BA462-Strategic Manament – Case 1
September 19, 2013
After taking in depth tour of Rogers’ Chocolate, one may find many strengths and weaknesses in terms of the company’s strategic managements. This case analysis is written to figure out the company’s weaknesses by decomposing company’s current circumstances and strengths by integrating components of strategic management.
Good strategic plan is derived from using an appropriate analysis. Although there are many useful analogical methods that can be used such as Michael Porter’s 5 forces model, the main method used here would be SWOT analysis. SWOT is a very effective tool in understanding and creating
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This inefficiency in processing will also affect the company’s inventory control by not being able to keep track of over or under stocked products. In addition to the problems in processing, Rogers’ limited location, mainly in Canada, restricts the new market such as United States or other international market for not setting up systematic marketing strategies in online and whole sales.
Opportunities
As mentioned earlier part, overcoming weakness makes the company stronger surviving in market. Although Rogers’ do not established strong channel at the virtual or wholesales, the growth in Asian or other countries in Europe will open bigger markets for them eventually. Since Rogers’ has 4 years left until 2010 international Olympics, they can set up strategies in marketing themselves throughout such programs. Increased interest in organic products in public, who would not mind paying more for the better, will be an opportunity for Rogers’ to appeal their premium chocolate to organic friendly consumers.
Threats
Publically well-known companies like Hershey and Godiva can penetrate premium chocolate market, which can affect Rogers’ market share. Geologically limited store locations make company difficult to broaden accessibility to the customers. Therefore, it is inevitable to improve the company’s marketing strategies to gain better accessibility.
Hershey’s and Cadburys are moving towards the premium chocolate market through the acquisition or upmarket launches (Zietsma, 2007). The profit potential present in this sector supported by its 20% annual growth rate make it very attractive for large organizations to come forward and avail this opportunity. There is a low threat of new entrants prevailing in this chocolate industry because of the high capital requirements and expected retaliation by current manufacturers. Current players in the industry also possess some barriers to entry for new entrants by maintaining economies of scales with their large production capacity and keeping their product differentiation with their specialized and novelty chocolate products. Even though there are low switching costs and easy access to distribution channels, but still the brand loyalty of the customers including the Rogers’ Chocolate itself make it harder for new firms to come into the competition.
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.
Canadian based company, Saralyn Mills, is in need of a new marketing strategy to repair the current shortage of sales in Quebec, Canada. According to the case study, the Quebec and Ontario markets account for 69 percent of the company’s sales in Canada. Currently, Saralyn Mills does not have an effective strategy in place for the market of Quebec. The company’s current goal is to implement a global standardization strategy, which is focused on keeping a set marketing strategy the same for every location. It is up to the marketing manager, Nicole Vichon, to come up with a new and separate marketing plan for Quebec. Even though this would be a major policy change from the current global strategy of Saralyn Mills, case facts prove it could be very effective.
The premium chocolate industry is a large market in the United States and continues to grow around 10% annually. It is also populated with very strong
10. To achieve 1 million hits on the Cocoa Delights ‘Get in touch with your dark side’ microsite by the end of the campaign.
The premium chocolate market has been growing at 20% annually, showing that buyers are willing to pay more for a better tasting and better quality chocolate. The declining growth of the overall chocolate market and rapid growth of the premium chocolate market is positive for current producers of premium chocolates in that the decline
The basic characteristics of the marketing concept that could be identified in Clare’s Chocolates are as follows:
Together with the usage of green sources to power the factory, these factors raise up the prices of a chocolate bar to the average of $5. It enhances the brand’s value and good image in people’s observation. Even though their prices are more expensive than other competitors’ prices, Theo still has a loyal following of organic chocolate customers. However, it does a very little traditional advertising. Therefore, in order to maintain the loyal customers and attract new consumers, Theo Chocolate is partnering with local and non-profit organizations that promote their company. Joseph Whinney understands that “Having the ingredients and the quality of the product is the most important thing. And then Fair Trade is the secondary message” (Lindell, par. 19), people concern about the taste, the quality, and the organic food. Besides that, Joe believes that people also care about how a company treats its employees and decide whether they wan to to do business with that company or not. Therefore, combining the two strategies is a good way for Theo to promote itself and build brand value inside customers’ minds.
Its value is that they will be caring and considerate of their employees, customers, suppliers, shareholders, the community and the environment by showing respect to each other and valuing diversity, working together to achieve a safe, friendly and positive working environment, setting clear expectations, recognising contribution and developing their people, leading by example and taking responsibility for their actions, communicating clearly, inclusively, honestly and in a timely manner, having pride in their product and passion for the business, its heritage and its future and contributing to the community through corporate benevolence and environmentally sustainable practices (Haigh's Chocolates).
Since the inception of a revolutionary spicy chocolate recipe, Marilyn Lysohir and Ross Coates have been striving to grow a profitable business in the chocolate industry. Each year Marilyn has loaned the company money to keep it running. Cowgirl Chocolates, primarily run by Marilyn, with help from family and art associates is branded based on the concept that chocolate
In pursuit of upscale segments of the market and an increased market share, Consumer Food Groups (CFG) purchased the rights to become a distributor of Montreaux’s European chocolate products in the United States in June 2011. As CFG is the division which produces confectionery products for Apollo foods, they contribute not only to one-third of the company’s total revenues and net income, but are a vital part of Apollo’s ranking as second in the global confectionery business. Upon acquisition of the rights for Montreaux’s chocolates CFG formed a new division, Montreaux Chocolate USA. Under the leadership of David Raymond as division manager and Andrea Torres
SWOT analysis is a popular analysis tool used in different situations that include not just business and marketing but also project planning and personal career development (Chapman 1995-2012). As for the strategic planning, Kenneth Andrews popularized his idea that good strategy means keeping a fit between the external situations a firm faces and the internal capabilities (Hill and Westbrook, 1997). The format the SWOT analysis presented is a 2x2 'internal/external' matrix, in which questions and relative answers can be listed for analysis (chapman 1995-2012). And according to Hill and Westbrook (1997), the output of SWOT analysis comes from meetings facilitated by consultants or managers to contribute the final analysis. Brainstorming can be used for filling in the sections to answer the questions. In addition, similar arguments should be concluded and ranked according to their answers in meetings (Rauch, 2007). As for the newly developed analysis, the TOWS matrix matching the various factors enables companies to stimulate new strategic initiative (Dyson, 2004).
After a thorough analysis of Apollo Foods business situation, a decision plan regarding the launch of a new chocolate product for its new branch acquisition Montreaux Chocolate USA has become clear. This decision plan is based on the following key challenges and marketing issues that need to be addressed. These challenges and marketing issues can be best summed up by a decision on what brand the product will be home to, whom the product will be marketed to, the ingredients and formulation of the product, the packaging of the product, can the product perform well enough in a sales forecast plan to exceed a $30 million dollar hurdle rate, and finally to launch or to test market the product. After reviewing Apollo Food’s data, their market research findings, and sales forecasts. A decision plan that addresses all of the key issues and marketing points has been created and will be
Alicia Gans started TLC in 2004, which specializes in high quality premium chocolates. Throughout the last three years’ sales have increased at a steady rate. Alicia was offered an opportunity to have her tart cherry caramels become a feature in the Epicurean Selection catalog. This analysis will provide Alicia with a breakdown of her strengths, weakness, opportunities, and threats that are within her business. From there it will show a breakdown of two key areas: Should Alicia expand her company with Epicurean Selection or continue down the path she has made for herself.
Fiona Balloch requested the report to be generated to provide information on the structure of Joy of Chocolate and CG Chocolates. The purpose of the