Introduction
Rogers’ Chocolate is on a mission to have the company double or triple its size within 10 years. An analysis will be performed to figure out a strategic plan where Rogers’ Chocolate will be able to grow, and maintain their image of providing premium chocolates. The issue facing Rogers’ Chocolate is how they will be able to gain new customers and sustain their current customers. To give a thorough analysis, I will identify and explain the strategic issue, present the results of the analysis, and present alternative strategies. Finally, I will present my recommendation and conclude the analysis.
Strategic Issue
The strategic issue facing Roger’s Chocolate is how to grow the company by being able to gain new customers and
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Being able to acquire a new market may bring those new customers to their current market. The main threat to Rogers’ chocolate is the competition. Not being able to keep up with the competition or current trends can lead to lost market share. With Godiva having superior packaging, distribution, and price points, and Bernard Callebaut having superior packaging and seasonal influence, Rogers’ Chocolate could be falling behind soon if they do not join the ranks. Rogers’ must find their niche in order to be able to compete not just locally, but globally.
Alternative Strategies Rogers’ Chocolates will need to gain new customers if they want to grow the company. To gain new customers, Rogers’ must take a risk a re-brand themselves with a new packaging design to create a new image. Implementing a new brand image will gather a new crowd of consumers that Rogers’ did not reach with its current image. To be able to do so, Rogers’ will need some financial help in order to invest money into the new packaging design and image that they want to create. They will also need new store displays and marketing tools to be able to push the image to customers. By creating this new image, they run the risk of losing their current customers. The new image that Rogers’ creates will grab the attention of a new market that will help gain market share that they currently do not have to aid in the growth of the company. For growth to happen,
Many of Rogers’ Chocolates external issues come from the taste and interests of their customers. The demand for premium chocolates is not steady but rather fluctuating with the current season, weather and other substitutes in the market. Simple personal preference changes over time and that can have a devastating effect on such a niche market.
The marketing strategy of Haigh’s chocolate has been identified through detailed analysis of the external and the internal environment of the present market conditions and development of the Haigh’s. There has been complete detailed SWOT analysis of the company on the basis of research conducted from several secondary sources. It has been conducted in order to determine the important strategies and the key strengths of the company. Talking about the chocolate sector which has been further segmented into several categories in which Haigh holds the important position and have captures the major chunk of the market. Such markets range from chocolate blocks, bars and other diet varieties like gluten and eggless products. The demand in the chocolate market is also divided on the basis of the geographic location markets like that in Sydney, Melbourne and Adelaide chocolate markets. Other factors affecting demand in the market includes demographic, behavioural and psychographic segmentation.
Roger’s Chocolate Company is a Canadian chocolate firm that has a reputation for high class and high quality chocolates. The firm was founded in 1855 as a family owned business in Victoria, Canada. As time progressed, the company became a prominent source for chocolate throughout Canada and the United States and has left a deeply rooted tradition across those areas. Although the company is no longer family owned, many of the company employees are from families that have worked for Roger’s Chocolates for generations, leading to a deep sense of brand pride and a commitment to excellence, a potential advantage in the company’s future growth pursuit.
The Pillsbury Cookie Challenge is a case study written by Natalie Mauro under the supervision of Professor Allison Johnson. The case study creates an open discussion about what the marketing manager of the refrigerated baked goods category for Canada General Mills should do to revive his products. Ivan Guillen, the marketing manager, was faced with tough challenges. He was initially “…faced with the challenge of developing a strategy that would lead to improved business performance on his category” (Johnson and Mauro, p.1, 2011). To clarify, Guillen’s category is refrigerated baked goods (RBG), which means, this category is his marketing responsibility. The issue here is that “RBG was GMCC’s fourth largest category, and its performance over the past two years had been less than stellar” (Johnson and Mauro, p.1, 2011). It is important to note that GMCC stands for General Mills Canada Corporation. Pillsbury has enjoyed majority market share in the RBG category in Canada, however, recently, the market was experiencing only moderate growth. Guillen was disappointed that their goal of 5%-7% market growth was not being achieved mainly in the refrigerated cookie dough segment. To be exact, their volume growth for two years was flat and they were having difficulty reaching new households. There was a shift among consumer’s purchases, which Guillen was challenged to figure out why.
