Presented by: Nicole Livermont Mallory Johnston Rikki Rohde Kyle Ball Paula’s Edibles Presented by: Nicole Livermont Mallory Johnston Rikki Rohde Kyle Ball

copyright www.brainybetty.com 2006 All Rights Reserved Strengths Fresh homemade and hand dipped Coffee Shop in store helps attract customers Locally operated and family owned Historical downtown location 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved Weaknesses Expensive Geographically close to competitor Under developed website 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved 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 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved Threats 4 total competitors in Billings 1 is a direct competitors specializing in the same types of homemade chocolate Brockel’s Chocolate 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved 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 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved 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 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

Quantified, Measurable, Profitable 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 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

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 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

Segmentation Strategy and Target Selection Chocolate Eaters Local Workers Downtown workers 3,500 Businesses Average 15 workers per business Total of 40,000 workers downtown 51.9% women 20,760 female workers Tourists/ Out of Towners 1,267 rooms available downtown 91% occupancy rate -Nile Rodeo, Women’s Convention, Concerts, State Games, State Fair ect. Students -MSU-B -Beezer’s on Broadway -Rocky Local Shoppers -Farmer’s Market -Strawberry Festival -Parades 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

Geographic & Demographic Dimensions Billings Target market- 27,137 females Aged 21-65 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

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 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

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 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved Identify the Problem Women in the Billings area want a high quality chocolate at an economical price Satisfying a craving Party Favor Gifts Holidays 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

Gathering information Word of Mouth Yellow Pages Advertisements Online 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved Alternatives Other Gourmet Chocolate Brockels Other Candy Stores Candy Town USA Red’s Montana Candy Bar Manufactured Candy Bars Convenience stores Grocery stores 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved 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. 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved 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 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved 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 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved Means End Chain Physical Consequences Psychological Consequences Product Attributes Values Pampered/Loved High Quality/Fine Chocolate Thoughtful gift idea Eye appealing Feeling Special Fine quality accessory to a party Always tastes fresh High quality Creative and unique Custom gift Splurged Personalized products Getting your money’s worth 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

More Means End Product Attributes Values Sensual and Romantic Physical Consequences Psychological Consequences Product Attributes Values Sensual and Romantic Creamy Silky Texture Tastes homemade Pleasurable Prevents Cancer and Heart Disease Feeling of Well-Being Anti-oxidants Good Health 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

Perceptual Map Lavishly Priced Paula’s Edibles Brockel’s Manufactured Hand-dipped Specialty Montana Candy Bar Red’s Candy Town USA Economically Priced 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved Product Brand Positioning Statement: Paula’s Edibles produces homemade/hand-dipped specialty items that are high-quality, finely made products at a price worth paying. 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved 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. 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved 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 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved 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 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved 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..) 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved 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) 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

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 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved 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) 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved

copyright www.brainybetty.com 2006 All Rights Reserved Sources continued…. http://www.starchefs.com http://serendip.brynmawr.edu http://www.naturalstrenght.com http://www.candyusa.org http://thehersheycompany.com 9/17/2018 copyright www.brainybetty.com 2006 All Rights Reserved