Case: 6-16 Cowgirl Chocolates – Week 4
Observations

Strategic Implications

1. Approximately two thirds of sales are retail sales. Retail sales are mainly limited to the Moscow, Idaho region, with sales flourishing through niche retail placement.
2. Approximately one third of sales made through the company website.
3. The fiery chocolate market is limited, as only 15% of Americans eat spicy foods, and therefore some retailers have been hesitant to stock the products.

1. Success of retail sales in Moscow suggests correct retail placement of the product in other markets will be successful.
2. There is a large segment of consumers who purchase online. With better targeting and data collection, Cowgirl Chocolates could maximise this segment’s expenditure and attract new customers to the website.
3. Spicy chocolates do not appeal to all chocolate eating consumers, so the company have limited product coverage.

Core Problem:

How can Cowgirl Chocolates increase its sales through an effective expansion of retail placement and improved website design?

Objectives:

Strategies:

1. Increase retail sales by 20% by the end of the 2000/2011 FY.
2. Increase online sales by 20% by the end of the 2000/2011 FY.

1. Approach gourmet food retailers across major cities in the US to stock the products.
2. Expand the product range to include a less fiery version of the chocolates.
3. Develop website to collect emails and data on customers to build a customer profile.

Evaluation and Justification of Strategies
Strong retail sales in Moscow indicate that the products would be successful in other markets when placed in the right retail environment. This is further supported by the success of sales at the Kitchen Market in NYC, a niche gourmet food