Case Study Chocolate Cowgirl

Student Number: Name: Marelize Coetzee

Case Number: 6-16 Case: Cowgirl Chocolates Word count: 399

Observation( External & Organisational) | Strategic Implication |

Unique product, positioned as gift type in niche market. | Exposure of product to correct target market should increase sales |

Relationship marketing in company is effective. | Use this to increase sales volumes. |

Majority of sales take place online and in gourmet food shops | Identify possible retail outlets to increase sales. |

Pricing is not competitive, and profit margins differ too much between products. | Implies decreased sales and less profit. |

Absence of business plan. | Lack of focus and mission in business. |

Core Problem |

Which strategies should Cowgirl follow to increase sales volume and profit? |

Recommended objectives | Recommended strategies |

Identify target market for product within 3 months. | Market research should identify target market. Utilise website to determine profile of target customers. |

Increase awareness of the products and brand with 50% within 12 months (promotion). | Place advertorials in appropriate magazines and papers, once a month. Use electronic marketing techniques to reach existing customer base. |

Determine appropriate pricing for product within 3 months. | Determine what price the consumer is willing to pay for product (demand curve). |

Establish a network of 50 retailers in next 12 months. Increase online sales with 50% in the next year (distribution). | Identify gourmet food shops with similar profiles to the Kitchen Market. |

Diversify product. | Expand range of chocolate to include mild version. |

Evaluation and justification of strategies. |

All the above mentioned objectives are set on increasing company profit with 50% within the next 12 months, targeting an annual profit of $50 000 for the next year.The target market should be identified via market research and the website. The reason for this is that the...