Roger's Chocolates is Canada's oldest chocolate company, founded in 1885. It produces high-quality, handmade chocolates and has 11 retail stores in tourist areas, generating 50% of its sales. While the brand has a long history, it is resistant to change and targets older customers. The document recommends expanding into the US by opening more retail stores in cities like New York, Seattle, and Los Angeles to target tourists and promote the brand through social media to younger audiences. This will increase sales outside of Canada, where 50% already come from retail stores.

1. Roger’s Chocolates
Laura Malis, Ting Ting Hu, Miku Anraku, Zahed
Faheem, Khanh Pham, and Kuangdi Xu
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2. Company Background
● Premium Chocolate Manufacturer
● Founded by Charles “Candy” Rogers in 1885
● Canada’s oldest chocolate company
● Located in Victoria, British Columbia (2nd oldest company in BC)
● Wife ran company till late 1920s.
● Privately owned company with 5 board members
● Product Portfolio
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3. Strengths:
● Historic brand- long history
● High quality/ handmade/ hand-wrapped
● Large variety of chocolates
● Revenues in four major areas
● Stores located in touristy areas
Weaknesses:
● Production planning and inventory management
● Resistant to change
● Currently do not have capability to produce
organic products
SWOT Analysis
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Opportunities:
● Should broaden target market
● Become more well-known
Threats:
● Younger buyers are not as familiar with
the brand than older customers are
● Current traditional packaging is not as
appealing
● Need to fund expansion without
compromising quality

4. ● 50% of the company’s sales come from Rogers’ 11 retail
stores
● 30% of sales come from wholesale account in five
categories
● 10% of sales come from company’s online and mail
orders
● Remaining sales come from Sam’s Deli
Market Distribution
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5. -More than half of all online, phone, and mail orders are from U.S. customers
-Fast shipping- online and mail orders are given priority
-Website is easy to navigate- facilitates online purchases
-Offer customers to purchase chocolates as wedding favors or business gifts
Market Distribution Continued...
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6. Categorized Obstacles
Within Parkhill’s control
1.Management of out-of stock issue
2.Social and environmental responsibility, human rights concern
Within the team’s sphere of influence
1.Monthly sales forecast
2.Employees’ resistance to change
3.Brand management and image establishment
4.Sale increase and expansion
Out of control
1.Demand forecasting and production planning
2.The capability to produce organic products
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7. ● Canadian market size for Roger’s Chocolates is large- market is small in
the U.S. and internationally
● Have yet to open stores in the U.S.- solely online sales
● Target market is mostly the older generation, tourists, and those looking
for a luxurious gift
● Many strong competitors: Godiva, Lindt, Bernard Callebaut, etc.
● The high premium price scares new consumers
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Obstacles Continued...

8. ● Expand into the U.S.
● Hire marketing consultant and launch a marketing campaign
● Communicate to customers electronically through email promotions to
increase sales and revenue
● Advertise through social media in order to:
o expand their brand’s name
o promote the opening of new stores in the U.S.
o target younger generation
Possible Solutions
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9. 9

10. Best Solution
●Become more well-known outside of Canada by
expanding into the U.S.
■ Offer Roger’s chocolates in well-known
grocery stores such as Whole Foods or
Trader Joes
■ Already 50% of sales comes from retail
stores- opening more stores will increase
sales
■ Begin by expanding to areas in such as NYC,
Seattle, or LA where there is a lot of tourism
■ Advertise through social media to promote
the opening of new stores
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Implementation

11. ● Original plan was to double or triple the size of the company within 10 years
● Slight decline in sales after September 11th and after the decline of the U.S. dollar
● 4% of sales comes from online sales
● 6% of sales comes from mail orders
● Entering into the new market in the U.S. will increase:
o cost of property/ equipment (currently $7,735,007.61)
o administrative prices (currently $5,221,520)
o gross profit and sales by an estimation of 10% per year
Financial Statement
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2005 2006
Sales $11,991,558 $11,850,480
Gross profit $6,613,371 $6,465,392

12. Thank you!
-Team 5
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