Scharffen Berger Chocolate - Marketing Essay

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Group Case Brief
Scharffen Berger Chocolate Maker (A)

Bowling Green State University

February 14, 2011

Scharffen Berger Chocolate Maker

Introduction: 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. In order to understand how to meet the increased demand, research was conducted to unveil the problematic issues the …show more content…

Pros: There are several benefits to opening a secondary production plant and warehouse: increased output, savings on freight costs, close proximity to current retail shops, and the potential to open new retail stores. The new facility will be an exact replication of the West Coast facility, with the exception of offices, on-sight retail outlet, and tour groups. The advantage of the East Coast facility being an exact replication, Scharffen Berger will be able to forecast their exact yearly production output, in which will be double to keep up with demand. Insert small chart here Opening a facility in Kentucky allows the company to ship their products to the Scharffen Berger retail stores located in New York City (Upper West Side and Greenwich Village), and other upscale department and retailers, such as Trader Joes, located throughout the United States. This will save transit time and freight costs substantially[2] .as compared to shipping directly from California to the stores. In a cost comparison researched showed that there was a delta of $4,167.43 when shipping from the West Coast facility to New York compared to shipping from the East Coast facility to New York. This opportunity to reduce transit time can ensure the integrity of the chocolate to conceal the freshness. With a new

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