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

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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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8. Quantified, Measurable, Profitable
Examples from the year
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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9. 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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10. 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
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11. Geographic & Demographic Dimensions
Billings
Target market- 27,137 females
Aged 21-65
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12. 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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13. 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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15. 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
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
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21. 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
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22. 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/hand-dipped 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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29. 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
US Census 2000
Paula’s Edibles
Profit and Loss Statements
Owner input
Website (
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Sources continued….
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