Rogers’ ChocolatesTheerawat Thongrompo (Buddy), Steven Arias, John

Tran, Kaycie Kasza-Hook and Kaitlyn Schaaf

AGENDA

◼ SWOT Analysis

◼ Finances

◼ Competitors

◼ The chocolate market

◼ Expansion in the United States

◼ Recommendations

SWOT ANALYSIS

Strengths

◼High quality premium chocolate

◼Established brand/great image

◼Long shelf life (6 months)

◼Wide variety of selection

Weaknesses

◼Weak foreign customer base

◼Conflict with members in the

management

◼Demand forecasting

◼Resistance to change

SWOT ANALYSIS (continued)

Opportunities

◼Expand target market

◼Franchise

◼Create new brand image,

packaging

◼New advertising

Threats

◼Decline of tourists in Victoria

◼Chocolate competitors

Rogers’ Chocolate Income Statement, 2005 and 2006

2005 2006

Sales $11,991,558 $11,850,480

- Cost of sales $5,378,187 $5,385,088

Gross profit $6,613,371 $6,465,392

+ Interest Income $1,610 $664

- Expenses $5,094,088 $5,312,985

Earning before taxes $1,520,893 $1,153,071

- Taxes $451,567 $261,989

Net earnings $1,069,326 $891,082

Retain earnings, beginning of the year

$4,381,155 $4,748,611

Net earnings $1,069,326 $891,082

- Dividends $707,870 -------

Retained earnings at the end of the year

$4,748,611 $5,639,693

FINANCES

2005 Cash Flow Percentages

Operating = 89.18%Financing = 2.15%Investing = 8.67%

2006 Cash Flow Percentages

Operating = 44.38%Financing = 17.31%Investing = 38.31%

ROGERS’ CHOCOLATE DISTRIBUTORS

COMPETITORS

COMPETITORS Cont.

Godiva➢ Packaging skills➢ Widespread distribution among retailers of gift items

Bernard Callebaut➢ Various stores located near Rogers’➢ Excelled various flavors➢ Customizable packaging

Lindt➢ Distributed in mass merchandisers➢ Pricing was 90% of Rogers’➢ Marketing

Purdy➢ Pricing was lower (35% than Rogers’)➢ Product quality was lower than Rogers’

Competitors vs. Rogers’ Chocolate

Quality Pricing Packaging

Godiva lower higher modern day

Bernard Callebaut

lower higher superior

Lindt lower lower mid-range

Purdy’s lower lower very good

THE CHOCOLATE MARKET

Canadian Chocolate Market

◼size was US$ 167 million (2006)

◼low margins

◼2% growth annually

Premium Chocolate Market

◼very high margins

◼20% growth annually

Change in the Market

◼demand for dark and organic

chocolate

◼environmental and human right

concerns

◼social responsibility

Expansion in the United States

◼ Location: high income areas, large cities, big name tourist

sites

◼ U.S chocolate industry: $18 billion, 3-4% growth annually

(National Confectioner’s Association)

◼ Advantage: high consumption of chocolate, big chocolate

industry

◼ Disadvantage: a lot of competition with American branded

chocolate like Hershey’s and Reese’s

◼ American candy is cheaper than premium candy

◼ Packaging costs less for online orders if there are stores in

the US

Recommendations

◼ Create a partnership with other companies

◼ Rebrand images to create a new customer base

◼ Increase brand awareness through better advertising

◼ Social Media: Facebook, Instagram, Twitter

◼ New promotions: Rogers’ Chocolates member cards,

discounts, customer rewards

◼ New packaging for chocolate suited to the US