This case study is about Culinarian Cookware, a US cookware manufacturer. Key points: - The US cookware market is $3.36 billion but potential is unexplored and competition is high. Culinarian lacks marketing funds and brand awareness. - Culinarian's product lines include CX1, DX1, SX1, and PROX1. In 2004 they ran a price promotion that had a negative effect. - Data shows their revenue grew 21% in 2006 but they need promotion for slow-moving products. Competitor market shares range from 18% to 3%. - Culinarian's revenue and ad spending increased from 2002-2006 but distribution is mainly

1. Case Study:- Culinarian Cookware
US retails Cookware sale
2004
20032002
2005 2006E
16% 2%
21%
15%
What
should we
do ????

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. 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. Problem Definition
Retailer
losing
the
margin
Supply
demand
problem
Evalution
of 2004
price
promotion
Is promotion
necessary for
premium
cookware ?

6. 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)

7. STAR CHEF
18%
KITCHEN
14%
CULINARIAN
6%
LE GOURMAND
4%ROBUSTO
3%
OTHER
55%
MARKET SHARE
STAR CHEF KITCHEN CULINARIAN LE GOURMAND ROBUSTO OTHER

8. 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

9. Distribution Network
Retail
Distribution
Kitchen specialty chain
Local specialty store
Department store
Online sale
Direct TV sales

10. 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

11. 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