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Le Creuset Market Research - March 2015

Le Creuset Market Research - March 2015

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Le Creuset Market Research - March 2015

  1. 1. Le Creuset Presented by: Ada Wong Chieh Yang Elizabeth Page From ACE Research Company
  2. 2. Agenda • Background • Research Objective • Methodology • Findings • Implication & Recommendation
  3. 3. Situation Analysis Category: • Upmarket cookware company Company: • France: 1925 • US:1991 (Charleston, SC.) • Famous for enameled cast iron Culture: • Historical background • “Cream of the Crop” (Blending of fashion & function) Consumer: • Women, Ages25-54, Bachelor+, Married/$75k and higher Competition: • High-end Brands: All Clad, Swiss Diamond • Other popular brands: Rachael Ray, Cuisinart, Calphalon, Lodge Communication: • Word of mouth • Social media platforms • Product placement
  4. 4. Situation Analysis – Social Media Digest Brand Instagram Facebook YouTube Twitter Pinterest Others Le Creuset 29k followers 160k likes 4,001 subscribers 26.2k followers 12k followers Le Creuset Love.com All-Clad 2k followers 41k likes 438 subscribers 6,952 followers 299 followers Swiss- Diamond 393 followers 13k likes 53 subscribers 801 followers 1,154 followers
  5. 5. SWOT Strengths: • Highly rated on quality and functionality (durable and stainless materials) • Market leader in the enameled cast iron segment of cookware • Recognizable product appearance and attractive colors • Time-honored branding with tradition • Well-known international brand name Weaknesses: • High-priced • Low exposure on traditional marketing • Low awareness in younger generations • Branding limited by heritage and traditions, which makes the brand difficult to be associated with “innovations” and “novelty” Opportunities: • Globalization for potential store expansion • Improving economy in US and Europe • Cookware industry slowly moving towards digital in terms of communications with retailers and customers Threats: • Competitions from other high-ended brands and from middle-priced cookware • Indirect competitions from trend of dining-out in metropolitan cities
  6. 6. Research Objectives
  7. 7. Objectives Find out and make recommendations on • WHO we should talk to (target customers) • WHAT we should say (core messages) • WHERE we can find them (media)
  8. 8. Methodology
  9. 9. Primary Research Quantitative: Survey • Platform: Online • Launch period: February 11 – February 28 Qualitative: Personal Interview • Type: – Phone interview – In-store interview Qualitative: Mystery Shopping • Location: – Williams-Sonoma – Crate & Barrel – Boston KitchenWares
  10. 10. Secondary Research • Main sources: – Mintel • Cookware US 2014 – MRI+ – Online search • Discussion forums • Blogs
  11. 11. Findings
  12. 12. Findings – Primary • (1) In-store Interviews Store owner – Boston KitchenWares • “Why do you place Le Creuset at your window display area?” • “How would you recommend customers on their purchase?” • “How could advertising help cookware brand to increase sales?” • “How do customers usually know about a product?” • “How do the brands do in-store advertising?” • “Why do people spend big money on cookware?” Customer • “Have you tried Le Creuset?” • “Why not?” Store owner – Crate & Barrel • “What questions do people ask?” • “How could advertising help cookware brand to increase sales?”
  13. 13. Findings – Primary (1) In-store Interviews 3 Retailers • Le Creuset: 1st besting selling brand in 2 stores out of 3 • Customers usually come with questions • Retailers receive collaterals and training from vendors to educate and promote the products 3 Store Visitors/ Customers • All enjoy cooking • Cook everyday/ over 3 times a week • Reason of visiting the store: • need tools to prepare dinner for friends • replace the old cookware • enjoy the experience to shop for cookware and see if there is debut of new product
  14. 14. Findings – Primary (2) Mystery shopping • Le Creuset products were all placed in eye- catching positions in the store. (e.g. near the entrance, at the window display area) • All customers asked retailers questions/ recommendations • Average time spent in-store: 15mins • Most of them knew exactly what brand(s) they were looking for. They did research before their visits and asked opinions from retailers. • They actively looked for debut of new products and/or promotions.
