Cowgirl Chocolates Case

Executive Summary:

Cowgirl Chocolates has been a declining business year over year financially since its introduction in 1997. Marilyn Lysohir and her husband Ross Coates, artists by trade, have spent a great amount of time and effort looking for an answer that will take Cowgirl Chocolates to that level of success; making it something that is asked for by name not only for its quality, but its uniqueness as well. Although not their profession by trade or education this was a trial by error situation that began for Marilyn as family, friends, and acquaintances encouraged her to pursue. At an early age Marilyn first experienced the love for chocolate and added her appreciation of hot and spicy to the mix, which is how her business idea came to be Cowgirl Chocolates. The product is outsourced to Seattle Chocolates and with the use of unique branding and packaging is sold through multiple outlets and distribution avenues. By defining a target market, establishing an efficient distribution method, and utilizing their strengths this company can be successful. Cowgirl Chocolates is defined as its own brand, and if handled differently, has the potential to become a profitable organization.

Introduction:

Marilyn Lysohir and her husband, Ross Coates, began Cowgirl Chocolates in 1997. Marilyn and Ross are artists and a great deal of their time is devoted to their artistic interests. They both began publishing an arts magazine called High Ground. This magazine with a production of about 600 copies needs funding, so Marilyn and Ross have continually sought other ways to provide income to cover the costs of production. They both started Cowgirls Chocolates as one of those ways. Marilyn had previous experience working with chocolate, and because of her love for hot and spicy foods, an idea was brought forth by her brother to combine hot and spicy and develop a product. She began experimenting with different recipes and sought help from neighbors, friends and acquaintances for feedback on each. After being able find a company to produce the chocolates in quantity, Cowgirl Chocolates made its debut.

SWOT Analysis:

Strengths:

* Experience with chocolate

* Unique recipes

* Award winning chocolates and packaging

* Strong and passionate entrepreneurial attitude

Weaknesses:

* Lack of focus and product positioning

* Numerous amount of Inventory

* Poor finances - limited cash flow

* No Specific target market

* Distribution channels undefined

Opportunities:

* 15% of American consumers like spicy foods

* Growth of the Internet

* No major competitors in the spicy gourmet chocolate industry

Threats:

* Low buying and supplier power

* Companies that produce premium chocolate products at comparable prices

* Low quality chocolate products that compete for consumer's dollar

Marketing Problem:

Cowgirl Chocolates has been in business for four years and has not received much profit or seen significant growth in sales. Even though Marilyn has had some success positioning products in various locations throughout her town, she has had limited success expanding outward. Marilyn has tried many different approaches as

far as promotion is concerned, but has failed at targeting a specific consumer. As the

case goes on it seems like a trial and error with promotional efforts. Because of the item's