Cowgirl: Market Pricing Case Study

Topics: Marketing, Price, Retailing Pages: 2 (590 words) Published: November 22, 2013
Case Cowgirl:

1. What markets do you think the “hot and spicy truffles” is competing in—the hot and spicy food market, the chocolate candy market, the gift niche market, or other? Discuss (5 points)

2. Using the cost and financial information provided in Exhibits 2, 4, and 5 in the case, compute Cowgirl's the breakeven sales revenue. Make reasonable assumptions and show your calculations in order to get credit. (Thinking question???) 10 points 1. Based on the information given by the case I think that the “hot and spicy truffles” are competing in the hot and spicy food market, the chocolate candy market, and the gift niche market. Marilyn was trying to push her product in all markets and is shown in the following information provided by the case. Marilyn had placed her product in several specialty food stores that focused on hot and spicy foods. With these stores focusing on hot and spicy foods, Marilyn’s chocolates were up against other spicy foods/candies. The case also goes into detail on the numerous trade shows that Marilyn attended, which was catered to hot and spicy food lovers. This was where she had won several awards on her chocolates. The chocolates were also sold at organic stores, upscale retailers, and museum gift shops. These places have other brands of chocolates available to customers, making them a competitor to Marilyn’s chocolate. The case even goes into detail on how Marilyn was comparing her price of chocolate bars at $2.99 to other competitor’s bars that were priced at $1.99. However, I also think because the chocolates were being sold at gift shops and upscale retailers this also places the chocolates in the gift niche market. Expensive, high quality chocolates/goods are typically associated as a specialty or as a gift. If I were Marilyn I would focus on the gift niche market. She has won awards for her chocolates and the packaging they come in. The market for hot and spicy food lovers is only 15%, according to the case. This...
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