...1.0 Competition in premium chocolate industry The competition in the premium chocolate industry can be explained by applying the Porters 5 forces model. This model, named after Michael Porter (1979), can be looked upon as a framework to analyze and structure an industry. It is a theoretical tool to elaborate the potential threats but also the chances of a particular industry. Porter mentions five forces that have an impact on an industry; suppliers, buyers, potential entrant, substitutes and the rivalry among existing firms. (Production of Analysis, viewed 11th June, 2010) The Porters 5 forces model for Chocolates premium industry Bargaining power of suppliers In production of premium chocolate the primary raw material is cocoa bean, secondary sugar, and milk. Concerning sugar and milk, there are numerous suppliers of these materials available around the world; there is no concentration, neither a necessary differentiation. Manufacturers can use financial techniques such as hedging in order to reduce the impact of price rises on their own margins. In addition to the fact that according to CAOBISCO, there are 4.5 million of cocoa farms around the world, to whom the chocolate manufactures are an extremely important customer, the bargaining power of the chocolate premium industry suppliers is generally low (CAOBISCO, 2009). ). However since the fine grade cocoa production represents a small part of the world’s supply, the bargaining...
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...Ramanujam 25 March 2015 Roger’s Chocolates Executive Summary: Roger’s Chocolates is a producer of premium chocolate first established in Victoria, British Columbia (where their headquarters is still located) and has been a family-run business since then. Known as Canada’s oldest chocolate producer, it is likely many US citizens have not come about this brand, unlike the more popular Godiva and Lindt. Currently owned by Steve Parkhill (since 2007), the company is privately held with 5 members on the board of trustees. Parkhill has stated the goal of the company to be to double or even possibly triple the size of the company within the next 10 years of operation. With a range of products from ice cream to fondue chocolate to just regular chocolate bars, Roger’s Chocolates is attempting to take over market share of an already highly populated area of goods. It is important to note how the chocolate industry has been doing as a whole, as this is where Roger’s Chocolates will be competing. The chocolate industry is declining in growth as many known chocolate brands are taking their products to a new height by trying to move into the premium chocolate industry, such as Hershey and Dove. With their brand name already recognized and highly bought, their transition will be much easier. This puts the premium chocolate market on the rise with the demand growing, mainly due to the aging of a large population (baby boomers) at one time who look for better chocolates in their later years. Therefore...
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...2. ROGERS’ RESOURCES AND CAPABILITIES: The firm had strong resources and capabilities. These are given below- ❖ Physical Resources: Rogers’ was a healthy company with significant assets. Rogers’ chocolate used to produce 24000 square foot manufacturing facility on the outskirt of Victoria .There were about 110 non-unionized retail and production employees. It had large retail outlets about 50% of the company’s sales come from Rogers’ 11 retail stores. Consequently, it had widespread distribution system which is based on geographic, demographic, cultural, socio-economic and all other demographic factors. ❖ Financial Resources: The company was in a good financial position with great cash flow and good margins. It had well designed financial strategies and it followed the Canada Revenue Agency’s guidelines. ❖ Strong Brand Name: Rogers’ had positive brand image. The brand was established around Rogers’ long history, with traditional packaging, including pink or brown gingham-wrapped Victoria creams, Chocolate Almond Brittle and Empress Squares. ❖ An Attractive Customer Base: Rogers’ chocolates were of the highest quality; and the company had many loyal customers around the world. The people who knew the brand were willing to pay for the product. ❖ Technology: Rogers’ most production system consisted of batch processing, utilizing technology. It had the ability to improve its production processes by advancing the technology related aspects. Such as...
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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...
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...Overview: Rogers' Chocolates is a premium-brand of chocolatiers who have developed their high-class reputation through over 125 years of quality product and service. They are based in Victoria, BC, and continue to be Canada's first and finest chocolate company. As CEO, Steve Parkhill was required to double or triple the size of the company within 10 years. Rogers' Chocolates, being a conglomerate of several food production divisions and franchises, would have to focus on the most effective growth strategy which would fit the company's image, as well as earn the support of all members of the board, management team and staff. Issues: Parkhill was required to expand the size of the company, and do so in 10 years. Since there are so many areas (different franchises and store locations) from which to choose, there are many options available, if the idea to focus more on single stores was chosen. One of the biggest issues with the company’s growth is the unwillingness of the board to change their image. If they wish to grow they must change their image into something resembling the new standards. The consumer is incredibly driven by image and presence. Most people won’t warm to the brand unless they perceive them differently. While they cite customer loyalty to the brand as a reason to not change, they are losing opportunities for even more customers due to the homey brand image. Forecasting the demand for particular brands and types of chocolates was another issue, and was...
