According Exhibit 2, during 6. As a leader in the premium cookware market Culinarian wants to preserve its prestigious image. By multiplying the actual sales numbers by the actual contribution margin that the consultants calculated This represents a major problem for Culinarian, as they want customers to receive the full sale to entice more current customers to buy and more new customers to switch brands.
How to cite this page Choose cite format: Not only would it increase revenue by buoying sales and increasing brand awareness before the Holidays, but, through increased sales, it could also help them capture more of the premium cookware market.
This evaluation of Ms. By creating demand and loyalty amongst consumers, retailers will continue to request to sell the product. Our recommendation would be to advertise coupons available online by putting coupon codes in their advertisements in magazines and newspapers.
This information is telling in that it shows that the months that the ales promotion ran in there is no reason to expect higher than average sales. By increasing their customer base, Culinarian could segment their customers more efficiently and also increase their segment base.
Thus a well done price promotion could help Culinarian move towards meeting many of its major strategic objectives. Consumers of the Culinarian brand regarded product Case study culinarian cookware and Case study culinarian cookware as the most important features in selecting cookware.
The pull strategy should be used when trying to recruit new consumers, expand market share, or publicize a promotion. But Culinarian Cookware and other high-end brands that are very selective in their distribution can use the pull strategy with both consumers and their distribution base.
Roux outlines for Culinarian and our analysis of the cookware market lead us to believe that a price promotion in would be a good move for Culinarian.
Brown used in her calculations, Case study culinarian cookware she argued that the projected sales for March through May of should be significantly lower than usual due to a major decrease in sales during the first few months of If Culinarian ran promotions during this period, it might be able to buoy sales and allow them to gain a stronger hold on the market just before the holiday season.
The CX1 model has a normal retail price of dollars, making it significantly cheaper than any other product line that Culinarian offers. We believe that running the promotion in Case study culinarian cookware fall, from August to October, would be more beneficial to the company as it represents a time when normal sales are down after the summer months and before those of the holidays.
The CX1 model seems like the best model to run a promotion on because by running a promotion on the cheapest and lowest quality line of products, Culinarian would be more likely to gain new consumers while still maintaining its brand image.
The second point in which Ms. By putting the price promotion coupon online, the company could get more web traffic and increase the sales through their site.
The second objective is to increase the market share of the premium cookware segment. This means that even if the consultants were correct in the cannibalization impact costs and the contribution margin calculations, as long as Ms.
Hire Writer The consultants argue that, according to the sales numbers of the previous year, the projected sales of the CX1 model should have been This information is in line with what Ms. The push strategy would be used to gain more distribution channels. If there were to be an unplanned purchase it would generally be a single piece, opposed to a boxed set, and motivated because of a discount or promotion.
We found that there was little evidence to support either Ms. According to this information about the cookware market, we believe that if Culinarian ran a similar price promotion to the one it ran in on the CX1, while changing the timing and distribution method, then it would help Culinarian gain greater revenue and market share while not damaging their brand image.
Brown was more correct in her sales projections then there would still have been a significant net profit.
Not only were sales for the year down, but according to Exhibit 2, March, April and May are not higher than average months for sales in According to the case, only about half of the retailers passed the full sale on to the customers.
Therefore due to the fact that we find Ms. We feel that this drop in price is ideal as it was obviously enough to lead to a huge increase in sales in while still making the product line profitable. By increasing the market share Culinarian would increase their revenue and also acquire a stronger brand name in the market.
We would argue that running another price promotion during would be the first step in achieving all of these strategic objectives. Brown calculated multiplied by the normal contribution margin according to the consultants Another change that we would make to the price promotion is the way in which the promotion was distributed.
This would make the retailers pass the full sales discount onto consumers. Cookware is purchased either in sets of between 5 to 14 pieces or open stock by piece.
This is important because, if Ms. However, as long as Ms.Culinarian Cookware Case Analysis Communication and Promotion 18 March Culinarian Cookware Case Culinarian Cookware has a prestigious band image, is a leader in premium cookware market, and delivers an outstanding product.
In November ofsenior executives at Culinarian Cookware were debating the merits of price promotions for the company's premium cookware products. The VP of Marketing, Donald Janus, and Senior Sales Manager, Victoria Brown, had different views.
Janus felt price promotions were unnecessary, potentially damaging to the brand image, and. the presentation is regard a case study of how Culinarian Cookware should have reacted the problem and recommended solution.
Culinarian Cookware - Free download as Powerpoint Presentation .ppt /.pptx), PDF File .pdf), Text File .txt) or view presentation slides online. Marketing Sales promotion case5/5(4). Case Analysis for Culinarian Cookware. Submitted By: cost and sales assumptions% 1 Revenue amounts for were estimated.
as was the current year for this case study% Culinarian Cookware Competition however. while maintaining pretax earnings of $ (2) increase its market share of the premium. Case Analysis for Culinarian Cookware March 28, Table of Contents Executive Summary Situational Analysis A.
Environment I. Economic conditions and trends As evidenced by the case material, the US cookware market experienced growth by generating approximately $ billion in revenues from to However.Download