Roger Chocolate Case

Rogers chocolate

Growth problem- triple the size of the company two-to-threefold in 10 years.

Growth opportunities

- Approach to the cruise-ship industry needs to be considered since the customers are not going downtown any longer.

- Franchise the outlets?

- Online business- high profits, low costs and good reorder rate.

- Corporate gift market.

- Olympics coming to whistler- only three stores in BC.

- Should rogers penetrate into the US or other parts of Canada?

- The packaging has been considered gaudy- some adamant to not change.

Company history

- Founded in 1885.

- The company has changed hands three times in the last two decades.

Product line

- Hand wrapped chocolates with various assortments.

- Dark chocolate, milk chocolate and white chocolate bars.

- Speciality items as well.

- No-sugar- added chocolates.

- Ice cream line added.

Production-

- 24000 square foot manufacturing facility in Victoria.

- Non- unionized employees, 35 in production and 74 in retail.

- Labour intensive, chocolates hand-made, hard to measure the efficiency or productivity in the plant.

- Seasonality of sales- 24% of sales occur during Christmas period- creates problems with out-of stock products. The out of stock issue was making it harder to plan for next year’s production since there are spikes created in production and those distorted plans were used. Discounts made pushing certain lines and the new ice cream line distorted sales as well.

- Chinese supplier produced art tins in an untimely fashion- due to electricity.

- Happy employees who are well connected- have a heavy involvement in the success of the company. Concerned about changes that could affect the company’s brand and heritage- including the packaging.

Competitors

- Godiva- backed by Nestle, glitzy packaging, amazing variety in chocolate mouldings, widespread distribution, high price points. Quality not high.

- Bernard Callebaut- chocolate producer out of Calgary, 32 stores mostly west, good quality, glitzy packaging,