Culinarian cookware
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This document discusses a case involving Culinarian Cookware considering a price promotion. Donald Janus, VP of Culinarian, and Victoria Brown, Senior Sales Manager, debate the effects. While Janus is concerned it may hurt the brand image, Victoria believes it will boost awareness. The document provides market details on cookware from 2002-2007 and Culinarian's product lines, competitors, sales patterns, and research findings. It poses two problems: whether to run a price promotion in 2007 and if so, which products and terms. It recommends running a promotion, citing past sales increases, and focusing on their professional line promoted through celebrity chefs to maintain brand value while boosting sales.
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Culinarian cookware
- 1. CULINARIAN COOKWARE Pondering Price Promotion By: Sindoor Naik (sindoornaik@yahoo.com)
- 2. 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.
- 3. 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, DirectTV Sales, Online Retailers and Catalogs. Sales Pattern : Seasonal
- 4. CASE FACTS Competitors in Cookware market. Product Line: 18% 14% 6% 4% 3% 55% MARKET SHARE Star Chef Kitchen Select Cullinarian Le Gourmand Robusto Others TheTyro Collection CX1 The Classic Collection DX1 The Advanced Chief Collection SX1 The Professional Grade Collection PROX1.
- 5. 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 Outcomes 1. 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 BRANDAWARENESS Companies Under $75000 Over $75000 Culinarian 15% 25% Le Gourmand 17% 30% Robusto 14% 28% Star Chief 35% 45% Kitchen Select 35% 45%
- 6. CASE PROBLEM 1. Whether to run a price promotion in 2007 or not? 2. If Yes. What merchandise to promote and on what terms.
- 7. 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 forCulinarian among competitors. A win-win situation as retailers tend to purchase more units during price promotions.
- 8. 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.
- 9. THANKYOU