From the Article: "Cookie Cutters: Girl Scouts Trim Their Lineup for Lean Times"
By Shelly Banjo - Wall Street Journal - January 27, 2011
The downturn in the economy can be felt all the way from Wall Street professionals down to the girl scout who comes to your door selling cookies. The Girl Scout organization is needing to change their strategy in order to cut costs and increase revenues. Like we studied in the Ducati case, struggling organizations cannot survive by isolating cost issues; they also need to find creative ways to enhance revenues without much backing. The Girl Scout organization are pulling both the cost and revenue lever to try to enhance the bottom line of the Girl Scout organization.
In recent years, the Girl Scouts have developed a strategy to offer new and creative cookies such as "Dulce de Leche" and "Thank You Berry Much." However, these product offerings most likely do not produce as much contribution margin as the classic "Thin Mints" and "Samoas." The Girl Scouts have also neglected their marketing efforts in the last six years due to their established brand awareness. Now that folks are downsizing their spending, the Girl Scout organization is going to mirror this sentiment by cutting their exotic cookies and go back to only offering the traditional cookies. This article shows how decisions and strategies need to adapt with changing times.
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