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Rogers Chocolates

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In order to double or triple Roger’s Chocolates revenues in the next decade, the following strategic actions must be taken:
More effectively utilize the company’s Website and the vast reach of the Internet to expand customer base.
Current Internet sales represent only four percent of total sales. The Internet can create the largest increase in sales with the least amount of fixed costs all with tremendous contribution margin. The upcoming Olympic Games present an opportunity for Roger’s Chocolates (RC) to showcase itself as a uniquely Canadian treat to the people arriving from all over the world. The reach of the World Wide Web allows RC to stay accessible to the tourists even as they go back home.
The only negative to focusing so heavily on Web sales is the high cost of shipping. However, negotiation and partnering with shippers can create discounted shipping rates.
Increase the wholesale business of Roger’s Chocolates
Margins have remained strong for RC. With these strong margins RC can afford to use two level distribution to further create demand without the costly expense of additional store fronts. While RC’s brand recognition is strong within the Victoria area, by utilizing distribution methods other than direct retail, RC can increase brand awareness outside the local geographic area.
The main detractor of increased wholesale sales is the degradation in margin due to added channels of distribution. Nevertheless, increased revenue by expanded distribution will offset decreased margins. Additionally, by first “testing the waters” through distribution in other markets, RC can better target direct markets in which to serve.
Open New Storefronts in Western Canada
Roger’s Chocolates should utilize one of their core-competencies of the “retail experience,” to increase penetration in different markets. While opening new stores can be...

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