Marketing Fundamentals

Cowgirl Creamery Product Strategies

Cowgirl Creamery is an artisan cheese producer offering locally grown, organic specialty cheeses. Cowgirl Cheese is a mid-size business with three retail stores where the left over portions of wholesale products sold are offered to the public. The majority of the products Cowgirl Creamery creates are sold to restaurants and other retail or grocery stores. Like many businesses, Cowgirl Creamery has felt the effects of the economic recession and is beginning to experience reduced growth. Cowgirl Creamery and its specialty cheeses have reached the maturity stage of the product life cycle. To remain a viable business, Cowgirl Creamery faces several difficult decisions to make. A comprehensive change in how they sell their products may be one option that will allow company to continue to grow in today’s economic environment. There are several product strategies a marketing division can use to promote sales and growth. One option for the Cowgirl Creamery is to reduce the product line in order to reduce manufacturing costs. Cowgirl Creamery produces several unique cheeses that require specific ingredients in relatively small amounts in terms of wholesale purchasing. By cutting down on their higher cost products, the expense to revenue ration should be reduced. The reduction of products may have two effects. Either loyal customers will buy similar alternative products from Cowgirl Creamery, or they will lose the customer to competitors. The latter is certainly a serious concern. Restaurants purchase cheeses from Cowgirl Creamery do so specifically because they offer rare and unique products. Even though reducing the product line may reduce costs, current consumers may not settle for lesser more cost efficient products. Individual consumers in their retail stores may also begin to look to competitors if some