Case Study:- Culinarian Cookware

US retails Cookware sale

2004200320022005 2006E

16% 2%

21%

15%

What should we

do ????

Group 6Anurag Nivedita Mustahid

Case synopsis• The case is regarding the Culinarian cookware manufacturing

and design company • The US cookware industry was 3.36 billion $ huge potential in

the market unexplored• Competing for promotion against foes • Lack of marketing funds (Monotonous promotions)• Brand awareness is not sufficient • Flawed data analysis • Clear strategic Direction by CEO• Product line CX1,DX1,SX1 & PROX1

Case facts• Lack of promotion scheme

and discount event

• It will new budget constrain

customer

• Upselling

• Flawed analysis by consultant

• 30% discount promotion will

have to effect

• Increase commitment &

support from trade

• Boost awareness about

brand

• Price promotion is

unnecessary and demolish

the brand

• Latest and finest technology

• Strong dealer support

• 2004 negative effect on

product

• 2006 revenue grow by 21%

• Need promotion for slow

moving product

Victoria Brown

Donald Janus

Problem Definition

Retailer losing the margin

Supply demand problem

Evalution of 2004 price promotion

Is promotion necessary for premium cookware ?

Case Inference

JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV DEC0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

6.10% 6.70% 6.90% 7.00%9.40%

10.40%8.40% 8.10% 7.00% 6.50%

9.50%

14.00%

PERCENTAGE OF CONSUMER SALES BY MONTH (2005)

PERCENTAGE OF CONSUMER SALES BY MONTH (2005)

STAR CHEF18%

KITCHEN14%

CULINARIAN7%

LE GOURMAND4%ROBUSTO

3%

OTHER55%

MARKET SHARE

STAR CHEF KITCHEN CULINARIANLE GOURMAND ROBUSTO OTHER

CULINARIAN REVENUE & AD SPEND ($ IN 000's)

2002 2003 2004 2005 2006E0

20,000

40,000

60,000

80,000

100,000

120,000

54,89869,157

82,272 86,046

104,152

1,647 2,075 2,468 3,012 4,166

REVENUE AD EXPENDITURE

Distribution Network

Retail Distribution

Kitchen specialty chain

Local specialty store

Department store

Online sale

Direct TV sales

0

40

80

120

160

PRICING AND DATA FOR CULINARIAN’S CX1 2004 PROMOTION

NON-PROMOTED 20% PROMOTION

Conclusion

• Some how they have more focus on for brand awareness • Allocation more budget for marketing campaign • They should target niche segment with launch of new brand • Expand their manufacture capacity • Through the line marketing strategy

Recommendation

They are doing very well as compare to competitors their product are finest hence they don’t need any price promotion