Case Study #1 (Roger’s Chocolates)
The premium chocolate industry is changing dramatically with the growth rate in the chocolate industry falling as a whole, other traditional big name chocolate companies like Hershey’s and Cadburys are moving more towards the premium chocolate industry. The premium chocolate industry growing 20 percent annually and with the baby boomers purchasing more chocolate, they put are putting great emphasize on quality and brand when they purchase their chocolates. The underlying drivers of change are changes that companies go through in the industry and competition conditions. There are 14 total driving forces that drive industry change but Roger’s chocolates has 6 driving forces in particular that affect them the most. First are the changes in the long-term industry growth rate because of the decreasing growth rate in the chocolate industry. Second are the changes in who buys the product and how they are used because as mentioned in the text, 20 percent of the “heavy users’ account for 54 percent of the pre-Christmas sales. Third is marketing innovation because their customers and clients had environmental concerns in bettering their packaging, procurement, and operational decisions. Fourth driving force are the entry or exit of major firms and this can been seen with companies like Hershey’s and Cadburys moving more toward the premium chocolate industry. Fifth driving force is the regulatory influences and government policy changes because larger chocolate manufactures are seeking a redefinition in the word chocolate under USFDA guidelines so that they could purchase cheaper versions of the product and still call it chocolate. Six and final driving force is changing societal concerns, attitudes, and lifestyle. People nowadays are more focused in the way they eat and are more concerned with their diet. Organic chocolate is a major topic and now dark chocolate is becoming more popular because it had been proven to be healthier...
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