Rogers’ Chocolates Case•Description, situation analysis, root cause, recommendations and explanations as presented by Team 2•Team 2, in order of presentation:• Elias Soto• Patrick Linton• Richard Kalt• Colleen Hoy•Ashlie MacDonald•John Kapala

Rogers’ Company History

Since 1885

Ownership

Recent Growth

The Chocolate Market

Canadian Chocolate Market

Premium Chocolate Market

Rogers’ Place

The Competition!

Godiva

The Competition!

Bernard Callebaut

The Competition!

Lindt

The Competition!

Purdy’s

Current Operations

• Head office and flagship store located in Victoria, BC

• Production factory located 8 kilometers away from head office

• 11 retail outlets owned and operated by Rogers’

Product Focus

• Focus placed on high-quality, hand wrapped premium chocolates

• A large variety of sweets, chocolates, and related products are currently being produced

• Production of premium ice cream novelty treats has recently been developed

Production

24 000 square-foot manufacturing facility

110 non-unionized retail and production employees

20 employees in management, administration and sales

Markets/ Sales Channels• Four major sales channels:

• Company owned retail stores

• Wholesale of chocolate products

• Online/mail order sales

• Sales from Sam’s Deli

Markets: Retail

11 stores currently in operation Seasonal booths set up at ferry

terminals Stores located predominantly in BC

Markets: Wholesale

Responsible for approximately 30% of sales

Sales have recently dropped due to orders being reduced or eliminated by large accounts

Profit margins in wholesale are approximately half of the margins found in retail

Markets: Online, Phone and Mail Orders

Responsible for approximately 10% of sales

Underutilized sales platform

Markets: Sam’s Deli

Responsible for approximately 10% of sales

Cafeteria style deli in the Inner Harbour in Victoria

Marketing: Target Market, Brand, Advertising

Premium chocolate manufacturer Affluent customer Customer Base Branding Advertising Website

Financials

Income statement

Balance sheet

Financials continued

Cash flow statement

LeadershipPast PresidentJim Ralph (1989-2007)

Grew wholesale business Involved in Rogers’ operations

Current PresidentSteve Parkhill

Previous senior management experience and leadership qualities match requirements in Workopolis Job Add

Shareholder

Leadership

Vice President of Sales and MarketingKate Phoenix (1994-present)

Responsible for 4 markets Supervisor of several staff Develops the marketing plan Assists at Sam’s Deli Delivers product to stores if required Background includes information systems work

and management roles at Gidden Shareholder

Leadership

Vice President of ProductionRay Wong (1990-present)

Responsible for production Works at the factory Works closely with 2 of Kate’s reports Developed all of the internal production

planning systems Background includes knowledge in food

sciences and material requirements planning Does not own shares

Leadership

Vice President of Finance and CFOBjorn Bjornson (1997-present)

Responsible for finance functions Maintains books by hand Background includes CFO at Pacific

Coach Lines, financial management and retail, as well as acquisition and dispositions

Growth Opportunities

1. Customers2. Franchising3. On-line business4. Olympics5. Increase number of stores in Vancouver6. Extend product line – ice cream, sugar free chocolate7. Concentrate efforts outside of B.C.8. Acquisition, JV9. Brand image10. Re-invention11. Increase internal capacity

Goal

Double or triple the size of the company within 10 years.

Situation Analysis

Rogers’ Chocolates is a company grounded in history and traditional. While it has survived and grown for over 120 years, it now faces a new challenge: to double or triple its size within 10 years.

How can a company with major marketing problems achieve such a goal?

The problem...

Target Market› Heavy Users› Affluent Customers› Aging

Brand› Awareness Polarized› Traditional Image / Packaging

Recommendations!

Package Redesign On Selected Products

Expanded Advertising Mainly In New Media

Vancouver Market› Current Locations› Expansion

Other BC Locations

Summary– Now?

Who we are... Where we’ve been... Where we are going... And how we’ll get there.

Come join the sweet life!

Thanks!!

Photo References

http://www.sanfranciscosentinel.com/?p=19552 http://www.godiva.com/subcategory/chocolate-collecti

ons-treats/dark-chocolate-gifts/id/90.gdv http://www.nestle.ca/en/index http://www.bernardcallebaut.com/ http://www.lindt.com/ca/swf/eng/lindt-chocolate/ http://www.purdys.com/Dark-Chocolate-Assortment-P2

1C3.aspx http://www.rogerschocolates.com/ http://www.victoriatravelguide.com/vanvouver-island/c

hocolate-vancouver-island.htm http://www.zimbio.com/pictures/_jhOfjrqny_/Chocolate

+Production+Continues+Cadbury+During http://www.progressad.com/ http://www.phone-numbers-search.com/ http://www.fotosearch.com/photos-images/errand.htm

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