Rogers Chocolate
“Rogers Chocolates”
Introduction
Premium Chocolates are like Imported Roses which not consider necessities for one life. People love to have or get one of those products. However, if there isn’t a special occasion or surplus cash, some people will not buy that unnecessary stuff.
In Canada, premium chocolates were growing at 20 percent annually and the Canadian market size for Chocolates was US$ 167 million in 2006. An attractive growth from premium chocolates makes the current player like Rogers Chocolates, Purdys and others are thinking new strategies to expand market. In addition, some big traditional manufacturers like Hersheys and Cadbury are also very interested and keen to enter this segment (Zietsma 2007).
Rogers Chocolates is a king in Victoria and well known in British Colombia. However, outside this area the brand awareness is still low. The new appointed CEO is being targeted to double or triple Sales in ten years. The key successes in premium chocolates are: understand the consumer’s needs, brand awareness, diversified products and enhanced competitiveness.
There are many challenges for Rogers’s chocolates to grow in this ever-growing competition, and there are many old and new strategies that haven’t been proven effectively. Moreover, Rogers is small/medium Company that has limited resources to apply all those strategies. The management decision-making will be very crucial to manage its strength and weakness while at the same time; they have to overcome the threat and opportunities in the industry.
1. Competitive driving forces in the premium chocolate industry
Porter’s Five Forces Model
Porter’s “five forces” model uses five competitive forces that determine a particular firm’s capability to compete (Thompson, Strickland, Gamble 2010). The chocolate and cocoa industry can use the “five forces” model as an analytical tool to determine the competitive market.
[pic]
Figure 1: Five competitive forces by Michael Porter
Introduction
Premium Chocolates are like Imported Roses which not consider necessities for one life. People love to have or get one of those products. However, if there isn’t a special occasion or surplus cash, some people will not buy that unnecessary stuff.
In Canada, premium chocolates were growing at 20 percent annually and the Canadian market size for Chocolates was US$ 167 million in 2006. An attractive growth from premium chocolates makes the current player like Rogers Chocolates, Purdys and others are thinking new strategies to expand market. In addition, some big traditional manufacturers like Hersheys and Cadbury are also very interested and keen to enter this segment (Zietsma 2007).
Rogers Chocolates is a king in Victoria and well known in British Colombia. However, outside this area the brand awareness is still low. The new appointed CEO is being targeted to double or triple Sales in ten years. The key successes in premium chocolates are: understand the consumer’s needs, brand awareness, diversified products and enhanced competitiveness.
There are many challenges for Rogers’s chocolates to grow in this ever-growing competition, and there are many old and new strategies that haven’t been proven effectively. Moreover, Rogers is small/medium Company that has limited resources to apply all those strategies. The management decision-making will be very crucial to manage its strength and weakness while at the same time; they have to overcome the threat and opportunities in the industry.
1. Competitive driving forces in the premium chocolate industry
Porter’s Five Forces Model
Porter’s “five forces” model uses five competitive forces that determine a particular firm’s capability to compete (Thompson, Strickland, Gamble 2010). The chocolate and cocoa industry can use the “five forces” model as an analytical tool to determine the competitive market.
[pic]
Figure 1: Five competitive forces by Michael Porter
References: ▪ Customer Review 2010, Rogers Chocolate, Available http://www.yelp.ca/biz/rogers-chocolates-vancouver [Accessed 5 June 2010] ▪ Lazarus 2008, Sweet deal for Purdy’s and Roger’s Chocolates, August edn, Marketing Magazine ▪ Morrissete 2008, On the case: How sweet is this, really?, Financial Post Magazine ▪ Rogers Chocolate 2010, History, Available: http://www.rogerschocolates.com/history [Accessed 5 June 2010] ▪ Thompson, Strckland, Gamble 2010, Crafting and Executing Strategy: The Quest for Competitive Advantage. Concepts and Cases, 17th edn, McGraw-Hill Irwin, United States ▪ Zietsma 2007,Case: Rogers’ Chocolates, Ivey Management Service