Roger's Chocolate

The board of directors want to double or triple the size of the company within 10 years, but management have no idea what to do to achieve the growth.

The premium chocolate market: The premium chocolate market was growing at 20 percent annually. During the whole year, about 25% of sales happen before Christmas. And customers purchase more high quality boxed chocolate and the demand for organic chocolates is increasing. Furthermore, dark chocolate sales increases as well due to people care more about their health. Consumers and employees require that the company should have more social responsibility practices such as environmental concerns, human rights concerns.

Competitors: strong regional brands and a few larger companies.

 Godiva: high price points (15% higher than Rogers’s), widespread distribution among retailers, strength: packaging, advertising and distribution.

 Callebaut: good quality but with seasonal influence, packaging can be customized, similar price to Rogers’, focus on retail strategy

 Lindt: Swiss based company distributed broadly in merchandisers, drug and grocery retailers. Mid-range price (90% of Rogers’), produce gift boxes.

 Purdy’s: Vancouver based company, 50 location in malls, price is low(35% of Rogers’), quality is lower than Rogers’ but it’s ok, give discounts for high-volume orders.

Rogers’ company history:

Founded in 1885 in Victoria, BC; Canada’s oldest and BC’s second oldest chocolate company. The company had grown sales by more than 900 percent since 1920.

Current operation: head office located in downtown area of Victoria. Roger’s main products are high quality, hand wrapped collocates like pure milk, dark, white chocolates. Besides, the company also produce specialty items. It also produces ice cream through retail stores. The company has many loyal customers around the world.

Production:

 24,000 square-foot manufacturing facility in Victoria

 110 non-unionized retail & production employees (35 in production and 75 in retail), 20 in management, admin. And sales.

 There are so many products and many products need to be handmade and hand-packed. However, productivity and efficiency is hard to measure.

 Demand forecasting is difficult too because of seasonal sales.

 Production planning is complicated and out-of-stock issue becomes a major one for the company. It is difficult to predict sales volume accurately as a result production planning and inventory management have some problem.

 Most employees are third-generation of Rogers’ employees, they are proud and commitment to quality but their passionate creates