In 2013, Laura Secord Chocolates celebrated its 100-year anniversary. Laura Secord is a retailer of premium chocolates with 1,000 employees at 128 retail stores in seven provinces. As one of Canada's most venerable brands, Laura Secord is looking to increase sales by one-third to $100-million by remodelling stores, introducing trendy products, and persuading other retailers to sell its chocolates.

History

Laura Secord was a Canadian heroine of the War of 1812. She is known for having walked 20 miles (32 km) out of American-occupied territory in 1813 to warn British forces of an impending American attack. Though Laura Secord had no relation to it, most Canadians associate her with the Laura Secord Chocolates company (formed in 1913 and named after her).

Since first opening its doors back in 1913, Laura Secord has sold a wide variety of premium-quality chocolates, and more than 400 high quality products in all, including milk, dark and white chocolate, flavoured chocolate, chocolate-covered nuts, caramel crunch, chocolate fudge, ice cream, lollipops and jellies. A tremendous amount of the company's success can be attributed to the fact that the company has remained true to its original values, which includes honouring its well-established recipe favourites while ensuring a strong commitment to excellence, quality and customer service.

A Canadian Company Once More

Laura Secord had been under foreign ownership since 1983. The company had been owned by several American firms, however, in 2010, Nutriart (a Canadian company) bought Laura Secord from its American owners for a rumoured $20 million. Since then, the new owners have been focused on increasing revenue and achieving the company's mission:

To delight our customers with high-quality chocolate and ice cream products. We are passionate about our customers, our personnel, and our brand.

Nutrient also plans to look at expansion into the United States. The population of the United States is 10 times the population of Canada. The company is also looking at ways to use the modern $43-million chocolate factory in Quebec City to develop new high-end Laura Secord products, such as chocolates with a higher percentage of cocoa and with inclusion of fruits like cranberries and blueberries a healthy product.

As part of its company philosophy, Laura Secord supports responsible cocoa cultivation, sound environmental management, respect for the local communities from where it's harvested, recognition of international labour standards, and fair employee compensation with regard to the purchase of cocoa beans. Corporate social responsibility is important to the company which dovetails well with the tendency of Canadians towards ethical consumption.

The Retail Locations and Competition

Most of the 128 retail locations are in shopping malls. Locations are in seven provinces across Canada, mostly in central Canada. All of the locations were given a facelift for the 100-year anniversary.

Large shopping malls often house the competition as well. Purdy's Chocolates of Vancouver has expanded in central Canada, and chains such as Shoppers Drug Mart Corp. and Hudson's Bay Co., are aggressively pitching their own private labels.

The locations are busy at Christmas, Easter and Valentine's Day, but the trick is to pull in customers all year round.

Laura Secord launched its transactional website to expand and complete its presence throughout Canada and better serve its loyal customers. The website contains product information, company history, and ordering information for corporate gifts (companies who order large quantities to give to employees and customers). The company also maintains a Twitter account with 872 followers and a Facebook page. The Facebook page has 18,000 likes. There's been an influx of devices (smartphones, tablets and desktops) in Canada and 87% of households have Internet connectivity. Social media adoption is increasing as well.

Chocolate-Loving Canadians

Chocolate is typically seen as an indulgence, something for a special occasion, or perhaps to reward yourself for something such as eating well. Nonetheless, chocolate is a discretionary purchase and that made it something that many consumers found themselves cutting back on during the last recession (in 2008). Thankfully, most experts agree that the current economic outlook is positive.

Chocolate is known to be loaded with calories and Canadian consumers are very health conscious. Canadian consumers are changing. As one expert noted: "In around 2006 there were serious studies being published about the positive health effects of chocolate. That's why people started to be more interested in higher quality chocolate. To call a product chocolate, it has to contain over 10 percent of chocolate. But today, there is a tendency to use a much higher content of chocolate - we often see products containing 70, 80 or even 90 per cent of chocolate!"

While nearly 60% of Canadians agree that chocolate is the ultimate indulgence, this country has annual consumption levels of under 4 kg per person, a far cry from the 10 or 11 kg consumed in such European chocolate hotbeds as Switzerland and Great Britain. In the US, consumption is nearly 6 kg per person, and it is growing much more than Canada's. In particular, gourmet chocolate products increased by nearly 30% in the US. Gourmet chocolates include personalized chocolate bars, chocolate covered strawberries or cherries, and even nuts or pretzels coated with chocolate.

According to a recent Markets and Markets report, the global chocolate sector is expected to reach US$98.3 billion by 2016 at a compound annual growth rate of 2.7 per cent. The main factors behind this positive upswing include the health benefits, its widespread variety of potential food recipe applications and seasonal and festive occasion sales. This marketplace also shifts rapidly with diverging, with fast-growing economies and empowered consumers demanding more from their products, seeking diversity and customer satisfaction.

Laura Secord's own research has found that consumers still are loyal to the Laura Secord name, and hold it in high regard. Canada is a country with diverse generations. Younger shoppers are more familiar with the company's ice cream cones than the chocolate. Older shoppers are strongly attracted to the chocolates because, for this generation, Laura Secord is synonymous with chocolate and fun.

To appeal to teenagers and twenty-somethings, Laura Secord offers trendier, sometimes pricier, products, and fancier ice cream flavours. The company introduced truffles specifically for the younger consumers. Truffles cost $25 for a 236-gram box, compared with $10 for a 200-gram box of assorted regular chocolates.

The Issues

Laura Secord is an old brand that needs to revitalize, while maintaining its loyal customers and attracting new ones. In the face of strong competition and the seasonality of the business, what suggestions do you have for this company?

Sources:

Canadian Business Journal. Laura Secord Chocolates. Retrieved fromhttps://www.cbj.ca/laura_secord_chocolates/.

CBC News. Laura Secord owned again by Canadians. Retrieved fromhttps://www.cbc.ca/news/canada/montreal/laura-secord-owned-again-by-canadians-1.967345.

The Globe And Mail. Laura Secord to get $10-million makeover in bid to sweeten sales. Retrieved fromhttps://www.theglobeandmail.com/report-on-business/laura-secord-to-get-10-million-makeover-in-bid-to-sweeten-sales/article18280483/.

The question which needs to be answered -

1. Please find out SWOT Analysis.

2. Identify Two Target Customers that should include?

-Demographics, Psychographics/Lifestyle, Geographics, Behavioristics/Benefits sought.