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...credibility and objective insight; an exceptional leader with an empowering style and significant personal integrity. The contract would lasted for over 10 years. Parkhill should purchase a significant number of shares in Rogers’ each year for the first 3 years with an option to increase his holding further afterwards. Market The growth of Canadian premium market Canadian Premium chocolate market was growing at 20% annually due to the large demands from baby boomers (people who grew up during the 1960s and 1970s) Margins Much higher compare with margins in lower quality chocolates. Seasonality 8 weeks before Christmas. The sales occurred in that period contributed 25% of the annual sales amount. Core products and seasonal items were required for the fall and Christmas High valuable customers Established families, middle aged childless couples and empty nesters with high incomes. Their preferences are quality and the brand of chocolates. Trend of consumption Healthy diets (organic foods, trans fat free, dark chocolate) Competitors of Rogers’ Godiva Godiva offered chocolates of lower quality at prices that are much higher than Rogers’ (15% on average, 200-300% for truffle-only and seasonal collections) Its strengths are the packaging, advertising and distribution. (glitzy packaging, high price points and widespread distribution among retailers of gift items.) Bernard Callebaut It had 32 stores mostly across the West, 4 in US and 2 in Ontario and mall locations...
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...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...
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...been publicly stated, and programmes to meet the target are subject to ongoing assessments to ensure they are on target. Cadbury has enjoyed significant benefits from a number of good results of initiatives designed to reduce packaging and it’s environmental impacts throughout the supply chain. We are proud of our achievements, including: • The average percentage of Post Consumer Recycled content in our packaging continues to increase, reflecting ongoing success in influencing our suppliers to provide recycled content materials. • ECoPP has been included in our product design review processes with the use of the “Packaging Impact Quick Evaluation Tool” (PIQET). PIQET was developed through the RMIT Centre for Design and funded by a small industry group. PIQET was commissioned as a web format in May 2008 and our Australia Packaging design...
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...Vaibhav Malani 18748905 Vaibhav Malani 18748905 Management Assignment Analysis Report on Haigh’s Chocolates Management Management Assignment Analysis Report on Haigh’s Chocolates Management April 25, 2016 April 25, 2016 Table of Contents Executive Summary 1 Introduction 2 Background of the Company 3 Research and Analysis of Sustainability Strategies 4 Role of Organisational Behaviour at the Company 4 HR Management Practices at the Company 6 Role of International Business at the Company 7 Role of Technology Management at the Company 8 Analysis of Entrepreneurship and Innovation at the Company 9 Recommendations and Conclusions 10 Reference List 13 Executive Summary This report has been commissioned to examine different spheres of management and the management practices followed by Haigh’s Chocolates. The research draws attention to the fact that main sustainability problem lies with the supply chain. Further reading provides that the company sees sustainability as a concern and follows practices in Australia and abroad like sustainable farming and purchasing raw material from UTZ certified companies only. Further, the paper talks about training provided to the company’s employees towards sustainability. The paper also talks about the role of international business and technological management at the company which states that the company has a one-way international business route and talks about the company’s manufacturing process using...
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...Rogers’ Chocolates Formulation and Implementation in Single Business Firms 1. Strategic issue or problem statement With the mission of committing towards the production and marketing of fine products that reflect/maintain excellence and quality, Roger’s chocolate company has an opportunity to attain this in the premium chocolate market which has been growing annually at a rate of 20%. The success determinant of the premium market is quality and brand market, prerequisites (excellence, quality and brand) which Roger’s has the ability to meet this criterion. 2. Explanation of the Strategic issue or problem statement Identification of opportunities has been considered by various scholars, Shane & Venkatraman (2000), Gaglio & Katz (2001) and Ardichvili, Cardozo & Ray (2003) as a fundamental component in business formulation and implementation strategy. In addition, opportunity is identified in form of unsolved problems, creation of opportunities via ingenuity and creativity, inefficient processes or unmet needs. In Rodgers’ Chocolates case, opportunity exists in form of unmet needs. As indicated, even though premium chocolates are more like the imported roses in the sense that they are not considered as life’s necessities, more people still want them. Such is the case of Canada,( the major Rogers market share) where more people appreciate chocolates hence increasing the premium chocolate market share by 20% each year with a market size amounting to millions (US$ 167) in year 2006...
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...Rogers’ Chocolates Word Count: 1232 Table of Content Key Issue 3 Subsidiary Issues 3 External Analysis 3 Internal Analysis 3-4 Business-Level Strategy 4 Corporate-Level Strategy 4 Firm Performance 4-5 Recommendations 5 References 6 Appendices 7 Key Issue: In Victoria, British Columbia, Rogers’ Chocolates was established in 1885 by Charles “Candy” Rogers. Rogers’s chocolate is one of the biggest chocolate producers in Canada and the second largest in British Columbia. In proceeding Rogers’ death, Leah Rogers, his wife, took over the company and later sold it to a customer in the late 1920s. Management’s main focus is to explore alternatives to grow the firm without impairing its heritage. Subsidiary Issues: Competitors are attaining competitive advantage by producing low quality products. Others are marketing with less expensive ingredients, packaged in similar attractive containers, and priced identically with Rogers’ premium chocolate products. Rogers’ chocolates are only attracting niche customers, such as wealthy individuals, elderly, and married couples with no children. Currently, management has no direct measurement of day-to-day production creating inventory difficulties. External Analysis: Un-intergraded international production laws and regulations are an issue. Chocolate companies are looking to the USFDA to redefine chocolate. More firms...
