Rogers’ Chocolates is Canada’s oldest chocolate company and British Columbia’s second oldest company. Steve Parkhill, the new president of company is expected to double or possibly triple the size of company within the next 10 years. In the chocolate candy industry, Canada’s market size was $167 million and growing 2% annually. Although the growth rate in the chocolate industry is falling as a whole, large companies such as Hershey & Cadburys are moving into the premium chocolate market and growing 20% annually. Rogers’ Chocolates retains 25% of their sales 8 weeks prior to Christmas and about 40% of their sales come from their heavy users. Their customers are generally established families, childless, middle-aged, couples, empty nesters, or high incomes. Recently, their margins for premium chocolate were higher than lower quality chocolate due to the fact that their consumers wanted healthier and organic products rich in anti-oxidants. Consumers also demanded for companies to take social and corporate responsibility and to make efforts towards environmental safe practices. Although Rogers’ Chocolates contains many strengths through quality and reputation the company faces numerous dilemmas. These problems range from current troubles to future concerns. Some of Rogers’ Chocolates issues have slowly decreased the company’s sales and market share through the passing years. These issues include problems due to competition, production, retail and wholesale distribution, shipping, marketing, advertisement, and finance.
Rogers’ Chocolates is now facing multiply dilemmas due to the surging efforts of their competition. Godiva Chocolatier is a premium company that has first-class packaging and marketing campaigns. They have hundreds of international retail stores and are located in thousands of specialty stores. Callebaut is located in multiply mall locations and has decent quality products, but they excel in new flavor introductions and customized packaging. Their strategic approach in the market is targeted more towards retail rather than wholesale. Lindt is another competitor of Rogers’ Chocolates that is an established Swiss chocolate company that produces a large variety of chocolate through mass merchandisers such as drug and grocery retailers. They have respectable quality in their products and packaging. Lindt also produces Ghirardelli chocolates and had a close proximity to Rogers’ Chocolates’ pricing. Purdy’s is a Vancouver based brand just like Rogers’ Chocolates. The company is 120 years old with over 50 locations specifically malls. Their prices are about 35% lower than Rogers’ and they offer a discount off high-volume orders for their corporate gifts. The competition establishes a great threat to Rogers’ Chocolates because of their similarity in products and their strength in the market. The increasing number of competitors in the premium chocolate industry creates additional risks to Rogers’ Chocolates due to their competitions multiple locations and strong geographic reach nationally and internationally. Also, their competition produces lower quality chocolate, but they either price it higher or lower than Rogers’ Chocolate which allows for a lower production cost and more funds for advertisement. These factors give Rogers’ Chocolates competitors an overall advantage in the market place. Production
Rogers’ Chocolates production is a key factor to their loss in previous and current sales. Currently, they only have one shift to make their handmade and hand-packed products by the few employees that work in production. This creates problems for Rogers’ Chocolates because there is not enough time to produce all orders with such a small group of employees and only one shift. Due to a lack of a monitoring system, Rogers’ Chocolates has no way of measuring the quantity of production at the facility for that day. This also creates issues for Rogers’ Chocolates because they have no...
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