Paula’s Edibles
Presented by:
Nicole Livermont
Mallory Johnston
Rikki Rohde
Kyle Ball
Strengths
• Fresh homemade and hand dipped
• Coffee Shop in store helps attract
customers
• Locally operated and family owned
• Historical downtown location
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Weaknesses
• Expensive
• Geographically close to competitor
• Under developed website
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Opportunities
• Potential to expand
• Billings is growing rapidly
– 3.9% growth from 2000 to 2003
• 11,721 middle-aged women in possible current
market
• Possible new target market- 27,137 females
aged 20-65
• 27,137/5 competitors = 5,427 women in our
market share
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Threats
• 4 total competitors in Billings
• 1 is a direct competitors specializing in the
same types of homemade chocolate
– Brockel’s Chocolate
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Product Life Cycle
• Paula’s is currently in the growth stage of a
mature market
– Paula’s has been open for 5+ years
– Still growing and expanding into new markets
– Sales and revenue are increasing more each
year
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Current Status
•
•
•
•
Targeting middle aged women ages 45-65
Expensive, fine, handmade chocolate
Limited use of website
Minimal product awareness and
advertisement
• No distribution throughout Billings
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Quantified, Measurable,
Profitable
•
•
•
•
•
•
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Examples from the year 2005-2006
COGS: $11,227.74
Total Income: $50,808.62
Gross Profit: $39,580.88
Expenses: $36,414.41
Total Profit: $3,166.47
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Research on Women and
Chocolate
• A study reports that 1,000 people from 21 to 75
prefer chocolate to sex
• 2/3 people that responded to the survey were
women
• Another survey stated that 93% of women
surveyed liked chocolate
– 67% preferred milk chocolate and 27% preferred dark
chocolate
– Chocolate Manufacturer’s Association
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Segmentation Strategy and
Target Selection
Chocolate Eaters
Students
-MSU-B
-Beezer’s on
Broadway
-Rocky
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Geographic & Demographic
Dimensions
• Billings
• Target market- 27,137 females
• Aged 21-65
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Behavioral Dimensions
• Rate of Use- Medium
– Purchases made due to occasional need
• Benefits Sought- Situation Specific
– Items specially made to customer standards (i.e.
business logos, chocolate dipped champagne bottles)
• Kind of shopping-Specialty
– Personalized and unique products
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Behavioral Dimensions
continued…
• Impulse Product
• Purchase Relationship-Positive & Ongoing
– Referrals, Continual purchases and special
orders
• Extensive Buying Process
– Amount of thought put into selecting and
creating the perfect gift
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Identify the Problem
• Women in the Billings area want a high
quality chocolate at an economical price
– Satisfying a craving
– Party Favor
– Gifts
– Holidays
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Gathering information
• Word of Mouth
• Yellow Pages
• Advertisements
• Online
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Alternatives
• Other Gourmet Chocolate
– Brockels
• Other Candy Stores
– Candy Town USA
– Red’s
– Montana Candy Bar
• Manufactured Candy Bars
– Convenience stores
– Grocery stores
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Why should they pick us?
• Paula’s Edibles is a specialty chocolate
store that creates custom order, high
quality chocolates of superior value.
• Paula’s is also a family and locally owned
business taking pride in what they do.
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Evaluation
• Customers will know they are getting the
highest quality chocolate in the Billings
area
• The quality of the product will create return
customers and increase exposure and
referrals
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Product Objectives
• We plan to continue offering the same type
of products at the same level of quality
– Hand dipped specialties
– Personalized gifts
– Home made treats
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Means End Chain
Product
High Quality/Fine
Chocolate
Attributes
Thoughtful gift idea
Fine quality accessory
to a party
Personalized
products
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Physical
Consequences
Psychological
Consequences
Values
Eye appealing
Feeling Special
Pampered/Loved
Always tastes fresh
Custom gift
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High quality
Getting your
money’s worth
Creative and unique
Splurged
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More Means End
Product
Attributes
Creamy Silky
Texture
Anti-oxidants
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Physical
Psychological
Consequences
Consequences
Tastes
homemade
Pleasurable
Sensual and
Romantic
Prevents
Cancer and
Heart Disease
Feeling of
Well-Being
Good Health
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Values
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Perceptual Map
Lavishly Priced
Paula’s Edibles
Brockel’s
Manufactured
Hand-dipped Specialty
Montana Candy Bar
Red’s
Candy Town USA
Economically Priced
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Product
• Brand Positioning Statement:
– Paula’s Edibles produces homemade/handdipped specialty items that are high-quality,
finely made products at a price worth paying.
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Price Objectives
Our goal is to utilize status quo objectives
to meet the competition and stabilize the
prices of fine chocolate. In combination
with status quo, we would like to also use a
sales oriented approach.
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Price
• Deliver high quality and fine chocolate at a
competitive price.
• Little price fluctuation
• Discounts only after holidays
– To minimize waste and sell off extra holiday
inventory
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Place Objective
• Continue to serve customers directly from
the downtown location.
• Create a distribution channel through local
businesses without using a middleman
– This will keep prices lower for the consumer
• Improve the website to be user friendly
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Place
• Convenient downtown location
• New Distribution Channels with no
middleman
– Coffee shops, gift shops, airport, salons, etc…
Reach an online market
• Website Accessibility
– (better site that has information on products,
prices, contact information, shipping, etc..)
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Promotion Objective
• Entering a mature market, we will need to persuade the
consumers attitudes to buy and continue purchasing our
product.
• Create product awareness with small advertising
campaigns (Informing and persuading consumers)
– Made in Montana, brochures, wedding shows, posters, online,
small newspaper ads, etc…
– implementing AIDA.
• Get Attention
– Advertising (Billings Gazette, City Magazine,& Kiosks)
– Trade Shows (Wedding Shows)
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Promotion Objectives cont…
• Hold Interest
– Remind the consumer of the product through
advertising
• Arouse Desire
– Visual Advertisements
– Sampling
• Obtain Action
– Discounts
– Coupons to save more for buying more
• Ex: $10 off $50 purchase and $15 off purchase of $70
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Sources
• http://en.wikipedia.org/wiki/Billings,_Montana
• http://billings.areaconnect.com/statistics.htm
– US Census 2000
• http://quickfacts.census.gov
• Paula’s Edibles
– Profit and Loss Statements
– Owner input
– Website (www.paulasedibles.com)
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Sources continued….
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•
•
•
•
http://www.starchefs.com
http://serendip.brynmawr.edu
http://www.naturalstrenght.com
http://www.candyusa.org
http://thehersheycompany.com
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