Cowgirl Chocolates Essay

3122 Words13 Pages
Situation Analysis Company Cowgirl Chocolates offers a variety of products including individually wrapped truffles, chocolate bars and a hot caramel dessert sauce. The truffles are available in chocolate, mint, orange, lime tequila and espresso. All of these truffles are hot and spicy, with espresso being the hottest. Truffles can be purchased in gift boxes, in drawstring muslin bags, or in a collectible tin. They can also be ordered in a plain plastic bag. The ¼ - pound muslin bag is the most popular truffle product making up 16 percent of total revenues, while the ½ - pound tin makes up 12percent of revenues. A sampler bag made up of four assorted hot truffles makes up 7 percent of total sales. Overall, truffles make up 40 percent of the company’s total revenues. Spicy Chocolate Truffle Bars are sold individually and come in two varieties – orange espresso or lime tequila crunch. Sales of this product account for 50 percent of total revenues. The Hot Caramel Dessert Sauce is sold by the jar and equates to 10 percent of total revenues. The company’s retail pricing is set to achieve an average gross profit margin of 65 percent after ingredients and packaging. Although gift boxes, buckets, and baskets make up a small percentage of total truffle sales, these items are made up of a combination of existing truffle and bar products, so the additional cost to the company is the cost of the box, bucket or basket. Cowgirl Chocolates has won numerous awards in both the Fiery Food Challenges and the Scovie Award Competitions held annually. Additionally, the company’s distinctive product packaging has won several awards. Although the company has had some success with its hot and spicy product line, many potential wholesalers and customers have commented that the product is too spicy. With this in mind, Marilyn is in the process of developing a “mild-mannered” truffle without

More about Cowgirl Chocolates Essay

Open Document