Rogers Chocolates

Chocolate was previously considered a “delectable symbol of luxury, wealth, and power” (Klein) in the 1500s. Using modern technology, it is now easily produced. While

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

(Transition: The history of Hershey’s chocolate laid the foundation for the many different types of chocolate eaten today.

In 2006, the chocolate market size for Canada was US$167 million with the premium chocolate market growing at a rate of 20% annually. Competition within the premium market is a broad mix of small local niche players to large multinational corporations and is growing as larger traditional manufacturers enter the market via acquisitions or new product launches. Product differentiation is healthy and there are no indications of a price war starting between rivals. Product innovation appears limited, mostly focusing on new flavor introductions and variations in molding and coloring. Seasonal demands, especially the eight weeks prior to Christmas, can create demand that can challenge small companies with low production capacity and/or inadequate forecasting and inventory management. Competitors vary in the level of vertical integration and companies with large-scale operations and distribution networks enjoy a competitive advantage through economies of scale.

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

Most of the cost and benefits related to Cocoa delights involve where they spent their marketing budget. In total Cocoa Delights spent $280,000 on marketing including, radio and TV advertisements, on the internet, in magazines, in-store promotions, and through AdSense and AdWords on Google. Alone $60,000 was spent on radio advertising which wasn’t initially in the budget plan, but there was big pay off. A customer loyalty list of 34,500 was achieved and through surveys 58% of their target market recognised the brand of Cocoa Delights. Another cost and benefit example, can be seen in the strength Cocoa Delights has in their facilities. They provide an exceptional experience for their guests, creating a very pleasant atmosphere to shop. They have great presentation and displays, bright, vibrant lighting, and great customer service. The investment Cocoa Delights places in the quality of their chocolate can also be related to cost and benefit. By sourcing local

As of October 2012, Andrea Torres, director of new product development at Montreaux Chocolate USA, needs to recommend whether or not the company should pursue a new product launch in the United States. The new product, a 70% cocoa dark chocolate with fruit product, has been tested because of “its heightened revenue potential, better alignment with health and wellness initiatives, and strong consumer acceptance of the proposition” (Quelch 7). This memo will address the

The market for chocolate bars is a highly competitive field within the fast moving consumer goods sector. Also in the Fairtrade market the number of producers is rising and competition and demand increase. The attractiveness of an industry influences a firm’s profitability effectively and competition within the industry can be described by conducting a five forces analysis as suggested by Porter (1985). This framework addresses the following fundamental factors: Threat of New Entrants, Threat of Substitute Products, Determinants of Buyer Power, Determinants of Supplier Power and the Rivalry among Existing Firms. (Porter, 1985)

The chocolate market was highly competitive, and the key competitors could be classified into 2 types. First, the large, mass-market domestic chocolate producers, this segment was dominated by popular manufacturing companies such as Hershey, Mars, and Nestle. They produced less flavourful and mass-market chocolate. Second segment, the smaller, but high-end domestic and European chocolate producers.

Chocolates are stars as it has large assortments in chocolates worldwide & it is the world’s second confectionary company having high market share in most of the markets.

The five external drivers for this industry are demand from chocolate, per capita disposable income, Per capita sugar and sweetener consumption, price of sugar, and trade-weight index. These five factors have a direct impact on competitors in the industry, this level of competition makes barriers to entering the market medium and

The business being studied, is that of Cargill Cocoa and Chocolate North America (CCCNA). They are part of Cargill, Inc. an International producer and marketer of food, agricultural, financial and industrial products and services. They are the largest privately-owned company in the world based in Minnetonka, Minnesota. CCCNA partners with Cocoa farmers around the globe to procure, ship, and transform their produce to a wide range of cocoa and chocolate products and applications. After the consolidation of the sector in 1990’s, CCCNA has emerged as the largest manufacturer of Chocolate in USA and owns several brands, apart from supplying products for other well-known brands like Hershey’s, Mars, Nestle etc. and

Bargaining power of buyers: According to the research, it showed that the demand of chocolate confectionery industry had the potential for increasing, as the chocolate sales rose 28% in 2008, and dark chocolate sales rose 12% (National confectioner Association, 2009). Thus, this is positive to the business.

Chocolate market is on the rise for healthier chocolate expecting to expand 3% (Holdings, 2015)

Report Regarding the Potiential of Lily O’Brien’s Chocolates to Expand its Operations into EU Markets