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Cowgirl Chocolates

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Cowgirl Chocolates – A Case Study
Lillian Velasquez and Michael Johnson
Wayland Baptist University
Marketing Analysis
MKTG 5302
Dr. Nick A. Lockard
July 12, 2016

Cowgirl Chocolates– A Case Study
Executive Summary
Artists Marilyn Lysohir and husband Ross Coates are dedicated to their annual publication, High Ground. The magazine was a “labor of love” for the artists, but they needed funding to support it. Luckily for the couple. Marilyn worked for a candy shop as a teenager and the owner of the shop encouraged Marilyn’s creativity allowing her make sculptors out of chocolate. Marilyn found that, like spicy flavors, she had a love for chocolate and her brother encouraged her to combine the two so she could create a new, unique chocolate. After getting feedback, Marilyn and Ross decided to get the chocolates produced in big quantities and start the Cowgirl Chocolates company. As with many small businesses, this company was having a hard time launching in profitable markets despite the owner’s efforts to get into any receptive vendor. Now, there is another marketing initiative under examination to put in an ad in Chile Pepper magazine. The ad was eye-catching, but would it bring the volume of customers Cowgirl Chocolates needs to start turning a profit?
The chocolates were offered in different varieties: a wrapped chocolate bar, a muslin bag, a tin, a gift box/bucket, and a simple plastic bag. The best seller was the chocolate bar, representing 50% of revenues. Production of the chocolates was handled by Seattle Chocolates who used upscale chocolate from Germany and who also was a competitor; Seattle Chocolates also sold high quality chocolates. Cowgirl Chocolates incurred high costs for the packaging process and was left with more inventory than normal when a deal with the PX did not work out. However, the treats did sell well in Moscow, Idaho,…...

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