Rogers' Chocolates
Case Preparation For Discussion (Rogers’ Chocolates)
• Production ( Labor intensive because it’s a one-shift operation. Chocolates are handmade and hand-packed. • Demand forecasting is difficult due to the seasonality of sales/ The out of stock issue is one of the major problems/ Seasonal production created problems with out-of-stock • When out-of-stock for one product, the back order production of that product would throw the schedule off for the next product. • The plant was non-union/ some production workers were third generation of Rogers’ employees. ( Created resistance to change and anything new will cause concern that the company is compromising its value and heritage. • Turnover was low/wages were competitive • 50% of company’s sales come from Rogers’ 11 retail stores • 30% of sales come from wholesale accounts. • Some significant customers changed their purchasing has caused Rogers’ wholesale sales dropped over the last two years. • Rogers has a Long History/ Known for High Quality Chocolate/ People either don’t know it or recognizes it as the best chocolate. /it is in strong financial position/ Years of experience in the chocolate industry -Rogers should take these advantages to grow their business, they have significant capability to grow their business. • Competitors: Godiva- quality is not as high as Rogers but able to obtain higher price on their product/ Bernard Callebaut- emphasis in retail strategy/ Lindt- offer large variety and has broad distribution, pricing at 90% of Rogers’ pricing • Immediate Action: -In order to eliminate the out-of-stock problems, Rogers should start replace/add some machines into the manufacturing and packaging process. • Short Term -Since the Olympic was coming to Vancouver, they should start partnering with some of the hotels and offer their residents some samples upon check-in. • Long-Term -They should also start opening
• Production ( Labor intensive because it’s a one-shift operation. Chocolates are handmade and hand-packed. • Demand forecasting is difficult due to the seasonality of sales/ The out of stock issue is one of the major problems/ Seasonal production created problems with out-of-stock • When out-of-stock for one product, the back order production of that product would throw the schedule off for the next product. • The plant was non-union/ some production workers were third generation of Rogers’ employees. ( Created resistance to change and anything new will cause concern that the company is compromising its value and heritage. • Turnover was low/wages were competitive • 50% of company’s sales come from Rogers’ 11 retail stores • 30% of sales come from wholesale accounts. • Some significant customers changed their purchasing has caused Rogers’ wholesale sales dropped over the last two years. • Rogers has a Long History/ Known for High Quality Chocolate/ People either don’t know it or recognizes it as the best chocolate. /it is in strong financial position/ Years of experience in the chocolate industry -Rogers should take these advantages to grow their business, they have significant capability to grow their business. • Competitors: Godiva- quality is not as high as Rogers but able to obtain higher price on their product/ Bernard Callebaut- emphasis in retail strategy/ Lindt- offer large variety and has broad distribution, pricing at 90% of Rogers’ pricing • Immediate Action: -In order to eliminate the out-of-stock problems, Rogers should start replace/add some machines into the manufacturing and packaging process. • Short Term -Since the Olympic was coming to Vancouver, they should start partnering with some of the hotels and offer their residents some samples upon check-in. • Long-Term -They should also start opening