Essay About Charles Chocolates And High Price Points

Charles Chocolates
CASE PREPARATION QUESTIONS FOR: “CHARLES CHOCOLATES”If you were Steve Parkland, what would you do first?We need a plan for growth that includes building resources and capabilities within this company. We should address these areas first before expanding outside New England:manufacturing and inventory operations –  not efficientre-evaluate product selection: batch processing/hand packing, set-up times contributing to significant costslook at demand forecasting (for instore/online)/inventories (out-of-stock/over-stock) especially at Christmas; cannot use spike (filling back orders) for production planning in the next year look at ways to manage “special order” without halting production for instore/wholesalehuman resources – employees not welcoming change in fear of compromising values/heritage; look at employing sales agent directly with company to sell only Charles products; address leadership issues (Bird/Wholesalers)marketing – need a better packing like competitors to attract younger buyers; building out a stronger online presence (59% say they prefer shopping online)Revenue – look at closing stores Boston Beacon Hill (-11.5%), Boston Back Bay (-22.35); look at increasing production at Portland Old Port (45.3%) or in Maine Describe the competitive landscape facing Charles Chocolates? Which company poses the largest competitive threat?Godiva #1glitzy packaging, high price points, and widespread distribution among gift retailersstandard products: quality less, but was able to obtain 15% higher price point than Charles higher-end products: 200% – 300% of Charles prices Lindt #2Sold mid-quality chocolates and pricing was 90% higher than Charles CardonMost successful in New EnglandPrice point 35% lower than Charles, moderate product quality level Strong corporate present – offer 20%-25% discount on high volume orders DeliceHigher quality level, frequent flavor introductions 32 retail stores in tourist/downtown areas, packaged in copper boxes, pricing similar to Godiva Companies like Godiva, Lindt, and Cardon’s all have significantly larger production output, making the cost of production for each unit produced cheaper. Similarly, these brands also have an established name and customer loyalty.