Case Study- Culinarian Cookware

1. Describe consumer behavior in the formulation utensil merchandise. How is cookw ar bought? How is it sell? What are the implications for Culinarians marketing strategy? Cookwre was bought either by plot of ground or in a boxed set. Below are deuce graphs about how cookware is bought and sold. How is cookware bought How is cookware sold Implications * There is a big potential in mass merchandise waiver, which has not been explored yet. * rise cooperative relationships with department store, because this is a very important sector with a large share in both purchasing and selling. Direct gross sales doesnt have a large share (only 5%), and the serving that people buy through this channel is almost zero, so we exigency to consider if direct sales is necessary. * A large share of cookware is sold in 75 local specialty stores (27%), and we need to boil down the sales of this channel. * Target customers should be women from 30-55 with household income everyplace $75,000. 2. What are Culinarians strengths and weaknesses? Why has the company been successful? Strengths Weakness Strategy Advertising truly clear four strategic priorities A fraction of Competitors Product publicity Unparalleled intersection quality Lack of consistent and meaningful terms discount events Advanced performance engine room Leader in metallurgy technology First manufacturer to provide the benefits of copper cookware with effortless and maintenance. gross revenue and Distribution Market share Very strong relationships with retail merchants Low compared to early(a) competitors (6. 5%) Eight experienced account managers The success of Culinarian lies in the succeeding(a) aspectsAbove all, the company has very clear four strategies priorities. Furthermore, good operation is very important. Strategies play like a guideline, and all marketing and sales activities are launched under this guideline. Then, the company did a good job on preserving its brand image with unpara lleled product quality and advanced technology. edifice strong relationships with retailers is another factor. The company offers a higher margin to retailer than other competitors, which stimulates the retailer to push the sales.Finally, Culinarian is quite clear about their stooge customers, who have high-income, so their advertising is very effective that they focus on magazines and newspapers targeted at high income audience. 3. Was the 2004 forward motion moneymaking? Calculate the profitability victimization Browns logic and then calculate profitability apply the consultants model. How would you calculate profitability? My conclusion is the 2004 promotion was profitable. utilize Browns logic Actual units = 184987 Forecast units = 59871 Variable cost = 38. 4 Incremental component part impact = (62. 4-38. 64)*184987-(72-38. 64)* 59871 = 2397995 Using consultants model Actual units = 129386 Forecast units = 119504 Variable costs = 52. 05 Incremental contribution impact = 1 0. 35*129386-19. 95*119504-99332+39540 = -1104752 My method Conclusion the promotion is profitable Promotion period March to may Variable cost both(prenominal) overhead cost and advertising cost should not be include in the variable cost, so my variable cost should be 38. 64-(52. 05*7%)= 35 Forecast unitsI use consultants figure by the computer-generated model, which is 119504 Actual units Actual orders from March to whitethorn in 2004, which equals 184987 (47191+89423+48373) (62. 4-35)*184987-(72-35)*119504=646995 4. Should Culinarian run a 2007 price promotion? If so, what should be the specifics of such a promotion (e. g. , product scope, discount rate, timing, communicate) Culinarian should run a 2007 promotion. First of all, in 2006, Culnarians chief executive officer established four strategies for the company. The 2007 price promotion would be a very good implementation of the strategy.Moreover, 2005 telephone survey shows that unaided brand sentiency for Culinarian are 1 5% with household income under $75000 and 25% with household income over $75000 ( this figure is lower than its competitor Le Gourmand and Robusto). Finally, the cookware market in U. S. had been increasing year on year, so had been Culinarians products, so there must be a great potential on sales growth. Details of the promotion Product Scope They should run promotion on product DX1 and CX1. First, SX1 and PROX1 are for advanced and professional chefs, so they are very high-end with smaller shares of the revenue.Then, DX1 and CX1 take a lion share of the ingrained revenue. Finally, discount on DX1 and CX1 would not affect brand image as they are relatively low-end products with low price and technology. Timing They should choose April, May and June as spring sales and October, November and December as winter sales. May and June are weddings seasons, while November and December are Christmas time. According to the survey, 55% of the respondents genuine or purchased cookware as a g ift. So I fire there should be two price promotions in spring and winter. communicationsCommercial advertisement on cook channels (39% watch television receiver cooking shows and 18% purchase cookware seen on television cooking shows) Direct support to retail stores such as displays and sales provide (30% stated that they would be drawn to stores with attractive displays, and 25% preferred a full- service store) Enhance channel communication with mass merchandise outlet (32% of respondents bought cookware in mass merchandise outlet) Traditional channels, including TV, radio, newspapers and cook magazines. (10% utter they might respond to TV, radio, magazine, or newspaper advertising) Discount rate 20%