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SHORT TERM STRATEGIES

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Leveraging on premium ySmall market share? ycullinarian is a market leader in the yYpkeep image and status of
brand image yLoss of sales and revenues from premium cookware market being a premium brand
lucrative lower-end products that
could be sold in higher volumes ycannot compete with major market
leaders in mass market as well

Maintain all current prices y£
cited price as the most yThis £
could be referring to the yAble to capitalize on the high-
important criterion in selecting more price-sensitive customers who spenders͛ market
cookware may choose to go for the lower-end yLess volume but higher prices =
products higher margins and revenues?

yè
cited price as the least

important criterion- Possibly less
price sensitive customers who could
better afford higher-priced
premium products
Stop price reduction yMay lose out sales on the 2
yÔilling to forgo this group of price- yStops hurting brand image
who would ͞wait for sale, then go sensitive customers
there to buy͟ consumers

Non-price promotions: Gift yMight increase inventory holding yclose competitors LG and Robusto yRestores retailers͛ enthusiasm
with purchase costs for the gift products never ran price promotions but and reduces ambiguity
yStores͛ confusion about how many often ran promotions that offered yLoss of revenue that might have
of the gift orders to order gifts with purchases been incurred with a price
yGift products may take up too reduction would have been
much valuable floor space without yIf the competitors can be successful translated into cost incurred for
 generating any associated revenue in their non-price promotions, so the free gifts
ycopycat? (Ôho cares?) can us! (remember that we are the yIncrease in sales and revenues
market leader)

yconsumer feedback showed

enthusiasm for programs that
offered a gift with purchase- sales
for the promoted pieces increased
an average of è
each time a gift
was offered (Pg )

yAssumption: Own warehouse; will

send the gift to the consumers
directly when they post their
warranty cards

y2
would be motivated to buy

because of a free gift with purchase
Advertising strategy based y yShowcases strengths and yEnhances product benefits-
on quality and features competitive advantage patented technology
yAble to showcase differentiated
features
Product placement in yIncurring possible high costs yProfessional status of celebrity yHigh visibility of products
cooking shows/ yNo guarantee that the cooking chefs could elevate the prestigious yIncrease brand awareness and
competitions shows are going to be successful status of the cullinarian brand exposure
yPossible backlash yAudience can relate to the
Get famous celebrity chef yProfessional-looking factor was celebrity chefs (esp so for the
to introduce cullinarian in ranked #7 in importance to the è

who purchase cookware
his book/ cooking show consumers seen on television cooking
shows)
Stick to higher-end yMay lose out on the £2
who yPlacing products in the mass yAlign distribution policies with
marketing channels purchased their cookware in a merchandisers outlets and image of a premium brand
mass merchandise outlet and 29
departmental stores could ypisplays expertise in a premium
in a department store downplay the brand image of brand
 cullinarian being a premium brand
ycan better focus on the 2
who
preferred a full-service store with
an informed sales staff

ycapitalize on the small pool of

experienced sales force planted in
the specialty stores (gives the brand
its personality of one who is
passionate, attentive and caring for
those charged with its products) -
may have to employ more
salespeople who might not be able
to achieve the same results and
even cause sales to backfire

ycapitalize on the successful

relationships with the retailers ( 2

margin as compared to 4

than
that of competitors)

LONG TERM STRATEGIES

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Introduce new line PROX2- yAsethetic pesign and colour were yRespondents ranked (è) Quality, (2) yAble to capture a larger market
to allow customization and ranked at the bottom as factors of Features as the top 2 factors and hence stave off competition
personalisation consideration to the consumers and place further dominance in
y2
would look for cookware that the market
͞matched͟ the current décor in yPotential YSP
their kitchen

ycould be marketed as a good gift

 choice:
either received
cookware as a gift or purchased it as
a gift

y͞growing trend in premium

cookware was the offering of
colored designer cookware that
matched kitchen décor and product
lines͟

Engage in R&p to improve yIntensive research needed yÔould be able to generate high yeep up with technology
technology and products yHigh expenditure returns when new products are advancement
proven to be profitable yStay ahead of competitors

yeeping the brand fresh

yYpdate the product line lest it

becomes obsolete

Product line extension yIntensive research needed yÔould allow cullinarian to market yGreater dominance in the
(premium cutleries that yHigh expenditure itself as a complete culinary solution market
match cookware and decor) yNeed to expand their knowledge yPotential YSP
of the materials needed to yÔould be able to generate high
produce the support items and returns when new products are
where best to purchase them proven to be profitable

yAllows cullinarian to compete in a

newer markets and frees them from
the very tight and saturated
cookware market


  

 "& !""  (&  %%"% "
'&$
!$$"&
Price Promotion/ yEven though PROXè does not have any yPROXè suffered a decline in yIt is clear that there is erosion of
Reduction on pXè/cXè sales promotion in 2 (there was sales sales from Spring 2 4 brand image following the
promotion for all other brands), there was a onwards- (££96-27è in lowering in prices
decrease in sales for PROXè Fall; 47 4-£  6 in Spring)
ycould further hurt brand image in
yHow do you know that sales increase is due yIn the case page 2, Market cullinarian cookware being a
to sales promotion? Overview, first line, it was ͞cheapo͟ brand (Lowering
written that sales growth overall brand image)
ySurge in sales for cXè in 2 4 due to sales has increased overall from
promotion However, in 2 , sales 2 2 ʹ 2 6 yPotential negative impact on
dropped to 2 42£ Is it because the premium product lines
retailers have already stocked up in 2 4
and hence, there are still leftovers in 2  yLack of manufacturing capability
y
Move PROXè/pXè to a ycullinarian is a market leader in the yMarket share of premium yLose competitive advantage
new brand (Multi- premium cookware market cookware:
branding) - cullinarian- 6
yLose competitive footing in the
yÔill be difficult to compete the other two - LG- 4
premium cookware market
strong competitors, Le Gourmand and - Robusto- £

Robusto
Start a new brand in the ycullinarian is a market leader in the yMarket share of premium yPossible cannibalization with
premium market premium cookware market cookware: current premium products
- cullinarian- 6

yÔill be difficult to compete the other two - LG- 4
yLow degree of acceptance for
strong competitors, Le Gourmand and - Robusto- £
new products amongst
Robusto consumers
yLack of recognition for new brand y
believed they would
favor a brand they
recognized (pg
)
prop pXè/cXè ypXè and cXè are the ͞cash cows͟ to the y@ased on 2 figures yLoss of revenues for cullinarian
company; contributed 4 times as much (exhibit 4) on ͞cash cow͟ products
revenue as compared to PROXè and SXè

prop PROXè/pXè ycullinarian is a market leader in the y@ased on 2 figures yLoss of revenues for cullinarian
premium cookware market (exhibit 4) on ͞Star͟ products

Entry to mass retailers ypifficult to compete with strong yOften ran regular price ycould further hurt brand image in
competitors Star chef and itchen Select promotions cullinarian cookware being a
who are already top low-end ͞cheapo͟ brand
manufacturers ypifferent target segments

yHave to build up relationships from scratch

Remain status quo yMight keep losing market share y yNo risk of lowering brand image

ypecline in sales and revenue yThe easiest solution

yNegative impact from competitors yNo extra cost to the company

y y y

y y y

y y y