Paulas Edibles Presented by Nicole Livermont Mallory Johnston

Strengths • • 11/2/2020 Fresh homemade and hand dipped Coffee Shop in store helps attract customers Locally operated and family owned Historical downtown location copyright www. brainybetty. com 2006 All Rights Reserved 2

Weaknesses • Expensive • Geographically close to competitor • Under developed website 11/2/2020 copyright

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 2065 • 27, 137/5 competitors = 5, 427 women in our market share 11/2/2020 copyright www. brainybetty. com 2006 All Rights Reserved 4

Threats • 4 total competitors in Billings • 1 is a direct competitors specializing in the same types of homemade chocolate – Brockel’s Chocolate 11/2/2020 copyright www. brainybetty. com 2006 All Rights Reserved 5

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 11/2/2020 copyright www. brainybetty. com 2006 All Rights Reserved 6

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 11/2/2020 copyright www. brainybetty. com 2006 All Rights Reserved 7

Quantified, Measurable, Profitable • • • 11/2/2020 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 copyright www. brainybetty. com 2006 All Rights Reserved 8

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 11/2/2020 copyright www. brainybetty. com 2006 All Rights Reserved 9

Segmentation Strategy and Target Selection e ork l. W rs rs rke Chocolate Eaters o ca w o L es wn s o s t ne wn i s o ers u k -D B r o 0 0 w 5 15 ess -3, e ag usin r e b 00 v 0 r A , pe 40 town f o n tal dow o -T ers en m k r wo ale wo %. 9 fem 1 5 0 - , 76 ers 20 work 11/2/2020 Students -MSU-B -Beezer’s on Broadway -Rocky ers p p Sho l a ket r a Loc ’s M r e m ival t r s a e -F y. F r r e awb r t es S d a r -Pa copyright www. brainybetty. com 2006 All Rights Reserved Tourists/ O ut of Towners 1, 267 room available do s wntown 91% occup ancy rate -Nile Rodeo , Women’s Convention , Concerts, S tate Games, Sta te Fair ect. 10

Geographic & Demographic Dimensions • Billings • Target market- 27, 137 females • Aged

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 11/2/2020 copyright www. brainybetty. com 2006 All Rights Reserved 12

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 11/2/2020 copyright www. brainybetty. com 2006 All Rights Reserved 13

Identify the Problem • Women in the Billings area want a high quality chocolate at an economical price – – Satisfying a craving Party Favor Gifts Holidays 11/2/2020 copyright www. brainybetty. com 2006 All Rights Reserved 14

Gathering information • Word of Mouth • Yellow Pages • Advertisements • Online 11/2/2020

Alternatives • Other Gourmet Chocolate – Brockels • Other Candy Stores – Candy Town USA – Red’s – Montana Candy Bar • Manufactured Candy Bars – Convenience stores – Grocery stores 11/2/2020 copyright www. brainybetty. com 2006 All Rights Reserved 16

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. 11/2/2020 copyright www. brainybetty. com 2006 All Rights Reserved 17

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 11/2/2020 copyright www. brainybetty. com 2006 All Rights Reserved 18

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 11/2/2020 copyright www. brainybetty. com 2006 All Rights Reserved 19

Means End Chain Product High Quality/Fine Chocolate Attributes Thoughtful gift idea Fine quality accessory to a party Personalized products 11/2/2020 Physical Consequences Psychological Consequences Eye appealing Feeling Special Always tastes fresh Custom gift copyright www. brainybetty. com 2006 All Rights Reserved High quality Getting your money’s worth Values Pampered/Loved Creative and unique Splurged 20

More Means End Product Attributes Creamy Silky Texture Anti-oxidants 11/2/2020 Physical Psychological Consequences Tastes homemade Pleasurable Sensual and Romantic Prevents Cancer and Heart Disease Feeling of Well-Being Good Health copyright www. brainybetty. com 2006 All Rights Reserved Values 21

Perceptual Map Lavishly Priced Paula’s Edibles Brockel’s Manufactured Hand-dipped Specialty Montana Candy Bar Red’s Candy Town USA Economically Priced 11/2/2020 copyright www. brainybetty. com 2006 All Rights Reserved 22

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. 11/2/2020 copyright www. brainybetty. com 2006 All Rights Reserved 23

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. 11/2/2020 copyright www. brainybetty. com 2006 All Rights Reserved 24

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 11/2/2020 copyright www. brainybetty. com 2006 All Rights Reserved 25

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 11/2/2020 copyright www. brainybetty. com 2006 All Rights Reserved 26

Place • Convenient downtown location • New Distribution Channels with no middleman – Coffee shops, gift shops, airport, salons, etc… Reac an online market • Website Accessibility – (better site that has information on products, price contact information, shipping, etc. . ) 11/2/2020 copyright www. brainybetty. com 2006 All Rights Reserved 27

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) 11/2/2020 copyright www. brainybetty. com 2006 All Rights Reserved 28

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 11/2/2020 copyright www. brainybetty. com 2006 All Rights Reserved 29

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) 11/2/2020 copyright www. brainybetty. com 2006 All Rights Reserved 30

Sources continued…. • • • http: //www. starchefs. com http: //serendip. brynmawr. edu http: //www. naturalstrenght. com http: //www. candyusa. org http: //thehersheycompany. com 11/2/2020 copyright www. brainybetty. com 2006 All Rights Reserved 31