Cow Girl Chocolates

Jillian Derouen        

2/28/16

MKTG 480

Cowgirl Chocolates

EXECUTIVE SUMMARY

        Marilyn Lysohir is a ceramicist and internationally known for her ceramic art business. Her husband, Ross Coates is a sculptor and a professor of fine arts. Together they started publishing an annual magazine in 1995 called High Ground. High Ground was more a multimedia product than a regular magazine. The 600 copy production of the magazine obviously would not pay for itself. The couple had to find other ways to provide a solid income to cover the costs.

        At 16, Marilyn’s first job was at Daffin’s Candies in Sharon, Pennsylvania. Pete Daffin, the business owner, became an early mentor for Marilyn. Always encouraging her creativity, he let her carve a set of animals out of chocolate for display. Marilyn quickly began to discover the power of chocolate. Not only did Marilyn have a love for chocolate at a young age, but a love for all things spicy as well.

        Marilyn’s brother originally came up with the idea of combining the two things she loved so much. Seeing the possibilities this idea had, Marilyn began experimenting. She recruited many of her loved ones and neighbors to be the taste testers of her creations. Although few people were skeptical of the thought of combining chocolate with spice, the chocolates were a hit. Marilyn found herself a local candy company that could produce her chocolates in quantity, and that is how she and her husband established Cowgirl Chocolates.

SITUATION ANALYSIS

INTERNAL ENVIORMENT

        Since the invention of these creative chocolates, Marilyn and Ross have been striving to make Cowgirl Chocolates a profitable business. Marilyn has continually loaned money to keep the company running. Cowgirl Chocolates are produced from a Seattle-based company that focuses on producing European-style chocolates in luxurious packaging. The packaging of Cowgirl Chocolates sets it apart from the competition. It gives a consumer the feel of purchasing more than just a plain candy, but an expensive new venture.

        Seattle Chocolates is a large company who has annual sales in excess of $5 million. Interested in the product, Seattle Chocolates took Cowgirl Chocolates as a private brand customer. The product was offered in women’s clothing stores, antique shops, bookstores, etc. Overall, the retail pricing contributed the highest return compared to wholesale price. Cowgirl Chocolates single best wholesaler was in Moscow, Idaho, The Moscow Food Co-op, and it accounted for 10-15% of her yearly sales.

CUSTOMER ENVIORMENT

        Although the idea of the spicy chocolates mixed with the steady growing of the chocolate industry produces a thriving market, there are some complications among customers. One of the main problems with the product is the lack of a strong target market. The product development was based only on Marilyn’s friends and family. That is a very small, inaccurate portion of the population. Not very many people like spicy food or the idea of mixing spice and candy.

        With the name Cowgirl Chocolates, she cuts out immediately a portion of the possible target market of men. The branding is not appealing to men, which could become the biggest part of her market considering the reaction of men with spicy foods. Before jumping to spend large sums of money on advertising, Marilyn should choose distinct target markets.