Evaluation report on Rocky Mountain Chocolate factory

In this research, the growth into a new foreign market by RMCF is examined.
After the financial crisis of 2007 and 2008, the 1982-founded Rocky Mountain Chocolate Factory (RMCF) has been struggling to grow (Mull, Takano & Owings, 2014). The RMCF had to search for new expansion techniques because domestic expansion was decreasing. The business has chosen to use franchisee stores as part of its growth and expansion plan. India has been selected as the ideal market for growth. India was chosen as the greatest international market for entry due to demand and increase in the retail market in India. Additionally, India's large population of more than 1.28 billion people guarantees an overwhelming market for RMCF products in the country (Central Intelligence Agency, 2017). Due to the increasing chocolate market in India, RMCF should first introduce dark chocolate, milk chocolate, nuts and caramels as its product mix and the Chocolate as its product category. The company needs to foster diversity among its staff by recruiting managers with a global mindset (Sparrow, Brewster & Chung, 2016). Additionally, recruitment of managers needs to be well thought and follow established policies to guarantee success. The company should adopt a performance-based remuneration system.

Marketing Mix by Product Mix

The choice of a suitable marketing mix is one of the prerequisites for business success. This becomes even more important when expanding into a new market. A marketing mix incorporates the choice of a product, place, pricing, and promotion strategies to be adopted by a company in its marketing quest. RMCF has always paid careful attention to its site selection for its stores (Mull, Takano & Owings, 2014). As a result, the stores are strategically located in areas such as regional centers, outlet malls, and tourist destination centers and also in major airports. The company has also worked hard on its brand hence making promotional activities quite an easy task.

Regarding product mix, RMCF should start with dark chocolate, milk chocolate, nuts and caramels for its new Indian Market. The recent research has informed the choice of this product mix in India's chocolate market. Studies have shown that the chocolate market is defying all odds in India. In 2016 and 2015, the retail market for chocolates grew by 13% in the country (Mintel, 2017). The compound yearly growth rate (CYGR) for India's chocolate market is 19.9% over the period 2011 to 2015 (Mintel, 2017). This is expected to increase to more 20% by 2020. One of the significant facets of the increasing market for chocolate and chocolate products in India is that the products are seen as healthy. By introducing these products, RMCF stands a better chance of gaining acceptance from most of the population hence increasing its chances of success. Generally, nuts, caramels, and chocolates are seen as healthy and energy snacks by the Indian Market.

Regarding product category, RMCF should first concentrate on the chocolate category as its novel entry product category in India. Although fudges also have a potential for success, chocolates will have an easier penetration hence giving the company an ample time penetrating the market. Afterwards, probably after six months, the fudges can then be introduced. By using one product category for entry and penetration purposes in the Indian market, RMCF will be in a position to enhance the consistency of its chocolate products. Product mix consistency helps companies determine how closely some related products are to each other. Consistency is essential during the product penetration phase as it helps the customers on gauging the overall product quality. Because RMCF has a compelling brand globally, faster penetration in India will place the company in a perfect position to continually introduce new and novel products within a short period after the entry.

Policies for Recruiting Managers for Foreign Assignments

To gain global competitiveness, RMCF will need to recruit competent managers and staff to oversee the international stores. Recruitment of managers for the foreign assignments in India should, therefore, follow a well-thought procedure and policies (Sparrow, Brewster & Chung, 2016). First, the need for an international assignment will be set out. This will entail evaluating whether there is a need to create a new team of managers for the new stores in India. This should be linked to RMCF's goals and objectives. If a need arises, the next step is to determine the number of managers needed. In the case of India, RMCF will need a group of managers to fast-track the performance and operations of the new stores.

A mix of both local and expatriate managers will be established. The choice to use both local and expatriate managers is informed by the fact that the expatriate managers will bring a wealth of experience and global thinking in the new stores (Sparrow, Brewster & Chung, 2016). This will enable the stores to have a world-class feel. On the other hand, the local managers better understand the market. Incorporating them in the management of the new stores will ensure that the specific customer needs are met.

Diversity Training, Performance Evaluation, and Compensation

As opposed to the traditional way of selecting managers which relies on the job-related and technical skills only, RMCF should also assess the global mindset of the potential managers in addition to the skill-set. Managers with a global mindset are better positioned to appreciate diversity in culture and skill orientation (Sparrow, Brewster & Chung, 2016). As a way of enhancing diversity at the company, a training master should be developed. The master will entail things such as the benefits of working together as a team and the importance of appreciating diversity. Further, diversity should also be enhanced through activities such as cultural retreats.

A balanced scorecard should be used to evaluate the performance of the managers and other staff at RMCF. The advantage of using a balanced scorecard is that all business perspectives will be put into consideration when evaluating performance (Sparrow, Brewster & Chung, 2016). Ideally, the balanced scorecard will put the following aspects into account; financial, customer, learning and business processes perspectives.

Concerning compensation, RMCF should offer competitive compensation packages to its employees. Attractive benefits will ensure that the company employees stay focused and motivated as well as reducing employee turnover. However, for effectiveness, remuneration should be performance-based.

Conclusion of Findings

RMCF has been facing growth challenges after the financial crisis witnessed in 2007 and 2008. Expanding into new international markets presents a unique growth opportunity for the company. India has been selected as the best global market to extend to. The choice of India as the market for entry has been informed by some factors such as increasing demand for chocolates and high population. For market entry and penetration, RMCF should use dark chocolate, milk chocolate, nuts and caramels as the product mix and chocolate as the product category. A combination of both local and international expatriates should be used as managers for the new stores in India. Further, managers with a global mindset should be hired to foster diversity in the company.



References

Central Intelligence Agency. (2017).The World Factbook —Cia.gov. Retrieved 13 October 2017, from https://www.cia.gov/library/publications/the-world-factbook/geos/in.html

Mintel. (2017). India is among the world’s fastest growing chocolate markets: Sales grew by 13% in 2016. Mintel.com. Retrieved 13 October 2017, from http://www.mintel.com/press-centre/food-and-drink/india-among-worlds-fastest-growing-chocolate-markets

Mull, R., Takano, K., & Owings, S. (2014). Rocky Mountain Chocolate Factory International. Journal of Case Studies, 32(2), 27-32.

Sparrow, P., Brewster, C., & Chung, C. (2016). Globalizing human resource management. Routledge.