Culinarian Cookware is considering adopting a price promotion strategy but is unsure if it will be profitable. In 2004, an external study found price promotions had a negative impact on profits. However, the sales manager believes the 2004 campaign was successful. There is a dilemma around whether price promotions would help or hurt Culinarian's market share and profits. The case analyzes Culinarian's market position, previous promotion results, and makes recommendations around a new product line and limited price promotions to target different customer segments.

1. Culinarian Cookware
case analysis
Presented by:
Sarang Banubakde
Saurabh Mhase
Varun Balakrishnan

2. Case synopsis
• Case talks about Culinarian Cookware adopting the
price promotion strategy
• In 2004 according to an external research the price
promotion found out to have negative impact on profits
• According to sales manager the 2004 campaign was
successful and believed it to be profitable
• Dilemma remains for the price based promotion

3. Case Facts
6.5%
Market Share
$3.3 BN
Industry Size
Aluminum
Stainless
steel
POI
Cast
Iron
Copper
CX1,DX1,SX1,PROX1
Widen Network
Increase Market share
Omnichannel Distribution
Grow by 15%S
T
R
A
T
E
G
I
E
S

4. Market Share in Cookware
Industry
Starchef 18%
Kitchen
Select 14%
Le Gaurmand
4%
Robous 2
3%
Culinarian
6.55%
4% of
sales
25%
Brand
Advertisement
Budget
Brand
Awareness
Consultant Brown
Profit
Incremental
$-469489 $2397994
Loss due to
cannibalizati
on
$-99332 NA
Promotion
Contribution
$529281 $2397994
2004 Promotions Analysis

5. Adoption
of Price
Promotion
PROBLEM DEFINITION
Cannibalization
of DX1 line
High Quality Elite
brand - Positioning
Allocation of
Margins
with trade
partners
Discrepancy in
the Sales figures
found by Brown

6. Recommendations
• They should come up with a Mid/low end product to target
the Mass Market under a new name so that the ‘Premium’
image is still maintained.
• Continue with Price promotions but only limited to low
end product line during seasonal peak sales month, eg:
with CX1 line.
• Consider partnering with Celebrity Chefs as brand
ambassadors.
• Limited giveaway during promotions of DX1 line and
increase the nation wide advertisements.