Cowgirl Chocolates

Powerful Essays
Chris Olang
BUAD 6300
Case 6-16 Cowgirl Chocolates
10/6/2010
Before spending an additional $3,000 on an advertising campaign in the March/April edition of Chile Pepper Magazine, Marilyn Lysohir needs to consider how to reach her goal of becoming a profitable company. She needs to analyze consumer perceptions, pricing strategies, identify and gain access to effective distribution channels and the effective use of the company web site. 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 but, each year Marilyn has loaned the company money to keep it running. Cowgirl chocolates caters to both Chocolate lovers and spicy food lovers. Cowgirl chocolates are manufactured by Seattle Chocolates, a well known a private label company. 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 Marilyn has created a non-spicy chocolate calling it mild-mannered. According to Fiery Food Trends, 1999, only 10-15 percent of American consumers are currently eating hot food. In addition, the average consumer of spicy hot foods is predominantly men, yet in contrast Marilyn’s target market is women. This trend indicates that although the current target market is high-energy and risk-taking this target will not necessarily identify with a cowgirl country theme or be completely satisfied with just the effects and tastes of hot pepper spices. Another area that requires analysis is pricing. Although none of Cowgirl Chocolates competitors carry a full-line of exclusively hot cayenne spiced

You May Also Find These Documents Helpful

  • Good Essays

    Cowgirl Chocolates

    • 1488 Words
    • 6 Pages

    Cowgirl Chocolates Final Case Analysis By: Kyle Couchois, Gregory Howard, Marc Schiller, John Sprenger 12/8/2010 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. The company specializes in the niche product of hot and spicy gourmet chocolate. According to the company owner, only about 15% of Americans are consuming hot and spicy foods and men are usually more receptive…

    • 1488 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    Cowgirl Chocolates

    • 271 Words
    • 2 Pages

    making and distributing chocolates and other treats in addition to working as an artist in Moscow. Cowgirl Chocolates are all-natural, kosher chocolates that are unique in that they contain hot pepper as an ingredient. 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. Marilyn admits that not everyone can take the heat of her chocolates. However, enough people enjoy both chocolate and spice to keep Marilyn…

    • 271 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Cowgirl Chocolates

    • 1339 Words
    • 6 Pages

    Cowgirl Chocolates Case Study 1. What are some of the critical strengths and weaknesses of Cowgirl Chocolates that determine the success of this small business? Can the weaknesses be overcome by the strengths of the business? Some of the critical strengths of Cowgirl Chocolates that determine the success of this small business include product differentiation, quality, flexible return policy, and personalization. Cowgirl Chocolates is very modern creation since it meets the needs of a specific…

    • 1339 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    Cowgirl Chocolates

    • 259 Words
    • 2 Pages

    Major problem: How can “Cowgirl Chocolates” advertise and increase profitability through their online retail services and expand their wholesale business to include more retailers? Sub-Problems: (non-controllable) • Economy- if the economy is in recession, the demand for expandable goods will decrease. • Demand- only approximately 15% of consumer is currently eating spicy foods. Men are more inclined to eat spicy food than women. • Supply- product has a short shelf life and contains imported…

    • 259 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Cowgirl Chocolates

    • 7268 Words
    • 30 Pages

    ceramic artist, started Cowgirl Chocolates to provide some funding support for a yearly published arts magazine, High Ground, which she and her husband, Ross Coates, started in 1995. Her love of chocolates and hot and spicy foods spurred the idea of making hot and spicy chocolates to be sold in creative, artistic tins and packaging, which she labeled Cowgirl Chocolates. Her small business, begun in 1997, won a number of awards in fiery food competitions. While Cowgirl Chocolates grew steadily over its…

    • 7268 Words
    • 30 Pages
    Powerful Essays
  • Satisfactory Essays

    Cowgirl Chocolate Case

    • 354 Words
    • 2 Pages

    ways they tried to raise funds for Marilyn and her husband “High Ground” magazine. PROBLEM DEFINITION: How to can Cowgirl Chocolates, an award winning products, re-define its products and market target to become a profitable business? PORTER’S FIVE FORCE According to the name of the business cowgirl Chocolate, its packaging and pricing, we define market strategy in the chocolate industry. New Entrants (high because of low entry barriers) • No special knowledge required (e.g. technology)…

    • 354 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Cowgirl Chocolates Case

    • 413 Words
    • 2 Pages

    Synopsis The case of Cowgirl Chocolates is about a small chocolate producer, Cowgirl Chocolates, and the businesses owner/artist Marilyn Lysohir dilemma with how and why her business venture wasn’t profitable. Marilyn expresses her love for making award winning hot and spicy chocolates. She also discusses her hold up on different products, their packaging, and her disliking of using distributors. Marilyn doesn’t know why she isn’t making a profit, and the problem isn’t with her chocolates, it’s her lack…

    • 413 Words
    • 2 Pages
    Good Essays
  • Better Essays

    Cowgirls Chocolates Case

    • 1686 Words
    • 5 Pages

    Cowgirls Chocolates Case Marilyn Lysohir, an internationally famous ceramic artist, started Cowgirl Chocolates to provide some funding support for a yearly published arts magazine, High Ground, that she and her husband, Ross Coates started in 1995. Her love of chocolates and hot and spicy foods spurred the idea of making hot and spicy chocolates to be sold in creative, artistic tins and packaging, which she labeled as Cowgirl Chocolates. Her small business, begun in 1997, had won a number of awards…

    • 1686 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Cowgirl Chocolate Analysis

    • 1354 Words
    • 4 Pages

    Cowgirl Chocolates Analysis Cowgirl chocolates are the design of Marilyn Lysohir and her husband, Ross Coates in 1997. Marilyn is a ceramicist and lecturer who is internationally known and has a successful ceramic art business. Ross is a sculptor and a professor of fine arts at a nearby University. As a labor of love, Marilyn and Ross began publishing a once-a-year arts magazine called High Ground. More a multimedia product than a magazine, the 600-copy production of this product does not pay…

    • 1354 Words
    • 4 Pages
    Better Essays
  • Satisfactory Essays

    Cowgirl Chocolates

    • 170 Words
    • 2 Pages

    1. 2. Breakeven=Total Fixed Expenses/Weighted Average Selling Price-Weighted Average Variable Expenses Using Suggested Retail Prices: Weight Average Selling price= (2.99x50%)+(6.95X16%)+(14.95x12%)+(5.95x10%)+(2.95x7%)+(8.95x1%)+(24.95x1%)+(39.95x1%)+(59.95x1%)+(19.50X1%) =1.495+1.112+1.794+.595+.2065+.0895+.2495+.3995+.5995+.195 =$6.7355 Weighted Average Variable Expenses= (1.16x50%)+(2.35X16%)+(4.78x12%)+(2.5x10%)+(.97x7%)+(2.95x1%)+(9.05x1%)+(11.02x1%)+(23.06x1%)+(7.42X1%) =.58+.376+.5736+.25+…

    • 170 Words
    • 2 Pages
    Satisfactory Essays