Case Study PURDYS Have you heard of Purdys Chocolatier? Purdys is a household name on the West Coast in British Columbia and Alberta, and although the company has been in Ontario since 2003, many Ontarians aren't familiar with the brand. History Richard Carmon Purdy, started selling homemade chocolates in downtown Vancouver, Canada in 1907. Purdys is proud to remain a Canadian, family-owned business with the same core values - delicious chocolates, fantastic service, and great people. Purdys is Canada's go-to destination for innovative chocolate flavours and gifts. After 100+ years of crafting fine chocolates, consumers can be assured that Purdys isn't an ordinary chocolate. The company sources premium-quality ingredients fr round the world, and chooses local options whenever possible. Purdys chocolates are made daily at the Vancouver Factory Kitchen, using only the freshest ingredients sourced from around the world. Every creation at Purdys uses 100% sustainable cocoa, ensuring their cocoa farmer partners and co-ops are supported by programs that improve their profits and the livelihoods of their families and communities. In 2020, the company received a Glassdoor Employees' Choice Award, recognizing Purdys ase of Canada's Best Places to Work. This is due in pa. the company's commitment to workforce equality. Women represent less than 50 percent of the Canadian labour force as a whole. However, Purdys is proud to have undertaken tremendous strides to employ and empower women-with 80 percent of its 1,100- person workforce being female. Sixty-three per cent of Purdys executives are women. Product Innovations at Purdys uses 100% sustainable cocoa, ensuring cocoa farmer partners and co-ops are supported by programs that improve their pa and the livelihoods of their families and communities. In 2020, the company received a Glassdoor Employees' Choice Award, recognizing Purdys as one of Canada's Best Places to Work. This is due in part to the company commitment to workforce equality. Women represent less than 50 percent of the Canadian labour force as a whole. However, Purdys is proud to have undertaken tremendous strides to employ and empower women-with 80 percent of its 1,100- person workforce being female. Sixty-three per cent of Purdys executives are women Product Innovations Purdys tries about 150 new recipes a year, relying on in-house testing and customer feedback to determine which products will be added to its chocolate lineup. Part of chocolate's appeal is not just how it tastes, but the emotional respon evokes. The company's bestsellers include Himalayan Pink Salt Caramels, Hedgehogs, Sweet Georgia Browns and English Toffee. In 2022, Purdys introduced a vegan version of the Sweet Georgia Browns. The launch of the vegan Sweet Georgia Browns comes as the 115-year-old chocolate company continues to develop more vegan options of its famous signature treats to meet the evolving preferences of its customers. Purdys has even made a designated vegan area in its factory kitchen, including a vegan-only molding and packaging line. The Global Vegan Chocolate Confectionery Market size is expected to reach $1 billion by 2027, rising at a market growth of 12.3% CAGR during the forecast period. Purdys joins a number of major chocolate brands around the world that have been introducing vegan versions of iconic chocolate snacks to meet the growing demand for dairy-free options. Confectionery company Cadbury recently launched its first line of vegan chocolate bars, called Cadbury Plant Bars, in the United Kingdom. Swiss chocolatier Lindt & Sprungli rolled out Lindt Classic Recipe vegan milk chocolate bar de with oat milk and almond paste. And the Hershey Company launched its first vegan chocolate bars made with a base of oat milk at limited retailers. Kriston Dean, Purdys VP Sales and Marketing, says that "Purdys constantly examines its offerings to meet the ever-increasing demands of a consumer who wants unique gift ideas and hyper personalization wrapped up in an absorbing retail experience. Keeping in tune wit od, fashion and pop culture trends is married with crunching of hard data on the performance of merchandising categories across retail and ecommerce channels. It's that blend of business intelligence and creative flair that's kept the company expanding instead of following the downward spiral of so many other Canadian retailers. Canadian consumers want options for specialty packaging and just because' gifting occasions. Millennial and foodie audiences who are really engaged with gourmet culture, are unique, on-trend flavours. Consumer appetite for memorable in-store experiences are also being satisfied at Purdys. Interactive ice cream stations are a staple at all locations Customers can watch ice cream bars dipped in decadent chocolate and smothered in freshly roasted nuts, adding theatre and fun to the chocolate shopping A Q ge.ca/d21/le/content/987337/viewContent/12700572/View Ideas and hyper personalization wrapped up in an absorbing retail experience. Keeping in tune with food, fashion and pop culture trends is married with the crunching of hard data on the performance of merchandising categories across retail and ecommerce channels. It's that blend of business intelligence and creative flair that's kept the company expanding instead of following the downward spiral of so many other Canadian retailers. Canadian consumers want options for specialty packaging and just