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Cowgirl Chocolates

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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

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