Essay on Culinarian Cookware Marketing Hbr Case

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To: Donald Janus From: XXX Date: XXX Subject: Advising a price promotion plan for Culinarian cookware [pic] Culinarian is a strong brand that is ready for a successful 2007. We have reviewed the marketing mix of push vs. pull tactics, compared them to the industry, and examined past performance in this area. Most importantly, we have examined 2004’s price promotion and drawn conclusions that have allowed us to make recommendations for this coming year. Outlined below are our findings, with accompanying appendixes. Culinarian uses an acceptable blend of push and pull tactics; they primarily utilize push for their premium cookware products. This is advantageous for Culinarian because the majority (55%) of consumers…show more content…
Looking to 2007, a price promotion program would enable Culinarian cookware to: 1. contribute to the minimum 15% revenue growth’s objective set by the firm’s CEO Audrey Roux 2. increase its market share on the premium cookware segment and 3. build brand awareness among consumers. We recommend Culinarian to run a 15% price promotion on the CX1 and DX1 categories of products during the high peak seasons (June-July and November-December), and to advertise nationally on this promotion. We feel that a 15% discount rate is more adapted to the brand’s premium identity than the 30% discount rate suggested by Brown. Indeed, it shows more consistency with the high-end pricing strategy of the group ($200 rather $199.99) and seems fairly adapted to consumers’ expectations since even at a rate of 10% -that half of the retailers ran in 2004- the promotion remained successful. A 15% discount rate should encourage retailers to maintain the suggested discount rate rather than lowering it because Culinarian would request a lower contribution from retailers: from a 4% to a 3% loss in their margin. We believe that the best way to enhance sales and to maintain the premium identity of the brand is to run that price promotion on the two lower priced products: CX1 and DX1. This would avoid cannibalization between these two products that target high
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