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claire's chocolates case study
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Situation Summary: Customers consistently look for a quality product and experience. In the case of non-necessities like luxury confectionaries, Rogers’ Chocolates holds a high place in many customers’ hearts. By creating handmade and wrapped chocolate perfection, Rogers’ Chocolates has made a name for themselves in the indulgence market. Rogers Chocolates is an example of an ever evolving business, sometimes growing and other times finding issues within their path. They find themselves in a premium-brand market that has multiple challenges in regards to business expansion. Most importantly for them is the quality of both their product and the customer experience. Rogers’ Chocolates is a well-known name in British Colombia, but their reach doesn’t extend greatly past that. While they have made sales around the world, they brand awareness remains significantly lower than shareholders believe it should be. The company has faced issues ranging from health crazes and humans rights concern to preferential vendor treatment and resource shortages. Company tradition, values, and community image are another hurdle. It creates a dilemma when trying to apply straightforward business models to a company that cares for more than the bottom line. The article outlines the specific challenges Rogers’ Chocolates has faced in addition to the results that have been achieved when either confronting the issue or leaving the issue alone. Central Problem: For Rogers’ Chocolates, a wall seems to be in their way no matter where they turn. To keep local customers happy they must have everything stocked in store but to grow their business reach, they must have all items available for sale through mail order and internet transactions. This becomes a... ... middle of paper ... .... And finally, Rogers’ Chocolates must look at expanding their brand reach. This can be achieved through company partnerships and resellers. By only allowing a limited series of chocolates to be sold in other stores, Rogers’ Chocolates drives customers back to their direct stores, brick-and-mortar, mail, or online, for future sales. This limits the quantity of product that must be produced for resellers, cuts down on wasted labor and product, and expands their brand reach. Rogers’ Chocolates are where they are today because of the level of attention to detail, quality and tradition that they put into every product. While the efficiency gains from drastic automation look great on paper, the ramifications that their public image would face would be devastating. Not to mention the fact that a company, that has stood on tradition for so long, would lose who they were.
“His decision to focus on the production of the Hershey milk chocolate bar is now hailed as one of the most important decisions in the history of American business” (Milton Hershey 1). Certain aspects of Milton Hershey’s life are impossible to not take notice of. A simple chocolate bar completely changed the world of business, Milton S. Hershey impacted the world in a huge way.
The problem that World’s Finest Chocolate has its related to “inventory”, most of the time they have a deficient of inventory on hand, therefore, the counts never match they are either too short or too much inventory in the production area.
It has gotten somewhat easier for people who are not wealthy to keep up with the wealthy. Godiva, the chocolate company, used to only sell its product in upscale stores but now that has changed. According to Jennifer Steinhauer, "Today it is one of those companies whose customers drift in from all points along the economic spectrum. its candy can be found in 2, 500 outlets, including Hallmark cards stores and middle-market department stores like Dillard's." (Steinhauer 2005). People purchase Godiva candy and feel like they have upscale candy not just any old Hershey's bar. Gene Dunkin, president of Godiva North America, says "People want to participate in our brand because we are an affordable luxury. (Steinhauer 2005)" Gene has a point. People want to feel as though what they are buying or "participating in" (as Gene Dunkin would say) is of more value then someone else's' "stuff".
Claire’s Chocolates has a mix of quality, hand make chocolate products sold individually, in varying sized gift packs, and boxed chocolate. As well, the organization sells a variety of hot chocolate drinks for the chocolate connoisseur, along with quality coffees and teas. Each hot beverage is accompanied by an individual chocolate product and this also allows the customer to taste and experience a unique chocolate product first, before potentially purchasing it at a later date.
Candy is limited—North American production focuses on candy that can be marketed to the masses in bulk and not niche markets. There is a lack of specialty products in major stores. To find these goods, it is necessary to go to an abundant amount of stores that all specialize in different areas—European candy, vegan sweets, etc.—instead of all being found in a singular store.
Hershey’s takes advantage of many different types of advertising. Television commercials and ads are very common. Sponsorships is also another very common way Hershey advertises. Hershey sponsors everything from ice skating shows, to racecars. The Hershey Food Corporation is very competitive so they need this type of advertising. However, the only other major corporation to compete with is Mars. The chocolate industry is diffidently not pure competition. Mars and Hershey’s form an oligopoly. Hershey’s has so many different kind of products that they have a lot of competition. The company has branched out to where they’re not only competing against other chocolates but also for fruit candies, and baking chocolate and chocolate drinks as well. The fact that so many products are offered, extends the corporation to different divisions. Mexico and Canada have manufacturing plants. Seventeen manufacturing plants include Hershey, Pa (Hershey plant, Reese plant, West Hershey plant0, Hazleton, PA, Lancaster, PA, Memphis, Tenn., Naugatuck, Conn., New Brunswick, NJ, Oakedale, CA, Palmyra, PA, Reading, PA, Robinson, Ill., Stuarts Draft, VA, Wheatridge, CO, Dartmouth, Nova Scotia, Montreal, Quebec, Smiths Falls, Ontario, and Guadalajara, Mexico.
