Rogers Chocolates

Hershey’s began as a single building, creating chocolate, but soon transformed to thousands of companies around the world. “A founder of one of the world’s largest confectionery companies … He [Milton] was a pioneer in the mass production of milk chocolate, turning it to form an expensive luxury into an affordable, everyday treat” (McMahon). Money was not a factor involved with this creation of greatness but much more the quality given to his customers. Even though the quality was a luxury he felt compelled to allow everyone to experience the flavor. Bringing the cost of chocolate down made many more people able to buy the product. “Milton Hershey was a man who measured success not in dollars, but in terms of a good product to pass on the public, and still more in the usefulness of those dollars for the benefit of his fellow man” (Milton S.). Along with the products growth in cost reduction, the company’s development grew as well. More people were buying the product all over the country so that called for an expansion of the industry. Hershey’s creation is what launched the chocolate industry that continues to expand today. The increase in consumers caused growth around the world therefore adding to Hershey’s

Roger’s Chocolate Company is a Canadian chocolate firm that has a reputation for high class and high quality chocolates. The firm was founded in 1855 as a family owned business in Victoria, Canada. As time progressed, the company became a prominent source for chocolate throughout Canada and the United States and has left a deeply rooted tradition across those areas. Although the company is no longer family owned, many of the company employees are from families that have worked for Roger’s Chocolates for generations, leading to a deep sense of brand pride and a commitment to excellence, a potential advantage in the company’s future growth pursuit.

The marketing strategy of Haigh’s chocolate has been identified through detailed analysis of the external and the internal environment of the present market conditions and development of the Haigh’s. There has been complete detailed SWOT analysis of the company on the basis of research conducted from several secondary sources. It has been conducted in order to determine the important strategies and the key strengths of the company. Talking about the chocolate sector which has been further segmented into several categories in which Haigh holds the important position and have captures the major chunk of the market. Such markets range from chocolate blocks, bars and other diet varieties like gluten and eggless products. The demand in the chocolate market is also divided on the basis of the geographic location markets like that in Sydney, Melbourne and Adelaide chocolate markets. Other factors affecting demand in the market includes demographic, behavioural and psychographic segmentation.

The shift from transactional to relationship based customer marketing lead to change in the 4P’s of marketing strategy namely the product, price, promotion and place. Hershey has to reinvent itself and cater to health conscious customer segment by producing and marketing a low-calorie dark chocolate which could be positioned as a healthy snack and improve brand consciousness. Health benefits and nutritional value proposition will drive product sales.

The immediate success of Hershey’s low-cost, high-quality milk chocolate soon caused the company’s owner to consider increasing his production facilities. He decided to build a new chocolate factory amid the gently

At the end, the problem for Rogers’ Chocolates becomes a question of if they lose age-old tradition and gain resources rapidly to expand their reach; or value who they are, and find alternative options to grow.

— The quality of product dependent on provenience: Swiss chocolate has already outstripped chocolate from other regions because of its “Swiss-made” characteristic.

There are many competitors in the industry that have remarkably identifiable brand names and customer loyalty like Rogers Chocolate itself. New company must increase its spending to overcome the reputation and large customer base of the existing companies.

The premium chocolate industry is having an intensive competition in Canada with the strong growth potential. Industry growth opportunity imposes increasing competition from rivals and threats of new entrance that adds pressure on overall profitability. Even though Roger’s has been able to establish its place in the chocolate industry with its strong brand recognition and products’ quality, it still needs to be on top of ever- going market changes, by continuously

Rogers’ Chocolates is not using its core competency of strong retail sales ability and its distinctive competency of producing a wide variety of high-quality, hand-wrapped chocolates to attract a sufficient market niche of worldwide tourists and high-income, middle-aged couples that are mainly empty nested or child-free, so that they can maximize their market share and profit volumes in a rapidly growing market in which globalization, product innovation toward a more health-conscious product, and growing buyer preferences are major driving forces. Their tremendous ability in retail sales, in which their 11 stores accounted for 50% of total sales, and financial leverage have not been utilized to expand Rogers’ to profit

The premium chocolate industry is changing dramatically with the growth rate in the chocolate industry falling as a whole, other traditional big name chocolate companies like Hershey’s and Cadburys are moving more towards the premium chocolate industry. The premium chocolate industry growing 20 percent annually and with the baby boomers purchasing more chocolate, they put are putting great emphasize on quality and brand when they purchase their chocolates. The underlying drivers of change are changes that companies go through in the industry and competition conditions. There are 14 total driving forces that drive industry change but Roger’s chocolates has 6 driving forces in particular that affect

In 2006, the chocolate market size for Canada was US$167 million with the premium chocolate market growing at a rate of 20% annually. Competition within the premium market is a broad mix of small local niche players to large multinational corporations and is growing as larger traditional manufacturers enter the market via acquisitions or new product launches. Product differentiation is healthy and there are no indications of a price war starting between rivals. Product innovation appears limited, mostly focusing on new flavor introductions and variations in molding and coloring. Seasonal demands, especially the eight weeks prior to Christmas, can create demand that can challenge small companies with low production capacity and/or inadequate forecasting and inventory management. Competitors vary in the level of vertical integration and companies with large-scale operations and distribution networks enjoy a competitive advantage through economies of scale.

Rogers’ Chocolates retains 25% of their sales 8 weeks prior to Christmas and about 40% of their sales come from their heavy users. Their customers are generally established families, childless, middle-aged, couples,

Being a part of the product development team for Chocoberry I know that we will have the responsibility to make sure that we draft up a business plan with the option of marketing chocolate products with basic health claims for the United States’ retail consumer market. The business model for Chocoberry has an open-minded place to design, develop and manufacture new products worldwide and with that they have to make sure that trough there.

For instance, internet has brought much effect on the information searching behaviors; this development makes it necessary for consumer researchers to keep up with these developments (Zhang et al, 2009). Consumer behaviors involve the interaction among peoples thinking, actions, feeling, and the environment. By knowing, these interactions better companies are able to satisfy their consumers. In this aspect, the new chocolate company will need to spend a lot of time trying to grasp the customer’s needs and thus be in a position to translate these needs into detailed plans in order to add value to its customers (Blythe, 2006).