Marilyn jokes that one of the hard parts of running Cowgirl is that "it takes all of my willpower to stay out of the chocolates. When you first put one in your mouth, it will taste smooth like other high quality chocolates. After a second or two, you'll taste the fiery pepper. Be forewarned, they are quite hot.
Situation Analysis Since the inception of a revolutionary spicy chocolate recipe, Marilyn Lysohir and Ross Coates have been striving to grow a profitable business in the chocolate industry.
Each year Marilyn has loaned the company money to keep it running. Cowgirl Chocolates, primarily run by Marilyn, with help from family and art associates is branded based on the concept that chocolate lovers are fun and adventuress in spirit and whimsical.
Cowgirl chocolates caters to both Chocolate lovers and spicy food fans. Cowgirl chocolates are manufactured by Seattle Chocolates a private label company well know for working with a Frango chocolatier to create their chocolates.
After the final product is created incorporating a receipt of Cowgirl spices, Marilyn creatively packages the final product into custom tins, bags, buckets and boxes. Despite having award winning packaging designs and a high quality chocolate, many consumers and retailers are reluctant to purchase or retail the product.
Both consumers and potential retailers have mentioned that the chocolates are too spicy. To help gain greater access which has yet materialized Marilyn created a non-spicy chocolate and calls it mild-mannered. Analyzing industry statistic helps to explain some this reservation.
According to Fiery Food Trends,"only percent of American consumers are currently eating hot foods".
In addition, these statistics indicate that the average consumer of fiery foods is male, between 35 and 55 years of age. The Fiery Food Trends further indicates that consumers have expanding palates for various types of spicy foods of the Asian and Mexican cultures.
These trends indicates that although the current target market is high-energy and risk-taking this target will not necessarily identify with a cowgirl country whimsical theme or be completely satisfied with just the effects and tastes of cayenne pepper spices.
Competitor analysis as detailed on appendix B indicates that a more sophisticated expanding palate for Asian Mexican spices is gaining momentum.
All of the competitors with the exception one which sells only a spicy hot chocolate mix are horizontally expanding their established truffle lines to include various culture spices and promoting them with more cultural oriented themes such as around the world exotic spices.
Another area that requires analysis is the pricing structure. Although none of Cowgirl Chocolates competitors carry a full-line of exclusively hot cayenne spiced chocolates to benchmark from, Marilyn indicated that she prices her line of bars similar to Seattle Chocolates bars.
She further expressed concern over the fact that the tins stood out in price at specialty spicy food shops. Analysis of the pricing structure on appendix A provides some explanation. When comparing each product with the percentage of total revenue gained it becomes evident that revenue declines as wholesale and retail prices increase.
With the exception of the caramel sauce, all other chocolate revenues decrease as the mark-up increases. Another area of concern that requires analysis is the ability to identify and gain access to effective distribution channels. Much of this problem stems from first not identifying and targeting a specific market.
During my interview with Marilyn I asked her if she targets a particular type of customer or establishment and she indicated she did not.
The study case further reveals that Marilyn takes a trial an error approach to promote her products. This approach is very time consuming and not an effective strategy for distributing perishable products or limited time and energy.
Another avenue for distribution is the Cowgirl Chocolate web site. The site currently accounts for one third of all sales but currently has no tracking mechanisms.
Without the ability to track sales or visitors Marilyn is not able to study the buying process. According to Market-Vantage - Internet Performance Marketing, "the ability to capture information about web visitors allows you to study the buying process more closely in order to fine-tune your online marketing activities to achieve your sales objectives.
Actual activity patterns, conversion behavior and direct feedback can provide valuable data for improving the sales and marketing strategies. Alternatives Before spending additional resources on marketing the following alternatives should be considered: Another alternative is too creatively change the brand theme to a more sophisticated theme that will capture the growing increase of immigrates to the U.
S and Americans looking for new and interesting flavor combinations and adventures. Pricing strategies Considering that prices are already established careful consideration should be given before changing the price. One alternative that should be considered is to price the product similar to Seattle Chocolates.
Another is to find out what the recommended price is from Seattle Chocolates and then adjust accordingly.Cowgirl chocolates are manufactured by Seattle Chocolates a private label company well know for working with a Frango chocolatier to create their chocolates.
After the final product is created incorporating a receipt of Cowgirl spices, Marilyn creatively packages the final product into custom tins, bags, buckets and boxes.4/4(1). Cowgirl Chocolates Final Case Analysis By: Kyle Couchois, Gregory Howard, Marc Schiller, John Sprenger 12/8/ Primary Problem The primary problem of Cowgirl Chocolates is that the company has not established a target market for its product and identified its customers.
Didji Designs Texas Star Dog Collar and Leash Set - Genuine Cowhide Leather - Deep Explore Amazon Devices · Shop Our Huge Selection · Fast Shipping · Read Ratings & Reviews. STEP 5: PESTEL/ PEST Analysis of Cowgirl Chocolates Case Solution: Pest analyses is a widely used tool to analyze the Political, Economic, Socio-cultural, Technological, Environmental and legal situations which can provide great and new opportunities to the company as well as these factors can also threat the company, to be dangerous in future.
Case study of Cowgirl chocolate Essay This paper is an essay with reference to the case study of the Cowgirl chocolate company. This presents the main background of the business enterprise and its way of commerce management.
Cowgirl Chocolates Final Case Analysis By: Kyle Couchois, Gregory Howard, Marc Schiller, John Sprenger 12/8/ Primary Problem The primary problem of Cowgirl Chocolates is that the company has not established a target market for its product and identified its customers.