create jobs in northern Ontario, thus improving corporate image. As the industry is moving more toward attracting a larger national and/or global market, this solution would allow Rogers’ to get their product to more locations across Canada while not having to spend extreme amounts of capital. 2. Create vigorous online-marketing strategies to escalate global interest. As the Baby-boomer target market is aging and will eventually become obsolete, these strategies should focus on their existing target market as well as try to build product awareness in Generation Y for continued future growth. In an article about increasing market share in the pharmaceutical industry, Paul Jones, European head of the promotion management practice at IMS, describes how increasing the online approach to doing business can sell more than a team of sales representatives. He states, “There is hard evidence that a lot of doctors can be reached more easily on- than off-line and that, in the right hands, e-communications sell more than sales representatives can” (Jones). With an internet business already put in place, Rogers’ has the technological capabilities to do this and can use their borrowing capacity to fund their intensified marketing strategies. This will allow them to help deliver their distinctive competency to a much larger market.
3. Open 5 more retail stores and another manufacturing facility in British Columbia to prepare for the heightened amount of tourism that will occur due to the 2010 Olympics. These stores will be strategically placed in areas that will attract high volumes of potential consumers. Also, since the company is not big enough to gain official Olympic status, they could perform ambush marketing strategies to maximize sale potentials during the Olympics. This will allow Rogers’ to utilize their retail sales competency and deliver a variety of high-quality products to an event that Tourism Vancouver expects close to 350,000 tourists, not to mention the local crowd that will attend the events (Agency). Television marketing through local cable companies would attract viewers who watch the Olympics but couldn’t attend the event. If 10% of the tourists purchase a minimum amount of $20, this will increase the sales by at least $700,000 during a 2-3 week span, not to mention the amount of online customers they could receive as “tourists often became mail-order or online customers” (Thompson Jr., C-185)
4. Open a new manufacturing warehouse inland B.C. and restructure the...