COWGIRL CHOCOLATES
1. What are some of the critical strengths and weaknesses
of Cowgirl Chocolates that determine the success of this small business? Can
the weaknesses be overcome by the strengths of the business?
2. Using the total product view, describe the “hot and spicy chocolate
truffle” offered by Cowgirl Chocolates. Based on this product view, do
you think this product will be readily accepted by consumers? Why or why not?
3. What market do you think the “hot and spicy truffles” is competing
in—the hot and spicy food market, the chocolate candy market, the gift
niche market, or other?
4. What is your assessment of Marilyn’s promotional efforts? In order
for Marilyn to increase the sale of her chocolates, should she use a push or
pull communication strategy?
5. As you examine Exhibit 2, you will note that Cowgirl Chocolates offers several
gift packages (1/4 pound, 1 lb., gift bucket, gift basket, nothing fancy) that
range in suggested retail prices from $8.95 to $59.95. Given these price and
packaging alternatives what type of product (convenience, shopping, or specialty)
is Cowgirl Chocolates? Based on this classification, would the buyer decision
more likely to be a routine, limited or complex decision? Explain your reasoning.
6. The suggested retail price and wholesale prices of Cowgirl Chocolates products
are displayed in Exhibit 2 along with the product and packaging costs. Based
on this information, discuss the relative merits of using a cost-based, demand-based,
or competition-based pricing method.
7. Construct a table consisting of the generic marketing mix strategies. Based
on what you know about Cowgirl Chocolates, what marketing mix plan would you
recommend to Marilyn and why?8. For a small business like Cowgirl Chocolates,
what benefits and/or potential problems does a Web site offer?
9. Analyze the cost and financial information provided in Exhibits 2, 4, and
5 in the case. What does this suggest about Cowgirl Chocolates financial situation?
Using this information, compute the breakeven sales revenue using information
in Exhibit 5.
10. Given the current financial situation and breakeven target derived in Question
9, is it even worth the effort to try to increase sales through use of a distributor
or should Marilyn end the business now?