An internationally celebrated hard artist, started Cowgirl Chocolate to provide some funding support for a yearly published arts magazine, Excessive Ground, which usually she and her hubby, Ross Coates, started in 1995. Her take pleasure in of chocolates and hot and spicy foods spurred the idea of producing hot and spicy chocolates to be sold in creative, artistic tins and packaging, which usually she branded Cowgirl Chocolates. Her business, begun in 1997, earned a number of accolades in fiery food competitions. While Cowgirl Chocolates grew steadily over its four years in corporate, it continue to generated just $30, 000 in sales revenue in 2000, which was not enough to protect expenses. used up much of her personal cost savings to keep Cowgirl Chocolate in corporate. Her cash accounting strategies and record keeping are not very superior, although the girl seemed to include a good sense of her costs in production and raw materials and packaging. Yet , Marilyn had taken a " shotgun approachвЂќ to most of her marketing efforts and tried many activities to increase product require. She allowed herself to generate one " riskyвЂќ economic move every year in her pursuit of earnings and increased sales. She made just one dangerous move in 2001вЂ”she took away a full-page ad in Chile Pepper magazine intended for $3, 1000.
Courses and Levels for Which the Case Is supposed
This case can be utilized in senior-level marketing administration, business strategy, small business management, or entrepreneurship courses. Most of the questions happen to be geared to a marketing management program, but the economical issues in Questions 9 and 10 can certainly expand the discussion to other classes integrating marketing and financial decisions for a tiny start-up organization. The case displays how an entrepreneur with limited business abilities, weak accounting/financial records, and an sporadic marketing program can quickly lead a small company into a spiraling economical downturn. Nevertheless , a small business by using a focused market strategy using a unique product and an extremely motivated business owner could potentially reach profitability if the distributor had been found to enhance her merchandise in an appropriate channel program.
Before discussing the particulars of the advertising finance problems, it is best to commence with an examination of the pros and cons of the business and an obvious definition of industry (i. electronic., hot and spicy foods or the chocolates candy market) and the behaviours of the likely consumers of the unique merchandise. The last query (Question 10) in the Instructors' Notes focuses on whether it is a chance to end the organization given its losses in the last four years. From a qualitative point of view, this problem can be talked about from the data given in Demonstrates 4 and 5 and from the total responses for the marketing Concerns 1 through 8. Nevertheless , if this case is being utilized in a small business or perhaps entrepreneurship study course, it is worthwhile to explore this kind of question by using a quantitative research. TN-3 and TN-4 offer deeper perception in managing this issue through a percentage of sales expert forma evaluation and through unit revenue projections of key products.
The case works extremely well in a number of programs. These aims are all including an top division advertising management course and your small business or entrepreneurship course.
To acquire students begin to see the difficulties that arise if the market, customer, and identified product benefits are terribly defined.
To obtain students vitally analyze the " marketplace opportunities and risksвЂќ which will a niche item like " hot and spicy delicious chocolate trufflesвЂќ competes inвЂ”be this the chocolate candy marketplace, the hot and spicy foods market, or perhaps both.
To acquire students examine the promoting mix decisions for regularity so that the product can be " positionedвЂќ to the right marketplace.
To have learners see the benefit of using the " total item viewвЂќ to higher define the product and its potential market....