"culinarian cookware" case study analysis
TRANSCRIPT
CASE SYNOPSIS
Case: Price Promotion across all Culinarian Cookware.
VP Culinarian Cookware: Donald Janus and Senior Sales Manager: Victoria
Brown discussions over cookware price promotion.
Janus : Price Promotion effects product’s image.
Victoria : Will boost brand awareness for the product.
Considered a deeper analysis of 2004 price promotion.
CASE FACTS
2002-2007 US cookware industry attractive growth , revenue $3.36 billion.
Variety : Aluminium, Stainless Steel, Porcelain-on-Iron(POI), cast iron and copper.
Coloured designer cookware in demand
Purchasing pattern: Piece or In-boxed set.
Culinarian Cookware: Quality, Durability & Performance.
Retail Distribution: Kitchen Speciality Chains, Local Speciality Stores, Department
stores, Mass Merchandisers, Grocery Stores, Direct TV Sales, Online Retailers and
Catalogs.
Sales Pattern : Seasonal
CASE FACTS
Competitors in Cookware market.
Product Line:
18%
14%
7%4%
3%
55%
Market Share
Star Chef Kitchen SelectCullinarian Le GourmandRobusto Others
The Tyro Collection
CX1
The Classic Collection
DX1
The Advanced
Chief Collection
SX1
The Professional
Grade Collection
PROX1.
CASE FACTS
4 strategies planned by new CEO Audrey Roux Revenue Forecasted in 2006 $108 million with pre tax earnings $12.5 million.
Consumer Research: Orion Consulting 2003, Conducted it’s own MR 2004,Telephonic survey 2005.
Research Outcomes1. 2003 – 50% owned at least 5 pieces, 25% owned at least 12 pieces, others owned single pieces.2. 2004 – 75% of customers aged between 30 to 55 and 82 % women customers.3. 2005
BRAND AWARENESS
CompaniesUnder
$75000Over
$75000Culinarian 15% 25%
Le Gourmand 17% 30%Robusto 14% 28%
Star Chief 35% 45%Kitchen Select 35% 45%
CASE PROBLEM
1. Whether to run a price promotion in 2007 or not?
2. If Yes. What merchandise to promote and on what
terms.
RECOMMENDATIONS
1. Culinarian Cookware should go forward with price promotion because:
As per Culinarian Unit Orders record from 2002 to 2006 , sales in Fall of each year was
comparatively higher when price promotion was introduced in 2004 .
Survey showed that 70% of customers considered discount an important part of their
purchase decision.
Survey also suggests that brand awareness is lowest for Culinarian among competitors.
A win-win situation as retailers tend to purchase more units during price promotions.
RECOMMENDATIONS
2. Cullinarian Cookware should consider price promotion on “The Professional
Grade Collection PROX1” by advertising price promotions using famous
celebrity chiefs because:
Direct price promotion on Cullinarian premium product will degrade their brand value.
Instead a price discount on the premium product advertised by a celebrity will keep the
brand value and at the same time increase product sale.
THANK YOU