Cowgirl Chocolates
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 to her hot and spicy chocolate. Additional demographics are missing. Her product development was based on the input of her friends and family, which represents a skewed and too small sample of the population. In addition, Marilyn is cutting out the biggest portion of her target market by naming her product Cowgirl Chocolates and making the brand label May Lillie. Therefore, the branding is not appealing to men, which constitute the biggest portion of her target market. Before spending money on advertising, a target market has to be defined and the proper channels to reach that target market. Advertising without a clearly defined target market is inefficient and wastes company resources. Giving samples will help establish a base of awareness of her product and the acquired taste but this has an inherent cost involved.
Secondary Problems Marilyn’s lack of resources poses a great problem because without sufficient resources she will not be able to expand her business and increase sales. Cowgirl Chocolates lack the resources to become a large company they desire to become. Financially Cowgirl Chocolate does not have the resources to operate at full potential. The company is using revenue generated from Marilyn’s artwork, a small loan, and her personal savings to operate the company. Expenses completely overshadow her revenue of $30,000 while expenses were $50,000. This lack of funds give little to no room for promotional activity, a product that is as unique
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 to her hot and spicy chocolate. Additional demographics are missing. Her product development was based on the input of her friends and family, which represents a skewed and too small sample of the population. In addition, Marilyn is cutting out the biggest portion of her target market by naming her product Cowgirl Chocolates and making the brand label May Lillie. Therefore, the branding is not appealing to men, which constitute the biggest portion of her target market. Before spending money on advertising, a target market has to be defined and the proper channels to reach that target market. Advertising without a clearly defined target market is inefficient and wastes company resources. Giving samples will help establish a base of awareness of her product and the acquired taste but this has an inherent cost involved.
Secondary Problems Marilyn’s lack of resources poses a great problem because without sufficient resources she will not be able to expand her business and increase sales. Cowgirl Chocolates lack the resources to become a large company they desire to become. Financially Cowgirl Chocolate does not have the resources to operate at full potential. The company is using revenue generated from Marilyn’s artwork, a small loan, and her personal savings to operate the company. Expenses completely overshadow her revenue of $30,000 while expenses were $50,000. This lack of funds give little to no room for promotional activity, a product that is as unique