He was a man full of integrity, sincerity, and character; who changed the lives of many by providing them homes, jobs, and of course the satisfaction from eating a scrumptious creamy milk chocolate bar (Erdman). He is well-known for not only “The Hershey Chocolate Company”, but his own “town of Hershey” (“Milton Hershey” 144). As a philanthropist, entrepreneur, and giver; Milton Hershey created his own American Dream through many failures and perseverance.
Before I received this book, I had been an indifferent chocolateir. Every Thanksgiving and Christmas I turned out about a hundred truffles (I have a large family), but I had never progressed beyond the basics – a cup of cream, a cup of chocolate, some flavoring. While I still can’t claim to be good at chocolate making, my creations have certainly become much more involved, and I enjoy the process a great deal more now, all because of one section of the book that captured my attention – the material science of chocolate making.
...ions in Europe and the United States, making chocolate competitive for the more extensive overall public.
Everyone likes variety when they are going to get something that will dominate their taste buds. 392 has a great variety for everyone. All of us, at one time or another have been with someone that said they don’t want to go there because they don’t like coffee. 392 doesn’t just have coffee products. They also have smoothies, hot chocolate, and many treats to pick from each day. Everyday 392 bakes up fresh goods in order to satisfy their customers. They will always have cookies, muffins, and speciality cupcakes in their display case on the counter. Some of Courtney’s favorite speciality cupcakes are the peanut butter and oreo, the mint chocolate, and the mystery candy bar c...
U.S. producers of non-chocolate candy products sell through wholesalers, as well as direct to retailers. The buyers of the products make purchasing decisions based on expectations of consumer behavior. Buyers will select items that are perceived to be in demand, either based on historical sales data, or trends in consumer preferences. Thus, this section focuses on the trends that influence the purchasing decisions of the wholesale retailers and retailers. Alternatives available to consumers are plentiful for non-chocolate confections. Thus, the pressure on firms from substitute products is high. Competition for sales include chocolate candies, small dessert items, candy flavored yogurt, and snacks combining sweet with savory flavors. The availability of substitute products has a dampening effect on the ability of firms to increase prices (Porter, 2008). Therefore, the more competition in an industry, the harder it is to increase prices. Porter explains that not only does strong competition reduce profits in slow market conditions, but it also impedes a firm’s ability to increase profits when economic times are favorable. The following review of the role of substitutes in the non-chocolate candy segment explores the relative price to performance relationship, as well as the propensity of buyers to substitute.
Hershey Foods Corporation is engaged, with its subsidiaries, in the manufacture, distribution and sale of confectionery and grocery products. The Company's principal product groups include confectionery products sold in the form of bar goods, bagged items and boxed items, as well as grocery products in the form of baking ingredients, chocolate drink mixes, peanut butter, dessert toppings and beverages. Hershey Foods manufactures confectionery products in a variety of packaged forms and markets them under more than 50 brands. The different packaged forms include various arrangements of the same bar products, such as boxes, trays and bags, as well as a variety of different sizes and weights of the same bar products, such as snack
Identity of the brand, and the emotional connection play a huge role in customer retention and this is where Chocolates El Rey needs to focus as well. By engaging the consumer and providing a form of affiliation and emotion with the brand, Chocolates El Rey could have a huge increase in their market share. Even if they started by branding themselves with fine dining restaurants and high class hotels, it would provide an emotional connection to the brand, as these types of consumers would associate the premium chocolate with the high end identity of the hotel or restaurant. This will help build the brand awareness of the company aiding in the future success and brand power that Chocolates El Rey will have in the market.
J.H. Whittaker and Sons is a confectionery company based in the Wellington suburb of Porirua. Whittaker’s long history in New Zealand has made the company stand out from other companies of its kind and the business has remained both family owned and operated since it was established in 1896. (Whittakers, 2011) Whittaker’s is renowned for the production of its superior quality chocolate products, with over ninety products in the Whittaker’s range currently for sale on shelves around New Zealand. Whittaker’s is a big player in the national confectionery market, currently holding more than a third of the New Zealand chocolate market share. (Crossley, 2013). In addition to its production of chocolate confectionery, Whittaker’s product range also includes a selection of ice creams and chewy confectionery bars.
Barrow notes that Apart from providing a quality product and extensive menu of delicious products to ensure customer awareness and loyalty as well as good publicity coverage and me...