Marketing 12th Edition by Charles Lamb,Charles Lamb,Joe Hair

Exercise 3

Almost since the foundation of the Girl Scouts of the United States of America in 1912, cookie sales have played a major role in supporting the Girl Scouts organization at the council and troop levels. Cookie sales have grown into a major moneymaking operation, bringing in over $714 million per year. However, cookie sales have declined one percent each year for the past six. The recent economic downturn hasn't helped matters either. To try and stop the declines, the Girl Scouts have made several changes to the program that they hope will help spark sales and create cost saving opportunities.

This year, Girl Scout troops will be selling cookie boxes for four dollars a piece, up from the $3.50 price tag mandated in 2006. Portions on some cookie varieties have been reduced by 1 ounce per box, and other cookie varieties will use plastic packaging instead of more expensive cardboard.
The Girl Scouts will also be asking certain troops to reduce their cookie lineups to six varieties. The top six selling cookies-Thin Mints, Do-si-dos, Trefoils, Samoas, Lemon Chalet Cremes, and Tagalongs- account for about 77 percent of cookie sales, and many attempts to create cookies geared toward specific markets have not fared well in recent years. The Dulce de Leche cookies, based on classic Latin American treats, were designed to appeal to Hispanic markets as part of the Girl Scouts' broader diversity initiatives. However, sales figures did not seem to indicate any particular market preference for that variety. A "diabetic friendly" sugar-free chocolate chip variety also failed to generate a significant sales boost.
While funds from cookie sales can cover as much as two-thirds of local Girl Scout councils' annual budgets, the Girl Scout cookie program is not just about trying to maximize profits. All cookie income is distributed at a local level to help fund field trips, camp fees, and provide financial aid. While each Girl Scout does not keep the income from her sales, troop members see the direct benefits of their efforts.
These kinds of strategies help reinforce the broader purposes of the cookie program, such as teaching girls valuable lessons in marketing and career training. The Girl Scouts specify five essential life skills that the cookie program focuses on developing-goal setting, decision making, money management, people skills, and business ethics. As councils are shifting their focuses onto better business approaches and skill development, many are hosting sales training seminars. The council of Nassau County, New York brought in professional sales trainer Jeff Goldberg, who teaches the Scouts the same techniques he would use for any other business.
Says Goldberg, "Goal setting, which was the first thing we covered, is the first thing I cover with any group of sales people. If you don't have goal, how are you going to get there?" The Nassau County council is encouraging all girls to try to sell 100 boxes each. In these seminars, Goldberg also covers other important sales strategies; brainstorming methods and places for selling; self-presentation cues like smiling, being polite, and thanking customers (even if they don't buy anything); and turning around reluctant buyers with questions such as "What's your favorite cookie?" and "Can I get you to buy just one box?". The Girl Scouts also emphasize the importance that girls personally do the selling; while parents must accompany Scouts during sales initiatives and can assist in other ways, the Scout must close the sale herself. The program encourages Girl Scouts to get creative in their sales tactics. For example, two Florida eighth-graders converted their mother's SUV into a mobile sales booth with signs and decorations and dressed up in Thin Mint and Samoa costumes to sell in front of local supermarkets. The top seller in the metro-Atlanta region did demographic research to identify the residential areas most likely to have discretionary income for cookie purchasing.
The Girl Scout cookie program underscores many of the different aspects of marketing and the value of gaining experience in marketing activities. Barbara Krumsiek, Chairwoman and CEO of the investment firm Calvert Group, says that her Girl Scout experience was a major contributor to her success. Says Krumsiek, "[Girl Scouts] was a huge part of my life growing up in Queens. It was an opportunity to learn selling through Girl Scout cookies. I always vied for the top selling awards." So whether you're selling cookies or managing $14 billion in financial assets, a study of marketing offers obvious benefits. And chances are that the lessons learned will last a lot longer than that box of Thin Mints on your counter.
Can you identify examples of decisions about each part of the marketing mix (product, place, promotion, and pricing) that are being made in the cookie program?