Rogers Chocolate

2745 Words Jul 29th, 2010 11 Pages
“Rogers Chocolates”

Introduction

Premium Chocolates are like Imported Roses which not consider necessities for one life. People love to have or get one of those products. However, if there isn’t a special occasion or surplus cash, some people will not buy that unnecessary stuff.

In Canada, premium chocolates were growing at 20 percent annually and the Canadian market size for Chocolates was US$ 167 million in 2006. An attractive growth from premium chocolates makes the current player like Rogers Chocolates, Purdys and others are thinking new strategies to expand market. In addition, some big traditional manufacturers like Hersheys and Cadbury are also very interested and keen to enter this segment (Zietsma 2007).

Rogers
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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.

3. Threat of Substitutes
Rogers’s chocolate is often used as gift during numerous seasons and celebrations including Christmas, Easter, Halloween, Valentine’s Day, anniversaries and birthdays. Other types of gifts during these seasons are viewed as substitute products. These products are flowers, jewelry and stuffed animals. All of these products can be purchased instead of Rogers’s chocolate unless they just want only ‘Chocolate’ as gifts.

Many chocolate brands and a wide variety of seasonal gifts make the threat of substitute products is considered low to moderate in this industry. However, if Rogers Chocolates can maintain its local heritage especially in its traditional area like Victoria and British Colombia then the threat for Rogers can be minimized.

4. Power of Buyers
If a buyer represents a large percentage of the supplier’s sales, the buyer has more bargaining power over the supplier. Rogers’s chocolate 50% of sales is contributed from its 11 retail stores which is a strong one. However, since the previous president Mr. Jim Ralph had grown its wholesale market up to 30% thus, they have to take a good care of its

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