Cowgirl Chocolates Case Analysis

COWGIRL CHOCOLATES

EXECUTIVE SUMMARY

        Cowgirl Chocolates was started in 1997 by Marilyn and Ross. Both of them are international ceramicists and lecturers. They published an arts magazine Called High Ground but need to find extra income to cover the costs of the production for High Ground. Marilyn was focused on working with chocolate in her prior job and created chocolate sculptures. She started producing her own hot and spicy chocolates after she received a mix response from family and friends. “Sissies Stay Away” was the image selected as Cowgirl Chocolates motto.  The name of the company came from a friend’s reaction the first time she tried one of the chocolates, “These are cowboy chocolates.” The name seemed to fit perfectly considering the chocolates were hot and spicy and cowboys are known for liking southern style tastes. The famous face that was put to Cowgirl Chocolates was Mille Lille. She was an iconic icon that everyone loved and she had a distinctive boldness to her cowgirl style that people fell in love with.

SITUATION ANALYSIS

INTERNAL ENVIORMENT

        Cowgirl Chocolates offers a variety of products from truffles to hot caramel sauce. They are available in chocolate, mint, orange, lime tequila and espresso. Items can be placed purchased in gift boxes, muslin bags, in collectable tin or in a plastic bag. Marilyn came up with a chocolate that is flavorful but spicy. This product is produced from a Seattle-based business that focuses on producing European-style chocolate sweets in chic packaging. This sets Cowgirl Chocolates apart from other sweets out on the shelves because the packaging creates an idea showing consumers that there are more than just a candy, they are a new experience. Regardless of having award winning packaging designs and a high quality chocolate, many consumers and retailers are reluctant to purchase or retail the product. Both consumers and possible retailers have mentioned that the chocolates are too spicy. To help gain greater access Marilyn created a non-spicy chocolate and it’s called mild-mannered.

          Seattle Chocolates is a large company with annual sales in excess of $5 million. Seattle Chocolates took Cowgirl Chocolates as a private brand customer because they were very interested by the company’s product. The product was offered in women’s clothing stores, antique shops, bookstores, arts and crafts stores, museums, specialty food stores and gourmet markets. Quickly results were shown that the product did not do very well in museums or surprisingly in specialty food stores, but sold pretty well everywhere else. Overall, the retail pricing contributed the highest return compared to the wholesale price. Cowgirl Chocolates single best wholesaler was in Moscow Idaho, The Moscow Food Co-op and it accounted for 10 percent to 15 percent of her yearly sales. Also, The Kitchen Market is Cowgirl Chocolates second steadiest wholesaler customer other than Moscow Food Co-op. It is an upscale restaurant and gourmet food take out business located in New York City.