1. I. Executive Summary
The Cowgirl Chocolates has been established in Idaho in 1997 by Marilyn Lysohir and her
husband, Ross. Marilyn is a known ceramicist and a lecturer, and her husband Ross is also
a sculptor and a professor of fine arts. Both have the same interest in arts and their interests
lead to start this business. This company came into life as an option for generating funds to
run their art magazine ‘High Ground’ which was an annual issue. With an annual
production of 600 copies High Ground simply did not pay for itself. Marilyn’s first
employer had encouraged her creativity and allowed her to carve animal sculptures from
chocolate for display. This kind of art was liked by most of the youngsters. It was at this
point that Marilyn started realizing the power of chocolate. Marilyn considered her
brother’s idea of making chocolates hot and spicy, and decided to make some. Marilyn’s
company (Cowgirl Chocolates) motto was ‘sissies stay away’. The image that Marilyn
perceived for her company was of ruggedness. The ‘uniqueness’ of the spicy flavor did
help the company to attract customers who liked hot and spicy, and could have just been
introduced to the combination of hot and spicy with chocolates. This concept could have
been new to many of the potential customers out there. Cowgirl Chocolates are made up of
hot and spicy chocolate in three basic forms. Both of These forms include individually
wrapped truffles, chocolate bars, and a hot caramel dessert sauce. Cowgirl Chocolates
were available in a variety of packaging options, designed to set Cowgirl Chocolates apart
from other chocolates. They have tried to make their products very exclusively. However,
their profits has not been reached their goals even though their strived after enough profits.
Marilyn’s main goal is to get her products to become recognized, which it was considering
she had won 11 awards in two annual competition but she need the profit. Some of
Marilyn’s problem was that she had very little training in small business accounting and
financial management, which would have been useful when she was trying to understand
how she could break-even and become as profitable
1. II. Situational Analysis
1. A. Environment
1. 1. Economic conditions and trends
The market for chocolate is vast. Gift baskets are popular purchases, especially around the
holidays(Christmas and Valentine), and Cowgirl Chocolates has positioned its product as a
gift-type purchase.
The market for chocolate is large. However, the market for spicy chocolate is markedly
smaller because only 15 % if American eat spicy food.
1. 2. Cultural and social values and trends
Cowgirl chocolate had owned numerous awards from the two main fiery food
competitions in the United States-and packaging was also excellent and had won awards
itself.
1. 3. Political and legal issue
N/A
1. 4. Summary of environmental opportunities and threats
The Chocolate demand always high and the markets are is really big. Cowgirl chocolate is
facing competition from big companies such as Godiva, Lindt, Dave etc. The industry is
really high competition and they need strong marketing missions to get repeat customers.
1. 5. Implications for strategy development
Cowgirl Chocolate should have new management planning especially budget allocation
plan and cost cut plan. They should have more choices for suppliers to reduce costs. Also
they should try to make more products from reasonable price.
1. B. Industry
1. 1. Classification and definition of inductor
Food industry
Private Company
Cowgirl Chocolates in Moscow, ID is a private company categorized under Candy Stores.
1. 2. Analysis of existing competitors
-Although very few direct competitors exist for Cowgirl Chocolates, there are many
indirect competitors such as Godiva, Lindit, Dave, and Hashey’s. other companies that
manufacture chocolate and sweets. Cowgirl Chocolates competes against these big
companies. On the other hand, local candy shops are also their competitors.
– Their most direct competitor were their own supplier, Seattle Chocolates, as they also
used the same fine European chocolate to produce their products and offering items of
comparable quality. There would be increase in rivalry competition if other companies
began producing spicy chocolates. If the market for hot-spicy chocolate developed, it
would not be difficult for the larger companies to produce these spicy chocolates at a lower
cost, and sell at a cheaper price. Competitors with greater distribution capabilities would
be able to grab a superior market share. Furthermore, larger companies would have the
ability to do more effective advertising and marketing and also capitalizing on their
existing brand images, allowing more people to know about their spicy chocolates.
1. 3. Analysis of potential new entrants
The potential new entrants are high since starting up costs could be low for small local
stores. Cowgirl chocolates has struggling to get new customers since their price are high
compare with other companies products.
1. 4. Analysis of substitute products
There are many kinds of substitute products competing market share. Other filling snacks
such are Candy, nut, fruit, chips, ice cream, cookies could be substitute for chocolate.
1. 5. Analysis of buyers and supplier
-Supplier
All of Cowgirl chocolates products were sourced from Seattle Chocolate which Seattle
based company that specialized in producing European style chocolate confections wrap in
an elegant package fit for gift giving. Since Seattle Chocolate keeps high standard
products, the cost of producing becomes high.
-Buyer
Cowgirls chocolate had been successful in placing their hometown of Moscow, Idaho. The
Moscow Food Co-op was their single best wholesale customer, according for 10
percent-15 percent of their annual sales. They priced their products lower than suggesting
