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.
