Case Study- Culinarian Cookware
1. Describe consumer behavior in the cookware market. How is cookware bought? How is it sold? What are the implications for Culinarian’s marketing strategy?
Cookwre was bought either by piece or in a boxed set. Below are two 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 outlet, which has not been explored yet. * Enhance cooperative relationships with department store, because this is a very important sector with a large share in both purchasing and selling. * Direct sales doesn’t have a large share (only 5%), and the percentage that people buy through this channel is almost zero, so we need to consider if direct sales is necessary. * A large share of cookware is sold in 75 local specialty stores (27%), and we need to reduce the sales of this channel. * Target customers should be women from 30-55 with household income over $75,000. 2. What are Culinarian’s strengths and weaknesses? Why has the company been successful?
Strengths | Weakness | Strategy | Advertising | Very clear four strategic priorities | A fraction of Competitors | Product | Promotion | Unparalleled product quality | Lack of consistent and meaningful price discount events | Advanced performance technology | | Leader in metallurgy technology | | First manufacturer to provide the benefits of copper cookware with effortless and maintenance. | | Sales and Distribution | Market share | Very strong relationships with retailers | Low compared to other competitors (6.5%) | Eight experienced account managers | |
The success of Culinarian lies in the following aspects:
Above all, the company has very clear four strategies priorities. Furthermore, good execution 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
Cookwre was bought either by piece or in a boxed set. Below are two 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 outlet, which has not been explored yet. * Enhance cooperative relationships with department store, because this is a very important sector with a large share in both purchasing and selling. * Direct sales doesn’t have a large share (only 5%), and the percentage that people buy through this channel is almost zero, so we need to consider if direct sales is necessary. * A large share of cookware is sold in 75 local specialty stores (27%), and we need to reduce the sales of this channel. * Target customers should be women from 30-55 with household income over $75,000. 2. What are Culinarian’s strengths and weaknesses? Why has the company been successful?
Strengths | Weakness | Strategy | Advertising | Very clear four strategic priorities | A fraction of Competitors | Product | Promotion | Unparalleled product quality | Lack of consistent and meaningful price discount events | Advanced performance technology | | Leader in metallurgy technology | | First manufacturer to provide the benefits of copper cookware with effortless and maintenance. | | Sales and Distribution | Market share | Very strong relationships with retailers | Low compared to other competitors (6.5%) | Eight experienced account managers | |
The success of Culinarian lies in the following aspects:
Above all, the company has very clear four strategies priorities. Furthermore, good execution 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