  15. 15. Findings – Primary (3) Phone Interviews • Interviewed 5 females – 2 users and 3 non-users – Age range: 60+ and 25-40 • All knew of Le Creuset brand
  16. 16. Findings – Primary Users • Proud to own Le Creuset cookware Non Users • Heard of Le Creuset, but chose not to purchase because of price • “ I have never done this for myself before, and I thought it was about time.” – Mimi • Purchase made out of necessity, but she also saw it as a rewarding extravagance (3) Phone Interviews
  17. 17. Findings – Primary 25-40 Years Old • Purchase individual items out of necessity – Their necessity comes from wanting to impress and – needing a particular style for a recipe 60+ Years Old • Purchase whole cookware sets for themselves out of necessity – Higher quality for own use – Purchase for their kids with middle-/ lower-priced range cookware (3) Phone Interviews
  18. 18. Findings – Primary All Interviewees • Like to purchase in-store • Prefer to cook in rather than eat out 4 out of 5 • Like to handle cookware before purchase – Need to pick it up, see how it “feels” • “ They have to be comfortable in my hand, or I am not going to buy it.” – Aimee • Speaking about the handles and grips of the pots (3) Phone Interviews
  19. 19. Findings – Primary (4) Survey - Result & Demographics • Response: 52 • Age: 59% 35-54, 10% 55-64 • Gender: 81% female • Marital Status: 67% married • Ethnicity: 83% White, 17% Asian • Children: 40% 0, 50% 1-2 children, 13% 3 or above • Annual income: 62% >$50,000 • Education level: >80% attained Bachelor’s degree or higher
  20. 20. Findings – Primary (4) Survey – Part I. Cooking Habits • Over 65% cook over 6 times per week • 87% prefer Stovetop over Oven while they cook • Importance of decision making when purchase cookware in order: – Materials (46%), Function (60%), Ease of cleaning(33%), Price (33%), Design (33%), Consumer reviews (67%), Customer service (73%) Material Function Ease of cleaning Price Design Consumer reviews Customer service Frequency of Cooking (per week) 0-2 3-5 6-10 Above 10
  21. 21. Findings – Primary (4) Survey – Part II. Consumer Experience • Major brands from respondents: – All-Clad, Cuisinart, Calphalon, Le Creuset • Motivations to buy a particular brand: – Functionality (77%) – Quality of materials (73%) – Ease of cleaning (63%) All-Clad 25% Calphalon 15% Cuisinart 25% Le Creuset 14% Swiss Diamond 2% I don't know 13% Other 6% Cookware Brands Motivation of Choosing the Brand Price Promtion Design Functionality Quality of materials Ease of cleaning Collection of cookware Replacement
  22. 22. Findings – Primary (4) Survey – Part II. Consumer Experience • Over 80% have heard of Le Creuset • Reasons of knowing about Le Creuset – Family and friends (69%) – In store display (10%) – Online reviews/ cooking blog (4%) • Over 80% purchase cookware in-store • Frequency of purchasing cookware: – Once in 6 months 54% – Once in 12 months 21% – Over a year 12% In-store 88% Brand's official website 2% Online retailer 10% Other 0% Place to Purchase Cookware
  23. 23. Findings – Primary (4) Survey – Part II. Consumer Experience • 50% of respondents have used Le Creuset • Among the respondents who have used Le Creuset, – Over 60% rated the “design”, “functionality”, “quality of materials”, “ease of cleaning” as Most Satisfied in the scale of 1-5 (1=least satisfied) – And rated “price” and “promotion” at Satisfied with the scores from 3-4 – Over 90% are very likely/ somewhat likely to recommend Le Creuset to a friend/ colleague
  24. 24. Findings – Secondary The Market: • In 2014, total US retail sales for the cookware market are $4.7 billion; 2.6% increase in sales forecasted for 2015. The Market strategy: • Top cookware brands do not put a strong emphasis on market products through traditional channels. • Stronger emphasis on promoting new products and cookware collections via in- store merchandising displays and through official websites. Le Creuset: • The brand is perceived as fairly expensive in the product category of cast iron • Products are sold through independent kitchen stores, as well as department stores and off-priced retailers such as Marshalls and T.J.Maxx.
