Rogers’ Chocolates Case

•Description, situation analysis, root cause,

recommendations and explanations as presented by
Team 2
•Team 2, in order of presentation:
• Elias Soto
• Patrick Linton
• Richard Kalt
• Colleen Hoy
•Ashlie MacDonald
•John Kapala
Rogers’ Company History

 Since 1885

 Ownership

 Recent Growth
The Chocolate Market

 Canadian Chocolate Market

 Premium Chocolate Market

 Rogers’ Place
 The Competition!

 Godiva
 The Competition!

 Bernard Callebaut
 The Competition!

 Lindt
 The Competition!

 Purdy’s
 Current Operations

 Head office and flagship store located in

Victoria, BC
 Production factory located 8 kilometers
away from head office
 11 retail outlets owned and operated by
Rogers’
 Product Focus

 Focus placed on high-quality, hand wrapped

premium chocolates
 A large variety of sweets, chocolates, and
related products are currently being produced
 Production of premium ice cream novelty
treats has recently been developed
 Production
 24 000 square-foot manufacturing facility
 110 non-unionized retail and production
employees
 20 employees in management, administration and
sales
 Markets/ Sales Channels
 Four major sales channels:
 Company owned retail stores
 Wholesale of chocolate products
 Online/mail order sales
 Sales from Sam’s Deli
 Markets: Retail

 11 stores currently in operation

 Seasonal booths set up at ferry terminals
 Stores located predominantly in BC
 Markets: Wholesale

 Responsible for approximately 30% of sales

 Sales have recently dropped due to orders
being reduced or eliminated by large accounts
 Profit margins in wholesale are approximately
half of the margins found in retail
 Markets: Online, Phone and Mail
Orders
 Responsible for approximately 10% of sales
 Underutilized sales platform
 Markets: Sam’s Deli

 Responsible for approximately 10% of sales

 Cafeteria style deli in the Inner Harbour in
Victoria
 Marketing: Target Market, Brand,
Advertising
 Premium chocolate manufacturer
 Affluent customer
 Customer Base
 Branding
 Advertising
 Website
 Financials
 Income statement

 Balance sheet
 Financials continued
 Cash flow statement
 Leadership
Past President
Jim Ralph (1989-2007)

 Grew wholesale business

 Involved in Rogers’ operations

Current President
Steve Parkhill

 Previous senior management experience and leadership

qualities match requirements in Workopolis Job Add
 Shareholder
 Leadership
Vice President of Sales and Marketing
Kate Phoenix (1994-present)

 Responsible for 4 markets

 Supervisor of several staff
 Develops the marketing plan
 Assists at Sam’s Deli
 Delivers product to stores if required
 Background includes information systems work and
management roles at Gidden
 Shareholder
 Leadership

Vice President of Production

Ray Wong (1990-present)

 Responsible for production

 Works at the factory
 Works closely with 2 of Kate’s reports
 Developed all of the internal production planning systems
 Background includes knowledge in food sciences and
material requirements planning
 Does not own shares
 Leadership

Vice President of Finance and CFO

Bjorn Bjornson (1997-present)

 Responsible for finance functions

 Maintains books by hand
 Background includes CFO at Pacific Coach
Lines, financial management and retail, as
well as acquisition and dispositions
 Growth Opportunities
1. Customers
2. Franchising
3. On-line business
4. Olympics
5. Increase number of stores in Vancouver
6. Extend product line – ice cream, sugar free chocolate
7. Concentrate efforts outside of B.C.
8. Acquisition, JV
9. Brand image
10. Re-invention
11. Increase internal capacity
 Goal

 Double or triple the size of the company

within 10 years.
 Situation Analysis
 Rogers’ Chocolates is a company grounded in
history and traditional. While it has survived and
grown for over 120 years, it now faces a new
challenge: to double or triple its size within 10
years.
 How can a company with major marketing
problems achieve such a goal?
The problem...
 Target Market
› Heavy Users
› Affluent Customers
› Aging
 Brand
› Awareness Polarized
› Traditional Image / Packaging
 Recommendations!
 Package Redesign On Selected Products
 Expanded Advertising Mainly In New Media
 Vancouver Market
› Current Locations
› Expansion
 Other BC Locations
 Summary– Now?
 Who we are...
 Where we’ve been...
 Where we are going...
 And how we’ll get there.

 Come join the sweet life!

Thanks!!
 Photo References
 http://www.sanfranciscosentinel.com/?p=19552
 http://www.godiva.com/subcategory/chocolate-collections-treats/dark-c
hocolate-gifts/id/90.gdv
 http://www.nestle.ca/en/index
 http://www.bernardcallebaut.com/
 http://www.lindt.com/ca/swf/eng/lindt-chocolate/
 http://www.purdys.com/Dark-Chocolate-Assortment-P21C3.aspx
 http://www.rogerschocolates.com/
 http://www.victoriatravelguide.com/vanvouver-island/chocolate-vancou
ver-island.htm
 http://www.zimbio.com/pictures/_jhOfjrqny_/Chocolate+Production+C
ontinues+Cadbury+During
 http://www.progressad.com/
 http://www.phone-numbers-search.com/