Koko Black

• CS_KokoBlk_web.pdf

CS_KokoBlk_web.pdf

Koko Black opened its first store in the Royal Arcade, Melbourne in December 2003. Founder Shane Hills is the driving force and source of inspiration behind Koko Black, assisted and supported by his business partner Joe Carbone.

Koko Black specialises in making handcrafted European chocolate and prides itself on creating an experience for the consumer. The theatre of the in-store chocolate production combines with the licensed chocolate lounge to create the Koko Black experience.

The second Koko Black store opened in Lygon Street, Carlton in March 2005 and the third at Chadstone in April 2006. The ambience of Koko Black has been successfully maintained across both strip shop and shopping centre locations.

Koko Black’s positioning is that of an up market provider of gourmet chocolates and chocolate products, providing an unrivalled store experience. Koko Black is professional, innovative, customer focused and provides enormous variety and choice.

The company is now focused on leveraging the existing intellectual property, supply arrangements and the Koko Black brand, to grow the network throughout Australia.

The Challenge

The key challenge for Koko Black was how to effectively structure and scale the group into a national network. This issue is faced by every business at the start of a growth trajectory and is the single most important issue for sustainable performance.

Successful growth has to envisage sustainability, profitability and a consistency of experience for the consumer

Koko Black is committed to the highest levels of team work, attention to detail, professionalism, and customer experience. This unwavering commitment added to the complexity of scaling the group given the unwillingness to compromise.

The successful growth of Koko Black envisages a network of company operated retail stores across Australia and a centralised production facility that combines core production with the opportunity for the consumer to experience Koko Black.

The Solution

Koko Black engaged DC Strategy (DCS) to identify and evaluate alternative structures and determine the optimal structure for its network expansion. DCS then helped to develop the systems, processes and procedures required to support Koko Black’s desired growth.

Growing a business is about understanding the type of people needed and how best to work as a team

One of the key considerations in determining the optimal structure was to ensure Koko Black’s key success factors were repeatable as the company expanded its retail network.
Working with its management team, DCS developed Koko Black’s:

• Strategic direction
• Wholesale strategy
• Corporate structure
• Financial management structure
• Store performance standards
• Systems, process and procedures to support the retail operations

The key focus was not to compromise on those elements that have made Koko Black successful, as the network scaled nationally. The work done by DCS provided the opportunity to develop a solid operational and management foundation for growth.

The Outcomes

Koko Black is now well positioned to capitalise on the strength of its brand and business model to grow a national and international distribution network.

Attention to Detail: Many businesses never have the opportunity to scale as the attention to detail removes the opportunity to build a scaleable structure

The manner in which Koko Black has engaged the consumer has ensured Koko Black stands out as a destination of choice for a chocolate and cafe experience. Its single minded commitment to achieving the highest standards has been strengthened by the enhancement of the business model.

The development of the strategic direction has enabled management to focus on the priorities of the business – particularly important when resources are finite in the early phase of the growth cycle. The structure, communication channels, operational procedures, and governance are now consistent with the quality of the Koko Black product.

 

DC Strategy, business growth specialists.

Level 5, 530 Collins Street,
Melbourne VIC 3000 Australia
growth@dcstrategy.com
+61 (0)3 8102 9200