Culinarian Cookware Marketing Hbr Case
To: Donald Janus
From: XXX
Date: XXX
Subject: Advising a price promotion plan for Culinarian cookware
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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 with income greater than $75,000 would be more likely to shop for cookware at stores with attractive displays or informed staff. Only 10% would respond to multimedia advertising while 20% would respond to a sale (Appendix 1). According to these results, the majority of the market would respond to measures affected by push tactics (displays and informed sales staff). Culinarian implements a push strategy by having sales visits (12 per year versus competitors’ 6 visits per year), having a higher retail margin for its products (52% versus competitors’ 48%), and using an incentive program for retail clerks. These factors create more informed retailers and incentivize retailers to create Culinarian displays and sell Culinarian products. Culinarian’s limited pull tactics remain relatively ineffective. These involve a higher than average advertising expenditure (4% of sales versus 3% of premium competitors) and the lowest brand awareness for the high income target market. They should not focus so much on this tactic, as a low proportion of the target market is responsive to it. Price promotions are beneficial to a pull strategy because a significant proportion of the market would be motivated to buy cookware if on sale. After
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 with income greater than $75,000 would be more likely to shop for cookware at stores with attractive displays or informed staff. Only 10% would respond to multimedia advertising while 20% would respond to a sale (Appendix 1). According to these results, the majority of the market would respond to measures affected by push tactics (displays and informed sales staff). Culinarian implements a push strategy by having sales visits (12 per year versus competitors’ 6 visits per year), having a higher retail margin for its products (52% versus competitors’ 48%), and using an incentive program for retail clerks. These factors create more informed retailers and incentivize retailers to create Culinarian displays and sell Culinarian products. Culinarian’s limited pull tactics remain relatively ineffective. These involve a higher than average advertising expenditure (4% of sales versus 3% of premium competitors) and the lowest brand awareness for the high income target market. They should not focus so much on this tactic, as a low proportion of the target market is responsive to it. Price promotions are beneficial to a pull strategy because a significant proportion of the market would be motivated to buy cookware if on sale. After