  25. 25. Implication & Recommendation
  26. 26. Implication- WHO we should talk to Target market • Target group: “Home Gourmet” onwards • Demographic: mainly female, age 35 or above, married, with disposable income • Psychographic: enjoy cooking, and cook to socialize • Have heard of Le Creuset but may/ may not try or use one before Dining outers Professionals Home Gourmet Cook to Eat
  27. 27. Implication- WHY we should talk to them Target Customers • Customers who love to cook would come to the store to find the tools that they need • They have higher possibility to perform active searching on cookware • Higher readiness to purchase the products than other market segments e.g. “Cook to Eat” (price conscious)
  28. 28. Implication – WHAT we should say Customer Perceptions • The question most asked by customers: “Why is this so expensive” • Customer needs to be educated to know why this brand is more expensive, and why it’s worth the premium price compared to the other brands • Proof for the premium price could be showing the manufacturing process, and testimonials from users on quality, durability and safety • Main reason of consumers to cook: Social activities • What they care about: Health and quality of the food and cookware
  29. 29. Implication – WHAT we should say
  30. 30. Implication – WHAT we should say • Insights from in-store interview with Customers – They collected cookware information from TV – They received partial information of Le Creuset • Response: “the material is not healthy” • Truth: Le Creuset coat their cast iron products with ceramic enamel • safe and non-stick • do not require seasoning and will not react with foods (such as acidic tomato sauces) • “the gold standard of coated bakeware and cookware”
  31. 31. Implication – WHERE we can find them Media Consumption • Relatively slow moving industry in terms of marketing and advertising • Heavily rely on word-of-mouth, and active search performed by consumers • Obtained cookware information on TV, including release of new products, how the cookware was made and how could they be used for • Possible presence on social media, but not active • Most modern piece of technology is their phones • Still read magazines and cook books
  32. 32. Implication – WHERE we can find them Media • Consumers came to store with research and questions • Retailers provided recommendations based on how the customers cook and advise on cookware/ brand in terms of use (e.g. stovetop or oven use) • Most cookware decisions were made based on the recommendation from the in-store retailers
  33. 33. Anchor Points on Recommendation Educational Digital Social Visual
  34. 34. Recommendation • Provide teaching collaterals for Retailers – Monitors in store for product details • Scan products and provide products information, demonstration, and suggestions on usage – Trainings materials • Provide promoting collaterals for Retailers – Product display on events hosting • Wedding reception • Outdoor exposure – Bus stop/ display boards at mall/ grocery stores – Content: how the cookware was made, materials used, cooking tutorials Social gourmet
  35. 35. Thank You!
  36. 36. Appendix & Bibliography
  37. 37. Appendix A • In-Person Interview Questions  Age:  Occupation:  Where do you live?  Do you like to prepare your own meals?  Do you cook for anyone besides yourself? If yes, how often?  Do you enjoy cooking?  What about cooking do you like/dislike? (Depending on their answer to question 6)  What kinds of food do you typically cook? Or cook most regularly?  Do you pay attention to the brand of cookware you use?
  38. 38. Appendix A • Phone Interview Questions Cont.  What kind of cookware brands have you used in the past? What have you thought about them?  What is important to you in your cookware? (Durability, ease of cleaning, price, etc.)  What motivates you to buy new/additional cookware?  When trying a new brand of cookware, do you rely on the opinions or family/friends, or online reviews, or both? Or do you use another method?  How do you purchase cookware? Online or in store? Why do you prefer that method of shopping for this item?  If you have never purchased cookware for yourself, what is the reason?  Do you like one kind of cookware, or baking material over another? (aluminum vs glass vs nonstick)  Have you ever heard of LC cookware? If so, how?  Have you ever used LC cookware? If so, what did you like/dislike?
