Roger's Chocolates Case Analysis

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Orientation in the Situation
Rogers’ Chocolates, based in Victoria, B.C. is Canada’s oldest chocolate company, founded in 1885. The company has had three different owners and is now owned by a private group consisting of four members, who comprise the board of directors. In 2007, the board chose Steve Parkhill to be the new president of the company. In March 2007, Parkhill had started this job and was facing important strategic decisions for the company. As a consultant to Steve Parkhill, the situation facing the company will be analyzed. The most recent financial statement provided, March 31st, 2006, will be used as there is no financial statement for fiscal year 2007. Parkhill has been asked by the board of directors to double or triple the
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Customer Value Connections for Products or Services (Marketing Mix Analysis)
Roger’s Chocolates (Rogers’) is a Canadian producer of high-end, premium chocolate products. They specialize in high-quality, hand wrapped chocolates, including Victoria Creams and truffles, no-sugar-added chocolates, specialty items, and ice cream. It also sold nuts and chews, almond bark, chocolate bars, baking/fondue chocolate blocks, collectible gift tins, and various assortments and collections. The brand has received high recognition amongst consumers, and in 2006, received the Superior Taste Award from the International Taste & Quality Institute (ITQI), an organization based from Brussels, Belgium, which is comprised of famous chefs.
Rogers’ has four primary areas for distribution: retail stores, wholesaling, online stores/phone/mail orders, and Sam’s Deli. Approximately half of the company’s sales have come from its 11 retail stores, which were mainly located in tourist areas in B.C. Thirty percent of sales came from its five categories of wholesale accounts. The remaining twenty percent has been divided equally amongst the other two areas. However, wholesale sales had been dropping as the attitudes and priorities of some of Rogers’ large wholesale account shifted, indicating that it may want to consider focusing in other areas of distribution, such as emphasizing online sales, which minimize lost profits to intermediaries. Alternatively, Rogers’ could choose a strategy that focuses on regaining wholesale

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