centerbottom10500090000centercenter0105000centercenter0105000centertop10500090000 Culinarian Cookware: Pondering Price Promotion -- Case Study
Executive SummaryCulinarian shapes its brand image by using excellent quality items and superior aesthetics. In 2006, Audrey Roux, the CEO of Culinarian Cookware company, presented programs which focus on four strategic priorities to increase earnings. Culinarian is a manufacturing cookware company, which designs, manufactures, distributes, and marks premium performance products with advanced metallurgy technology. They already own the building blocks of success: clear strategic direction, more product choices, advanced technology, strong brand name image, good management philosophy, motivated employees, and strong financial conditions. It is time for them to have a success. Refer to 2004 price promotion, the company wanted to promote the new price promotion in 2007 to positively profitability impact. According to the research, using the price promotions with discount and gift methods is the best strategy to focus on distinct product lines. Right now, Culinarian Cookware faces two diverse views about the 2007 price promotion. Those views depend on different calculation methods from consultants and another proposed by Brown. Those different methods caused different results when evaluating the profitability of the 2004 price promotion. By identifying and comparing the methods and results of these two calculations, the 2004 price promotion was not as good as they imagined. This article talks about another calculation method used to explain why the 2004 price promotion is not a good choice. The price promotion can bring development, but the short term gains cannot obscure the fact of the long-term losses. The 2004 price promotion failed. By learning from 2004 mistakes, Culinarian could develop more concrete steps, which can suit their own conditions, and then they can make their own way. Introduction
From 2002 to 2006, the U.S. cookware market was expanded by a respectable increase. It earned almost $3.36 billion in revenues. However, the economy is not out of woods, so the cookware market begins to face new challenges and opportunities. The slow economy made customers prefer eating meals at home rather than dining out. Thus, the demand and update of cookware products is speeding up. The demand for cookware products is distinct, which affects the price range. Due to elastic demand for premium products, the consumers will rarely choose premium priced products or try to shift performance to less expensive items depending on price promotions. This situation could push some companies in this industry to make adjustments to their marketing strategies, in order to meet changing demands of customers and economic conditions. Culinarian Cookware is a renowned manufacturing company that makes kitchen utensil products with advanced performance technology. Culinarian is the metallurgy technology leader; it has rich experiences in using copper cookware with effortless cleaning and maintenance. Relative to their other competitors, Culinarian cookware proves to be successful because they make the profits from their strong market shares. Culinarian owns 6.5% of premium cookware products. In the past, the movements of the cookware industry were determined by personal consumption trends, so the cookware companies could not ignore the serious problems related to increasing the personal consumption. There are two sides to anything, whatever success or failure, the 2004 price promotion would help them learn something, and what they learn would accompany them to success. Question 1: Evaluate the company and its situation. Why has the company been successful? Culinarian cookware has a clear strategic direction, which focus on the premium cookware market. This is the basis of the company’s success, and just like the helm of a ship. Maintaining its elite brand position is one of the most powerful...
Cited: Quelch, J. A. & Beckham, H. (2009). Culinarian Cookware: Pondering Price Promotion: Harvard Business Publishing, 1-10.
United Business Media. (2010). Mastering Marketing in Social Media. Retrieved from http://promotions.prnewswire.com/rs/prnewswire/images/wp_Mastering_Marketing_in_Social_Media.pdf
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