Roger's chocolates case

Roger’s Chocolates

Laura Malis, Ting Ting Hu, Miku Anraku, Zahed

Faheem, Khanh Pham, and Kuangdi Xu1

Company Background● Premium Chocolate Manufacturer

● Founded by Charles “Candy” Rogers in 1885

● Canada’s oldest chocolate company

● Located in Victoria, British Columbia (2nd oldest company in BC)

● Wife ran company till late 1920s.

● Privately owned company with 5 board members

● Product Portfolio

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Strengths: ● Historic brand- long history● High quality/ handmade/ hand-wrapped ● Large variety of chocolates● Revenues in four major areas● Stores located in touristy areas

Weaknesses: ● Production planning and inventory

management● Resistant to change ● Currently do not have capability to produce

organic products

SWOT Analysis

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Opportunities:● Should broaden target market● Become more well-known

Threats:● Younger buyers are not as familiar

with the brand than older customers are

● Current traditional packaging is not as appealing

● Need to fund expansion without compromising quality

● 50% of the company’s sales come from Rogers’ 11 retail stores

● 30% of sales come from wholesale account in five categories

● 10% of sales come from company’s online and mail orders

● Remaining sales come from Sam’s Deli

Market Distribution

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-More than half of all online, phone, and mail orders are from U.S. customers

-Fast shipping- online and mail orders are given priority

-Website is easy to navigate- facilitates online purchases

-Offer customers to purchase chocolates as wedding favors or business gifts

Market Distribution Continued...

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Categorized ObstaclesWithin Parkhill’s control1.Management of out-of stock issue2.Social and environmental responsibility, human rights concern

Within the team’s sphere of influence1.Monthly sales forecast2.Employees’ resistance to change3.Brand management and image establishment4.Sale increase and expansion

Out of control1.Demand forecasting and production planning2.The capability to produce organic products

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● Canadian market size for Roger’s Chocolates is large- market is small in the U.S. and internationally

● Have yet to open stores in the U.S.- solely online sales● Target market is mostly the older generation, tourists, and those looking

for a luxurious gift ● Many strong competitors: Godiva, Lindt, Bernard Callebaut, etc.● The high premium price scares new consumers

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Obstacles Continued...

● Expand into the U.S.● Hire marketing consultant and launch a marketing campaign● Communicate to customers electronically through email

promotions to increase sales and revenue● Advertise through social media in order to:

o expand their brand’s nameo promote the opening of new stores in the U.S.o target younger generation

Possible Solutions

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Best Solution●Become more well-known outside of Canada by expanding into the U.S.

■ Offer Roger’s chocolates in well-known grocery stores such as Whole Foods or Trader Joes

■ Already 50% of sales comes from retail stores- opening more stores will increase sales

■ Begin by expanding to areas in such as NYC, Seattle, or LA where there is a lot of tourism

■ Advertise through social media to promote the opening of new stores

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Implementation

● Original plan was to double or triple the size of the company within 10 years

● Slight decline in sales after September 11th and after the decline of the U.S. dollar

● 4% of sales comes from online sales● 6% of sales comes from mail orders● Entering into the new market in the U.S. will increase:

o cost of property/ equipment (currently $7,735,007.61)o administrative prices (currently $5,221,520)o gross profit and sales by an estimation of 10% per year

Financial Statement

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2005 2006

Sales $11,991,558 $11,850,480

Gross profit $6,613,371 $6,465,392

Thank you!-Team 5

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