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Culinarian Cookware case analysis

the presentation is regard a case study of how Culinarian Cookware should have reacted the problem and recommended solution

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Culinarian Cookware case analysis

  1. 1. Case Study:- Culinarian Cookware US retails Cookware sale 2004 20032002 2005 2006E 16% 2% 21% 15% What should we do ????
  2. 2. 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
  3. 3. 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
  4. 4. Problem Definition Retailer losing the margin Supply demand problem Evalution of 2004 price promotion Is promotion necessary for premium cookware ?
  5. 5. 6.10% 6.70% 6.90% 7% 9.40% 10.40% 8.40% 8.10% 7% 6.50% 9.50% 14% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV DEC PERCENTAGE OF CONSUMER SALES BY MONTH (2005) PERCENTAGE OF CONSUMER SALES BY MONTH (2005)
  6. 6. STAR CHEF 18% KITCHEN 14% CULINARIAN 6% LE GOURMAND 4%ROBUSTO 3% OTHER 55% MARKET SHARE STAR CHEF KITCHEN CULINARIAN LE GOURMAND ROBUSTO OTHER
  7. 7. CULINARIAN REVENUE & AD SPEND ($ IN 000's) 54,898 69,157 82,272 86,046 104,152 1,647 2,075 2,468 3,012 4,166 0 20,000 40,000 60,000 80,000 100,000 120,000 2002 2003 2004 2005 2006E REVENUE AD EXPENDITURE
  8. 8. Distribution Network Retail Distribution Kitchen specialty chain Local specialty store Department store Online sale Direct TV sales
  9. 9. AVERAGE RETAIL SELLING PRICE AVERAGE MANUFACTURING SELLING PRICE VARIABLE COSTS AVERAGE CONTRIBUTION 0 20 40 60 80 100 120 140 160 PRICING AND DATA FOR CULINARIAN’S CX1 2004 PROMOTION NON-PROMOTED 20% PROMOTION
  10. 10. 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

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