Rogers’ was a healthy company with significant assets. Rogers’ chocolate used to produce 24000 square foot manufacturing facility on the outskirt of Victoria . There were about 110 non-unionized retail and production employees. It had large retail outlets about 50% of the company’s sales come from Rogers’ 11 retail stores. Consequently, it had widespread distribution system which is based on geographic, demographic, cultural, socio-economic and all other demographic factors. Financial Resources: The company was in a good financial position with great cash flow and good margins.
It had well designed financial strategies and it followed the Canada Revenue Agency’s guidelines. Strong Brand Name: Rogers’ had positive brand image. The brand was established around Rogers’ long history, with traditional packaging, including pink or brown gingham-wrapped Victoria creams, Chocolate Almond Brittle and Empress Squares. An Attractive Customer Base: Rogers’ chocolates were of the highest quality; and the company had many loyal customers around the world. The people who knew the brand were willing to pay for the product.
Technology: Rogers’ most production system consisted of batch processing, utilizing technology. It had the ability to improve its production processes by advancing the technology related aspects. Such as –Online phone and Mail orders Website etc. Orders that are received by phone, mail were generally processed within three to four days and they used to wrap them with attractive packaging style then shipped via FedEx. Human Assets: Rogers’ company had a talented workforce capability through national or global distribution capabilities .
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Their employees learned multiple job functions and they enjoyed a variety of work and tasks. Strong Advertising and Promotion: Rogers’ used several types of advertising. To reach tourists, the company advertised in guide magazines, in hotel magazines. They also used seasonal print advertising, radio spots and a small amount of TV advertising. good customer Service Capabilities: Rogers’ had capabilities to provide good customer service. They tried not to make mistake or disappoint customers. They followed old-fashioned service system.
If products were not good, they did apologize and replace them immediately. Better Product Quality Relative to Others: Rogers’ chocolates were high quality than rivals. 3. VALUE CHAIN OF THE COMPANY: Value chain is the series of activities that a firm has to do to create value to customers. Rogers’ value chain is given below- Rogers’ primary Activities are given below- Supply Chain Management: – Rogers’ collected raw materials, inputs from supplier, retailing, wholesaling. Operations: – Production, packaging, operations. Distribution: – Delivery chocolates through trucks, shipping.
Sales and Marketing: – Advertising and promotion. Service: – Customer service, product replacement. Rogers’ support activities are given below- Human Resources Management: – Recruitment, hiring, development. General Administration: – General management, accounting and finance and other overhead functions. 4. COMPETITIVE SCOPE OF THE FIRM: Rogers’ competitive scopes are given below- Segment Scope: In the segment scope, there are two types of scope- types of product Rogers’ offered and types of customer the had. I. Types of product Rogers’ offered:
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Rogers’ main products were high-quality, hand-wrapped chocolates including its premiere line, the Victoria creams, along with truffles, nuts and chews, almond bark, nutcorn, and various assortments. In addition to, Rogers’ also produced pure milk chocolate, dark chocolates, white chocolates bars, baking/fondue chocolate blocks, other specialty items, such as chocolate-covered ginger, truffles, caramels, brittles, and orange peel. Rogers’ also produced no sugar-added chocolates. The company also produced and sold a line of premium ice cream novelty items through its retail stores.
II. Types of customer Rogers’ had: Rogers’ had various types of customers. These ares- Aging baby boomers- They purchased more chocolate and emphasized quality and brand in their purchases. Heavy users- These heavy users tended to be established families, middle-aged childless couples and empty nesters with high income. Cruise ship visitors and general tourists. Local businesses as their corporate gift of choice. Affluent people who want to give something unique. Geographic Territory: Rogers’ offered their product within certain geographical territory.
They offered their chocolate in Canada and America. Industry Scope: Industry scope is the range of related industries in which the firm competes with a coordinated strategy. Rogers’ sold chocolates but also run a cafeteria-style restaurant called Sam’s Deli on the Inner Harbour in Victoria. Sam’s Deli featured made-to-order sandwiches, soups and salads, deserts, and wine and beer. Sam’s had strong sales of ice cream as well. Degree of Integration: Degree of integration is the extent to which activities are performed in-house instead of by independent firms.
Rogers’ delivered their products using their own trucks. Their choice had a great impact on quality products. 5. GENERIC STRATEGY PURSUED: Rogers’ had different types of chocolates like milk chocolate, dark chocolate, white chocolate bars, chocolate-covered ginger, truffles, caramels, brittles, and orange peel. They also produced ice cream. On the other hand, sales agents maintained agreements with Rogers’ to sell Rogers’ product within a certain geographical territory. Rogers’ offered their chocolate within a narrow market segment.
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It means that Rogers’ followed focused differentiation strategy. 6. KEY SUCCESS FACTORS: Rogers’ key success factors are given below- Product Quality: Rogers’s products were high-quality, hand-wrapped chocolates. In 2006, the company won an award from the International Taste & Quality Institute. Production Capability: Rogers’ had huge production capabilities. Rogers’ had 24,000 square-foot manufacturing facility. An Ideal Customer Profile: Rogers’s had an ideal customer profile. Rogers’ had a very loyal following, particularly in the Victoria area.
Phoenix said ‘Our best and most loyal client base comes from customers that have been an emotional connection to Rogers’. Effective Leadership: The company had experienced and capable leader. Jim Ralp had been president of Rogers’ and he had been a well networked sales manager. Then Steve Parkhill joined the company and he was exceptional leader with empowering style and significant personal integrity. Interpersonal-Social Duties: Rogers’ performed social duties. The company supported a local social service agency by allowing a group of brain-damaged individuals in every Friday.
Rogers’ also donated product to charitable events. Vertical Integration: Rogers’ were retailing chocolate products through company-owned stores. Each of Rogers’ retail stores was located in a tourist area. They also wholesale their chocolate products. Customer Service: Rogers’ provided smaller customers and other retailers. Sometimes Rogers’ were crediting them for stale stock and paying the shipping expenses on orders more than $350. The also provided delivery services and they had purchased a delivery truck for Victoria. 7. SPECIAL ACHIEVEMENT:
Rogers’s achieved a classic premium brand and loyal customers. Rogers’ had an easy-to-navigate website and a superior search engine ranking that attracted web shoppers. In 2006, the company won a prestigious 2006 Superior Taste Award from the International Taste & Quality Institute, an independent organization of leading sommeliers, beverage experts and gourment chefs, based in Brussels, Belgium. The company achieved financial strategies that were able to design to minimize taxable earnings. Rogers’ had won the Retail Council of Canada’s Innovative Retailer of the year award.
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The company achieved 11 retail stores and 585 active wholesale customers. The company achieved well depreciation method. For that reason assets were depreciated as quickly as possible. 8. PROBLEMS OF THE COMPANY: Rogers’s demand forecasting was difficult due to the seasonality of sales. There are out of stock problem due to complicated nature of seasonal production. In the case of ice cream, it was difficult to predict sales volume. Rogers’ chocolates were fairly expensive relative to others in the market. Due to their quality ingredients and their hand-packaging processes.
Rogers’ growth had slowed in the past few years. Rogers’ bought their raw product from West Africa. For that reason many customers did not buy their products. Because, in West Africa some of the production of cocoa beans, were produced by forced labor and child labor. Set-up times and equipment cleaning times were a significant component of costs. Production planning was more complicated and plant was non-union. Rogers’ packaging system was traditional. In the case of Sam’s Deli, stuff recruiting was a problem. For that reason, Sam’s had to curtail its evening hours of operation.