Culinary Cookware Case

Case questions:

1. Outline 3 reasons why Culinarian should run price promotion?

Reason for Culinary cookware to give promotional price :

• Culinary cookware strategic priorities is to widen distribution network and increase the
market share of premium category product and hence boost sales, this can be done
by giving price promotion so that more demand is created in that segment and the loyal
customers would go for upgradation if they get attractive promotional price

• Culinary cookware happens to be leader in premium product category but is not a major
player in mid level and low- end cookware products so giving price promotion in products
other than premium category can increase the customer base for the company in mid level
which in turn will be profitable, because it is seen in 2004 that giving promotional price to
customer had a positive response as their sales grew.

• Culinary cookware post analysis of price promotion via warranty cards showed that approx
70% of buyers felts that they made this purchase decision due promotional price offer. This
helped the firm in market penetration

• Culinary cookware even after giving 20% promotional price ,the retailers had the
opportunity of earning 48% commission on the sales of culinary products which is
equivalent to gross margin of its competitors Le Gourmand and Robusto Merchandise.

2. In what ways can Culinarian maximize sales of slow movers and popular items?

Culinary cookware can increase sales of their slow movers and popular items

1.Giving reasonable promotional price offers which will attract new customers thus increasing
customer base in slow movers and price promotional in popular items will persuade loyal buyers
to switch for upgradation.

2. Culinary cookware spent 4 % of sales in advertisement, but this budget was mainly spend in
building brand image nation wide ,as a result they are forced to limit their promotional price offers
which could have increased their customer base and in addition to that the firm should go for
localized target advertisement which could bring more sales.

3. Digital marketing can be used effectively ,customers looking for cookware can be targeted with
help of cookies and can be given promotional price which will persuade them to buy the product.

4.Company can give free product with their product as it is seen that customer response was
increased by 15% when company offered free product. Such product should be bundled so that
retailers don’t face inconvenience.