Joe Whinney and Debra Music

After reading this case, I discovered the most important problem facing the company is determining the strategic direction the company owners, Joe Whinney and Debra Music, should take to help make their business, Theo Chocolate, successful. Debra and Joe are faced with the difficult decision to either continue to follow their traditional values, or to take a new direction that would possibly help them be more successful and profitable. They are also having a difficult time figuring out who their target market should be and how they should allocate their products to be successful.

When looking at Theo’s total revenue, store sales “accounted for about 40%”. If Theo’s store is accounting for such a high percentage in total revenue, I propose they expand their stores to other locations in the northwest where consumers are more health conscientious and willing to spend money on organic products. Theo became a huge tourist attraction and gained advertising just by word of mouth; therefore, to further gain advertising, I suggest the company targets the group of consumers who are actively using the Internet and social media to share their experiences. Additionally I recommend the company shifts its focus more towards health-oriented, and perhaps less main-stream, companies and businesses such as farmers markets, local stores, and coffee shops. When working with these companies and businesses the owners should push for promotion of their products, through the distributors, to have another way to advertise when the company is lacking in the advertising budget. When it comes to the actual products, they should not change; the company’s high-quality, organic brand is what differentiates it from their competitors I propose Debra and Joe position their products as organic socially responsible products in addition to targeting consumers with health based ideals through social media. I believe that the price of the products are too high and should be reduced.