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Brand and quality is important tocustomers and can be viewed as barriers for new companies entering the premium chocolatemarket. Additional, the United States Food Drug Administration (USFDA) refined “chocolate” allowing manufacturers categorize their as such. The industry is dominated by international companies making it difficult for new firms to enter. Companies such as Nestlé’s, Hershey’s, and Cadburys entered the premium chocolate market by acquisitions because the market still has high growth potential. Competitor RivalryThe competitor rivalry is low between premium chocolate producers. The premium chocolate segment has an annual growth rate of 20% which indicates there is no rivalry present at this time. Rogers’ Chocolates is in competition with other organizations that sell premium chocolates. However, their competitors have a foot print in the international market which they
CASE STUDY 114do not. Rogers’ brand is strong in Canada, however, they are not as profitable as their competitors around the world. Competitive Profile AnalysisWhen compared to Godiva and Lindt, Rogers’ Chocolates out performs them in many categories. As noted in Appendix E, the organizations rates in at a 27.60 on the CPM. The above average score originates primarily from Rogers’ ability to produce a quality product, provide excellent customer service, and their strong financial position. The problems are Godivaand Lindt are in markets Rogers’ is not and their brands are well-known in many countries. Although these organizations may not offer the quality Rogers’ does, they offer a product that satisfy the customers within the markets they serve. Considering these facts, Godiva and Lindt rates are not far behind Rogers’ at 24.90 respectively. Rogers’ considers these two companies major competitors in the premium chocolates market, those two companies do not view Rogers’ in the same manner. These companies are able to advertise more, enter global markets, and sell products due to the various venues at their disposal. For this reason, Rogers’ Chocolates is considered a second-tier chocolatier compared to Godiva and Lindt.Product Life Cycle Rogers’ Chocolates “wait and see” tactic in introducing new products displays their conservative approach. However, Rogers’ Chocolates products have a long life-cycle. The original recipe created by Charles Rogers is still in use after 125 years. New products focus in packaging, dark chocolates, new flavors, seasonal products, as well as adapting the products to social trends. Maintaining the quality and reputation of the products and brand is the most important concept. Thus, the introduction period could be important when they could affect the quality or quality perception. The growth period is significantly long for most of the chocolate
CASE STUDY 115based products, but relatively short for the packaging, which should be reviewed between one to five years (Berthiaume et al., 2009; Parkhill, 2010; Thompson et al., 2008).