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 …show more content…
The cost of producing the chocolates far exceeds the expense of producing. Adding a $3000 advertisement is moving in the wrong direction as this cannot guarantee a boost of sales. Marilyn should focus on convincing magazines and newspapers to run stories about her products as previously covered in the local newspapers. The $3000 advertisement is focused more on a picture instead of information about a product that consumers need to know more about. This form of advertising works better for products that consumers are more familiar with. What separate Cowgirl Chocolate from its competition is its high quality and the unique ingredients that contribute to its taste. This should be the focus of her advertisement. Marilyn should listen to consumers and introduce her new idea of mild mannered Cowgirl Chocolates in order to expand her market. The market for the hot and spicy chocolates is limited and may not be sufficient to cover the fixed costs of producing and distributing Cowgirl Chocolates. The introduction of mild mannered Cowgirl Chocolates would increase her target market and open new doors for entry into upscale outlets like Dean & Delucca and Coldwater Creek. The world renowned Whitely Museum in New York City that dropped her products due to low sales would probably reconsider carrying Cowgirl Chocolates with the introduction of a milder chocolate line. Marylyn should cut her costs instead of
Within Kayem Foods, Matt Monkiewicz the director of marketing is facing a critical decision that could have a big affect on sales and market share. Al Fresco chicken sausage is one of their products that has recently gained majority market share in its category. The budget for which is dedicated towards the marketing of Al Fresco has been doubled due to the growth of the brand. What Matt needs to do is decide whether to pay for another buzz marketing campaign or to use more traditional marketing strategies suggested. Matt believes the original buzz marketing campaign had a significant part in building the brand to the market leader but no definite evidence of this being true. He must review the costs of each strategy
I prepared an analysis of several marketing strategies that can be used by executives at A.1. Steak Sauce. This case analysis will provide a summary of A.1.
The marketing strategy of Haigh’s chocolate has been identified through detailed analysis of the external and the internal environment of the present market conditions and development of the Haigh’s. There has been complete detailed SWOT analysis of the company on the basis of research conducted from several secondary sources. It has been conducted in order to determine the important strategies and the key strengths of the company. Talking about the chocolate sector which has been further segmented into several categories in which Haigh holds the important position and have captures the major chunk of the market. Such markets range from chocolate blocks, bars and other diet varieties like gluten and eggless products. The demand in the chocolate market is also divided on the basis of the geographic location markets like that in Sydney, Melbourne and Adelaide chocolate markets. Other factors affecting demand in the market includes demographic, behavioural and psychographic segmentation.
10. To achieve 1 million hits on the Cocoa Delights ‘Get in touch with your dark side’ microsite by the end of the campaign.
The basic characteristics of the marketing concept that could be identified in Clare’s Chocolates are as follows:
The following statistics stated in the case indicate that “23% of respondents would definitely buy the Montreaux dark chocolate with fruit product and 40% would probably buy the product.” These average ratings strongly suggest that this product should be introduced into the market very gradually. This strategy would enable the company to evaluate consumer buying patterns so that the company could determine future production levels and future marketing strategies that benefit both the company and the consumer. Financial information given in the case also indicates that the company needs to introduce this product very conservatively. Exhibit 1 informs that with 5.98 million total purchases, low awareness, low ACV and mediocre product, Montreaux would gross $17.44 million. Exhibit 2 shows that with medium awareness, medium ACV and an average product Montreaux would gross $25.1 million. These figures do not meet Montreaux’s objective of earning at least $30 million in its first year. Exhibit 3 shows a slightly improved situation: with high awareness, high ACV, and an excellent product, Montreaux would gross
With the increasing trend in healthy diet preference, the underlying drivers of change of competition in premium chocolate industry at the strongest level are the buyers’ preferences for differentiated, refined products, instead of standardized ordinary products that are no longer demanded. In addition, baby boomers - generation with their disposable income are spending a lot on high quality premium chocolates.
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
While Cowgirl Chocolates has been in business for twenty years, it is still in a stagnant position. While they may not be losing enough money to have to close right now, they are certainly not achieving much in terms of growth or sales. The company has not been successful in gaining any larger retailers. It is not easy to find consumers who prefer something as distinct as spicy chocolates. This makes it very difficult to expand the business.
After a thorough analysis of Apollo Foods business situation, a decision plan regarding the launch of a new chocolate product for its new branch acquisition Montreaux Chocolate USA has become clear. This decision plan is based on the following key challenges and marketing issues that need to be addressed. These challenges and marketing issues can be best summed up by a decision on what brand the product will be home to, whom the product will be marketed to, the ingredients and formulation of the product, the packaging of the product, can the product perform well enough in a sales forecast plan to exceed a $30 million dollar hurdle rate, and finally to launch or to test market the product. After reviewing Apollo Food’s data, their market research findings, and sales forecasts. A decision plan that addresses all of the key issues and marketing points has been created and will be
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?
Suzy started the joy of chocolate with the main goal of surviving. Her consumer goals were to create gourmet chocolates to a very high standard, attention to detail and offering a unique product is a very important to Suzy as well as specialist chocolates for customer’s requirements.
1. Identify three key characteristics of the marketing concept. (150 words) The first characteristic is to satisfy the majority of customers, Clare chocolate have to find out who have a need for their product and also who is most likely to buy it, they need to consider the following factors, age, gender and other factors in order to determine how their products would fit into the customers lifestyle. The second characteristic would be identifying their customer’s needs and finding out what a customer would be looking for in Clare Chocolate products, by doing this Clare Chocolate would have to use customer focus groups, surveys/questionnaires and gather this information based on a common customers expectation of their products.
Another option for Cowgirl Creamery is to launch a new brand of cheeses dedicated to another market. This strategy would likely see the biggest return at the grocery stores and other retailers that they sell to. The products that Cowgirl Creamery currently produces are sold to a very specific segment of consumers, cheese connoisseurs. By launching a product more geared toward the average shopper rather than the specialty consumer, Cowgirl Creamery could greatly increase the consumption of their products. The drawback to this option requires cost cutting in other areas to develop a new products because Cowgirl Creamery currently cannot secure bank loans. Cutting segments of their product line to make this an option could sway some consumers to Cowgirl Creamery’s competitors. Closing their own retail stores would also provide additional revenue, although, it may also reduce the products relevance in the market without their own retail store. Even if launching a new brand was affordable, this strategy would also require a supplemental strategy to increase the likelihood of success. In addition to launching a new brand, this approach should be combined with including new features to maximize the success of a new brand.
Analyze the “Happy Cows” campaign that was developed for the California Milk Advisory Board to promote Real California Cheese from an integrated marketing communications perspective. Why do you think the campaign has been so successful?