because' gifting occasions. Millennial and foodie audiences who are really engaged with gourmet culture, are unique, on-trend flavours. Consumer appetite for memorable in-store experiences are also being satisfied at Purdys. Interactive ice cream stations are a staple at all locations. Customers can watch ice cream bars dipped in decadent chocolate and smothered in freshly roasted nuts, adding theatre and fun to the chocolate shopping experience. Select locations boast a kiosk where shoppers can customize their own chocolate bar wrappers with just a few clicks by uploading their own photos and text to be printed within minutes right at the shop. Customers can also book truffle-making classes with a Master Chocolate Connoisseur, a service that's proven popular with the business community seeking an alternative to the usual team-building or ellent activities. Another innovation was the Holiday Braille Box that was introduced at the end of 2021. It is an accessible box of Purdys chocolates designed specifically for, and with consultation from, the blind and partially sighted community. The box features braille orientation tabs, a braille chocolate legend and a QR code that brings users who are blind or partially sighted to an accessible screen reader version of the legend. The initial run of the box sold out online in a matter of hours. A Q It's important to the company to be inclusive. The full Purdys chocolate menu is available in the 10 most spoken languages in Canada (English, French, Spanish, Italian, German, Mandarin, Cantonese, Punjabi, Tagalog and Arabic) on the Purdys website. e.ca/d21/le/content/987337/viewContent/12700572/View The website is an active eCommerce site. The company maintains social media accounts on Instagram with 44.7k followers, Facebook with 124k followers, Twittter with 25.8K Followers, YouTube with 1.19K subscribers, and Snapchat. Rising Costs Purdys, like many Canadian manufacturers, is experiencing increased prices for raw materials, labour and shipping - profit margins are shrinking faster than they have in years. Prices for cocoa and chocolate have increased, but so too, have shipping costs. As company president, Lawrence Eade, explained, "Shipping costs are probably our biggest input cost increase right now. We're paying upwards of $20,000 per container, when we would have been paying $2,000 a year ago or 18 months ago. The deliver raw materials and packaging. About one-third of Purdys' expenses are raw materials, one-third is packaging and one-third is labour, Eade estimated. The result, he said, is a crimped bottom line. ainers Purdys buys products in U.S. dollars, so the company is affected by currency fluctuations. In recent months, the Canadian dollar has trading above USSO.82 - its highest price more than five years. The Future Millennials and the working population are highly adopting the vegan culture, which is estimated to increase demand of vegan chocolate. Purdys is well-positioned for this growth. However, there are number of countries which were badly influenced by the COVID-19 pandemic, due to which the supply of cocoa was hampered around the world. This has declined the production of cocoa along with the decrease in its sales. Also. there was a decline in the demand for high-end & artisanal chocolates. In contrast, the market growth of chocolates is forecasted to rise as there is a growth in the demand by consumers. Purdys generates almost half of its revenue each November and December. There are currently a total of over 70 stores in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario Purdys owns all of its shops and does not sell franchises to maintain the biggest input cost increase right now. We're paying upwards of $20,000 per containe when we would have been paying $2,000 a year ago or 18 months ago. The contain deliver raw materials and packaging. About one-third of Purdys' expenses are raw materials, one-third is packaging and one-third is labour, Eade estimated. The result, said, is a crimped bottom line. Purdys buys products in U.S. dollars, so the company is affected by currency fluctuations. In recent months, the Canadian dollar has trading above US$0.82- its highest price in more than five years. The Future Millennials and the working population are highly adopting the vegan culture, which is estimated to increase demand of vegan chocolate. Purdys is well-positioned for this growth. However, there are number of countries which were badly influenced by the COVID-19 pandemic, due to which the supply of cocoa was hampered around the world... This has declined the production of cocoa along with the decrease in les. Also, there was a decline in the demand for high-end & artisanal chocolates. In contrast, the market growth of chocolates is forecasted to rise as there is a growth in the demand by consumers. Purdys generates almost half of its revenue each November and December. There are currently a total of over 70 stores in British Columbia, Alberta Saskatchewan, Manitoba and Oro. Purdys owns all of its shops and does not sell f chises to maintain the quality and integrity of the brand. 2022 is going to be a tough year for the company to meet its corporate sales and profit goals. What insights can you add to the situational analysis? Case Study Analysis - Marketing Fundamentals Steps Problem/Opportunity/Issue/Decision maker or makers 1. 2. Situation Analysis 3. Identify Real & Practical Alternatives 4. Recommendations