Вы находитесь на странице: 1из 5

Cowgirl Chocolates

Prepared for:Nancy Thannert, MKT 440, Prepared by: Alejandro Ibarra Date: January 16, 2012
RMU

Question 1: Synopsis Cowgirl Chocolates is a unique chocolate company that is trying to tap into fiery food segment as well. It is founded and managed by Marilyn and her husband Ross and is still striving to become a profitable chocolate company. It s primarily run by Marilyn though, and she brands the chocolate based on her perception that chocolate consumers are wild in spirit. With this in mind she is trying to cater Cowgirl chocolates to both the chocolate consumer and spicy food fan. Question 2: SWOT Analysis Strengths 1. Caters to chocolate lovers and spicy food fans. 2. Manufactured by Seattle Chocolates. Specialized European chocolate 3. Award winning chocolates and packaging. 4. New product launch. Mild-mannered. 5. Web is 1/3 of Sales Weaknesses 1. Not a profitable company 2. Consumers & Retailers refuse to consume or retail Cowgirl Chocolates because it is too spicy. 3. Cannot find and appropriately use distribution channels. a. No tracking systems b. Not gaining access to channels c. Efficient use of website 4. No specific target market

5. Do not know perception of their own Brand Question 3: Strengths vs Weaknesses Although Cowgirl Chocolates is an award-winning brand already, there are many weaknesses that are still prohibiting them from seeing financial success. Fortunate for them in my opinion, many of the weaknesses I noticed can immediately and effectively be dealt with some of their strengths. For instance, one of the key weaknesses is obviously establishing a relationship with retailers. Many are reluctant to buy this product because it is simply too spicy. This is true, but this also means that Marilyn has at least been able to get retailers to give Cowgirl a shot. One of their strengths for the upcoming future just happens to be a milder version of the product. This can bring hopes to finally establishing a more consistent relationship with retailers and consumers. Question 4: Core Benefits, Tangible Elements, Augmented Elements Core Benefits Chocolate is at the core of this product. It s at the very core of what Cowgirl is trying to accomplish because without it the brand cannot establish its unique product like the hot and spicy chocolate truffles. Tangible Elements Cowgirl Chocolate actually has some award winning tangible elements like its design and quality. For instance the product itself has won numerous awards in fiery food competitions. Along with quality, another element that has won awards is the design and packaging done by Marilyn. Augmented Elements

I m very confused with this question, but my understanding of augmented elements would lead me to think the augmented elements would be the cayenne and other chilies in order to make a unique product. It is a product that can satisfy the needs of a chocolate lover as well as that of a spice fanatic. All while consuming cayenne and other chilies that contain health properties that are good for the heart. Question 5: What market is Hot & Spicy Truffles in? Based on information found on page 78 of the text, this product would best be placed in the hot and spicy food market. 15 percent of American consumers are currently having hot foods and the majority of those are men. This statistical information seems to coincide with Marilyn s own observations when she explained that men often liked her hot and spicy truffles more than the women did. Question 6: Marilyn s Promotional Efforts. Push or Pull strategy? From what it seems like in the case, Marilyn has tried many different approaches as far as promotion is concerned, but has failed at targeting a specific consumer. As the case goes on it seems like a trial and error with the promotional efforts. The Pull Strategy would be more useful in this case because it has an even flow between research and development Marilyn has obtained, then uses the information to effectively plan Cowgirl s production process, which then will lead to more effective marketing efforts. If this flow is done fluidly and effectively it should result in accomplishing the true question mark, which is the consumer s need. Question 7: Breakeven BE= [Fixed Operating Costs/1-(Variable Cost/Net Sales) ] BE= [22,024/1-(14,197/30,046)] BE= $22,023.53

With Salary BE= [45,024/1-(14,197/30,046)] BE= $45,023.53 Question 8: She should try the effort and look for help through distributors or other methods. If my calculations are right, the company s breakeven point is equal to the operating costs, with or without Marilyn s salary expense included. This means with some effective decision making as far as product expenses are concerned, can prove to help with the overall profit margin. Perhaps saving some money on its production methods can help their relationship with distributors because their operating costs will be lower, therefore allowing their price to distributors to be more reasonable. This will hopefully show more profitability potential in the company.

Вам также может понравиться