Roger's Chocolate Case Study
Case analysis for Rogers’ Chocolate
1. Competition forces
The premium chocolate industry is having an intensive competition in Canada. As what Thompson has mentioned: “one important component of industry and competitive analysis involves delving into the industry’s competitive process to discover what the main sources of competitive pressure are and how strong each competitive force is” 2, Roger’s Chocolate is facing five competitive forces as demonstrated by Michael Porter 2: the rivalry among competing premium chocolate producers; the potential entrants to the premium chocolate segment; the degree of substitute products produced by other industries that may win over customers; the degree of bargaining power of buyers and the degree of bargaining power of suppliers.
The strongest competition Roger’s facing is the industry rivalry. Few large players like Godiva, Bernard Callebaut, Lindt, Purdy’s, Laura Secord and Rocky Mountain, emphasizing different competitive products features to attract different purchasers. This is summarized in table 1.11.
Company Competitive features
Godiva6 glitzy packaging; high price points; advertizing; variations in chocolate molding and chocolate colors; widespread distribution among retailers of gift item
Bernard Callebaut7 good quality; seasonal new flavor introduction; superior packaging with copper and gold boxes that can be customized; great seasonal displays; high price point; emphasized retail strategy
Lindt8 large variety; broadly distribution; cheaper in price; emphasized product for immediate consumption; high quality and purity of chocolate
Purdy’s9 successful historic product; large variety; broad locations; lower price point; good packaging and store displays; focus on group purchase and discounts offered for high-volume orders
Laura Secord10 good store locations; emphasized mall stores
Rocky Mountain11 good store locations; franchise model; high price point
Table 1.1 Industry rivalry and their products’
1. Competition forces
The premium chocolate industry is having an intensive competition in Canada. As what Thompson has mentioned: “one important component of industry and competitive analysis involves delving into the industry’s competitive process to discover what the main sources of competitive pressure are and how strong each competitive force is” 2, Roger’s Chocolate is facing five competitive forces as demonstrated by Michael Porter 2: the rivalry among competing premium chocolate producers; the potential entrants to the premium chocolate segment; the degree of substitute products produced by other industries that may win over customers; the degree of bargaining power of buyers and the degree of bargaining power of suppliers.
The strongest competition Roger’s facing is the industry rivalry. Few large players like Godiva, Bernard Callebaut, Lindt, Purdy’s, Laura Secord and Rocky Mountain, emphasizing different competitive products features to attract different purchasers. This is summarized in table 1.11.
Company Competitive features
Godiva6 glitzy packaging; high price points; advertizing; variations in chocolate molding and chocolate colors; widespread distribution among retailers of gift item
Bernard Callebaut7 good quality; seasonal new flavor introduction; superior packaging with copper and gold boxes that can be customized; great seasonal displays; high price point; emphasized retail strategy
Lindt8 large variety; broadly distribution; cheaper in price; emphasized product for immediate consumption; high quality and purity of chocolate
Purdy’s9 successful historic product; large variety; broad locations; lower price point; good packaging and store displays; focus on group purchase and discounts offered for high-volume orders
Laura Secord10 good store locations; emphasized mall stores
Rocky Mountain11 good store locations; franchise model; high price point
Table 1.1 Industry rivalry and their products’