RODGERS’ CHOCOLATES – A Case Analysis
It was March 2007, Steve Parkhill- the newly appointed President at Rogers’ Chocolates is provided with a challenge to double or even triple the size of the company in the coming 10 years. Rogers’ Chocolates – a privately held company has seen about nine fold growth in the last two decades, it is the Canada’s oldest premium chocolate based in Victoria, British Columbia (BC). Parkhill has to devise a Company Strategy which can achieve a growth rate of 7.2% to more than 10% per annum (see Exhibit I).
Potential Opportunities
Rogers’ core competence is the specialization in a wide variety of premium chocolates targeted towards affluent customers looking for a luxury experience with a superior taste, or an elegant, prestigious and uncommon gift item. It is positioned in between Godiva and Bernard Callebaut in terms of price and quality (see Exhibit II). In 2006, the Canadian premium chocolate market was growing at 20% annually. The coming Olympic to Vancouver and Whistler in 2010, is another growth opportunity. Moreover, the strong market presence in the western part of Canada and the brand image provides a promising opportunity to tap the corporate gift market for it would fetch stronger margins than wholesale.
External and Internal Problems
The steady chocolate industry has no room for complacency; the market demand is more cyclical and the current trend is for natural products produced in socially responsible facilities. The business is shared with big players with different strategies. Godiva achieves higher prices with lower quality products with edgy wrappers and more market presence. The traditional brand image retains old loyal customers; however, fails to attract new young buyers. The marketing intermediaries and sales agents took least interest in promoting Rodgers’ and often changed hands for cheaper lower quality