The basic characteristics of the marketing concept that could be identified in Clare’s Chocolates are as follows:
Rogers’ Chocolates is not using its core competency of strong retail sales ability and its distinctive competency of producing a wide variety of high-quality, hand-wrapped chocolates to attract a sufficient market niche of worldwide tourists and high-income, middle-aged couples that are mainly empty nested or child-free, so that they can maximize their market share and profit volumes in a rapidly growing market in which globalization, product innovation toward a more health-conscious product, and growing buyer preferences are major driving forces. Their tremendous ability in retail sales, in which their 11 stores accounted for 50% of total sales, and financial leverage have not been utilized to expand Rogers’ to profit
In 2006, the chocolate market size for Canada was US$167 million with the premium chocolate market growing at a rate of 20% annually. Competition within the premium market is a broad mix of small local niche players to large multinational corporations and is growing as larger traditional manufacturers enter the market via acquisitions or new product launches. Product differentiation is healthy and there are no indications of a price war starting between rivals. Product innovation appears limited, mostly focusing on new flavor introductions and variations in molding and coloring. Seasonal demands, especially the eight weeks prior to Christmas, can create demand that can challenge small companies with low production capacity and/or inadequate forecasting and inventory management. Competitors vary in the level of vertical integration and companies with large-scale operations and distribution networks enjoy a competitive advantage through economies of scale.
The premium chocolate industry is having an intensive competition in Canada with the strong growth potential. Industry growth opportunity imposes increasing competition from rivals and threats of new entrance that adds pressure on overall profitability. Even though Roger’s has been able to establish its place in the chocolate industry with its strong brand recognition and products’ quality, it still needs to be on top of ever- going market changes, by continuously
The immediate success of Hershey’s low-cost, high-quality milk chocolate soon caused the company’s owner to consider increasing his production facilities. He decided to build a new chocolate factory amid the gently
Hershey’s began as a single building, creating chocolate, but soon transformed to thousands of companies around the world. “A founder of one of the world’s largest confectionery companies … He [Milton] was a pioneer in the mass production of milk chocolate, turning it to form an expensive luxury into an affordable, everyday treat” (McMahon). Money was not a factor involved with this creation of greatness but much more the quality given to his customers. Even though the quality was a luxury he felt compelled to allow everyone to experience the flavor. Bringing the cost of chocolate down made many more people able to buy the product. “Milton Hershey was a man who measured success not in dollars, but in terms of a good product to pass on the public, and still more in the usefulness of those dollars for the benefit of his fellow man” (Milton S.). Along with the products growth in cost reduction, the company’s development grew as well. More people were buying the product all over the country so that called for an expansion of the industry. Hershey’s creation is what launched the chocolate industry that continues to expand today. The increase in consumers caused growth around the world therefore adding to Hershey’s
Being a part of the product development team for Chocoberry I know that we will have the responsibility to make sure that we draft up a business plan with the option of marketing chocolate products with basic health claims for the United States’ retail consumer market. The business model for Chocoberry has an open-minded place to design, develop and manufacture new products worldwide and with that they have to make sure that trough there.
— The quality of product dependent on provenience: Swiss chocolate has already outstripped chocolate from other regions because of its “Swiss-made” characteristic.
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,
The purpose of this report is to identify, analyse and evaluate the marketing factors that Whittaker’s has adopted in attempts to position themselves as a top-quality chocolate confectionery brand. In addition, this report would also be an aid to the major assignment in terms of developing detailed plans with marketing factors, data and facts.
For instance, internet has brought much effect on the information searching behaviors; this development makes it necessary for consumer researchers to keep up with these developments (Zhang et al, 2009). Consumer behaviors involve the interaction among peoples thinking, actions, feeling, and the environment. By knowing, these interactions better companies are able to satisfy their consumers. In this aspect, the new chocolate company will need to spend a lot of time trying to grasp the customer’s needs and thus be in a position to translate these needs into detailed plans in order to add value to its customers (Blythe, 2006).