  39. 39. Appendix B • Survey Questions  How often do you cook per week?  When you cook, which method do you prefer?  What are your main concerns when you purchase cookware? (Price/Design/Function/Materials/Easy to clean/Consumer Service/ Consumer Reviews)  What is the major brand of cookware are you currently using?  What motivate you to choose that brand of cookware?  Have you ever heard of Le Creuest?  How do you know about Le Creuset?  How do you usually purchase your cookware?  How often do you purchase a new cookware?
  40. 40. Appendix B • Survey Questions  Have you ever used Le Creuset’s cookware?  Following the previous question, please rate that product on the following attributes. (Price/Promotions/Design/Functionality/Quality of materials/ Ease of cleaning)  How likely is that you would recommend LC to a friend/colleague?  What is your gender?  What is your age?  What is your education level  What is your annual income?  What is your marriage status?  How many children do you have?  What is your ethnicity?  What state do you live in?
  41. 41. Bibliography • Elani, Gabriela (2015, February 11). “Cookware-US-2014.” Mintel Academic. • Allison Skipper (2011, June 6).”Le Creuset Announces Expansion in Hampton County” . SouthCalifornia Department of Commerce.com. Retrieved from http://sccommerce.com/news/press-releases/le-creuset-announces-expansion-hampton- county • Connie(2015).”Best Cookware Set – Cookware Set Review”. Mondosnpb.com. Retrieved from http://www.mondosnpb.com/ • Heather Tyree (2009, January 14).”Kitchen Classic Conundrum: What Color is Your Le Creuset?”. epicurious.com. Retrieved from http://www.epicurious.com/archive/blogs/editor/2009/01/key-pieces-what.html • Mary Audet (2013, August 18).”Le Creuset Cookware Is Worth the Investment”. CulinaryOne.com. Retrieved from http://www.culinaryone.com/author/marye-audet/ • Procrastibaker (2006, September 26).”Sell me on Le Creuset by Procrastibaker”. Chow.com. Retrieved from http://chowhound.chow.com/topics/328996 • Le Creuset – worth it? (2010, June) Weddingbee.com. Retrieved from http://boards.weddingbee.com/topic/le-creuset-worth- it/ • Le Creuset – worth it? (2010, December 8) DS Forum.com. Retrieved from http://forums.digitalspy.co.uk/showthread.php?t=1322722 • Le Creuset alternatives?” (2006, November 11) Windsor Peak Press.com. Retrieved from http://windsorpeak.com/vbulletin/showthread.php?238677-Le-Creuset-alternatives
  42. 42. Bibliography • Le Creuset, Facebook. Retrieved from https://www.facebook.com/lecreuset • Le Creuset, Instagram. Retrieved from https://instagram.com/lecreuset/ • Le Creuset, Twitter. Retrieved from https://twitter.com/lecreuset • Le Creuset, Flickr. Retrieved from https://www.flickr.com/photos/lecreuset/ • Le Creuset Love. Retrieved from http://lecreusetlove.com/ • Le Creuset, YouTube. Retrieved from https://www.youtube.com/user/lecreusetUS • Le Creuset, Pinteres. Retrieved from https://www.pinterest.com/lecreuset/ • Le Creuset, Website. Retrieved from http://www.lecreuset.com/ • All Clad. Facebook. Retrieved from https://www.facebook.com/allclad • All Clad. Instagram. Retrieved from https://instagram.com/allclad/
  43. 43. Bibliography • All Clad, Twitter. Retrieved from https://twitter.com/AllClad • All Clad, YouTube. Retrieved from https://www.youtube.com/user/AllCladOfficial • All Clad, Pinterest. Retrieved from https://www.pinterest.com/allclad/ • All Clad, Website. Retrieved from http://www.all-clad.com/ • Swiss Diamond, Facebook. Retrieved from https://www.facebook.com/swissdiamond • Swiss Diamond, Instagram. Retrieved from https://instagram.com/swissdiamondintl/ • Swiss Diamond, Twitter. Retrieved from https://twitter.com/swissdiamond • Swiss Diamond, YouTube. Retrieved from https://www.youtube.com/user/swissdiamondvideo • Swiss Diamond, Pinterest. Retrieved from https://www.pinterest.com/swissdiamond/ • Swiss Diamond, Website. Retrieved from https://www.swissdiamond.com/

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