Thursday, May 16, 2019
Case Analysis of Rogers Chocolates Essay
there are multiple edit outs facing Rogers Chocolates. Rogers has a dated value proposition. In order to expand they need to compromise the history behind the betray. The service tactics and promotion is ancient fashioned. The need for a different look was further backed by a consultant hire by Rogers. Their current traditions may be well received in Victoria simply they arent working to fully expand markets. Rogers tell on image was tarnished due to the import of raw materials from wolfram Africa. West Africa was faced with issues of forced labor and child labor used in the production of cocoa beans.In Victoria, matters concerning the social and community environment were important to consumers. This poor brand image had forced some consumers to tack on brands. Although one cannot make every consumer happy, it is best to keep an appealing imagine in the media. The company had issues charge track of demand, supply and the production of chocolate on an annual basis. This c reated issues with inventory. Production was in addition slowed, due to the passing(a) setup and equipment. Production was one shift daily and it was very labor intensive.Rogers also had issues with demand presage as it was difficult to track due to seasonality of sales. Rogers product had a shelf life of 6 months exclusively smaller wholesalers were selling expired products, an another(prenominal) area where the supply to wholesalers should be tracked. Another key issue with Rogers was the market they served. Since Rogers relied on serving a niche affluent segment of the market who sought highlife and supreme timbre, they lost consumers. Their premium price point scared consumers and wholesale accounts away. The consumers of Rogers were also tourists who were steadily declining.Rogers Chocolates was also experiencing the decline in its foreign consumer base, as the ratio of tourists visiting Victoria had declined over the years. Recommendations Rogers Chocolates has to targe t the junior market and update the design of its packaging, for some of the items. They should use flashier tins and wrappers to gear to those consumers orthogonal of Victoria.However, they should maintain what works for consumers in Victoria. They should take advantage of social media which is less costly as compared to other means ofadvertising to inveigle in saucy consumers. This result boost sales and revenue. They need to increase brand awareness and touch on out to a greater number of consumers through electronic or print ad. Television advertisement should also be used in a large scope. They need to communicate to consumers about what they are doing to play their part in the community. Rogers should go public on what are they doing to promote themselves in the earth of social responsibility. Rogers should tie the community into charity events to create brand awareness.They need to improve consumers thoughts about their brand due to the issues in West Africa. They nee d to adopt effective public relations avenues as a means of promoting the positive image of the brand. Sams Deli needs a clearer vision, better commission and more recruitment. They need to decide whether franchising would be a viable and salaryable option. Rogers should also add a section of Rogers chocolates at Sams Deli so that the visitors to the restaurant may also buy the assortment, which could secure new loyal consumers.They should provide free chocolate samples at Sams as a selling ploy. Rogers production needs improvement. They need to establish effective tools to forecast changes in the consumers demand of chocolate in the local market, and match the production accordingly to subjugate extra expenses and unreasonable waste. They should consider adding more shifts. This will put further stress on recruiting better workers, however it will make them more efficient. Rogers should adopt better opening, closing and cleaning procedures. They should look into the costs beh ind automatic production vs hand made.This can potentially make them more efficient as well. All this should be done without compromising quality. They should consider offering a more price friendly product vs high price point to open the market up to those who arent affluent but still will pay for quality chocolates. In their retail stores they should continue creating a positive image of the brand in the mind of the visitors. They should also continue to create strong brand loyalty and continue to market themselves as a unique gift item which can be given to others. Porters ModelThreat of parvenue Entrants The growth rate in the chocolate industry is falling, which makes the menace of new entrants low. However, the traditional manufacturers are despicable toward premium chocolate in an effort to maintain significant profit margins. This makes a moderate threat of entrants. They are doing this through market acquisitions or up marketing. There is also a greater profit margin in case of premium chocolate which makes it a more attractive tactic for the new entrants. Bargaining Power of Consumers Consumers have a moderate level of bargaining power.The loyal Rogers consumers dictate the packaging and store experience. Rogers has held onto this traditional view for their consumers. Consumers will pay the higher price because they value Rogers and will not switch brands. Bargaining Power of Suppliers The suppliers have moderate level of bargaining power. Consumers wanted healthier options but Rogers couldnt gain any support from suppliers to be a part of its organic or attractive trade plan of action. Threat of Substitute products and services The substitute products can be any other non-premium chocolate bar, chocolate products or candy.There are many different chocolate products available and most are an easy to find. There are about 20 options at close reach in the checkout line at the grocery store. Chocolate is readily available and this is a large threat . or so will take advantage of that availability. There are also other services available in that respect may be smaller private chocolatier companies that play a role in substitute products. strong point of Rivalry among competitors in an industry The chocolate industry has a high level of competitive rivalry.There were many organizations manufacturing and selling high quality premium chocolate including Godiva, Bernard, Callebert, Lindt and Purdys. The competitors were making efforts to gain a larger market share through offering high quality products, but they had more affordable prices in comparison to Rogers. SWOT Analysis Rogers Strengths High pre-Christmas sales. Premium ice cream. Loyal consumers. High quality, luxurious brand image. Market penetration through various outlets retail, wholesale, online mail and phone orders.Sams Deli vie a significant role in the sales and profitability of the chocolate sold by the company. The retail store run by the company was capable of creating a positive image of the brand. Viral marketing more effectively. Internet as a source of marketing, with high quality websites that were easy to use. Rogers Weaknesses The company had issues in case of keeping a record of demand, supply and production of chocolate on an annual basis, which necessarily resulted in inventory issues. Poor community outreach. Inefficient daily processes. OpportunitiesRogers has the option to penetrate more locations outside of Victoria with better media coverage and advertising. The can produce more if they streamline their production process, which will avoid inventory shortages. Rogers can look into acquisitions or up marketing also to better position themselves in the market. Threats Godiva, Bernard, Callebert, Lindt and Purdys. Competitors were making efforts to gain a larger market share through offering high quality products, but they had more affordable prices. Substitute products Multiple chocolate manufacturers not listed, ie Nestl e, Hershey etc.
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