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...CADBURY-GLOBAL FACE As we have seen Cadbury is a leading global confectionery company with an outstanding portfolio of chocolate, gum and candy brands. Cadbury employs around 50,000 people and have direct operations in over 60 countries, selling their products in almost every country around the world. Cadbury’s Global Journey In 1824 John Cadbury opened his shop on Birmingham's exclusive Bull Street and served tea, coffee, and, fatefully, cocoa and drinking chocolate. In 1854 the Cadburys open a London office and receive a Royal Warrant as manufacturers of chocolate and cocoa to Queen Victoria. In 1921 cadbury opened its first overseas factory in Tasmania, Australia. In 1969 Cadbury merged with Schweppes (an Australian based drink company). In 2003, the humble Birmingham chocolate becomes the world's number one confectionery company with the acquisition of US chewing gum giant Adams. In 2008, Cadbury launched the Cadbury Cocoa Partnership. £45 million was put aside to put into cocoa farms in Ghana, India, Indonesia and the Caribbean over a decade. In 2010, Cadbury was bought by American food behemoth Kraft Foods in an £11.5bn deal. In 2012, a new global research and devlopment centre opened in Bourneville as part of a £17 million investment in R&D in the UK. CADBURY WORLDWIDE Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the world. Cadbury is the largest confectionary company in the world and has its presence in Beverages in Australia...
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...Guide to Writing a Business Plan Instructions: 1. Complete as many sections in this document as possible, or as required. Throughout this document, ANZ has inserted example text to help guide customers on how to complete each section in a business plan. The text is RED and based on a fictional company called Chartwell’s Chocolates. Once you have read this text and understood how each section is to be completed, ensure that you replace this example text, with your own. 2. Save the document regularly whilst completing. 3. On completing your business plan, refresh the Index on page 3. For Microsoft Word users, right-click anywhere in the Index menu, select ‘Update Field’ and then ‘Update Entire Table’. For those using other Word Processing applications please update manually or refer to your help manual. Business Plan Insert Company Name here… Insert Company Slogan here… Prepared By: Date Prepared: INSERT NAME INSERT DATE 2 Index BUSINESS SUMMARY ............................................................................................................5 About the Company ............................................................................................................................5 Your Products and Services................................................................................................................5 The Market ......................................................................................................
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...Appendices Appendix 1: Cocoa Delights media plan ‘Get in touch with your dark side’ MEDIA PLAN Period: July 2010–June 2011 10 Chocolate Parade Melbourne, VIC, 3181, Australia Phone: 12 3456 7890 Fax: 12 3456 7890 Email: mediaplanning@cocoadelights.com Website: www.cocoadelights.com Contact: Coco Jones Table of Contents Executive Summary ........................................................................................................ 117 Business description ............................................................................................... 117 Vision for the future ................................................................................................. 117 Business goals/mission .......................................................................................... 118 Business philosophies/identity ............................................................................... 118 Main objectives ........................................................................................................ 118 Situation Analysis ........................................................................................................... 121 Marketing analysis ................................................................................................... 121 Customer analysis ................................................................................................... 123 Product benefits...
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...The Truth About Protein Powders and Meal Replacements and Bars The majority of protein supplements are packed with ingredients that create the exact opposite result that people want when they go to purchase protein. With the wrong ingredients protein shakes and bars can make you feel hungry, bloated, crave sugar and completely stall your weightloss. Heres why: Dirty Protein Secret Number 1: Added Sugar Many Protein supplements are packed full of added sugar. Sugar is the number one enemy when it comes to getting into shape. When you body digests sugar your body converts sugar into fat. Sugar also creates crazy cravings, so even though you are trying to do the right thing by having a protein shake before you know it you have uncontrollable cravings for all the wrong types of food. Have a look at how many ways sugar has been sneaked into this protein supplement: Check the list of ingredients on a protein supplement and if you find any of the following ingredients you have found sugar: Corn Syrup, Glucose Syrup, Invert Syrup, treacle, fruitrim (fruit juice and brown rice syrup (sugar!) and Sugar Cane juice. Dirty Protein Secret Number 2: Craving Causing Chemicals. If your protein supplement hasn't been packed full of sugar your can be pretty sure you will find artificial sweetener in it. Artificial sweeteners are known to create cravings for sugar. Just like protein supplements packed full of sugar soon after eating them you will be craving some thing sweet, the exact...
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