Case Analysis of Rogers Chocolates

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

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.

At Scharffen Berger Chocolate Maker, Jim Harris was the COO (chief operation officer) and was with the company for about 18 months and was observing the increased demand for their chocolate. “America’s finest dark chocolate” company wanted to increase production by equipping factories with new machineries and equipment but did not want any difference in the taste of the chocolates they produced. As the company totally agrees on not compromising the taste of chocolates and increase the production in order to meet the rising demand for their chocolates they should probably get into customizing chocolates blend for the mass-market retailer in order to grab huge market share, increase accessibility of the chocolate to customers and provide variety of choice to the customers by maintaining the taste they are known for. As the demand is increasing from 50%, 100%, to 150% by the start of 2006, Harris has to make a significant decision in order to invest Scharffen’s capital budget in expansion of the Company. Harris is recommended to acquire the required machinery in order to fasten the production and increase the capacity of the plant and should be careful about the quantity to be produced as the acquiring of machinery will increase productivity multiple times but the initial demand for

The basic characteristics of the marketing concept that could be identified in Clare’s Chocolates are as follows:

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.

While Europe and the United States account for most chocolate consumption, the confection is growing in popularity in Asia and market forecasts are optimistic about the prospects in China and India (Nieburg, 2013, para 9). According to the CNN Freedom Project, the chocolate industry rakes in $83 billion a year, surpassing the Gross Domestic Product of over a hundred nations (“Who consumes the most chocolate,” 2012, para 3).

Since the creation of Hershey’s chocolate, chocolate today has taken on many different flavors and shapes.

The transportation cost of chocolate was high and small mom and pop stores commonly supplied chocolate made locally. Today you would be hard-pressed to find local chocolate in the United States, with the shelves dominated by four major brands. The

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

Their biggest competitors in the overall chocolate industry are regional companies because Roger’s is relatively focused in a small area, but not all of these companies offer the high end chocolates like Roger’s. There are also only a handful of big chocolate companies, like Nestle and Ghirardelli, that they compete with outside of their local regions. This presents a very good opportunity for Roger’s to increase market exposure and increase their sales and profit potentials.

This is because of the economy of sale and product differentiation that is considered as the entry barriers of the industry. It is not easy for a new entrant to enter the industry because it should need to produce a large quantity at the same low price to compete with a cost disadvantage. It is so risky if they will push themselves to enter in the industry without the assurance that they will gain a high profit. Another reason of having the cacao industry a low threat of new entrants are the competitors in the industry such as Heshey Foods Corporation, Farley Candy Company, World's Finest Chocolate, Inc., Merckens Chocolate Company, and Ghirardelli Chocolate Company which have established brand names and customer loyalty. Another is the government agency, Foods and Drug Administration (FDA) that sets the guidelines and regulations. The distribution channels can also be an entry barrier for a new entrant for a company must acquire it which is time and money intensive. There is really a low threats of new entrants in the cacao industry because of the existence of the big companies, the need of large capitals, the regulations that are placed for food manufacturers and the lack of access to distribution

Coco’s Chocolate Café was inspired by a lifelong love of all things chocolate. I wanted to get out of the office and into the community to create a sumptuous haven where people could indulge in rich, creamy, warm chocolates and make them an integral part of their daily lives,

The Scharffen Berger Chocolate Maker is experiencing an exponential year over year growth rate of their premium product. This is a situation that all new businesses strive for and although Scharffen Berger is pleased with their growth, they are facing a potential dilemma. The company must consider how they will keep up with growing demand while having enough capacity to handle the increase in production and maintain their high quality standards.

The Cherry Lady falls under the premium chocolate industry. Thus, the porter’s model can be utilized by The Cherry Lady as a framework to structure and analyze its industry. According to the Model, the premium chocolate industry can be impacted by five distinct forces such as rivalry among existing firms in the industry, threats from substitutes, bargaining power of buyers, threats of new entrants, and bargaining power of

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